Referrals by customers represent excellent leads. These leads have already been pre-disposed to purchase your product.
Referrals by affiliates can also be excellent leads. An affiliate could be a business or marketer with followers/customers that could use your product. The affiliate would refer their followers/customers to you. If they bought, you would give the affiliate a percentage of whatever their followers/customers purchased. You only pay a commission to the affiliate after a purchase.
Most lead generation marketing techniques, like direct mail or advertising, require you to pay in advance on the hope that it will produce customers. Your cost per lead is variable.
With affiliate marketing, you pay only after a customer pays. You don’t pay for leads. You only pay per customer. Your cost per customer is always a fixed percentage of revenue.
You could even have your customers become affiliates. For example, if a customer referred a friend, you could offer both of them 10% off their purchase.
However, affiliate marketing can be somewhat cumbersome to administer without technology to track and pay affiliate commissions.
The following short video will show you how technology can help you with affiliate marketing.
Please view Chapter 4 video and read additional information below.
Before moving to the next chapter, please prepare by conducting an initial assessment of your current business:
- How are you incentivizing customers to help you bring in additional prospects?
- How are you using partnerships and alliances to grow your business?