Affiliate or performance marketing is among the most popular sales strategies, offering an economical and effective way of promoting your business. Many see online marketing as an inconsistent and costly means of attracting customers. On the other hand, affiliate marketing increases online traffic on your website and at the same time gives you the option to pay for only those visits which lead to sales.

The concept of affiliate or performance marketing is not new; still not many have clarity about how this program works and how it can benefit small and big businesses. In simple words, this form of marketing involves hiring affiliates or partners who promote your products and generate conversions and in turn receive a commission from you. Therefore, it develops a mutual relationship, between affiliates and merchants, which benefits both as the merchant is able to make sales and the affiliates earn commission.

The goals and needs of every business are different and the benefits of this marketing technique can vary from one company to another. If you want to incorporate this highly effective marketing technique in your business, then the first step is to determine if you want to do it in-house or outsource. Someone who has good experience in online marketing and an extensive network of marketers can do it himself. If this is not the case, then outsourcing is certainly a better option, as you can hire a professional who is experienced in carrying out various processes for making this marketing initiative a success. Moreover, managing this marketing program requires a lot of time. Thus it can become difficult for an entrepreneur who is already juggling various responsibilities to ensure smooth functioning of his business.

The next step is choosing an affiliate program to suit the needs of your business. As affiliate programs are designed differently to match the requirements of diverse client base, it is suggested to gather information about various programs in order to select the most appropriate one. To compete with other hundreds of programs, a customised program will work better for you by providing individualised attention of a dedicated affiliate manager.

Last, but not the least is tracking, which can also be termed as the backbone of this marketing program. Keeping a track of the activities performed by affiliates, as well as the results generated, will help you know if you are on the right track and if the payouts you are making are worthwhile. Access to a tracking platform is provided by agencies when you outsource your marketing program. However, if the program is being managed in-house then you can make use of available tracking software.

Online marketing has become common place these days. With innumerable companies vying for customer attention, it becomes difficult for merchants to create a unique place to showcase their products. This is where affiliate marketing comes into the picture, as it is highly effective in expanding your consumer base, besides the online marketing efforts already in place. Overall, affiliate or performance marketing can prove to be a boon for your business, provided it is used in a planned and diligent manner.