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Affiliate Marketing continues at pace!

Originally posted June 2004 - Updated May 2009

The UK Affiliate market was worth £3.82 billion in 2008, 22% up from 2007 (Source Econsultancy). Thus, Affiliate marketing is a VERY successful strategy for many online businesses.

To give you a practical example you could enlist a company or individual as an Affiliate to promote your products and services via a link from their website and/or other (pre agreed) online method i.e. Banner advertising, Newsletters, Online Forums or Classified Ads and pay them a commission for each form submission or a percentage based on the online sale.

Tracking technology exists whereby each sale or form submission made by referrals via an Affiliate is assigned to them automatically. At the end of a given month you access a report showing how many sales have been made by your affiliates and issue a payment based on the agreed sales commission structure.

We can offer an affiliate marketing system and there are also networks, whereby you as the website owner (otherwise known as the Advertiser) agree to allow a company or individual (the Affiliate or Publisher) to market your products/services via their website and agree a commission level for any sales made via this company or individual. These networks manage the whole process, in effect providing Affiliates and acting as intermediary. 

So here, once again you are paying for performance related results to what is in effect an independent online sales force.

The UK Affiliate Marketing Merchants Report 2007, published by E-consultancy in association with buy.at, is based on an online survey of 239 UK merchants carried out in August and September 2007.

The merchants surveyed cover a range of sectors, with Financial Services, Retail and Travel the best represented.

The report paints a picture of a thriving UK affiliate marketing industry set for continued and strong growth. On average, UK merchants involved in affiliate marketing drive 16% of their online sales via this channel. Furthermore,

More than two thirds of responding organisations (67%) are now getting more sales from affiliate marketing than they were two years ago.

Almost four out of five respondents (78%) say their organisations are spending more on affiliate marketing than they were two years ago, compared to only 7% who say they are now spending less. The same proportion (78%) said they expected to be spending more on affiliate marketing in two years' time.

Half of responding organisations expect to have more employees managing this channel in 2009 compared to only 4% who expect to have less employees involved.

Affiliate marketing is seen by merchants as the most cost effective channel for driving customer acquisition. The overwhelming majority of UK merchants (95%) say that it is either 'very cost-effective' or 'quite cost-effective'.

The next most cost effective channels are paid search and then email marketing which are seen as 'very cost-effective' or 'quite cost-effective' by 90% and 82% of merchants respectively.

We are offering an exclusive opportunity to expand your sales force via our proven affiliate system which manages motivated sales partners. Your organisation as the website owner remunerate these sales partners only AFTER they have made a sale and your organisation have been paid for it!

If you're interested in a great resource for easily managing your entire affiliate program, you need to contact us today by clicking Here and request a custom solution or visit TradeDoubler or Commission Junction for a managed Affiliate Network solution. 



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