Digital MarketingStrategiesBrand Building Now A Small Company Reality

Brand Building Now A Small Company Reality

Amazon was one of the first dotcoms in the world to recognize the value of affiliate programs, starting a flurry over similar programs. The key problem is that affiliate programs promote the affiliate owner, not necessarily the "affiliatee." But you shouldn't promote other sites unless you really stand to gain. Martin tells you about a new concept that offers web sites a neutral shopfront and all products relevant to the site. You promote your own brand name rather than an affiliate owner.

Amazon was one of the first dotcoms in the world to recognize the value of affiliate programs. During a mere 18 months, Amazon teamed up with more than 100,000 affiliates internationally, starting a dramatic fight between most major dotcom companies to establish similar programs.

Affiliate programs allow companies to promote and sell their products from host web sites. Thousands of web sites sell Amazon books, for example, and for this, they receive a small commission.

To the consumer, affiliate programs are like Coke machines. If you want a large selection of drinks, you go to the supermarket. If you buy on impulse, a conveniently placed Coke machine offers a limited choice.

But as successful as affiliate programs have been to date, there are signals indicating that this is about to change. Yes, big companies reap big added value from entering affiliate setups. But what about other players in the SME (small and medium sized businesses) segment? And what do the affiliates gain from the arrangement besides a small retainer?

The affiliate concept demonstrates a major problem – a problem which is producing a new-generation affiliate idea.

Being a part of an affiliate program is valuable only if the traffic on the site is high – really high! The top 10,000 sites belong to this category. But for low-traffic sites, the affiliate story is different.

The key problem is that affiliate programs promote the affiliate owner, not necessarily the “affiliatee.” It’s like having a store and displaying “Please leave our store” signs whenever a customer wants to buy anything: I spend time on your site, I want to buy something, you ask me to go to Amazon. Which site do you think I develop a purchasing relationship with? Yours or Amazon’s?

The affiliate program goal is to have customers stay at the site for a substantial period and return often. In some cases, the goal is to earn money, too. But the issue is that you shouldn’t promote other sites unless you really stand to gain. This is a major reason for the appearance of a range of Internet concepts that handle affiliate program problems.

Nexchange.com is one of them. It offers web sites a neutral shopfront and all the products which are relevant to the site. Under this concept, you don’t promote an affiliate owner, you promote your own brand name. You “rent” the framework (technology, etc.) and put up the signs yourself, then just choose what products you want to promote, under your own brand, at your own site.

This first stage of second-generation affiliate programs opens up new opportunities for SME businesses which have never had the possibility of handling e-commerce. Brand building for big companies, using affiliate concepts, has suddenly become a reality for small companies too!

Related Articles

Four tips to make the most of marketing attribution

Data-Driven Marketing Four tips to make the most of marketing attribution

1w Tereza Litsa
The rise of marketing attribution and the benefits for marketers

Data-Driven Marketing The rise of marketing attribution and the benefits for marketers

3m Tereza Litsa
The three reasons CPG brands can't ignore ecommerce

CPG The three reasons CPG brands can't ignore ecommerce

5m Al Roberts
How financial services CMOs should approach regulation

Digital Transformation How financial services CMOs should approach regulation

6m Al Roberts
How are traditional banks competing for customers in a digitally disrupted industry?

Finance How are traditional banks competing for customers in a digitally disrupted industry?

7m Al Roberts
5 cross-platform automation tools to improve your team's efficiency

Collaboration 5 cross-platform automation tools to improve your team's efficiency

7m Tereza Litsa
Why banks are becoming customer-centric organizations

Analyzing Customer Data Why banks are becoming customer-centric organizations

7m Al Roberts
Five tools to automate lead nurturing in sales

Ecommerce & Sales Five tools to automate lead nurturing in sales

7m Tereza Litsa