Archive for the ‘Marketing Definitions’ Category

How To Know Where To Advertise

Thursday, November 19th, 2009

This post is about understanding the various ways you can spend your money to generate new leads.

Before you spend you hard earned money to get sales leads, learn how each “pay-per” method works….

First, educate yourself on the terms used for getting new customers and save your money until you know how each one works.

Start with the basics. Diligently make a list of all the different terms used such as pay per click, pay per view, pay per lead, pay per action and so on. Perform searches on Google, Bing or Yahoo and read several definitions of each to understand the subtle differences between the meanings returned in these searches. After a thorough review you will find that the only real authority is the individual source you will be buying from, because each vendor offering a program has their own unique twist to the pay-per-whatever that makes or breaks their particular program. The sheer number of twists, turns or options is the reason why there are so many ways you can spend your advertising dollar. Spend it wisely only after you have a complete understanding of how each program works. If you check back through previous posts on this site you will find a list that enumerates the most popular free means of getting visitors to your site. They require a lot of work. But once you have established each of these free tools, you can progress through trying each of the different paid kinds of advertising methods to increase sales for your products.

Remember, in the midst of all the hard work you will continue to get barraged with the “too good to be true” sales pitches that really are “too good to be true”. The only way to a solid success is to build a broad base of leads using all the methods of substance and marketing to these contacts on a regular frequency. Repeated contact with the same basic message builds trust which over time makes it easier for the prospect to become a paying customer.

There is no one source of effective paid advertising for each individual niche. Each advertising method should have a place and a purpose in your marketing plan. Researching competitors materials and gleaning from that research what they use can suggest the right mix for your particular line. Every tool works to some degree and using the ones that bring others business can also bring you the leads essential to your success.

Tools for researching competitor’s sites is a subject for a different post.

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The concept of revenue sharing has been around for quite a while, long before the internet. But the idea of affiliate marketing has taken it to new levels, and become a staple form of advertising and bringing in business for all types of e-commerce.

Online merchants find affiliate marketing highly advantageous due to the fact that it presents little to no risk both for the merchant and the ‘affiliate.’ The way it works is that the affiliate earns a type of commission or fixed amount
based on the number of sales the affiliate brings to the merchant, either through on-line links on the affiliates website, or through email, blogs, rss feeds and many other kinds of on-line communication. Some merchants (only about 1% of affiliate marketing) use a cost-per-click remuneration system, which simply means that the affiliate earns every time an internet searcher clicks on an advert on their site or email. However, due to fraudsters taking advantage of this method (creating ad-ware, sending spam, or useless indexing sites) this form of remuneration is not preferred and
becomes too risky for merchants to use.

Affiliate marketing also bears no cost on the merchant in the original set-up; in other words, it costs nothing to place advertising banners on affiliate’s sites, and there is only a cost if a lead or sale has been generated (which is
advantageous for all.) Merchants also get to set the parameters, and decide on the incentive systems. Thus, it is a very inexpensive (but highly efficient way) to grow a business.

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Affiliate marketing is a broad term that refers to an on-line revenue share system, involving advertising and selling. It dates back to late 1994, when many e-commerce sites started employing the system and finding that it produces fantastic results. Currently, affiliate marketing is actually a serious player within e-commerce strategy.

When an affiliate joins in with an e-commerce merchant of some sort (be it a subscription service, a shopping site etc.) payment is received through referrals generated from the affiliate’s website by one of the following methods:

1)Pay-per click systems basically, the affiliate displays advertisements on their site and is paid when a customer or internet user clicks on that website.

2)RSS feeds or blogs and even personal sites can fit under this category. Blogging is fast becoming a staple form of marketing and promotion, and affiliate marketing partners well with this form of online communication.

3)Comparison sites and shopping directories: such as review sites or legitimate advertising sites.

4)Loyalty sites: this is when a reward system is in place via a cash back or points back system (or charitable donations).

5)Coupon sites: that focus strictly on marketing and promotions.

6)Email: to subscribers of the affiliate’s website etc opt in or double opt in. NOT spam.

7)A registration path: when a person registers with a specific site, be it for a newsletter or subscription, offers from other companies are represented and advertised.

8)Networks: there are many affiliate marketing networks. Some are set-up on a multi-tier or multi-level marketing format.

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