Word-of-mouth marketing is by far the most cost-effective
form of advertising a business can have. Statistics
demonstrate that the average person has at least 350 people
in his sphere of influence. Granted, the average person is
not going to talk about your business to all 350 people
they know, but having them talk positively to even one can
translate into a powerful, free ad that has a great return
potential for your business. A friend telling a friend or
acquaintance about your business is a bit like pushing a
snowball down a hill. One friend tells another, who tells
another, who tells another and soon, you've gained a
valuable customer or two.
The psychology of affiliate marketing
Think about it. Would you be more likely to go to a new
restaurant you saw advertised in your local paper, or go to
a new restaurant recommended by an acquaintance or friend?
Most people choose friend. Why? Even in an
acquaintance-type relationship, there is a level of trust
that has already been established. There is psychological
value that stems from getting information from another
person. We tend to believe that "real" people have our best
interests at heart. Enter affiliate marketing. Affiliate
marketing can be likened to word-of-mouth marketing via the
internet. Although this is not strictly the case, there are
similarities that do exist. Affiliate marketing is a
marketing practice in which a business rewards people
and/or other entities for creating customers or sales for
that business via affiliate's marketing efforts. In
essence, the affiliate is spreading the word about a
company's product or service, usually using the internet.
Capitalizing upon word-of-mouth marketing
Referral fees have been standard in business practice for
years. Affiliate marketing simply capitalizes on the
concept, while expanding it to a world-wide marketplace.
It's the electronic commerce version of the traditional
agent/referral fee with a twist. Businesses have taken the
concept of revenue sharing and answered the question,
"What's in it for me?" Because you no longer have to be a
marketing or advertising executive with a degree and a
slick campaign to cash in on the World Wide Web, companies
now have access to an affiliate's sphere of influence - an
affiliate can be anyone with time, access to a computer,
and a passion for promotion.
Affiliate marketing could be viewed as taking word-of-mouth
marketing to its outer edges. Often times, an affiliate
marketer has what could be deemed as an acquaintance-type
relationship with the person to whom he is promoting a
product or service. This means the affiliate has attracted
a database of warm leads who are looking for a particular
type of product or service. Because of this "soft"
relationship, affiliate marketing may seem to be less of a
"sales pitch" to the consumer than traditional types of
advertising. While this is not actually the case, it shows
that affiliate marketing with its word of mouth twist is
highly effective.
----------------------------------------------------
Christian Fea is a Collaboration Marketing Strategist. He
empowers business owners to discover how to implement
Integration, Alliance, and Joint Ventures marketing tactics
to solve their specific business challenges. He
demonstrates how you can create your own Collaboration
Marketing Strategy to increase your new sales, conversation
rates, and repeat business. He can be reached at:
http://www.christianfea.com