Kindle Affiliate Marketing

Affiliate marketing is basically a channel in which an affiliate promotes a company of services and products and gets a commission when the affiliate achieves a sale through his or her efforts. In the past, affiliate marketing was largely the work of professional advertisers with massive budgets; however, with the emergence of newer mediums like the internet and especially on the Kindle, affiliate marketing has been made available to amateurs and small businesses that have decided to try it out. This article explains how affiliate marketing works. Basically affiliate marketing is an affiliate-marketing channel where an affiliate promotes a company s products and services on a channel of the company s web site or blog and receives a commission when the affiliate achieves a successful sale through his or her efforts. The channel in which affiliates market their companies is called the affiliate network.

A large number of companies offer affiliate marketing as a channel for brand awareness and online sales. These companies pay commissions per sale that are paid to the affiliate. The payments may be in the form of a fixed amount or a percentage of the sales volume achieved. The payment is done on a monthly basis and commission rates and terms vary from company to company.

The most common reason why companies choose to use affiliate marketing as a channel for advertising their products and services is the relatively low cost involved. Brand awareness and direct sales are very important in growing any industry; however, the costs can become restrictive for some companies. Setting up a conventional advertising campaign can prove costly for a company. The channel of affiliate programs can help reduce the costs involved. The following discussion highlights how affiliate marketing can be used as a channel for advertising the products and services offered by a company:

o Launching a new product or service through an affiliate program provides a cost-effective advertising approach. There is no need for financial investment to launch these products and services as an affiliate. Underwriting operating agreement is not required and there is no capital investment required. The only costs incurred relate to customer relationships, and this channel of advertising generates significant customer loyalty, as well as increases the likelihood of repeat customers.

o It offers the best affiliates the opportunity to build a strong network of contacts. Most traditional media advertising sources provide limited advertising opportunities to affiliates. In addition to this, there is no guarantee of positioning for these affiliates with search engines, due to the large investment required for site promotion. Affiliate programs provide the best affiliates the opportunity to build a reputation for providing quality customer service and a consistently positive attitude about the products and services provided.

o It provides a means to test new market strategies. There is no cost associated with creating or enhancing promotional campaigns. This gives the sales channel a chance to test new ideas and formats with real audiences. The results can then be examined and used to improve future campaigns.

o It provides a way to enhance the reach of e-commerce content. E-commerce advertising has had tremendous success because it reaches target markets who are not typically exposed to conventional advertising campaigns. A growing number of affiliate marketing programs are being introduced that focus on providing targeted e-commerce content. This content can provide the basis for increased sales volume and increased consumer awareness.

As an affiliate marketing resource, Amazon helps those in need with a wide range of products, ranging from books to electronics, apparel to spa treatments. Their reach extends beyond brick and mortar stores, and includes over 75 million subscribers and growing. They offer a myriad of products that can fit any niche, including electronics, books, jewelry, clothing, healthcare, spa treatments and more. They have also developed numerous partnerships with other companies, creating a network of associates to sell their products. The extensive reach of Amazon allows affiliates to tap into a captive audience that is extremely responsive and interested in the kind of services and products that Amazon offers.