SmallBizResource Blog -- Business Know-How

Affiliate Marketing: More Sales Without More Products

Posted by Janet Attard, Courtesy of Business Know-How Thursday, Sep 4, 2008, 10:07 AM ET

If you've read much about marketing, no doubt you're aware that your first sale to a customer isn't the most profitable sale. The profit in most businesses come from repeat sales to your existing customers.

That's because marketing is expensive. It takes time and money to attract new customers and convince them to do business with you.

Once you get the customer, though, your marketing costs are significantly reduced. You don't have to buy advertising, buy leads, or buy a mailing list. You just send your mailings -- often e-mail -- to your existing list to let them know about additional products you offer.

But what if you don't have additional products? How do you make more money from the people who have made a purchase from you?

By referring them, for a commission on sales, to products and services that other businesses produce and are related to what your customer bought from you.

One way to find products to promote is through affiliate marketing services like Commission Junction, Google Affiliate Network, ShareaSale, and Linkshare, to name just a few of the places where you can find merchants with affiliate programs.

Another way is to look for a like that says "affiliates" on the Web sites of companies who have products that would sell to your customers.

Be sure you choose products or services to recommend based on their real usefulness to your customers, not on how much money you'll make by promoting them. If you recommend products or services that are inappropriate or just bad, your reputation and your business will suffer.

Business Know-How