Affiliate marketing is a large business and is a very good source of customers for larger web hosting companies that are able to offer very competitive commission rates for their affiliates. Getting started as an affiliate is free and easy in most cases, but it can be a very competitive market place from the position of an affiliate because you are going to be up against other affiliates who are going to be promoting the same web hosting businesses as you. In order for affiliate marketing to be effective you need to be willing to put in the time to develop your marketing strategy so that you are able to bring the customers in because the more sales you can make, the more commission you are going to receive at the end of the month. Different web hosting companies will offer different commission schemes, with some offering a flat rate for every product sold whilst others will run a tiered system that will reward you generously based on the value of each individual sale. If you are able to establish yourself as an affiliate then if you take the right steps, it can be easy to make a good amount of money from affiliate referrals.
Benefits to Business
The benefits to web hosting businesses of launching an affiliate program are great because it will provide them with another method of bringing in customers without having to pay for any direct advertising. Other benefits include:
- Large marketing base – an affiliate scheme can provide a web hosting company with a wide advertising base, allowing them to extend their target audience without any direct work because it’s the affiliates who will put in the work to bring in the sales for web hosting companies – the more affiliates a web hosting company gets, the better, as this will provide them with an even bigger advertising base and will make it easier for them to take on more customers easily
- No cost until sale is made – there is no direct cost to a web hosting company with affiliates until a sale has made and the product or service has been provisioned because affiliates are only paid per each sale and not a flat monthly rate, which is why affiliates have to work hard to achieve sales – the amount that a web hosting company pays its affiliates will depend on the commission basis that it has in place, with a tiered system based on the value of each sale being the most cost effective, although some will provide a fixed cash sum for each sale that is made regardless of value
- Improve company image – if a web hosting business has multiple affiliates that are promoting the business then this is going to be saying something about how good the web hosting company concerned is and so by setting up an affiliate program for its customers, a web hosting company is able to improve its image to the general public making it more interesting for potential customers – if there are multiple affiliate sites available for a particular web hosting business then this will encourage prospective customers to explore the options available.
Benefits to Affiliates
For the customers of web hosting companies that offer their own affiliate schemes, there are many benefits to be had from referring others to your web hosting provider in return for receiving commission for doing so. The main benefits of affiliate schemes to customers include:
- Easy way to make money – it can be easy to make money from affiliate schemes if you are able to market your web hosting provider in such a way that you are able to bring in a large number of customers through your affiliate URL – web hosting companies pay affiliates based on the number of sales that they make so if you want to make a good amount of money from being an affiliate then you need to be sure that you will be able to send a good number of prospective customers in the direction of your web hosting provider
- Good rates of commission – depending on the web hosting companies that you choose to promote, you will find that most are able to offer a good rate of commission which is what makes affiliate marketing a very attractive project path for many – two different rates of commission run generally, with some web hosting companies choosing to offer a tiered system that will pay out based on the value of an individual sale whilst more specialist web hosting companies may only offer one flat rate of commission, regardless of the value of the sale – the tiered system is seen as being the fairer option and is more likely to pay out more than a flat-rate system
- Wide range of services to promote – any good web hosting company should be able to offer a wide variety of web hosting services all the way from shared web hosting right up to dedicated server hosting – it is better to promote web hosting companies that can provide you with a large service offering because it increases your target audience meaning that there will be more potential to earn a larger amount of commission overall – smaller web hosting companies may not be able to offer so many different services, whilst larger web hosting companies generally offer higher rates of commission to their affiliates.
In conclusion, there are benefits of affiliate marketing for both the web hosting companies that choose to offer affiliate schemes as well as the customers that choose to take advantage of this by promoting their web hosting provider in a different way. Most medium and large web hosting companies will offer an affiliate scheme of some sorts, but if you wish to make a good amount of money from affiliate marketing then it is a good idea to choose the web hosting companies that can offer the most competitive rate commission because the more money you can earn per sale, the more you will be able to earn overall.