20 Internet Marketing Mistakes To Avoid 20InternetMarketingMistakesToAvoid | Page 18

Mistake #12: Not creating an affiliate network
How does affiliate marketing work? It is an alternative to the regular supply
chain. So the way it works is that for a small business that doesn’t have
access to the bigger markets sacrifice their profit margins and have another
third party sell their products. In other ways think of it as performance
based marketing.
One of the most famous companies able to pull this off is Groupon, they
had one of the best affiliate marketing strategies on the net and contribute
to their explosive growth from 2008 – 2010. So you can totally build your
own affiliate network either through your own website or using a third party
affiliate marketer.
This is an opportunity that you do not miss. This is one of the best ways to
expand if you are cash poor company or newly started.
Another kind of affiliate network you can join is an advertising one. You can
pay commission on any traffic sent to you site that results in sales. The key
thing about affiliate marketing is the low set up cost, since the affiliate is
shouldering most of the marketing cost you are really in a low risk venture.