Why affiliate marketing alone will not help…
Affiliate marketing, one of the potential tool for E-commerce websites marketing is growing day by day as the e-commerce business is picking up. In India affiliate marketing is in nascent stage but growing as the number of online players are increasing and more & more people are researching and buying the products online.
Affiliate marketing is good and needed for increasing the overall business/ transaction from the website but banking completely on it and ignoring other traditional mediums such as Search engine optimization will not take the business to the next orbit. As a marketer and consultant working in this field, I observed that due to lack of budget or due to psychology of business heads of such e-commerce players paying commission on sales done by such affiliate partners seems a good strategy but I will call it shortsightedness to see the potential other digital medium can bring to your business.
To elaborate my point, Lets understand the roles of these mediums –
affiliate marketing is to increase your incremental conversions, as they help you get more sales but if one gets dependent on them without spending on other digital mediums or branding campaign, achieving good sales from affiliate is very difficult.
On the other Hand SEO is not only to increase the overall visibility of the website but a good optimized site can convert well at a rate of 1% or more, which is lower than the affiliate conversions but on the other hand you are not paying commission for the sale as well.
The whole point of the post is that every digital medium is worth investing and has its pro and cons, affiliate may work good for the E-Commerce companies but its not the horse that will drag your business to next orbit.