What Are The Advantages Of Performance-based Marketing
Performance-based marketing may seem like a risky venture for most companies – and indeed it is. Instead of getting paid an upfront fee, you are paid purely on the level of your results. In some cases, a client may not pay you at all unless your marketing strategy noticeably drives them to have an increase in sales.
Way to minimize risk
Putting in a lot of time and effort to potentially get no reward may be too much of a gamble for businesses that need a steady income. The way to minimize risk is to do one of two things:
a) employ a market strategy that requires minimal time and effort or
b) work with a client that’s certain to guarantee reward.
Pay per Click
What kind of marketing strategy requires minimal time and effort? Pay-per-click internet advertising is the most popular example. An internet ad can be produced quickly and efficiently and once distributed requires no further action. Your profit will be determined on how many people click on that ad. There are ways to maximize the chances of people clicking on the ad – for example targeting the right demographics at the right time that’s certain to receive the most visitors. And, of course, the ad has to be eye-catching to draw people to it. However, the process of creating the ad is not difficult, so you’re not left dispirited if the campaign gains you no profit. This strategy, therefore, is perfect for companies that want to take on a lot of clients, but don’t have the time or resources to run long and arduous campaigns.
Guarantee the Reward.
What about the second strategy of guaranteeing reward? You may think that no marketing strategy can ever guarantee the reward. Certainly, in a monetary sense, this is true. However, working with famous and established clients can almost guarantee you prestige, even if it doesn’t earn you money.
It’s this that lures many companies to pursue high paying affiliate programs. The opportunity of working with an already established successful brand can increase your marketing company’s reputation. By only having to pay for results, the successful brand that you are working with is also less likely to criticize you or leave a bad review if your efforts aren’t successful – as they haven’t lost any money. In some cases, marketing companies may even work with a major brand for free regardless of results simply for being able to boast about it afterward. For new companies that simply want the ability to boast that they’ve worked with a major brand or client, this type of marketing strategy can be the perfect solution.
Of course, if these affiliate programs do pay, the profits are huge. You may only need to work with one successful affiliate program a year to make a six-figure salary. But it is not recommended that you deal only with high paying affiliate programs. However, having an affiliate client alongside for steady work can help increase the motivation by having such a lucrative potential bonus to aspire to. If a staff is getting bored of everyday marketing campaigns, pursuing one of these programs may lift his spirits.