One way to broaden the reach for your products and services is to enter into affiliate relationships with individuals or businesses to sell your products on a commission basis.
Affiliate marketing is defined as a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.
This can be an effective way to broaden the market for your products.
Clearly, you do not want to pay commission for a sale to a firm that is already a customer and so your agreement with affiliates needs to be crafted accordingly.
This type of marketing touches on the advantages of leverage. By securing an agreement with an affiliate, you gain access to all their contacts. In this way your efforts in organising an affiliate relationship can be very productive, as you will only pay commission for a result, a sale or introduction.
To make your offer to affiliates realistic, you will need to calculate the current cost of securing a sale by your other marketing activities.