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It is a basic part of any business. A big portion of a businesses finances are allotted to advertising, to promote and market that businesses goods, whether it be a good or service. Without marketing, it is difficult to get new customers and make sales. When sales are slow, as they are in this slow economy, companies have less to spend on marketing which in turn slows down business even more. It is a destructive cycle.
Radio advertisements, even with a large audience (at sometimes during the day), are largely ineffective because listeners may easily change the station when the music stops. Classifieds in newspapers may work if a reader is looking specifically for your product or service. And television can be simply impractical for small businesses. With all of these, you pay high advertising costs and wait to see what results they may yield.
With most businesses slowing in this economy, many businesses should re-evaluate their advertising methods. The amount of money being spent may not be the only problem, if that's the problem at all. The medium that your business is using to advertise may be the problem. Internet businesses have many outlets to market and promote, such as forums, blogs, online classifieds etc. However, just like advertising in a newspaper, small businesses are struggling to not be outshined by big expensive advertisements by larger companies.
As anyone who has looked for marketing solutions online has undoubtedly seen, there are many "marketing firms" that guarantee X amount of visitors to your website for a low price. If your website were to receive 10 million hits a day, it all is worthless if they do not buy anything, or not even read your content. A lot of businesses who promise hits without any mention of performance, will simply make your site a pop-up and your "visitor" will not spend more than three seconds on your site in most cases.
Online businesses have an advantage over other traditional businesses in its ability to work with a sort of 'pay for performance' approach to there advertising. As a business, you would pay advertising fee based solely on how effective it turns out to be. This model has potential to better for both parties. If your product generates great revenue due to marketing, the website or wherever you implemented your marketing could earn more than a flat rate you would pay traditionally.
As this may be more difficult for traditional brick and mortar businesses, online business may implement an affiliate program into their businesses quite simply. Affiliate programs enable a business to have an unlimited amount of independent promoters who are paid a percentage of the sales they bring to your company. These independent promoters spend their own money on their marketing efforts, saving your business a great deal of over heard.
There are many businesses, that should you be able to find easily with a quick online search, that will set-up your companies affiliate program. The affiliate program has and will continue to be a must for online business with an online presence. You pay for sales and nothing else, after your business has one implemented, you will undoubtedly see a great increase in cash flow. And what business does not need an increase in cash flow?
