This blog will discuss the concept of affiliate marketing and how it is linked to word-of-mouth marketing. Word of mouth is marketing whereby people tell their friends about a product or service (or person) and the word gets spread around until it has spread to everyone. It is through word of mouth that we get to know the people who like our product, the people who might buy it, and the people who might buy it from us whilst offline affiliate marketing is a strategy that is used to promote a product and market it.
The affiliate marketing term is used to identify a type of marketing that uses internet marketing to generate sales. This strategy is used as a multi-step strategy that is done offline as well as online. This strategy is used to offer solutions to the offline problems of the target market. This strategy is used to promote the brand through multiple ways that include sales and marketing. Each situation is unique and so the methods used to market the product or brand may vary.
About Word-Of-Mouth Marketing
Word-of-mouth marketing is about having a “word-of-mouth” connection with your customers and is often used in the context of consumer trust, but the concept goes far beyond that. In fact, word-of-mouth marketing is marketing driven by people talking about your products and services with each other. This means that you are able to have a positive influence on their decision-making process. As such, it is important not to neglect your own brand – but not at the expense of getting your customers to tell others about you as well.
You need to build a relationship with people when they find out they like your products/services (and use them). If you want people to keep using you even after they have heard your message, then you need to be proactive and make sure that you are visible enough so that your brand/products/services can be found everywhere in the shops where customers go for their daily shopping.
How does word-of-mouth marketing work traditionally?
In a world where people have so many options available to them today, marketing is a tough thing to do. You have to work hard and spend a lot of money to get the word out about your product that you want it to be known by. And if you’re not careful, you may wind up with a product that gets lost in the mix and eventually gets forgotten about.
It turns out that word of mouth is pretty simple: people talk about your product or service. But what they talk about is different from how they talk about it when they don’t know you (or at least, not enough of them do). They also tend to talk about your product in ways that are more or less reliable (although it may vary depending on the age of the person who’s talking).
Word of mouth has been around for centuries. In some contexts, it’s even considered to be one of the most powerful forms of communication on earth — certainly when dealing with products that have extraordinary value (think razors or microchips) or products that are perceived as having extraordinary value (think Coca-Cola).
Word-of-mouth marketing is more important today than ever to small businesses. This is true for a number of reasons:
- The number of small businesses (both solo entrants and multiples) has skyrocketed over the last 20 years as a result of the Internet
- For many consumers, peer-to-peer networking has replaced local business networking or marketing events
- Increasingly, products are offered at competitive prices on Amazon and eBay
- The average age of consumers is now 40 years old, which means that we’re talking more to them than ever before
In these cases, word-of-mouth marketing can be a very effective tool for building awareness of your product and helping it stand out from its competition. Unfortunately, unfortunately, word-of-mouth marketing isn’t cheap. It’s not a direct cost either — it can be a significant indirect cost if you don’t do it well!
In the world of the internet, word-of-mouth marketing has actually evolved somewhat into affiliate marketing and influencer marketing, and it all revolves around the same principle. When we think about word-of-mouth marketing, the first thing that comes to mind is:
- How do you get people to tell their friends about your product?
- How do you put your product in front of people’s faces and then get them to tell their friends?
It seems like a simple question to answer: how do you get people to talk about your product?
With a little bit of digging and digging deeper, however, we find that it is not as simple as it seems. We find out that “word of mouth” marketing isn’t quite as straightforward as one might expect; rather, it is more complicated than many would have thought possible.
All the information we have on it comes from an early 2000’s study published by researcher Lee & Schuler (Schuler & Lee 1998). In short, they found that word-of-mouth marketing takes many forms — some more direct than others — but usually involves some form of communication between two or more parties in order for the message to spread within one or more “social networks.” These social networks include groups such as family and neighbors; clubs; schools; universities; and so forth. They also define a “social network” simply as “a group of individuals with sufficient proximity who communicate with each other in ways that result in sharing information among themselves (e.g., exchanging messages through e-mail).” The social networks around which they focus are called “social ties.”
As noted above, they use four main factors to determine if something is effective:
- The strength of the relationship between those involved in communication
- The degree to which each person will share information with others
- The level at which each person’s opinion influences others
- The support on which each individual relies for his or her opinion
They say these four factors are independent but interdependent and work together towards influencing one another (and this is true).
Word of mouth marketing is a powerful and effective way to build a brand, influence consumer purchasing behavior, and increase loyalty among customers. It can happen anytime, anywhere, and without any external intervention or costs. It’s simple: simply ask people to tell you what they think of your business — and make sure you listen carefully.
A certain amount of word-of-mouth marketing is useful and necessary for most businesses. But that’s not the same thing as a great way to market your product or service.
Why? If you think about it, word-of-mouth marketing is actually an inefficient way to promote your product or service. First, there is no clear mechanism to measure whether you are making sales through word-of-mouth marketing (which can be as simple as someone telling a friend about your service). It’s also not clear that word-of-mouth advertising has any real impact on the actual number of users who will use your product or service.
We can agree that Word of mouth marketing is one of the most powerful ways to promote a product or service. It is earned by the quality of the product or service more than any other marketing method. Businesses that use affiliate marketing also have high conversion rates as they have a direct relationship with the customers. That is why affiliate marketing and word-of-mouth marketing go hand in hand.
Introducing the sme365 affiliate marketing network
Affiliate marketing is also known as word-of-mouth affiliate marketing. It’s a form of marketing on the web that involves promoting products, services, and/or companies.
It’s a great way to promote your products and services without needing to advertise or be placed in front of all your potential customers.
I am currently advocating a new initiative in Affiliate Marketing for Singapore called sme365 Affiliate Marketing Program which is based on the idea that the best way for people to spread information around is through their social connections (friend network).
There are many ways to do affiliate marketing, but only a few really work. The most valuable way to be an affiliate is the word-of-mouth model. It works because word of mouth is a powerful force. It’s so powerful that when you use it well for your business, then it can generate neverending affiliate leads for your business.
Is Affiliate marketing legal in Singapore?
Affiliate marketing is not illegal in any country. These days government is more interested in the tax-evading aspects of affiliate marketing than the business model. A lot of countries are trying to tax the affiliate based on the sales it makes – And in Singapore, income from online activities that are undertaken on your own account for profit is taxable. This is especially if your activities are conducted repeatedly in an organized manner like how a typical business is being run. Such income is taxable regardless of whether the activities are undertaken on a part-time or full-time basis. Learn more here.