Free Access Plus Case Study Essay Sample
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Commission rates of the company and the company's competitors.
The commissions for this company depend on the volume. The more the brokers trade, the cheaper is the commission they get. The brokers for this company thus charge very little per the traded share depending on the volume traded. This makes it to cover these costs through very little gains. The methods used for the calculation may be pro-rata where different commissions are charged depending on the volumes of the traded shares. Some blockers may also use flat rates where the threshold of the volume reached is used as the base for the commission charges. This is thus very important for the affiliates in their marketing job because they are going to be encouraged to market more and more since at the long run they are going to gain. The competitors of this company include the Popup, PAv, and Boss X3.
Strengths and weaknesses of an affiliation program in this sector.
It is very important that this sector have an affiliation program because the program gas got several strengths to the company. An affiliation program gives the company several options for commissions. These includes per laid, per sales, referral, per click, or per affiliate custom commissions. When the program is used, the commission can be split thus making it easy for the company as well as the customers. There is an assurance that there is protection of fraud through the automation thus making the business to run smoothly without any loses that may be brought about by fraud. (Evgenii, P 2007) Affiliates are very much concerned with the correct recording of the leads through IP as well as the flash cookies and first party. The cookie duration is also well set through this program. It is also easy to get the full history of a transaction. It is an advantageous thing that many should have to be successful in marketing. (AffiliateSeeking, 2011) (Taulli, T., 2005)
Sales online are boosted through them and through this the business is made public thus making it to increase enormously. This way of marketing is very cheap compared to other marketing methods as many visitors the company gets are looked at as future buyers for the company because they are able to see the company's products online. Many merchants like this program because there is less expense unless sales are done and that in the web a company gain publicity very easily and can be used as an advertising tool for the company. Webmasters are also given a room to earn online because it provides business for them. The entire global community also gets a positive picture because of the information provided for them. (AffiliateSeeking, 2011)
The weaknesses of having affiliation programs are that it has made the web to be cluttered. This is because the webmasters have put very many links with an aim to promote products for the merchants thus creating a mess. Another problem is that some banner links that are put do not correspond with the themes of the website thus giving the public the wrong information. Unlike other displays for advertising, the affiliate marketing is not to scale. (AffiliateSeeking, 2011)
The kind of affiliation program company should use
The company should therefore run their own affiliation program where they will install some software in their website. This is very easy and less expensive to have their own software where new affiliates would sign in. the company there after will then give tracking codes to its affiliates as well as monitor their traffic. The affiliates will be at a position to also record the sales that will be made and tell the company the commissions that they need paid. This way, the company will be at a position to keep track of everything as they pay their affiliates often what they owe them. (Shawn, C., 2000) (Daniel, D., 1999)