Business to business marketing has advantages over marketing to consumers that make marketing even easier. Business to business companies market their products and services to businesses rather than consumers in general. Some of the most successful businesses exclusively supply to other businesses.
This is one of the most lucrative business models possible today, and it has proven to be especially profitable when the business is conducted online. If you’re considering going into business providing products or services, then you'll want to look into operating a business to business company.
With online business to business operation and marketing, many of the expenses of running a traditional business are gone or greatly reduced. This positively affects all the other aspects of running the company. Less expense means less time spent managing the money going out, and more money for important things like business to business marketing and promotion.
No company will succeed without an advertising and promotion budget. And as many large, worldwide corporations have shown, the more money spent advertising, the more people become familiar with the brand. That breaks down into more customers and more profit.
A company that does its business chiefly online won't need the storefront that a traditional business does. And company that relies on business to business marketing wouldn't benefit from a traditional storefront anyway. Since traditional customers won't be coming in and out browsing goods or asking about services, the need for a traditional shop area is eliminated.
This drops overhead costs dramatically. There’s no huge warehouse or building to pay heating, cooling and lighting bills on, and no need for insurance to protect customers.
There’s also no need to pay a staff to man such a store, which eliminates many of the expenses associated with being an employer. An online company that chiefly exists through business to business marketing may still have employees and some expense, but the lack of a storefront will greatly reduce the costs associated with managing employees.
Now, money that would have been spent on necessities like payroll and utilities can be better spent business to business marketing and increasing the customer base. The expense of promotion is also lessened with this business model because it’s so much easier to identify a target market. There’s not as much need to figure out exactly which consumer to market to as there would be with most consumer products.
With business to business marketing, what it is that you’re offering to business automatically identifies your target markets for you. If you’re selling general business products like paper or office supplies, then your market is large and wide open, and you'd do best finding a particular angle to market your products to each specific industry. But if you choose a product or service that’s very specialized, your marketing research is simplified a great deal.
The internet is great for b2b marketing because of its word-of-mouth properties. While many of your customers will find you thanks to your business to business marketing and promotion, many more will because of social networking.
Many product owners wonder whether they should pay an affiliate to promote their product. While I think the answer is generally yes, there are exceptions to when you want to pay an affiliate.
You can only get so many people to come to your website on your own. Your pay per click resources are limited and you can only write so many articles and create so many back links before your time is exhausted. If you have an army of affiliates promoting your product, you simply will be able to make more sales. If your affiliates aren't poaching off of the sales you would make yourself, paying affiliates to market your product is a no brainer.
If you were selling chocolate chip cookies, each additional dozen cookies would cost you money to produce. But digital products are different. It costs you almost the same amount of money to produce one product as it does to produce a million. Therefore, why wouldn't you want to pick up low hanging fruit by paying affiliates to promote your product?
Additionally, once you get a customer, you can sell to him or her for life. If you have structured your product line correctly, you can pay an affiliate 75 percent of the original purchase price, but continue to market to that customer for the rest of his life without paying the affiliate any additional money.
Affiliate marketers are very good at their area of specialization or they wash out quickly. Some are experts at pay per click and know how to deliver traffic to your site that converts. Others put in the time to write articles that pre-sell customers on your product before they ever land on your page. Video marketing, forum marketing, and classified ads are other specialties of affiliate marketers.
So, are there times when it doesn't make sense to pay affiliate marketers? Yes, there are.
If you are only going to sell 100 of an item and you have 1,000responsive people on your personal email list, you will probably not want to pay affiliates. When you can sell out the subscription yourself, there is no need to split the proceeds.
Another time when you may want to consider not using affiliates is when you want to control how the product is marketed. When you open the product up to affiliate marketers, you lose control of the advertising process. Marketers could spam safe lists or classified sites and give your product a bad name.
Most product owners, however, find that the benefits outweigh the down sides of paying affiliates.
Clickbank is the most popular way to set up an affiliate program for digital products. Pay Dotcom tried to give Clickbank a run for its money, but hasn't taken off as well as the promoters hoped. You can also set up a script to run an affiliate program. The $7script and Rapid Action Profits are two scripts which let you pay affiliates.