One of the more recent forms of Internet marketing, incentive marketing company is also called incentive compensation or incentive monetization. If you're unfamiliar with the concept, watch out for the Motivated marketing that occurs when advertisers come to a business and offer a product in exchange for having their website traffic and/or sales tracking. Incentive monetization is when you compensate an advertiser (such as a website owner) for letting you use his/her web site and/or content for free. Why would any company do that? There are many reasons why companies would want their advertisements and content to be placed on other people's web sites and pages without charge for example, if the ads are relevant to the content provided on the page, or if the ad is a "lighthouse" that provides useful information about what's going on with the company, its products and/or services, and why people should purchase them through the website.
So how can an Internet marketing firm make money off of this incentive marketing offer? It's relatively easy and relatively straightforward, depending upon how large your client list is and how much traffic you're trying to drive to your site. The first step is for the webmaster to set up incentive marketing offers that will make it possible for him/her to get paid for each visitor who clicks on the link to the advertiser's site. There are several approaches to this, including pay-per-click (PPC), pay-per-sale (PPS), and cost per lead (CPL).
Incentivized Internet marketing offers a simple way for webmasters to start making money from their websites and businesses. Essentially, the webmaster creates content on his/her site, advertises it via online media, and in return, the webmaster gets paid when a visitor performs some action such as clicking on the ad link. That action may be something as simple as entering a phone number or mailing in an email address, or something more complex, such as signing up for a list or purchasing a product. All of these actions are then tracked by the Internet service provider or CPA network that the webmaster is a member of. The business owner makes money when they are able to successfully deliver the incentives to their customers.
The process of creating the incentive marketing strategy begins when a client is chosen. The client is a representative of the company who goes on to perform a specific action in order to receive an incentive. This representation might be in the form of free web hosting, email addresses, or other products or services.
Once a decision is made on who will be the recipient of the incentives, it becomes much easier to choose the best method of delivery. One of the easiest and most common methods of incentivized marketing is for the Internet service provider to pay the advertising network for each click. This makes it easy for the Internet service provider to find the best affiliates and offer the best incentives to them. There is another method that is gaining in popularity, however. It involves the affiliate marketer creating their own incentive product.
The incentive marketing product should be targeted towards a particular group of people. For example, if the marketing plan is to attract new parents to their website, parents would be more inclined to sign up for a program that offers them discounts on baby strollers. The same thing could be said for students. The incentives need to be relative to the group the person belongs to. If the parent is a teacher, there might be a coupon available for a high school teacher, but the same coupon would probably not apply to someone who was already married.
In order to make the most of an incentivized marketing plan, the marketing manager must determine what type of incentives they will be providing. Some companies will simply provide a discount to customers who buy a certain number of tickets. Others may require customers to visit a certain web site or complete a survey. Still, others might offer a cash bonus for every sale or a percentage increase over the customer's original order. The most successful companies take the time to identify which customers will benefit the most from their incentive programs and then design the program so that it increases sales for those customers.
It can be tempting to use incentive marketing to reward customers for making purchases. However, this approach should only be used in situations where the customer makes a purchase without being prompted to do so. This can include but is not limited to, a customer purchasing a product off of a website that the incentive marketing company has control over. Using incentives as a marketing mix will result in an increase in sales only when the incentives are used to encourage customers to make a purchase. The use of incentives should be reserved for events where the goal is to enhance a customer's experience by providing a superior customer service experience.