What is commission marketing
By Catalogs Editorial Staff
Commission marketing is a relatively new field that has grown with the internet
Most people have probably heard the word “commission.” Generally this is a term that is used when talking about the sales sector of the business world. Depending on the company, a commission is either someone’s entire salary or is a bonus that is lumped on top of their salary when they have made a certain number of sales or when a certain dollar amount is reached in sales.
Generally if this is the only way a person makes their money then it is a portion of every sale they make. Clothing stores are some of the most well known retailers that operate like this.
This particular type of sales system is set up to make it worth an employee’s while to sell as much as humanly possible because it will mean a bigger paycheck. Some companies go the extra mile and even offer higher portions of the commission once an employee hits a certain level.
Whatever the percentage is, most people know what they are getting when they are told they will be working under this layout.
Marketing, as most people know is really just another word for advertising. Of course, generally speaking, marketing is actually more than just issuing a couple of television or radio ads and calling it good. In this day and age, it is more about getting a company’s name or what they do out to the general public in any way they can.
So, what is commission marketing? It really is pretty much what you would expect it to be.
Commission Marketing, at its core, is just another kind of marketing that works for some businesses because they are able to reward their marketers when they see some real success.
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Commission marketing simply means that a company may operate under the constraints that they will not haul in their fee unless they can prove that their marketing operations have actually increased interest and revenue for their clients. There are plenty of ways people can market their clients, there is not some sort of limit in ways commission marketers can operate. In the 21st century most of these companies are looking for other ways to get the word out about their client than television.
Social networking sites like Facebook and Twitter are new and proven ways to get people to notice a company. The only problem with those kind of approaches is that it becomes harder and harder to know whether the actual marketing campaign is working and how to go back and pay the commissions. One key aspect of this particular type of marketing is that the commissions can only be collected during the time in which the company is working for their clients. Because of this advertising campaigns that can actually spread beyond the time frame in which a company can be hired becomes a bit of a problem.
Because of the time frame that is very important to this type of endeavor, sometimes this particular kind of marketing can be seen as more a way for a company to get their client on steady footing until they can handle the marketing and advertising all on their own.
A commission marketing company will provide leads and a series of approaches that the companies can take in order to increase the interest and revenue of the company without waging a full scale advertising blitz. The company will provide their client with leads that will allow them to get off the ground, without needing a full scale advertising department on their payroll.
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Quite a few companies who engage in this particular practice will also only take a commission or percentage of the revenue growth as their payment, instead of a lump sum that is agreed upon beforehand.
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