Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Alibaba Group Holding Ltd (BABA) Might Just Have An Edge Compared To Its Peers – Frank Ravanelli

A while ago, Alibaba Group Holding Ltd (NYSE:BABA) made its Wall Street debut with a bang. Not one to rest on past laurels, the company has a huge growth plan charted for the future. Performance Marketeer Frank Ravanelli explained how affiliate marketing would be the logical step forward for the company and presented a case study explaining it.

Alibaba jack ma BABA

It is clear that a strong economy translates into burgeoning e-commerce transactions. But what happens when the economy falls? E commerce companies will still do well due to their competitive pricing, which is advantageous for the customer and sustainable for the seller. So, in either case, online market places have a clear advantage over their physical counterparts. Alibaba Group Holding Ltd (NYSE:BABA) already has a healthy cash inflow from its public offering. Using improved online tracking and data analytics, the company is sure to profit through performance driven affiliate marketing.

“It is clear Alibaba Group Holding Ltd (NYSE:BABA) wants to partner with companies who can generate qualified traffic, including mobile browsing,” stated Ravanelli.

Alibaba already has an affiliate program in place for its consumer facing AliExpress portal. It has plans to expand its online empire outside the boundaries of China and to this end, the company has decided to strike deals with foreign retailers which is a much better strategy than selling its own goods in alien markets. It is imperative that Alibaba creates an international affiliate program by partnering with entities which already have a good local customer base.

But Ravanelli warned that the Chinese e-retailer must think twice before paying for a profitable deal. “If Alibaba Group Holding Ltd (NYSE:BABA) pays for partnerships at the inflated stock price value those target companies will have […] then it will take years to create any real value from such strategic investments,” he explained.

Any future profit that Alibaba might make from its acquisition would be nullified by the high price it had to pay to make the acquisition initially.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!