Businesses are constantly bombarded with different marketing strategies, channels, and plans. It may feel overwhelmed to try out a new advertising strategy. But there are so many reasons why affiliate marketing is suitable for business growth; they are:
Pay for conversions and sales
With traditional pay per click advertising, businesses are charged per clicks and leads sent to their website.
Then this leads needs to be converted to paying customers or clients, and there’s no guarantee that the leads will convert.
But with affiliate marketing, you only pay out when sales are made. You don’t have to worry about an ineffective campaign, as that wouldn’t affect their budget. Whereas a low PPC campaign that sends a business a low-quality leads still has to be paid for. Even if there was no conversion at the business end.
Paying for conversion rather than for clicks ensures affiliate marketing is a low-risk form of marketing.
You won’t be using your marketing budget to create leads that need nurturing. Instead, you will create direct buyers or clients who you can build a relationship with and upsell to at the right time.
Limited startup cost
Getting started with affiliate marketing requires some investment of time and money. But it’s very low compared to paying for ads and employing a team of staff to work with the business.
Working with a reputable affiliate network like partnerstack also takes the stress of trying to set up the program. Because they will guide and help you through the setup process.
What is Affiliate Marketing
Affiliate marketing involves an affiliate also known as publisher signing up in an affiliate program. This affiliate program is offered by a seller known as merchant or advertiser. Once the affiliate is accepted he or she will promote and sell the advertiser product or service on commission based payment method.
The affiliate promotes the advertiser product or service using a unique link or promo code. If any purchase is made using the unique affiliate link or promo code, the affiliate is paid a certain percentage of the sales.
Business-wise, it can be said that affiliate marketing is a way of increasing the sales force. This done by hiring people through a third party company that pays only following successful sales.
Affiliate commission differs from Business to Business, and affiliates can either be paid for sales, clicks, or leads. The commission depends on what the advertiser wants to achieve.
In affiliate marketing, a third party like PartnerStack called Affiliate Network handles all tracking, reporting, and payment to publishers. Some affiliate networks not only provide tracking technology, but they also offer self-service management or full-service management of a program.
How does affiliate marketing work?
To those who are yet to integrate affiliate marketing into their marketing plan, it may look confusing. But here’s a simple overview of how affiliate marketing works:
- An individual or company sign up for affiliate partnership with another company or business
- Affiliate partner (publisher) promotes business’ product on their site, email, social media
- The consumer then clicks on the affiliate link on the publisher’s website, email, social media, or youtube, and then cookies are stored in the consumer’s browser. This cookie is what makes it possible for the sass platform or affiliate network to track the consumer’s progress from the affiliate email, website, social media page, YouTube channel to the shopping cart of the advertiser
- The consumer is redirected to business website
- Consumer buys a product, or pay for a service from the business.
- The sass platform or affiliate network automatically pays out a commission to the affiliate based on the set rule by the business on sharing the commission.
How to attract affiliate marketers?
Getting top affiliates to sign up for business affiliate program is essential for business affiliate marketing success. But getting these top influencers to sign up with the business is not easy. Here are a few things business can put in check to enable them attract these top affiliates who can help scale up their marketing efforts.
Does the company landing page convert? The landing page plays a vital role in sales conversion.
Does the company have an attractive offer on the affiliate network? If they decide to use any of the affiliate networks, it’s vital they browse through the network to see other listings. This will help them know if their offer measures up with other offers. Also, they have got to ask themselves if they were to be an affiliate will they find that offer attractive.
Are the advertiser’s terms flexible? So many top affiliates tend to decline some affiliate offers, and this is as a result of the nature of the affiliate terms. And some of those turn off are a low commission, delay in payments, and a low selling price.
Are the business providing affiliates with good enough analytics tools?
Top affiliates don’t joke with their analytics, because they want to continuously evaluate their marketing strategy, source of the traffic. This information helps them to know what is working and what is not. So they need their analytics dashboard to be able to this.
But if the advertiser is going to work with an affiliate network, then they don’t have to worry about this particular function; they will take care of it.
Marketing is sturdy yet very essential to the success of any business. Affiliate marketing provides businesses a flexible approach that’s easy to manage and cost-effective.
If a company is still not sure if affiliate marketing is okay for their business, they should do a little research to see if there are businesses in their industry that’s using affiliate marketing to push their brand, I’m pretty sure that they will see a lot of them.
Final word, businesses can start small and scale up later. Affiliate marketing provides equal opportunities for everyone, whether startups or well-established brands.
Have you got any questions? Drop it at the comment box.