Online businesses that use e-commerce often want to increase their digital footprint. Affiliate marketing offers a cost-effective strategy companies can use to boost their sales. This involves working with third-party marketers to direct traffic to your website. Moreover, the third parties earn a commission depending on your agreement. This blog outlines essential information regarding affiliate marketing from a business perspective.
How Can You Pay Affiliate Marketers?
Businesses compensate affiliate marketers in several ways, depending on their agreement. However, unlike other forms of digital marketing, clients usually pay only after the contractors meet certain conditions. Common payment points in affiliate marketing include the following elements.
Clicks
This agreement requires businesses to compensate affiliate marketers whenever visitors click links leading to merchant websites. Your contracted affiliate marketer will use web addresses leading to your website as hyperlinks for their digital content. Another common strategy entails digital ads on websites. Every click earns the affiliate marketer a commission even though the visitor doesn’t purchase your product.
Leads
You compensate affiliate marketers only after you qualify visitors as potential clients. Leads differ from clicks because not all visitors stay on your website beyond the click. Thus, affiliate marketers using leads as their performance measure require tailored content according to potential clients’ preferences.
Sales
You compensate your affiliate marketers a commission from every sale arising from their platforms. Businesses using this model may agree with their contractors on a fixed rate or percentage of completed sales. For example, affiliate marketers may receive 5% of sales from their leads.
What Are Common Types of Affiliate Marketing Platforms?
Many people assume blogging to be the primary affiliate marketing channel. However, businesses can contract affiliate marketers specializing in different platforms to increase customer reach. The main platforms include the following.
Social Media Influencers
Businesses can benefit immensely by including social media influencers in their digital marketing campaigns. You can tap into their loyal fan base, converting them to leads and sales. However, ensure you contract influencers who align with your brand.
Blogging
This is perhaps the most known form of affiliate marketing, especially in the digital age. Bloggers post content with hyperlinks leading to your e-commerce platform. Contracting bloggers may help your business tap into niches that would otherwise be expensive to penetrate using other marketing strategies.
Email Lists
This is an older affiliate marketing strategy in the digital era. Marketers create a database of potential clients to whom they send tailored emails with links leading to your online store. When using this option, select affiliate marketers who comply with consumer protection laws. Otherwise, your brand may suffer negative publicity.
Media Websites
Media agencies offer affiliate marketing services to monetize their core business function: being a news outlet. You may benefit from using media websites for affiliate marketing because of their large digital footprint. However, choose media websites whose reputation and culture align with your brand. You likely do not want any association with a media agency known for clickbait.
How Can You Choose the Best Affiliate Marketer for Your Brand?
Always choose affiliate marketing programs that complement your business and its objectives. Otherwise, you risk a negative ROI. A common mistake many companies make is choosing affiliate programs based on popularity or daily traffic.
Whereas you might want to choose popular bloggers or influencers, you should want a program that resonates with your demographic; otherwise, you risk little to no sales generation. For example, don’t use a blog focused on senior citizens to market products like vaping pens or skating boards.
Businesses should incorporate affiliate marketing into their digital marketing strategies to reach wider audiences. However, affiliate marketing is only effective when you understand what it entails.
Interested businesses may consult Grow Team for professional advice regarding affiliate marketing. Our representatives will assess your digital marketing objectives and recommend suitable programs that align with your brand. Get in touch today.