One of the main goals of every business is to generate more leads and increase sales. And not only that, we all want high quality leads so that we see the highest return on our advertising investment. There are many ways to reach this goal and marketers often use multiple strategies – from sending email newsletters to running ads on TV. Some of these strategies are more successful than others depending on the industry, product, or service a company is offering.
In these days of the world wide web, having someone else promote your products or services is a great choice to capitalize on the advertising opportunities and boost your revenues. This is called affiliate marketing.
Affiliate marketers are experienced professionals who know exactly how to make a sale. Especially now, during the COVID19 pandemic, some industries, e.g. Nutra, have shown an extreme increase in online sales.
That said, if you own a product or service and you are looking to boost your sales – now is the right time to start your affiliate network and let the experts expand your sales!
What exactly is affiliate marketing?
Contrary to other marketing strategies, affiliate marketing is based on a commission model. Affiliate marketing is not just another marketing trend, but it exists in the advertising ecosystem, almost since the beginning of the internet. Let me tell you how it works.
What companies first think about when searching for ways to sell their product is to focus on media buying and to find advertising spaces that match their product profile so that they can reach their target audience. The risk behind it is that companies must experiment a lot: test different marketing material, strategies, spaces, etc. to find the best converting one. What makes this task even more difficult is that in some cases it’s also difficult to track the performance of each campaign.
Affiliate marketing is introducing a different approach. Advertisers (the product owners) can rely on the knowledge of specialists, called affiliates, to advertise the product on their behalf. Affiliates earn a commission for each sale, usually called a payout. The affiliates have access to various advertising spaces and they know exactly what triggers customers to take the action they need. They run all advertising processes themselves (like creating landing pages, banners, prepare the wording for ads, etc..) and optimize and tweak their campaigns to reach the best possible results.
Let’s assume you are the owner of a book and you are interested in promoting it via affiliate marketing. With traditional marketing, you would spend your budget on buying advertising space in various places ( e.g. websites, newspapers, flyers, etc. ) and most probably you wouldn’t be able to track which advertising spot is the best performing for you ( = brings the most sales ). With affiliate marketing, you simply need to set a commission fee that your affiliates are going to receive for each sale, give some basic guidelines to the affiliate marketer so that they can prepare the marketing material ( e.g. why would someone by the book, if there’s a special price, etc. ) and let your affiliates do the rest. And the best part? Affiliates know exactly how to choose the right target audience, what this audience is looking for, and the best way to promote your book so that it gets sold. They run the whole promotion for you, and you only need to worry about the product delivery, and of course about your affiliate’s payment.
So, who are these affiliates?
An affiliate is “anyone who possesses traffic”. It can be an affiliate network ( that works with various affiliates/publishers), an ad network ( that handles massive advertising spaces ), a webmaster ( the owner of a website, managing the advertising space of the website by himself and not via an ad network) or a media buyer ( a specialist buying traffic to promote other people’s services ). Anyone who has web traffic reaches customers and is willing to promote your product by making a commission can be considered an affiliate.
As in any industry, not all affiliates are playing by the book. You can come across affiliate fraud, meaning that your affiliate is trying to trick or your customers and get a commission without fulfilling their part of the deal. This is why it is important to work with companies/partners you can trust and those who have been in the industry for a long time, use reliable advertising methods and commit to a realistic number of sales.
Why would someone take the risk to promote my product?
Many advertisers are trying to understand why someone would decide to become an affiliate and get into all this risk and effort, knowing that they will ‘only’ get a commission. When done well, with the right tools and analysis, affiliate marketing can be a highly profitable business for an affiliate. It does require commitment and a lot of effort as a good profit can only be guaranteed by constantly optimizing campaigns, day by day. There are also countless examples of affiliate marketers who with effort and commitment managed to run successful campaigns over the years, generating high revenues every month, ‘just’ by promoting products online.
How easy is it to find affiliates?
Finding an affiliate is not a difficult task. What you need to keep in mind every time you start a collaboration with an affiliate marketer is to properly negotiate
- Terms and Conditions
- Payment Terms (how often payments need to take place, whether there’s a minimum threshold, available payment methods, etc.)
- Payouts (the commission the affiliate will receive for each sale)
- Right target audience
Keep in mind that rules and legislations differ per country and per product type – make sure to inform your affiliate about them and place them in the T&C so that the advertisement isn’t considered misleading and most of all, will not cause any issue to you as an advertiser.
As soon as you start your affiliate program, keep in mind the competition in this industry is fierce and you need to keep your affiliates happy so that they keep promoting your product. Other advertisers are also looking for web or mobile traffic and they are often willing to offer a better payout or a higher converting product to your affiliates and take the traffic from you. On top of that, don’t stop in your search for affiliate partners thus limiting your reach – the more partners you have, the more traffic sources you gain, the higher the chance for increased sales. It also works the other way – as soon as your product starts converting more affiliates will reach out to you to get a piece of this pie.
Last but not least it’s important to have a tool that will help you automate some of the daily tasks and also allow you to monitor your affiliate campaigns. Here is where vene dash can support you by providing an all-in-one tracking platform, including a list of useful features that will help you run a successful affiliate program, risk-free!
For any further questions, or if you are interested in a demo call, feel free to contact us.