November 18, 2016
Affiliate marketing is a great way to boost your online sales. Many established as well as new store owners leverage the power of affiliate marketing because it is a performance-based marketing module. There is no risk for marketers as they only pay after an actual sale is made. The graph shown below displays the total U.S. spend on affiliate marketing during the period 2007-2014:
Some of the potential advantages of affiliate marketing:
- It is a performance based marketing module; affiliate marketers are self-motivated professionals who make sure results are shown via the performance.
- It helps to broaden the operating field to market services. It is not just your audience rather their audience who rely on information and suggestions provided by these established affiliates.
- It is a cost-effective measure wherein the investment is not based on what services you get rather if the desired results are given.
- Brands establish an identity in the market by attracting diverse clientele which otherwise is not accessible to the marketers.
Here is a complete guide on how to set up your own affiliate marketing module and maximize its potential:
1. Find Niche Affiliates
The first step is finding suitable affiliates for your store. There are online sites where a simple search with the help of built-in search engine guides you to niche affiliates. Here is the list of renowned affiliates:
If you are not part of any affiliate group then you have to find out the niche business enterprise that caters to a similar audience as you. Ensure it is well established and reach out to it with e-mails.
2. Use Affiliate Tracking System and Work Upon the Commission Percentage
Two ways to set up an affiliate tracking system are: either join a network of affiliate marketers who are present on a single platform referred to as “affiliate network” or set up your own tracking system.
With an affiliate tracking system, you can find niche marketers who can help you optimize your marketing goal objectives. Some charge a monthly fee while others take the commission off the sales. The advantage of an affiliate network is that you need not lose sleep over maintaining the tracking record. The built in feature helps you track the amount of sales generated by the affiliates. This way, it is easy to distribute the commission off sales with no dispute whatsoever.
For affiliates, a special link is provided to keep a track of revenue generated through them.
On the other hand, if you are looking to build your own tracking system, services like Shopify offers a range of free apps along with a paid app. You can easily set up your own affiliate program to set up a tracking system.
For commission percentage, it is essential that you offer greater rewards while keeping a decent chunk off the profits for yourself. The higher the number of affiliates, the greater is the reach over a diverse audience. Marketers generally go for a 10-25 percent commission rate depending upon the quality of affiliate. The ROI with affiliate marketing is what makes it a benefitting strategy to venture in. With affiliate marketing, the focus shifts more to customer lifetime value and not on the commission.
3. Use Advanced Commission Structure to Drive in More Affiliates
Affiliates prove to be more than helpful in the case of special events such as an end of season sale or festive season when you want to drive more traffic to your website. At such times, you can override the existing commission percentage and apply inflated commission rates to further appeal to the affiliates. You can apply these special commission rates to single affiliates, all affiliates or affiliates with a specific custom tag. Or you can go for activity-based appraisal like traffic generation or product link generators.
4. Strengthen Affiliate Marketing Network
Lay down clear rules as “Terms and conditions” for affiliates to adhere to. In case of any dispute later on, these crystal clear terms and conditions help you get out of trouble with positive results.
Coupons play a crucial role in closing the purchase process. Traffic brought in by affiliates looks for incentives to make purchase. With an enticing coupon added, affiliates are sure to drive conversions with better results. It is recommended to use coupon discount codes on search engines like Mamma.com where the audience searches for coupons and offers. Having lots of coupon distribution sites as your affiliates will boost your revenue in no time.
5. Provide Banners and Engage with Affiliates
Give out banners of different sizes from which affiliate can choose the most appropriate ones. Your affiliate should be able to promote you without any hiccups. Also, provide your affiliates with social media sized banners. Offer social media copy along with e-newsletter copy to make sure promotion is as hassle free as possible.
Interact with your affiliates on regular basis. Keep them motivated and make sure you cater to their requirements if any. It is necessary to let them know about new products or promos that can help to entice the audience.
For a digital platform, it is necessary to cash in on every existing marketing strategy to generate better ROI. Affiliate marketing is a zero investment marketing module which is performance based. It pushes professionals to work that extra bit to achieve productive results that work in favor of eCommerce business enterprise.
Deep Ballu is a blogger by profession. He loves to talk about tech updates and is very social in nature. Writing is his first love. He is an amateur photographer by day and blogger by night. Give him a cup of cappuccino and he can talk for hours.