Affiliate marketing is a great way to make money for any company specializing in e-commerce. Assuming you have not heard of affiliate marketing, you are probably selling based only on the leads from your own marketing campaigns. This way, you only depend on the visibility that your networks generate. What if there was a way to generate leads from other people’s networks? How about paying for marketing only when the leads convert to actual sales? Well, that’s exactly what affiliate marketing does.
When you sign up for affiliate marketing, you get into a commission-based payment model with a retailer to promote and sell your goods and services. The advertiser (retailer) markets and sells your products through a unique link, and they get paid a commission only when the sale happens. In the business sense, it makes sense because you receive the service before you pay, and it can work alongside your other digital marketing strategies—think of it as expanding your marketing team.
Fundamentally, affiliate marketing is a risk-free way of improving traffic, increasing brand awareness, and generating more sales. That’s why 81% of brands now leverage the power of affiliate marketing, a statistic that continues to rise as more people understand the importance of this marketing strategy.
For small businesses, affiliate marketing offers a cost-effective and efficient way of building the brand and business. As we all know, building a strong brand is key to surviving in today’s highly competitive business environment. For one, when transacting online, clients prefer to deal with brands they are familiar with. It has been shown that even if there’s an unfamiliar brand offering the same product for much cheaper, they’d still prefer the familiar brand. In fact, 87% of consumers won’t interact with a brand without reviews or outside sources of credibility.
A strong brand helps build trust, and as such, it’s critical to improving customer loyalty. But more importantly, you need strong branding to take advantage of the synergies of affiliate marketing. Take SEO, for instance. If you were to work with a highly ranked partner, you could promote your site through their social media pages, blogs, and backlinks through their sites. When their audience shares posts about your product, you not only get new clients, you also grow your brand’s visibility.
Also, consider the case of influencers. Based on one study, half of marketers spend more than 20% of their total budget on influencers. Why? Well, to boost brand recognition, of course. Essentially, influencers act as brand ambassadors. They allow companies to reach consumers who trust the influencer as they have already established trust with them. With the influencer market growing, companies can easily expand their brand presence on various platforms.
Nevertheless, while affiliate marketing can help you with branding, it’s critical to be selective with your affiliate network. Your affiliate marketing program is only as effective as the people you choose. Don’t pick just anyone. Rather, have a vetting process in place to establish who works best for your brand. As we’ve established, this marketing strategy is all about boosting brand visibility. And an affiliate essential represents your brand image and reputation.
Therefore, whoever you choose to work with should align with your brand’s values. In addition, you should ideally work with affiliates who are experts in your niche. That’s because they already know how to get your product across. Plus, their audience is more likely to be interested in your product.
The bottom line is, affiliate marketing is an excellent way of developing and growing your own brand. It’s not only cost-effective and easy to run but has a positive impact on your brand as a whole. Whether your company is big or small, affiliate marketing offers the same opportunities for all sorts of companies. If you are struggling to generate leads and make profits, then it might be time to rebrand. And affiliate marketing can certainly help you achieve the results you yearn for.
This post was originally published on 3/4/2021 and updated on 9/14/2021 for accuracy and a larger scope of information.