What is Affiliate Marketing?
Affiliate Marketing, also known as performance-based marketing, is marketing process where a brand collaborates various affiliates who promote the brand’s products and services in return for a commission on the occasion of a sale. Commission varies from brand to brand. The brand can choose whether to pay an affiliate for a sale, lead, or click.
The several types of affiliate marketing programs would include webmasters, search affiliates, bloggers, coupon sites, review sites, loyalty portals, incentive programs, e-mail marketing, partnership and business development, traditional media and big web properties.
Important Global Stats on Affiliate Marketing Trends in 2020:
Before we get into theoretical discussions, here are a few real-time statistics on Affiliate Marketing that will help you understand the importance and expanse of Affiliate Marketing in the current online marketing scenario-
- Expenditure on Affiliate Marketing is likely to grow by 10% in the upcoming few years.
- The Affiliate marketing sector is worth $12 billion and is still growing rapidly.
- Affiliate marketing takes up 15% of the gross digital media revenue.
- A well-devised affiliate marketing strategy can boost revenue by a margin of 30%.
- The 30% revenue boost is equivalent to 15%-30% of gross sales generated by Affiliate marketing campaigns.
- Combined with e-mail marketing, Affiliate Marketing has become one of the biggest sources of online income, which is about 16% of all the e-commerce orders in USA and Canada.
Affiliate marketing enables you to leverage the power of influence. You can partner with multiple affiliates and get a chance to reach out to a newer and wider audience. This helps you fuel your sales funnels effectively with considerable leads and conversions.
It does take time, effort, and well-devised affiliate marketing strategies to generate visible and quick results. Following is a list of the best Affiliate Marketing strategies that will help you do it right in 2020:
1. Select the Right Affiliates-
Affiliate marketing gives you a solid platform to exploit and utilize the power of influence for convincing people to buy from your brand. You have to choose affiliates that have an engaged audience that trusts them, if you want to influence the purchase decisions of your audience/ customer-base.
When you choose an affiliate to promote your brand, check whether it has a remarkable rapport with its audience and whether its audience-base is relevant to and likely to be interested in your offerings. Have a close look at the affiliate’s following, site ranking, authority and engagement.
You need to check every tiny detail to refrain your affiliate marketing efforts to go in vain. You have to make sure to gain maximum conversions with the minimum effort.
2. Leverage Sales with Coupons, Deals, Offers, Discounts and Promotions-
On of the best affiliate marketing strategies to boost sales is to leverage coupons and deals that customers are attracted to. Customers are prone to searching for sites with offers, discount vouchers and new deals, before they decide to shop any product or make a purchase.
They want to make the best purchase at the lowest price. Hence, they tend to make comparisons thoroughly.
Survey says that, before making a purchase, 97% of the customers look for a deal while they shop, 92% are ‘always’ looking for the best available deal when they shop, 56% customers are more likely to search a deal in 2020 than in 2019, and 80% customers are willing to go out of the way to get a deal.
Coupons work best for highly competitive markets, that include industries like beauty, travel, food, gadgets, etc. You need to make sure to design and manage your coupons wisely, because a poorly planned coupon could simply eat away from your profit margins.
If you want to make the most out your affiliate marketing strategies, go for collaborating with only a few high-quality sites. Check whether the affiliates rely on search traffic or do they have their own audience-base. Check the authenticity of the affiliate’s site and try using their coupon codes for a few popular brands that they show. If they don’t work, know that you shouldn’t walk that path!
3. Leverage the power of Niche-specific Influencers-
You will find several brands that choose to work with a huge number of social influencers and bloggers that are relevant to their niche/ industry. Influencers are always likely to have closer and more authentic relationships with their audience. Their audience trusts their brand recommendations and hence, they can easily convince them to purchase and use your product/ service.
When compare to coupon sites, influencers may to bring as much traffic as coupon sites do, but the audience you get access to is highly targeted and there are greater chances for that audience to be interested in your brand. These effective affiliate partnerships with influencers will help you boost your conversions rates.
Before you make you choice, you need to do your researchers on the influencers you have kept in your list of choices. Check few vital metrics that include reach, engagement, audience demographics, follower growth over time and alignment & compliance with your niche and brand value.
4. Create a Powerful and Strong Affiliate Network-
Avoid simply tapping into multiple affiliate networks and work to build your own network. The recruiting of your first few affiliates will definitely be difficult, but when you expand your affiliate network, it becomes a lot easier for you.
Make sure to follow and maintain a vivid to-the-point approach and inform your affiliates clearly about what they are required to do, how things are going to work, and the commission you will be paying to them. Maintain transparency to avoid future misunderstandings and trouble.
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Encourage your affiliates to recruit and join hands with more sub-affiliates. Offer them a small and reasonable commission for any sales that their sub-affiliates drive. You can later reward your most loyal affiliates with a higher commission rate to boost their spirit.
But do so, only after tracking the performance of every affiliate and analyzing the value they are bringing to your brand in terms of sales and customers. You can also give rewards like buying any of your products at the best price or one free product delivery every month. Companies offering the best affiliate marketing services can help you with this.
5. Leverage Affiliate Promotions via Multiple Sources-
Instead of just sticking to Instagram influencers and coupon sites for your affiliate marketing campaigns, put in time and effort to explore multiple sources to reach out to your audience. Implement a few affiliate marketing approaches to check if they are working for your brand.
A few valuable and effective resources that you can do for to leverage your affiliate promotions would include product review blogs, e-mail marketing, webinars, and YouTube videos.
Multiple platforms will help you drive the best results. You will also be able to analyze and identify which platform works best for your brand.
6. Product Page Optimization to drive Conversions-
Relying on your affiliate marketing strategies to drive conversions is okay. But, relying SOLELY on your affiliate marketing campaigns is not wise! Affiliate marketing definitely drives interested consumers to your page, but once they reach your page, it is your duty to not let your customers leave without making a purchase.
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Optimize your product pages for boosting conversions. Make sure that your site has a super-fast loading speed and you offer sufficient information to help your customer purchase the product they want. Display attractive and high-quality photos to grab the attention of your visitor. Your product descriptions must be engaging speaking about your brand and why your visitor should but from you. Also, you need to feature genuine customer reviews to build trust.
Optimized product pages boost your affiliate marketing efforts and strategies, retaining more customers.