According to industry forecasts, by 2020, total affiliate marketing spending will reach $ 6.8 billion. Despite the growing prevalence of this advertising tactic, many brands are still not sure what exactly this type of advertising is, and how they can use it in their own plans.
Affiliate marketing is a method in which brands are combined with partners to promote their products. Enterprises exchange links to sites and receive a small commission for sales or web traffic generated by their content. Unlike standard ad placements, your brand is not responsible for the content when it is developed by partners.
There is a wide range of companies that can fall into the field of affiliate marketing, which makes the creation of a reliable and relevant network important for the development of modern brands.
Find out which collaboration options are right for you.
Before you start creating your own affiliate network, you need to understand what types of partners exist. Someone may be more suitable for advertising your brand than others.
Most affiliates fall into one of three categories: creators, individual marketers, and influencers.
Each group uses its own opportunities to promote your product. The best partners gather a certain audience that will be interested in your product. For example, if you sell simulators, someone who has a lot of followers on Instagram can advertise you well.
If a fitness magazine becomes your business partner, this will be another step opening new doors. The magazine can advertise gym products as the company wants. Advertisements, social media updates, or links within content may be potential channels.
You can adjust the intensity of communication
You and your own company should not feel overwhelmed by relationships with partners. Affiliate marketing software platforms such as LinkTrust provide a system that helps brands manage their affiliate campaigns.
These systems also manage payments and transaction tracking to further simplify your workload.
When choosing partners, you should focus on the enterprises that seem most suitable for your niche. Examine the audience for these collaborators and messaging tactics to determine if their image matches your brand. They are likely to be interested in promoting your products, as well as providing quality traffic to your site.
Make money by collaboration
Affiliate marketing is, ultimately, creating a win-win situation for you and your partners. Many use these opportunities as a secondary source of income, and some make it the main source of profit.
For example, a case study of Internet marketing company I Am Dawn-Marie showed how the CB Passive Income website earned its founder a commission of more than $ 12,000 for the first three months of operation. This happened thanks to the use of blogs, email marketing, landing pages and more.
Fair commission payment
Therefore, it is not surprising that many people want to become affiliate marketers and pay great attention to finding profitable partners.
As a brand, you must make your own collaboration program as attractive as possible. It starts with honestly paying a good commission, which is the industry average.
How does Amazon work?
The commission structure of the e-commerce giant is organized so that the type of product affects the remuneration. Video game commissions are only 1 percent; fashion products earn an impressive 10 percent commission. Other programs offer even higher commissions for affiliates that sell more products.
Before you promise someone a reward for a partnership, you need to calculate what percentage you can afford to give in order to engage in this marketing. Can you part with 5 percent of total sales revenue or 10?
We need to constantly seek profitable cooperation.
Even with the help of the online network, you should constantly look for new potential channels, trying to maximize the situation for your current partners.
To do this, you need to provide them with high-quality creative and advertising materials. You should make their job of marketing your products or services as easy as possible. The fewer actions they have to perform and the more conversions they see, the more energy they will have to promote your goods or services.
Keep up to date on your changes and take care of your image
Therefore, actively communicate with current colleagues when you add or change your product line so that they are always on time in the know about changes and do not lose their “face”, providing outdated information.
Be sure to prepare marketing recommendations related to your products in advance in order to avoid costly or damaging reputation misunderstandings.
Follow the activities of those whom you trust to advertise yourself so that their participation in projects that you don’t want is not reflected in your business.
Creating a strong network of affiliate marketing may require some effort, but once it is created, it will require much less time than your other advertising strategies.
Network Marketing Development
Affiliate marketing originated before the Internet, but it was the World Wide Web that helped to feel all its advantages. Today, this industry is valued at billions of dollars.
The partner promotes products through videos, banners, ads, links. The main criterion for calculating commissions is the fact of the sale of services or goods. The use of spyware, artificially scamming traffic, and other common forms of fraud have forced us to more strictly apply to partnership agreements and narrow down the scope of activities that are paid to real sales.
For the effectiveness of this system, you need to constantly select partners and increase their number. The larger your network, the higher your sales potential.
Using the commission payment system to encourage others to promote your products, you essentially create a modern version of the word-of-mouth system that will help to quickly increase the number of customers.