Updated: Sep 16, 2019
Affiliate marketing is one of the fastest growing branches of online advertising. There is a reason - despite low own costs and a negligible investment risk, it allows many stores to achieve impressive financial results. What is affiliation and what forms of cooperation can you meet? What do you need to remember to become an advertiser? And finally - when is it worth joining affiliate programs? Learn from the article below. The most popular billing models in affiliate collaboration include:
Cost Per Click, in which the publisher gets a certain amount for each person who goes to the page with a given product or a dedicated landing page.
Cost Per Sale, i.e. the percentage from the value of the purchase made.
Cost per Lead - in this case the affiliate earns on every person who leaves his / her phone number, subscribes to the newsletter, completes the form or takes part in the promoted competition.
Mixed model, combining several systems at the same time. It allows the greatest freedom in specifying the terms of the contract.
Over 80% of e-commerce companies invest in this type of activities in affiliate programs in the USA.
Where can you place affiliate ads?
One of the problems that today's marketers have to face is the so-called banner blindness, i.e. the involuntary ignoring by the user of those elements of the website that look like advertising (which is increasingly putting into question - nomen omen - the meaning of programs such as AdSense) . Affiliate marketing, thanks to matching the content strictly to the interests of readers of a given page or website, is great for this. There are many places where our partner can place links to our website. The most common forms of affiliate marketing include product reviews appearing on the blog, which are usually based on a barter contract, and guidebooks. The unobtrusive form and the fact that the ads are targeted to the recipients of a given site mean that affiliate links generate one of the largest conversions.
All kinds of social media are also a great place where affiliates can encourage users to buy our product or visit a given landing page. An interesting Facebook post, instagram photo with a link in the description or a YouTube video will work especially if your target group is slightly younger years.
Another type of affiliate cooperation are price comparison websites or product search engines, in which owners charge a percentage of their purchase. Holders of extensive mailing databases, for example bloggers sending newsletters to their readers, have a chance to establish this type of relationship with companies.
One of the more expensive forms of affiliation is placing links on large news or opinion forming portals. Despite the relatively high costs of this type of activity, we are sure that our message will reach a large audience.
An extremely popular form of affiliate sales are also all kinds of discount codes, which customers can find on websites informing about current promotions or on profiles or blogs enjoying widespread trust of influencers.
What instead of the classic text link?
Standard refferal links, such as appearing in product reviews, are not the only way to attract potential customers to your site. Equally effective can be graphically attractive banners sewn in between paragraphs, a dedicated landing page, video films or matching widgets.
Your partner will know best what form of advertising will be effective for his audience, so it's worth determining together what the various stages of cooperation will look like.
Who is the most successful in affiliate marketing?
Affiliation is a win-win relationship from which both parties can derive unusually high profits. In the case of affiliates, the largest, even tens of thousands, monthly profits are achieved by people who can boast not only of a wide audience, but also comprehensive knowledge of marketing. Knowledge of SEO principles, the ability to create attractive content and an unconventional approach to social media are their greatest allies.
Advertisers who are particularly keen on affiliate programs include companies offering high-margin products and services, such as banks, mobile operators, jewelry manufacturers, and travel agencies. Online stores that specialize in the sale of clothes, electronics and home appliances, as well as bookstores can count on quite a lot of profits. Some companies are able to generate up to a dozen or so percent of total income through affiliation, so the game is definitely worth the candle.
What can you not forget when investing in affiliate marketing? Specialist tips:
Companies starting their adventure with affiliation often make many mistakes that may hinder cooperation with affiliates and, as a consequence, burn out part of the marketing department's budget. So I asked several affiliate marketing experts what they would advise people who want to be successful in this area. What did i find out:
Do not immediately rush into deep water - if your company is just considering an affiliate partnership with online publishers, give your employees time to learn about the specifics of this industry. It may be a good idea to join one of the many affiliate networks.
Experiment with trends - today's market is changing very quickly, and constant search engine updates and tightening regulations do not allow marketers to live in peace - notes Illia Koliadiuk, Account & Affiliate Manager at NutriProfits. Awareness of what marketing techniques are currently up to date and the courage to use them in your company will allow you to chase your competition away for light years.
Control and analyze traffic sources - this will help you react quickly in the event of any irregularities.
Take care of your publishers - keep regular contact with your partners, not only when you encounter temporary problems. Appreciate the most effective publishers by rewarding them with additional bonuses or gifts. This is one of the best ways to increase their commitment and loyalty.
Use alternative billing models - who knows, maybe in the case of a partner instead of traditional CPC, for example, Cost Per View will work better?
Keep your word - late payments or termination of advertising campaigns without notice is one of the most effective ways to discourage current and future partners.
Build a publisher network at an early development of the company - the sooner we start building our own publisher network, the faster it will start working on our brand and increase sales,
Appreciate the value of even a single partner - it may turn out that the owner of a niche blog, and not a popular thematic portal, generates the largest profits for you.
Build brand recognition and reputation - remember that affiliation is one of the elements of a marketing strategy that is useless in a situation where your company struggles with frequent image failures or a company site not adapted to the user's needs.
Be patient - affiliation is not used to achieve a spectacular effect in a short time. These are long-term activities focused on building lasting relationships in the long run. Therefore, patience and understanding are needed that intermediate stages must take place before the desired effects occur.