Affiliate marketing is the way you want to achieve higher business success. Do you sell VoIP call recording software for large companies? Or hand-painted pug statues for a very special client? Affiliate marketing has benefits for every business level, and not everyone benefits from it.
But is adding one more marketing channel really worth it? You already have Facebook campaigns, Adwords PPC and even hire a team of social media experts to increase your organic sales.
Even if you have these classic marketing methods, 52% of marketers use three to four different marketing channels, and that number is growing. It seems the more, the better.
Affiliate marketing is a financially sound tool that you can easily add to your kit.
Tired of putting costs into marketing that goes nowhere?
Marketing is about risk. You pay to make money. Technology has greatly improved the possibilities over the past decade. Marketing practices in the last century have been incredibly untargeted. How is something sold? We’re now obsessed with conversion rates and audience segmentations, but that’s still not enough.
After all the cost of getting your product on someone’s screen, there is no guarantee they will buy it.
Affiliates are low risk, highly targeted marketing. They can reach your target audience directly and make sure sales to the budget.
Affiliates want to be your brand ambassadors
Rather than trying to carve your own way onto someone’s smartphone screen, affiliates will do it for you. In most cases, they grab the attention of your potential customers with blogs or videos and you need to take advantage of that!
Even better, it puts you in the public eye when an affiliate is talking about your product. Having a third party advocating for your product works wonders – inbound marketing with a free PR boost.
This is obviously a huge benefit. When starting or scaling a business, positive communication is the cornerstone of acquiring new customers.
Affiliates are there. And they are waiting to praise their fans who admire your product. They are your ideal marketers for positioning, expertise, and paying only for successful sales.
Are you still sitting on the fence? Here are the four most effective ways affiliate marketing can benefit your business.
Benefit 1: Low-risk marketing
We touched on this above, but it is so important that it deserves repetition.
Affiliate marketing draws back from other people’s work, expertise, and target audience. And you only pay them when they succeed.
Let’s say it again. You only pay them when they make a successful sale. Normal marketing channels will never achieve a 100% conversion rate, no matter how skilled your marketer is. Typically, you pay for the chance for someone to click on an ad and buy it.
According to Smart Insights, the average conversion rate for social media channels in 2019 was 1.1%. That means 98.9% of paid clicks don’t result… nowhere. Money in the void.
However, referral traffic was almost three times higher at 3.0%. People buy more when they purposefully follow a link. Even better, with affiliate marketing, you only pay for 3% of the referrals that convert. The remaining 97% is free web traffic for your data analysis.
Less wasted budget and a big step towards improving conversion rate optimization. What more could you want?
It’s also possible that traffic from affiliate links helps optimize checkout pages. The final hurdle on the buying journey plagues online brands. Seven out of ten sales fail just before the customer hits the “buy” button.
The benefit of using an affiliate is that the customer journey begins with a positive lead. Affiliate traffic comes with endorsement from someone the customer trusts. It improves lead quality and takes advantage of all parts of the journey, including the dreaded checkout page.
Benefit 2: A healthy boost for your website
Search engine optimization. SEO. The grandfather of all website tropes. Either you’re an SEO expert who likes to climb Google’s index, or you’re probably just sick of hearing about it.
Good news either way. Affiliate marketing can help increase your SEO. Backlinking is a big part of proving to algorithms that your website is relevant. The more people link to your site, the more consideration should be given.
A link from an article ranking the best call center software of 2020 that directs business owners to your internet search product will help your website rise to the top.
Because affiliates will link to your product from their blog, Twitter, or Instagram, there is a lot of potential for backlinks. It reduces the mind-numbing work of searching for internet mentions and chasing after the owner to give you the right backlink.
Shares and likes on Instagram or any public forum where an affiliate post would also raise more awareness. More awareness and better SEO means more traffic, which means more sales.
Benefit 3: Wider horizons mean more safety nets
Success often depends on your acquaintances. In the dark and gloomy years before the Internet, connections were built only by face-to-face networking. Unlike today’s various corporate communications solutions, it was the only way to connect with potential business partners and people who could support you. Now, partners and favors are just a few clicks away.
Expand your horizons. Build partnerships with new people. Affiliates are experts in their fields and you should use their experience. Don’t be so proud of your current marketing strategies that you get caught up in new opportunities.
Usually, affiliate marketers have their own audience. They have the expertise to sell to their marketing niche. Combining their audience, their expertise and your product means everyone is a winner. You can also rest assured that they will do as effective a job as possible to ensure they get paid.
For example, consider Software Defined Networks. Modern companies already know how to successfully use an SDN. They jumped into the SDN rise in the late twenties.
The rapid adoption of SDNs couldn’t happen without the creators explaining exactly what they are.
A quick search will pull up hundreds of business blogs that explain and highlight their uses, all in a subtle sales style. B2B bloggers have the expertise to turn even the busiest statements into a successful sale.
Moreover, each affiliate you include is an independent stream. Every income stream you earn is another safety net.
Too many companies, especially startups, have very narrow sales channel strategies. They put their marketing eggs in the same basket. If you only have leads coming from one place, say Facebook, you are in a vulnerable position.
If the social media giant is offline even for a day, then (amidst the screams and panic in the streets) you’re going to take a huge hit on your income.
Today, several successful businesses thrive in one stream, but the more businesses you already have, the more is always better. A network of partners that feeds you with attractive leads is a solid backup that won’t collapse easily.
Benefit 4: Choose from the rising tide
There is no time like now to start choosing your affiliate partners. Business Insider claims that affiliate marketing spend is increasing by about 10% per year. The market is growing.
Affiliate marketing spend in the US 2010-2022 Source: Statista
In fact, email marketers need to beware; affiliate marketing is poised to take its place as the king of online conversions.
However, if you’re selling a newsletter sending system, a content management system, or virtual business phone and fax software, there’s no point in directing marketing to someone looking for that hand-painted boxer statue.
The large number of affiliates out there means there is a suitable partner for every business in every industry. While there seems to be an endless number of affiliates dedicated to B2C marketing, you can easily connect with an expert in B2B marketing.
And you can take as much as you need. Developing affiliate networks makes it easy to acquire and organize your affiliates.
The more partners you have, the more target audiences you can cover and the more experts you have by your side. Go out and start your affiliate marketing!
A fresh taste to your marketing
Affiliates bring a unique and expert flavor to your business. They can reinvigorate your marketing strategy and provide new and reliable revenue streams.
More and more, the average customer is becoming savvy. They know what they want and will not be won by shallow marketing. Even as we consume more online, the internet is getting busier and more congested, and people want a voice they can trust.
Trusted audio are affiliates they trust. Experts who can showcase your product and speak their language to get it sold. Whether you need to market B2B or B2C, an affiliate can make it happen.