Affiliate marketing is the method to increase the sales of our products and / or services from an external website to our online store, in exchange for a certain commission. It is an online marketing strategy based on the agreement between an advertiser, whether a company or an ecommerce, and another company (conventional intermediary) to which he pays an agreed commission to help him sell and promote his business.
An advertiser promotes its services or products on an affiliate’s website. When a user visits the affiliate’s website, a click is enough and the visitor arrives at the advertiser’s website. Once there, if you perform an action (buy, register, download content) then the member receives a commission for having sent that client or lead. This is a cost per action (CPA) model in which advertisers only pay according to the results.
To carry out this service, there are several mediating networks between advertisers and affiliates. These mediating networks are responsible for managing campaigns and making the ads available to millions of affiliates of different sizes and sectors.
Affiliate marketing can be through:
- Web pages: Affiliates have a website where they share specific content of interest to the public that visits them. This is how they manage to derive users from advertisers.
- Databases: Affiliates have databases and send commercial promotions to their registries (usually hundreds or millions of emails).
- Databases of co-registration: users when subscribing to a website accept by contract that their data is sent to a certain advertiser.
- Cashback and shared revenue: These are platforms with long user databases and are shared with each other the benefits received. To obtain benefits, users of such lists must interact on the advertisers’ websites.
- PPC: Affiliates buy words and phrases in search engines and thus deliver qualified traffic to advertisers.
- Affiliation networks: a mixed model that includes several of the types already mentioned and that is the most common.
What benefits for your company does the use of affiliate marketing bring?
- Thanks to affiliate marketing you can increase visits and conversions on your website. The ideal is to use it for specific offers and promotions. We must carefully decide on the commissions we offer affiliates and also design a correct website or landing page that will convert most of the visitors.
- The first thing (the commissions) keeps the affiliate network enthusiastic about our programs. Therefore, they will invest more efforts in attracting leads for the campaigns. The second (web optimized for conversion) is basic if we want that once the user clicks on the ad his experience is aligned with the interest that we arouse him.
- In mass markets (cosmetics, travel, consumer goods) and with maturity in electronic commerce affiliate marketing can work very well to boost sales and get qualified leads.
- Affiliates multiply the reach of the brand and put it before users who have potential as buyers. The biggest advantage of this system is that you only pay for sales or actions performed.
- It is also a profitable model. Affiliates in exchange for a small commission are responsible for working for your brand as if it were your own online commercial network. If you get them to know and understand your products, then they can help you promote them better.
Tips to Get Good Results with Affiliate Marketing
Build Trust in Your Readers
It is very important that you have the confidence of your followers to take your recommendations into account. Although it may be very obvious, many bloggers abuse the confidence of their fans recommending products of dubious reliability only for the high commission they receive for it.
It is true that this strategy can work in the short term, but if you want your income to be extended over time, it is very important that you know all the details of the product that you promote. And, in case there are problems, your followers will They will ask for explanations and the time that you will have to invest to solve it does not compensate the commission received.
Perform Constant Monitoring
Keep constant monitoring of your actions in order to check if the feedback from your followers is positive or negative. Otherwise, you could be bothering your audience without being aware of it.
The comments of the blog itself will provide us with very valuable information, but also the Insights page of our Facebook page, since we will be able to know how many users have hidden a post, if they have done it with all the posts or if they have marked them as spam.
If the product fits with the public of our page, in general, we will not have a negative feedback, but if it is not, we may be bothering our followers.
Read more, 10 Best Media Monitoring Tools for Brand Management
When the affiliation is set up in your own company …
Whether you build an affiliate network in your company, or if you use the services of an intermediary, the initial investment is not very high. On the other hand, it is a flexible marketing strategy that you can combine with SEO and SEM.
It takes some time to get a quality affiliate network, but once it’s underway, growth can be exponential.