The concept of affiliate marketing.
Affiliate marketing is a popular tactic to drive sales and generate significant online revenue. Extremely beneficial to both brands and affiliate marketers, the new push towards less traditional marketing tactics has paid off. In fact:
- 25% of brands and 70% of publishers leverage the power of affiliate marketing, a statistic that will continue to increase as affiliate marketing spending increases every year in India.
- There is a 10.1% increase in affiliate marketing spending in India each year, meaning that by 2022, that number will reach $6.8 billion.
- In 2018, content marketing costs were gauged to be 62% of traditional marketing schemes while simultaneously generating three times the leads of traditional methods. In fact, 16% of all orders made online can be attributed to the impact of affiliate marketing.
If you’ve been in the ecommerce space for a little while, you’re most likely familiar with the term “affiliate marketing.” But many people aren’t quite sure what it actually is or how the process works. In its simplest terms, affiliate marketing is a performance-based marketing model that rewards affiliate partners for driving a desired action. These actions can include site visits, completion of a lead form and/or converted sales. This form of marketing can be an incredibly beneficial, low-risk way to promote your products.
How affiliate marketing works
Affiliate marketing is an ideal solution for those looking to gain control of their business by focusing on performance-based revenue options. Working in tandem with a seller, a motivated affiliate marketer will be able to achieve more income from the comfort of their home without worrying about producing their own product or service.
Affiliate marketing has made businesses millions and ordinary people millionaires. — Bo Bennet
Planning and strategy
Because affiliate marketing works by spreading the responsibilities of product marketing and creation across parties, it manages to leverage the abilities of a variety of individuals for a more effective marketing strategy while providing contributors with a share of the profit. To make this work, three different parties must be involved:
Your affiliate marketing partner in Pune
The main advantage of having an affiliate program is that it is entirely performance-based. Because affiliates are only paid a commission once the desired action has taken place, they’re more motivated to drive the conversion you’re looking for. This mitigates any efforts that drive traffic with little to no value to your company while also ensuring that you get what you pay for.
Affiliates can be found in every market and product category that exists today. Whether you’re looking to break into the retail industry or for something more niche like handcrafted vintage toys, there will always be relevant websites to align with. The great news is that many of these affiliates will already have an established visitor base. These partnerships grant the opportunity to expand out into new markets that you might not otherwise have had the bandwidth to explore or to further saturate your existing target markets, giving your brand a much stronger online presence. Think of these partners as an extension of your current marketing or sales team.
By partnering with trusted bloggers and reputable websites, you can further the reputation of your brand and its products. These partners will champion your products and, in our opinion, will further solidify consumer confidence in your product or service. While in the research phase of a purchase, consumers are more likely to trust a 3rd party’s opinion over content produced directly from the site selling this product. Consumers also have a certain level of trust in websites they frequent for product recommendations.
For many of the reasons listed above, affiliate marketing can be extremely cost effective. If you’re only paying commissions when the desired conversion occurs, you’re not throwing away ad dollars on placements that have no proven value. Furthermore, recruiting affiliates in new markets is an easy way to branch out into that market without the overhead cost of creating an entire marketing campaign, mitigating the need to sink money into an unproven market for testing.
In conjunction with your other marketing efforts, recruiting affiliates to your program will allow you to scale traffic faster. The more sites that link to your pages, the more opportunities you’ll have to convert those users into paid customers. Also, although affiliate links won't have a direct impact on your search engine rankings, it will have a 'halo effect' in terms of more people searching for your products and navigating to your pages - which IS great for your rankings. In addition to a higher level of referral traffic, you can almost always expect a boost to your direct and organic traffic as well.
Research & Analysis
Most of the affiliates share common practices to ensure that their audience is engaged and receptive to purchasing promoted products. But not all affiliates advertise the products in the same way. In fact, there are several different marketing channels they may leverage.