10 Amazing Ways Affiliate Marketing Will Transform your Business into E-commerce
In essence, affiliate marketing is an electronic commercial version of promoting a product through online influences.
Affiliate marketing can be the strategic step you need to increase sales and connect with customers you would never reach.
- By 2020, affiliate marketing spending in the US is expected to increase to $ 6.8 billion.
- 81% of brands use affiliate marketing programs.
- 16% of all online orders are generated through affiliate marketing,
What is affiliate marketing?
Affiliate marketing is one of the only marketing channels, each time offering a 100% return on investment. This is one of the only tactics to pay for marketing expenses after the sale.
The affiliate marketing process involves the seller – it’s you – and the partner. A partner or publisher is a company or individual that promotes your products and brand on their website. Your partner receives a commission when someone visits your site and makes a purchase.
The best partners will have:
- A reliable website that generates traffic.
- Updated content.
- Impact on their audience.
- Valuable content (blog, product reviews, how-tos).
Since the partner is counting on commissions, you need a game plan to convert your site visitors into product buyers. It’s all about providing partners with the highest return per click (EPC). Even if you work with the best affiliates, they will advertise your products less and switch to other e-commerce sites with a higher conversion rate and EPC, so you need to take a strategic approach.
Since 38% of marketers call affiliate marketing one of their best methods for attracting customers, it’s worth adding your e-commerce strategy.
Here are 10 ways affiliate marketing can transform your business into e-commerce.
1. Indirectly grow your sales team
Your entrepreneurial juices flow, and you are ready to grow your e-commerce business without limits. If you are just one person or a small group, affiliate marketing can instantly expand your indirect sales group by including experts in your niche and beyond.
Partners have experience in driving quality traffic to your site.
Traffic quality = more conversions.
More conversions = higher revenue.
Higher Income = More Opportunities for Your E-Commerce Business.
A highly qualified indirect sales team that does not spend time developing traditional ads, approving them and tracking their progress? We will call it a marketing victory.
2. Increase customer loyalty
Customers who continue to support your brand over time will spend 67 percent more than new customers. Affiliate marketing allows you to take advantage of the trust and experience of your selected partners.
When social authority, affiliate marketing blogger or celebrity sign your product, they bring their audience with them. G-Shock has its fans and customers, but now they benefit from @elorabee and her nearly 183,000 Instagram followers.
3. Several paths to conversion
What does success look like for your e-commerce business? Unlike digital advertising, affiliate marketing allows you to choose what your successful conversion will be like by manually setting incentives. Choose from conversions such as:
- Selling a specific product.
- Email capture.
- Filling in the questionnaire.
- Download instructions.
You can manually set incentives through affiliate marketing by offering commission fees for the success of your choice. Your e-commerce business is unique, so the way you value success should be equally distinctive.
In addition, affiliate marketing quickly brings your e-commerce website to the eye, showing your products on the Internet. Instead of working to attract 1,000 new visitors to the product page, you can use an affiliate site with a lot of traffic and thus attract visitors to your site.
Be sure to work with your partners to optimize your conversion path. You should focus on your products with the highest average order and direct traffic to your pages with the highest conversion in order to maximize impact.
4. Better budgeting and return on investment
You don’t need to spend a lot of money hoping that your ads will reach the right audience, or that Facebook and Google algorithms will not change overnight.
It doesn’t matter if there is a couple of commas in your marketing budget or you are shaking your piggy bank, affiliate marketing allows you to more accurately plan your budget for marketing campaigns.
It’s simple: choose a conversion target. We offer commissions. Earn.
Since you pay only when products are sold, you can use your marketing budget for other sources of income – sponsor publications on social networks, social networks or create unique content optimized using your keywords.
In addition, affiliate marketing in e-commerce has incredible profitability. Since you pay a small percentage for each generated sale (usually 3-10% depending on your vertical), you can see a return on advertising costs of 10: 1 or more. After COGS accounting for your products (cost of goods sold), profit margins and affiliate commissions, you still have room for some solid profit.
Most eCommerce affiliate marketing commissions are paid based on a percentage of the product’s sale value. And you can set different commissions for different partners. For example, you can send a coupon or an IO loyalty site (placement procedure) with a commission of 3%, and to an influential blogger – IO with a commission of 10%. Get creative! Inside your affiliate platform, you can create several offers for your partners. You just want to make sure that you are as competitive as possible – check your competitor’s affiliate programs and compare or beat their commission rates.
5. Build trust
When a partner promotes your service or product, you can use this promotion to increase confidence in your business. Use images, badges, or text to post information about where your brand was used.
6. Develop brand ambassadors
People talk about your brand, and if you don’t have a conversation, you may not know what potential customers are reading. Affiliate marketing puts your brand in the hands of influential people who help create brand ambassadors.
When reputable influential people blog about your products, post their photos or post them in videos, they tell all their fans and followers that your brand is awesome. This is approved, and 82 percent of consumers say that they are likely to follow the recommendations made by an influential person.
According to a survey of more than 4,000 users of social networks from the USA and Europe, one of the influential persons:
- It has over 10,000 subscribers.
- Someone whose brands connect to help promote products and services.
- Shares information about the brands they love and reviews of popular products.
- Considered an expert in his niche.
Fans of authority become your new brand ambassadors by trying products, publishing product information, and sending even more traffic to your e-commerce site.
7. User-generated content overload
Have you ever sat down at a computer and had nothing? This is a day that cannot be created, something good if the business depends on the business. One of the most obvious ways that affiliate marketing expands your e-commerce business is to use UGC (user-generated content).
Even for Instagrammers who don’t have mass followers, this can make a difference. That’s why:
- The vast majority of consumers (92 percent) say they turn to familiar people for recommendations above any other source.
- Twice the amount of sales generated by word of mouth compared to paid ads.
- Almost three-quarters of all consumers depend on social networks for product information.
- 84 percent of consumers say they will go with peer recommendations above all other advertising methods.
When your fans and followers take photos, leave feedback, or post videos about your product, use this content as an affiliate marketing force. It’s always better for someone else to say what a killer brand you have than to make yourself known.
8. Individual target audience
Most paid ads have a process to target those who see your content. You can target potential clients from characteristics such as income and geographical location, to hobbies and whether they prefer whole milk or soy in their mocha cafe (maybe not yet, but we are close).
But how do you know if these viewers will actually see your paid ads?
And when you send your marketing money to Google Ads or other similar platforms, go to the referral URLs?
With affiliate marketing, you control where and to whom your brand is advertised. You can manually select the sites and partners that will promote your name. Take control of where your e-commerce brand is being promoted through affiliate marketing.
9. Fast results
Do you know that the results of a traditional digital marketing campaign take from 6 to 9 months? You can build a house (or two), have a child or improve your credit rating during this time.
With affiliate marketing, you rely on an organization or an influential person who already enjoys authority on the Internet, so no education, retargeting or email is required to attract potential customers to your site.
One of the reasons affiliate marketing is so useful is that it’s very easy to attract customers (if you compare it with the 9-month schedule expected from other marketing efforts). Fast customer acquisition means you see immediate results with revenue and online traffic.
You simply register on the affiliate marketing platform and start sending offers to partners. Once they accept, they can begin to promote you on the same day. This is a much faster process than SEO, content marketing, or other digital tactics.
10. Develop your niche
Because understanding your audience is one of the first – and most important – elements of marketing, affiliate marketing is critical to your e-commerce growth. Affiliate results will help you create a niche and place your products right in front of interested, interested prospects.
- What brands are they following?
- What factors influence?
- What type of content do they find attractive?
When you enter into partnerships with partners to promote your brand, you will learn more about your audience. Evaluating your partnership successes (and not very effective), you get an idea of where your audience hangs out on the Internet.
You need an affiliate marketing strategy to improve your customer relationships and strengthen the partnerships with the business and social authorities that you admire. This low-risk marketing style provides insights into customer behavior, helps you develop new growth strategies, and ultimately increases your revenue. Although the method will initially require your time and energy, you will soon find yourself in your own specific niche, and you will have time to focus on what is important to you – doing business.