Affiliate marketing: what is it?
The first thing that comes to your mind when defining eCommerce is selling goods online. But “selling” means much more than making sales and doing marketing for your store.
In reality, eCommerce is about:
- Finding the right manufacturer or setting up production on your own;
- Shipping all goods on time and to the right people;
- Taking care of payments and taxes;
- Warehousing and storing;
- Customer service.
Not much time left to actually do marketing and sales. Affiliate marketers selling your product may become one more sales channel that does not require much time and taking too many risks.
When having set up affiliate system your main purpose is getting more traffic, preferably your target audience. Working with affiliates you create a network of people interested in promoting your business. It’s like your own sales army.
It may happen so that you will have a stocked shop and use affiliates to sell and ship your goods.
Quick facts about affiliate marketing:
- 81% of brands and 84% of publishers leverage affiliate marketing;
2. 38% of marketers call affiliate marketing one of the top customer acquisition methods;
3. According to Google Trends, between September 2016 and September 2017 search interest in the term “affiliate marketing” has risen by 30%;
4. 16% of all online orders are generated through affiliate marketing;
5. 19% of affiliate campaigns promoted fashion products. Affiliate marketing for sports and outdoor products accounted for 15%, and health/wellness and beauty accounted for 11%;
6. In most affiliate programs less than 10% of affiliates drive 90% of traffic and conversions
7. Amazon Associates affiliate program is one of the greatest examples of the affiliate networks. It lets you promote any good that is sold on their platform and earn 10% commission.
Affiliate marketing: types
Let’s take a look at three main types of affiliates: people who will promote your product, make a buzz around it and actually make sales.
- Bloggers and owners of media resources
The people you will work with most probably have some knowledge, experience, and reputation in the niche you are selling. These affiliates will talk to their audience and promote your products in the way “from their own experience”, sometimes even if they don’t use your product.
Also, they may want to include a banner on their website and wait until somebody clicks on it and they earn a commission from the sale.
Promotion channels: YouTube, podcasts, websites, social media, email.
2. Media buyers
Marketers who use PPC, SEO, and other paid channels to promote your product and get a good ROI.
Promotion channels:** social media, GDN.
3. Coupons and review sites
Websites interested in discounts for your products and special offers.
Promotion channels: websites, social media, review websites.
4. Companies who work in the same market as you do
Promotion channels: personal upsales to their clients, marketing collaborations, and email campaigns