Affiliate marketers are still searching for smart ways and business development experts who draw additional interest, revenue, and growth to their results.
Table of contents
Affiliate marketing — where marketers pay partners to endorse performance content as a cost per share (lead, sign up, or buy) or the percentage of sales (like a commission fee on any partner sales — is a very productive strategy for this new affiliate economy. It’s one of the least known and ignored, too.
Let’s discuss the key benefit of affiliate marketing and explore how it can give your business opportunities for growth, ROI, incrementality, and elasticity when carried out professionally.
What Makes A Successful Affiliate Partnership?
According to the 2020 report by PwC and the Performance Marketing Association, Affiliate relationships produce a return up to 12 times the advertising expenditure. Affiliate marketing Industry investment is predicted to increase to 6.8 billion dollars by 2020 and 8.2 trillion dollars by 2022.
During my career, I have seen the benefits of the two sides of the table in affiliate partnerships. Three of the technology startups I worked at have fostered strong growth and strong ties with brands, resulting in subsequent procurement—affiliate partnerships. I am now on the affiliate side at Slickdeals to help companies take advantage of their marketing dollars for performances.
Not all affiliate relationships have been formed equal, of course. See how the four characteristics you see if you veto various affiliates to find the best match for your company:
• Affiliate Marketing Scaling
Scaleability is the only major feature of an affiliate. You need to team up with an affiliate that can carry your brand and products before a diverse and dedicated audience if you want your needle on your growth goals. A campaign that results only in a handful of new customers will not help you achieve long-term targets and will eventually make no difference.
- Specific sectors or markets are the site specialized?
- How many visits are made every day, weekly, and annually?
- What types of affiliates do they give?
- Is the only direct answer and CPA, or do they have native media and regular affiliates on their platform?
• Affiliate Marketing ROI
Since affiliate marketing is a model based on efficiency, you pay only if you get the results you want. You get a 10x return on ad spending (ROAS)—with zero risks, for example, when you advertise a $200 product and settle on a 10 percent commission on a sale.
Read also:
Paid search marketing or even social media marketing (SMM) have become more popular and thus competitive. Hence, a good affiliate provides a cheaper option on a less saturated market. What will the ROI you expect for each dollar spent on Google or Facebook ads be? How will your ROAS be compared to an affiliate campaign?
• Affiliate Marketing Unbelief
An incrementality is a process that would not have existed without a particular interaction to calculate the desired result — such as a new purchase or conversion by customers. Not every affiliate can push a scale increase in value.
Be careful who is the customer’s affiliate, is it, or is it mainly a midway? Do you know? Where are your rivals from? What do they get? To analyze your site data, including web traffic level, reference sources, and organic and paid search keywords, you use free tools such as SimilarWeb. What is the direct proportion of their traffic? How long is the web on average? Ideally, you want to see more than 50% direct traffic and more than three minutes on site. These data show the high quality, committed public at the site.
• Affiliate Marketing Elasticity
Simply put, elasticity ensures that you get more when you pay in an affiliate marketing campaign. Suppose you know that during certain periods of the year, you want to invest more in marketing, such as back-to-school sales or vacation. In that case, a good affiliate will thereby increase its volume for your company. This elasticity helps the brand to scale your spending up and down according to your needs and objectives. How much you plan to spend is only limited to you.
Conclusion
Affiliate marketing isn’t new, but it still doesn’t have maximum appeal for many marketers and business development professionals. Look for an affiliate that reviews all four things and finds new ways to maximize your client base and income.
Last Updated on January 25, 2024
