Marketing and promoting your products is critical to the growth of your brand. However, startups and new businesses usually work on tight budgets, which means they can’t afford to risk a low return on investment (ROI).
Fortunately, you don’t have to take a chance on risky promotional strategies like pay-per-click (PPC) adverts.
Table of contents
- How Can Affiliate Marketing Benefit New Businesses?
- How to Add An Affiliate Marketing Program to Your New Business?
- Step 1: Select an Affiliate Platform
- Step 2: Design Your Affiliate Program Website Pages
- Step 3: Select a Payment Method and a Commission Type.
- Tips for Developing Your Affiliate Program
You will only pay commissions on successful purchases if you manage your own affiliate marketing program. This means you won’t have to worry about squandering your budget on ineffective advertising.
Let’s see what affiliate marketing has to offer your new business, and, in a few baby steps, I’ll show you how to build your own affiliate program with no prior experience in the field.
How Can Affiliate Marketing Benefit New Businesses?
Affiliate marketing is a system where you reward an individual or another company for promoting your products and sending clients your way.
You can give marketers personalized links that contain unique tracking codes, which you can use to determine who referred particular transactions through an affiliate program.
Affiliate marketing is growing popular, and it’s easy to understand why when you calculate the facts. This industry’s global sales are estimated to reach $8.2 billion by 2022.
That’s a lot.
So, why don’t you take home a nice slice of this rich and creamy pie?
This is actually why affiliate marketing is gaining popularity among new businesses looking to increase their revenue.
However, another significant advantage is that you just pay for successful sales. You are not required to pay a commission to a partner unless profits were already generated for you.
This stands in contrast to the majority of marketing and advertising techniques. For example, if you choose a PPC campaign, you’ll be charged every time a visitor clicks on your ad, regardless of whether or not the click results in a sale.
In addition to producing sales and cash, affiliate marketing can promote your company to new audiences. Also, 38% of marketers consider affiliate marketing to be one of their top methods of getting new clients.
If you give excellent customer service, the prospects you generate through your affiliate program may turn into devoted repeat clients.
Your partners may have assisted you in acquiring these buyers, but once they begin visiting your site directly, you will no longer be required to pay commissions on their further transactions.
How to Add An Affiliate Marketing Program to Your New Business?
Creating an affiliate marketing program after launching an e-commerce site should be the next step in building your business. Let’s take a look at how you may reach out to new audiences and increase sales by creating your own affiliate marketing program, even if you have no previous expertise.
How and why do new businesses differ?
As I already mentioned, new businesses may have restricted resources and finances. They may not even have a dedicated marketing team to promote their company. Affiliate marketing is a low-cost and efficient approach to boost traffic to your website and revenues. While having a fantastic affiliate marketing network is a tremendous benefit for new businesses, you must still be cautious in who you choose.
It is preferable to have a vetting process in place rather than letting everyone into your program. Affiliates impact your brand’s image and reputation in the same way that an eCommerce search marketing plan does.
Step 1: Select an Affiliate Platform
The first step is to select a platform to assist you in delivering and managing an affiliate marketing program for your new business. Your chosen solution should be simple to use and provide all of the data you need to track the effectiveness of your collaborations.
You only pay commissions on successful conversions, but identifying the partners who deliver the greatest traffic to your site is still beneficial. As a busy new business owner, you’ll frequently want to focus your time and effort on individuals that provide the most conversions.
If you use Scaleo affiliate marketing software as your platform, you can easily seamlessly integrate an affiliate program on your domain, without even hosting it. This is what is called a white label solution.
Because affiliate marketing is a mutually beneficial relationship, it is in your best interests to assist your partners in their success. As a result, it’s critical to provide them with everything they need to assess their own performance and make any necessary improvements.
Scaleo has a dedicated Affiliate Dashboard where your partners monitor their own sales statistics. It gives a detailed breakdown of the number of clicks and transactions generated.
Your affiliates can utilize this data to find the activities that generate the most sales and earn more money for themselves (and you). They can then tweak their strategy to focus on what works and less on what doesn’t.
Learn more about how to choose an affiliate marketing software in this article.
Step 2: Design Your Affiliate Program Website Pages
The next step is to create all of the web pages that affiliates will require in order to join your program. You may automate much of your marketing program by posting signup, login, and affiliate dashboard websites.
Maybe you’ll even be able to turn your affiliate program into a passive income stream, reaping the advantages of several successful connections without having to commit a significant amount of effort to building and cultivating those ties.
Even if you want to ask specific partners to join your program, it is a good idea to set up a page where third parties can enroll themselves. This can help you increase your signups and, as a result, earn you more conversions:
Scaleo can produce the necessary signup, login, and affiliate dashboard pages with the click of a button so you won’t need to worry about this step at all.
Step 3: Select a Payment Method and a Commission Type.
The next step is to select a commission type. You may pay your affiliates a set fee for sales made on your website, such as a $50 commission for each successful conversion. Fixed commissions may work effectively for your partners if you sell a few products with identical pricing.
You can also pay commissions based on a percentage of the corresponding sales. This is a better practice if your products have a widely diverse pricing structure.
A scaled model can also motivate affiliates to focus on promoting your high-ticket items.
Scaleo allows you to set commissions in both percentage and flat-rate formats.
Once you add the payout method (the most popular and widely accepted is PayPal) – your program is good to go.
Tips for Developing Your Affiliate Program
If you’re new to affiliate marketing, forming business relationships is a simple way to get started, but there are a few best practices to follow.
1. Collaborate with a company that has a similar target demographic to yours.
If you’re collaborating with another company, be sure they’re targeting a similar audience. Otherwise, the promotion is unlikely to garner any attention.
2. Contact trusted reviews / comparison websites
We all know how essential reviews are to building client confidence, and working with a reputable review or comparison site is a terrific way to do so.
3. Ensure that everything is working well on the inside as well.
Before you embark on a partnership with another company, it’s a good idea to ensure that things are operating well at home. You don’t want to risk losing a partnership because your systems aren’t in place, so if you’re unsure about your capacity to follow through on any agreements, address that first before reaching out.
Many new businesses have limited marketing and advertising budgets, so you must use your resources wisely. You may advertise your products and raise brand awareness without jeopardizing your financial line by developing your own affiliate marketing network.
Let’s go over how to set up an affiliate marketing program in 4 simple steps:
- Select an affiliate marketing software, such as Scaleo.
- Create the pages for your affiliate program’s website.
- Decide on a commission type and a payment method.
- Expect a new fresh wave of customers!