What is affiliate marketing?

Affiliate marketing is used to promote your products and/or services. Think of influencers, blog websites, YouTubers and many other types of promoters and ambassadors.

Affiliate marketing is used to promote your products and/or services. Think of influencers, blog websites, YouTubers and many other types of promoters and ambassadors.

This marketing strategy is gaining ground. But how interesting is it for you to use this form of marketing?

Is it wise for you as a webshop to use affiliate marketing?

SEO and SEA are often used to increase the number of visitors of the website. However, did you know that affiliate and/or influencer marketing is number 2 of the most effective marketing strategies? This puts this method of marketing after email marketing. So it is advisable to add affiliate marketing to your strategy!

Through affiliate marketing, you as a webshop owner can increase your reach and increase sales. Affiliates and/or influencers are ambassadors for your company. They bring your product or service to the attention of their followers and earn a commission per sale. The commission can be mutually agreed upon and is therefore different for each partnership. To realize as many sales as possible they can blog, build landing pages, place ads on their website and run other relevant social media campaigns.

The advantages of affiliate marketing

No cure no pay

Yes, that sounds like music to our ears and is one of the main advantages of affiliate marketing. As an entrepreneur you only pay a commission when a sale is made. Doesn’t an affiliate make a sale? Then you have no costs.

In addition, the use of affiliates and influencers makes you independent. You create your own marketing channel, without being dependent on external advertising platforms such as Google, Facebook and Instagram.

Once you have set up many collaborations and these affiliates and influencers also regularly promote your business, this not only increases your brand awareness but also your revenue.

In other words, what positive effects does affiliate marketing have?

  • You get more visitors to your web shop.
  • You realise more turnover.
  • Your customer base is expanded.
  • Your affiliates help you to improve your product and/or service, for the perfect offer to their target group.

The challenges of affiliate marketing

Difficult target group

Affiliates and influencers are tricky. Make clear agreements about the promotion they will do for your business. A commission per sale is often not the only thing they ask for, they also expect a free product. Make sure that they are not only after the free product and take a good inventory in advance of what the expectations of both parties are.

How do you know that an affiliate has made a sale?

Unique discount codes are often used to recognize whether an affiliate has made a sale. However, this is a lot of manual work. Not only do you have to report what has been sold yourself, but you also have to create the payments and credit invoices manually. Time consuming and labor intensive.

Make sure you work with an affiliate platform, which automates the tracking, management and payment of affiliates for you. Check out our Sir Filiate WooCommerce plugin, for more information on this.

Keep in touch with your affiliates

Affiliates and influencers are busy people. One minute you are opportune, the next they have forgotten about you. So make sure you check in with them once in a while, recommend new products and/or services to keep the promotion and relationship current. This takes a lot of time, but will give you the most benefits  in the long run.

Did you know that brands report an average return of 600% per affiliate? Often when an influencer promotes a product or service, we tend to share it on our own social media channels. Why? We want to show how modern we are and that we actually bought that product Pewdiepie recommended. Especially the distribution of content through small social media channels, provides a 600% return on investment.

Family, friends and acquaintances

Affiliates are therefore not only big influencers, but also small social media channels. Rewarding someone for suggesting family, friends and/or acquaintances can also be very effective. The circle of friends of a person not acting as an influencer is often closer and more effective than the following-base of a social media channel.

Determine your margin

Affiliate marketing is not right for every business. If you offer a product or service with little or no margin, it is not interesting for the affiliate. Of course they have to be able to earn something from it!

Conclusion

Affiliate and influencer marketing are on position 2 of most effective marketing strategies. Make sure you find a solution to the challenge, shrug it off and become successful in this marketing strategy. By doing so, your business will gain more brand awareness and make sales. I guess that’s worth the sweat and hard work? 😉

Want to apply and automate affiliate marketing in your WooCommerce webshop? Check out our Sir Filiate WooCommerce plugin, free to download and no monthly fees.

Jessica Risch has been active in the e-commerce industry since 2013 and is the founder of Woosa. With her passion for technology and design, Jessica characterizes herself as a creative and committed sparring partner with the aim of making online business easy. With her start-up Woosa, she makes advanced WooCommerce plugins simple and within reach for both starter and advanced webshop owner.

Jessica Risch
×
×