Essentially, Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.
Various affiliate marketing tools can help optimize this process and guarantee maximum profits for both the parties involved. The sales are tracked via affiliate links from one website to another.
The Affiliate Marketing Landscape in 2020
Numbers don’t lie- and what they are telling us is that affiliate marketing is poised for enormous growth. In fact, the total affiliate marketing spend in the U.S. is expected to grow by about 10.1% each year, which basically means that this year it may rise to a whopping $6.8B!
Furthermore, Google Trends reveal that search interest in the term “affiliate marketing” has grown to twice as much as it was five years ago.
The prevalent pandemic crisis may also have a role to play in this popularity spike that affiliate marketing is subjected to in 2020. The lockdown and the apprehension of stepping outside have caused people to resort to online shopping platforms, causing e-commerce companies to grow multifold. This enhancement in the digital landscape has made affiliate marketing more useful than ever before.
And affiliate marketing is not just a U.S. trend. In fact, it’s a global industry worth well over $12 billion dollars. From software to fashion, marketers are noticing the interest in online purchasing from their customer base. So it’s no surprise that more than a third of marketers stated affiliate marketing as one of their top customer acquisition methods.
But affiliate marketing isn’t just useful in attracting new prospects. In fact, the majority of marketers are using affiliate programs throughout their sales and marketing process.
Here’s the breakdown of how successful marketers today are using affiliate marketing at every stage of the buyer journey:
– 83% in the discovery and awareness phase
– 79% during conversion or purchase
– 79% for ongoing customer engagement
What does all this mean?
The data proves it is increasingly important for you to know how to optimize your affiliate marketing strategy and boost sales in 2020!
How can you Boost your Affiliate Marketing?
We have accumulated ten affiliate marketing tips that have proven to help leverage this powerful strategy to maximize your sales.
- Create an affiliate marketing strategy and include key players across the organization. This diversifies talents and leverages strengths from different departments, increasing its efficacy.
- In order to increase convenience, your website should contain a link to join your affiliate program. It may also be helpful to dedicate a specific and optimized landing page to explain how your affiliate program works. However, be careful to make sure that the landing page to join your program is easy to understand, yet cohesive with the rest of your website and aligns with the brand policies. This will create an air of trust and transparency.
- It can be useful to share a sort of “welcome kit” with new affiliates which essentially contains educational materials on your product/services, unique share links, marketing assets, resources on how to drive traffic, examples and best practices, and of course, the incentive structure. You can also share your most engaging pieces of content with your affiliates to encourage prospects to navigate through your buying cycle. To ensure convenience and accessibility, provide affiliates with a centralized portal that contains the assets, insights, and reporting they need to optimize engagement.
- Based on your target audiences, you can also segment your affiliates to run targeted campaigns. This ensures maximum reach and effectiveness of the campaigns.
- To further increase the efficiency and appeal of your program, you can structure different payout models based on affiliate type, sales generated, or special promotions.
- Social media is undoubtedly a powerful entity. It gives you access to a pool of diversified audiences. If you know how to effectively distribute content on social media, you can leverage it to not only attract new customers but affiliates as well.
- Proactively reach out to your affiliates with potential content or topic ideas. For example, leverage holidays and seasonal events to create fresh, relevant content. It is important that your affiliates understand consumer behavior and leverage your marketing funnel, which ensures that they are able to appeal to the consumer base.
- Keep an eye on the analytics and always be optimizing your program. Implementing new and effective strategies is highly important. The digital landscape is in a stage of continual alteration, which is why you need to make sure that you adapt your marketing strategy to the changes and ensure that your affiliates follow up.
- Whether it is real-time or scheduled, automated cash payouts to your affiliates are one of the best ways to keep your program members happy and sharing.
- While recruiting affiliates, brands often tend to overlook customers. Do not forget that customers are still your lifeline! Make sure you are engaging with customers when recruiting affiliates, ensuring the customer centricity of your brand. It is also important to educate your affiliates on who your ideal customer is. By sharing information about your target demographic, affiliates are better armed to seek out customers on your behalf.
With online channels rapidly growing, it is up to marketers to understand how consumers are seeking out information, filtering out the noise, and digesting content. Affiliate marketing can be a strategic solution for brands looking for a trustworthy introduction to digitally savvy buyers.
Ready to Reap Profits?
Whether you plan to set up a unique reward system or stick to the cash payouts that most affiliates prefer, automated affiliate marketing programs are a strategic way to manage campaigns.
Mountainise Inc. is a data-driven marketing agency that utilizes AI tools to empower all aspects of your digital marketing. Decades of experience, coupled with state of the art affiliate marketing tools, enables us to provide you with an unrivaled affiliate marketing experience!
Want to grow your brand multifold?
Contact us now!