Let´s have a look at what affiliate marketing is, and why it is such an easy and important tool for your online store to make use of.
Affiliate marketing is the process by which an affiliate earns a commission for marketing an online store´s products. The affiliate simply searches for a product they will like to sell, then they promote that product and earn a piece of the profit from each sale they make. The sales are tracked via a unique affiliate link that is set up in the backend of the online store, so you would only have to pay the affiliate if they make a sale.
Affiliate marketing is becoming a more and more popular marketing tool to make use of. According to a report from Statista, affiliate marketing spending in the U.S. alone is expected to reach $8.2 billion by 2020, more than triple what it was 10 years earlier. Globally, it was estimated in the Awin Report that advertisers invested $13 billion on affiliate marketing in 2017. These numbers together with the consistent upward trend demonstrate that affiliate marketers will likely continue to thrive in the 2020s and beyond.
Here are ANYDAY´s 5 reasons why your business should use affiliate marketing:
1. Affiliate marketing is performance-based
The main advantage of having an affiliate program is that it is entirely performance-based, which means that your online store only has to pay the affiliate promoting your products if the affiliate actually makes a sale. Because of this, affiliates are more likely more motivated to drive the conversion you are looking for. This mitigates any efforts that drive traffic with little to no value to your online store while also ensuring that you get what you pay for.
2. Affiliate marketing helps broaden your audience
Affiliates can be found in every market and product category that exists today. Whether you are looking to break into the retail industry or for something more niche like custom made bicycles, there will always be relevant websites to align with. The good news is that many of these affiliates will already have an established visitor base. These partnerships grant the opportunity to expand out into new markets that you might not otherwise have had the bandwidth to explore or to further saturate your existing target markets, giving your brand a much stronger online presence. Think of these partners as an extension of your current marketing or sales team.
3. Affiliate marketing is cost-effective
Affiliate marketing can be extremely cost-effective. When you are only paying commissions when the desired conversion occurs, you are not throwing away money on ads that have no proven value. Furthermore, recruiting affiliates in new markets is an easy way to branch out into that market without the overhead cost of creating an entire marketing campaign, which reduces the need to sink money into an unproven market for testing.
4. Affiliates can boost your reputation
By partnering with trusted bloggers and reputable websites, you can further the reputation of your brand or products. These partners will highlight your products which will further solidify consumer confidence in your products. While in the research phase of a purchase, consumers are more likely to trust a product if a 3rd party´s opinion over content produced directly from the site selling the product. Consumers also have a certain level of trust in websites they frequent for product recommendations.
5. Affiliates can rapidly scale your traffic
In connection with your other marketing efforts, recruiting affiliates to your marketing program will allow you to scale traffic faster. The more affiliates or websites that link to your pages, the more opportunities you will have to convert those users into customers. Also, although affiliate links won’t have a direct impact on your SEO rankings, it will have a “halo effect” in terms of more people searching for your products and navigating to your pages, which is great for your SEO rankings. In addition to a higher level of referral traffic, you can almost always expect a boost to your direct and organic traffic as well.
That was our list of 5 reasons why your business should make use of affiliate marketing. If you are considering using affiliates to marketing your product or services, here is a list of the biggest affiliate networks in Denmark, where you can get started.
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