Before I started my career in digital marketing, I had tried a sales role in a big insurance firm that was commission-based.
I mean, no salary, no allowance!
I could not survive on the job but I later learned that those who performed well were promoted to supervisory positions. They also got an allowance to cover their cost of transportation and call voucher to aid them follow-up on leads.
Despite my quitting, one of the things I learned is that there are two success tips from those who have succeeded in the role.
- They started marketing to their immediate family and friends.
- They got referrals from their immediate family and friends.
This sales model is similar to affiliate marketing in that the salesperson takes responsibility for most of the marketing activity and also earns commission per referral. That way the company bears the lowest risk possible.
So let me share with you how to grow your business using affiliate marketing.
What is Affiliate Marketing?
Affiliate Marketing can be described as a form of marketing where a product owner recruits marketers, usually referred to as “affiliates” who earn a commission by recommending the product to others. It’s an effective marketing strategy for small businesses because you only pay commissions for sales after they occur.
Why Affiliate Marketing?
Google search trends indicate that between December 2017 and June 2018, searches for the term “affiliate marketing” grew by 44%.
Here are some other points to consider:
- U.S. affiliate marketing spending is expected to top $6.8 billion by 2020.
- 16% of all online orders are generated through affiliate marketing.
- 81% of brands leverage affiliate marketing to increase sales by 15 – 30%.
The advantage affiliate marketing has over other marketing strategies is that apart from being less expensive to manage, the return on investment is high, since the affiliates are only paid commission per sales.
For the affiliate, participating in affiliate programs is a way of generating passive income for themselves. So if you have a product and want to sell more, you can offer promoters some financial incentive in form of commission through an affiliate program.
How Affiliate Marketing Works
As I have explained earlier, this will involve having a revenue-sharing partnership with the affiliates or promoters. If your business is web-based, you will need third-party software that will track performance such as views, clicks, and sales.
Let’s say you own a company that deals in fashion and fashion accessories, and you own a website too. Through the affiliate program, you might partner with…
- Blogs that focused on fashion and fashion trends
- Product review websites and
- Affiliate marketers/ influencers who have the capabilities to promote your niche.
In this case, the affiliate partner will put your banner on his blog, write a review about your business and products. He could also share his referral link directly using social media channels or any other medium he/she finds useful.
When a consumer clicks on your banner which has the affiliate’s referral link underneath it or the referral link shared on any social media channel, the customer will be redirected to your website to make a purchase.
In case the customers did not make a decision on what to buy right away, a cookie will be stored on the consumer’s browser. This is what makes it possible for the third party software to track the consumer’s next visit to your website.
The cookie can also track clicks, sign-ups, orders and sales depending on how sophisticated the software is.
Tips for Building a Successful Affiliate Marketing Program
A well-managed affiliate marketing is one of the most efficient and cost-effective marketing models for generating revenue, new customers, leads and increase sales.
Here are some things you should take into consideration.
- Make your bonuses attractive – this will be a great motivating factor.
- Ensure that your website is easy to navigate – this can have a great impact on your conversion rate.
- Train your affiliate marketers – A good understanding of the product and the unique selling points will help your affiliate marketers know how best to describe your product to their family and friends.
- Let them share their success story – Sharing stories of how much they have made will encourage and boost your credibility to other affiliate marketers.
Join VoguePay’s Affiliate Program
There are 2 ways of earning from our affiliate program:
- As a developer – this means that you can develop third party plugins and extension and earn 30% commission for 2 years on any merchant that uses your plugin on his website.
- As a VoguePay user – if you are currently using voguepay to send or receive payment, sharing your referral link will give you the opportunity of earning 10% commission from our transaction fees.
Click here to learn more on how to join VoguePay’s Affiliate Program