Affiliation marketing: an introduction for E-commerce
Over the years, affiliation marketing for e-commerce websites on the Internet has become an advertising mechanism to promote the visibility of e-commerce sites and to improve conversions levels.
This marketing technique gives advertisers’ websites more product or service exposure by offering compensation on other web platforms. Creating an affiliate program adds higher value level for the acquisitions of e-commerce sites. But you still need to use this tool wisely; otherwise it can quickly become a time consuming and wasteful activity.
Discover the benefits of an effective affiliate marketing strategy for e-commerce and what to consider when making your effective affiliate campaign.
Affiliation marketing: how it works
What is affiliation marketing? How can I take advantage of it? Can it be adapted to my e-commerce site and my business? There are so many important questions to ask before embarking on an affiliate marketing strategy for e-commerce sites, which is as tedious as it is beneficial.
By definition, affiliation marketing is a partnership between an e-commerce site (advertiser) wishing to expand sales or develop its online traffic and site wishing to monetize on their already existing traffic (affiliate). To implement this partnership, the advertiser site offers an affiliate program to different external sites. Once an affiliate leads to the sale of a product or service on behalf of the advertiser website, it receives a predefined commission between the two parties in the affiliation agreement.
Unlike advertising available through Google AdWords, an affiliate marketing program requires advertiser sites to pay only when affiliated sites bring traffic that creates a conversion: whether as a result of a form filler, the registration for the newsletter or by a sale from a client.
With the ever-growing emergence of blogs, affiliate system allowed the bloggers to find an effective way to leverage their traffic. Affiliate marketing programs are a very good way for advertisers to take advantage of a conversion system based on cost per acquisition (CPA) and for affiliates to take advantage of a system to take advantage of traffic that they record on their platform.
Affiliate marketing for e-commerce website has become an entire industry and the principle of pay for performance, also called “Win-Win” has become so large that even companies like Coca Cola use this marketing strategy.
Affiliation marketing: as simple as saying hello?
At first sight, it would seem easy to see a simple strategy like affiliate marketing implemented quickly with the desired commercial acquisition. In fact, the establishment of an affiliate marketing strategy is not as simple and cost effective as you may thing. Especially if thoughtful strategic development and suitable financial investment were not issued from the beginning.
In order to establish an optimal affiliation marketing strategy, it is important to focus on the crucial points favoring the profitability of the project, and to be aware that the establishment of this strategy takes time. As the saying goes, time is money!
In addition, the platforms for the development of the affiliate marketing programs are not free. It is therefore important to measure the future costs your affiliate program before embarking on the adventure.
Before you start, ask yourself the right questions! What is the purpose of your strategy? What do you think it does better than the existing affiliate programs? Do you have enough time to track and optimize your affiliate business?
Affiliation marketing: how to deploy strategies for an efficient E-commerce site?
Implementation of strategy
To set up an effective affiliate marketing program you must first study the analysis of your industry to ensure that it is conducive to the establishment of such a marketing strategy.
After this analysis, you must determine the budget you want to spend on your program. As we said above, the platforms with the introduction of affiliate program are not free and some are quite expensive. However, these platforms are important because they are the ones that will count conversions made through partners. This way you will be able to know the commissions you should give as these partners will reported to you.
This indication is the most important because in order for your program to be effective, you need to know if it is profitable. And as an affiliate marketing program is based on cost per acquisition (CPA), it is important to determine the cost price of the offer you wish to sell because otherwise it will be difficult to determine the commission you can allocate to your partners. In addition, to win the heart of your future partners who themselves are solicited from all sides; you need to offer a more attractive commission than your competitors.
Partners of your affiliate marketing program
To start an affiliate marketing program, like a website, it is not enough to just create it for it to work. You will also need to market your affiliate program. Demonstrate that your e-commerce website can be an attractive financial solution for affiliate websites and the commissions you offer are worthy of what they can bring you! For this, several solutions exist.
In addition to the tools that you offer platforms that you intend to work with, they will be your best source of acquisition for your affiliate marketing program. Indeed, these platforms allow you to create affiliate links quickly and easily. These platforms often have affiliate sites classified by theme to facilitate and accelerate your recruitment.
But remember to stay in touch! Indeed, directly contacting bloggers in your industry is an effective way to record qualified traffic while choosing sites with which you want to create a partnership. In addition, bloggers often have an interesting audience, and may be interested in extra income.
An attractive program, an interesting commission
Making an attractive offer is the best way to acquire affiliate sites. The acquisition of affiliate sites does not guarantee that your program will work. Indeed, in order for your program to work, you need to find partners who are also attractive so that you receive qualified traffic. It is not uncommon for e-commerce websites with many affiliate sites to have programs that are not fruitful.
The tools available in the affiliate networks let you know who your best sellers are (and who they aren’t). So remember to keep your best sellers by offering attractive commissions so that they are not inclined to lean towards your competitors.
Affiliation marketing: is there any risk?
Like any marketing process there are risks but when the program is done correctly, they can be controlled. The main risk for affiliate marketing comes from exchanging links that direct prospects from the affiliate to the advertiser site.
As we know, the links put into place between websites are monitored by Google, which determines if the link is a quality link or an exchange involving a monetary transaction. In the second case, Google penalize sites participating in these exchanges of fraudulent links, which is extremely disabling for the visibility of the sites.
The other risk to e-shopping sites comes from the contracts between parties; if they are not properly defined they can be a source of problems for both parties. Indeed, it is not uncommon to see cases of conflicts based on unallocated commissions by the advertiser website or commissions by an affiliate site that did not respect the said contract. In these cases, the only advice is to clearly define the partnership with the affiliate site before the start.
Affiliate programs are very useful communication tools for e-commerce websites wanting to increase traffic and conversions. This marketing technique is particularly effective for companies wishing to establish interconnections with more partners and increase traffic sources across the web. While issuing an affiliate marketing strategy, know that it takes time and a certain investment strategy but it can be very profitable when properly optimized.
So, would you like to get started?