What Is Affiliate Marketing?
Affiliate Marketing is defined as “A marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.” In simple terms, it involves a business arranging with an external source, usually some kind of influencer or website, to market their products in return for commission on sales. For example, as a small business, you partner with an influencer who makes videos and ads for your product that includes a link so that their audience can create sales for your business. This benefits both parties as your business makes sales and the influencer receives commission. So, how can Affiliate marketing help your small business? Let’s find out.
What are Influencers?
Influencers are creators online who leverage their social following and engagement to promote products and services. This is done through the use of video and image content posted to their profiles. Influencers can work via affiliate programmes or promote your products for a flat fee so it’s good to review your options when it comes to working with influencers to find what is the best for your business.
How Does Affiliate Marketing Work?
Customers will see the post promoting your product from an influencer that they know and trust. This makes the customer have trust for the product as they already trust the influencer promoting it. The customer then clicks the affiliate link to the brand website. Here, the customer will make a purchase and the transaction value is counted in an affiliate programme or through an affiliate network. The brand then validates these sales and a fee is given to the affiliate as commission.
Low Risk
When working with a partner site or content producer, payment only occurs if there has been a sale, not when there has only been a click through. This means that as a small business, there is little risk or budget wastage. While some affiliate programmes do pay per click, it’s lower risk to offer commission for sales. In return for this commission, you get marketing created by this partner or creator. Therefore, it is a low risk, and potentially high reward way of marketing your products online.
Key things to remember:
- Always research influencers you want to work with to make sure you don’t receive any negative press for working with a controversial name
- Have a conversation with the influencer or their agent to set your expectations as well as topics to be avoided in content
- Be careful with any contracts you may sign
- Watch out for red flags with an influencer such as no website, a new profile or little to no original content.
And as always…
If you would like any help navigating the complicated landscape of affiliate marketing, influencer marketing or social media marketing. All Advertising and here to help. Our team of experts can sort everything for you just call 01708 952952 or visit our website here