Affiliate programs are a secret weapon of some of the most prominent brands (especially in SaaS) that drive their marketing campaigns and revenue.
It can open your business to a significant stream of conversion, at the same time winning more brand advocates that further translate into tangible outcomes in the long run.
If you’re planning to create an affiliate marketing program for your product, or want to learn more about this topic, this blog is for you.
(In case you need personalized insights and assistance in creating an affiliate program, consider getting help from an experienced digital marketing company in Canada!)
What is an Affiliate Marketing Program?
Affiliate marketing is a marketing model in which a business rewards affiliates for every customer that the affiliate brings to that business. (Every sale is tracked via. Custom affiliate link!)
Affiliates typically receive a commission for any sales (including recurring subscriptions) that they generate via their own affiliate link and/or one-time customers who make purchases through affiliate links.
Affiliate marketing programs are different from advertising, in that advertisers try to influence the consumer directly, whereas affiliates market products and services that are provided by others. In the latter case, an advertiser usually pays only after the consumer completes the purchase.
In short, you create a program that compensates people for helping you make sales. You pay a small commission to them. Elementor, a website builder, offers one of the best affiliate programs. It pays a 50% commission per sale. Aweber, an email marketing solution, pays a 30% recurring commission to affiliates.
Benefits of An Affiliate Marketing Program
Here are some of the benefits for businesses of having an affiliate marketing program:
More sales opportunities- Affiliate marketing provides smaller businesses with an opportunity to reach a wider audience than they would otherwise have access to. By partnering with affiliates, you can promote your products to more customers. This means more sales than if you were trying to sell directly on your own website.
Very Targetted Traffic
Affiliate marketing is a very targeted way to market your brand. The more you get involved in the affiliate marketing process, the more targeted your traffic will be. This means that you can reach out to people who are interested in what you're offering, and they will be more likely to buy your products or services.
Low Ongoing Costs
Affiliate marketing programs are very cost-effective. With an affiliate network, you only pay when someone purchases something from your website that is related to your product or service. This means that there is no need to invest in expensive advertising campaigns or other marketing strategies that may not be beneficial in the long run.
The high return on investment (ROI) associated with affiliate marketing makes it an ideal choice for businesses looking to generate leads and sales quickly while spending less money on marketing activities. Thanks to the targeted traffic and little investment, the customer acquisition cost of affiliate programs is usually low.
Greater Brand Awareness
Your affiliates do all the work for you. They write blog posts, distribute the content on social channels, and promote your products on different channels. They become the biggest voice for your brand, which subsequently drives your brand's awareness. So, in addition to helping you make sales, affiliates also play a key role in building your brand value.
You pay an affiliate only when a sale is made. So, unlike, for example, display ads where you pay just for reach and impression, affiliate marketing brings you tangible results. This is another aspect of affiliate marketing being cost-effective. The top providers of SMO services in Kolkata, in fact, put this as one of the top benefits of affiliate marketing.
Faster Business Growth
When you combine all the benefits of having an affiliate program, it all sums down to one central advantage: Affiliate marketing helps businesses grow faster.
Continue learning: How to Build an Affiliate Marketing Program: A 101 Guide [Pt 2/2]