Ecommerce affiliate marketing: the ultimate guide
E-commerce affiliate marketing is a marketing strategy that can be used as a good start for the successful launch of your business. The majority of e-commerce business representatives claim that affiliate marketing is one of the most desired skills for them. Today over 80% of all brands use this sphere for sustainable growth.
The essence of affiliate marketing
Affiliate marketing is an art of communication and cooperation with other top business representatives working in the same niche. The key objective of such cooperation is the promotion of your product/service to their audience. For such help, you are to pay a percentage from a profit generated by the sales. It is the only marketing strategy which brings 100% ROI. That’s why it is a perfect choice for the beginners in e-commerce business. It is connected with the fact that there are no additional investments required. Affiliated are paid through the fees from purchases.
As for the key advantages of affiliate marketing, we can enumerate the following ones:
- wider distribution of your offer to a greater audience
- the payments to the affiliates are made only after the sale is fulfilled
- the promotion of your product/service is fulfilled via the channels of the influential affiliates
- an increase in brand awareness
- a more significant number of online orders (30% higher with affiliate marketing than without it)
- higher revenues (almost 60% higher with affiliate marketing)
- enhancing credibility (because people trust the reviews from the influential resources).
How to start
For the development of an e-commerce marketing platform, it is vital to know how to start working with affiliate marketing. The following guide can help beginners:
- Affiliate tracking system. It is possible to either join a network or create your own tracking system. The networks allow finding a reliable affiliate. They usually demand fees for their usage. Consider several popular resources available:
- Commission Junction
- Tapgerine, etc.
It is usually a better marketing strategy working with the network because you immediately get access to high-quality affiliates with a big audience interested in your product niche. The creation of your own tracking system is possible with the help of special applications. It gives more opportunities for control. However, such systems are suitable for more advanced business owners.
- Finding the affiliate in your category. It is important because your product should be promoted to the right audience. It is easier for beginners to use the networks because they give you access to their tracking systems. The latest allow finding the affiliates, which belong to exactly your niche. Besides, you can also monitor how much traffic/sales they help you generate. The tracking system also calculates the commissions you need to pay as well as the profit the affiliate brings.
- Contacting the affiliate. It is additionally advisable to search for the representatives of your category yourself. Look for other stores like yours and contact them to build relations. It is better to select reputable resources for successful cooperation. Prepare a letter, which you can send to offer a partnership. The majority of websites have a special contact email for those looking for the affiliates.
- Commission determination. Starting your cooperation, it is required to consider, which percentage of earning you are ready to pay for such cooperation. Moreover, such calculations should be made on the stage of the marketing plan creation. Consider minimum and maximum amounts you are ready to pay. Remember that if you just start your business, it is vital to offer generous payments to make the affiliates interested in your offer. Thus, you will make them trust you and build strong relationships. The payments should be observed as investments in future development.
Do not forget that dealing with affiliate marketing, you always get an impressive ROI. There are no risks. All you need is to wait a bit until your store will become more popular among the consumers.
These useful tips will help you build a stable e-commerce business and provide for its development. Follow our marketing strategy advice to find the best affiliates and do not try to save your money on affiliate marketing. In the near term, such an investment will definitely bring your business much more profit.
Source: The Startup Mag Feeds
Author: Guest Contributor