In the Dynamic world of digital marketing, there are game changer technologies announced almost every day. To keep up with it better we recommend staying updated. The world of affiliate marketing is no different. If you are asking yourself how to set up an affiliate network, read on.
Affiliate marketing came into being at the very onset of online marketing, however concept wise it goes way back when marketing was ever introduced. In the year 2019, this online marketing tactic brings a promising prospect for those who want to make money online. But to achieve that there are few important things you should know about affiliate marketing and setting it up effectively.
What is affiliate marketing?
Bringing it to an easy understanding, affiliate marketing is a business which is based on performance where the affiliates (independent marketers) who earn a fixed payment are funded when the sales are made or when they give confirmed leads. The sales are tracked through the affiliate links from one website to the other. It revolves around the idea of revenue sharing while driving sales and profit to the companies.
Accounting for around 16% of all e-commerce sales today, it is estimated that by the year 2020 the industry will reach a whopping 6.8 billion marketing spend.
Here are the facts to gauge how the affiliate marketing industry has been making grounds over the years and predictions for coming years-
How does it work?
There are three groups involved in any affiliate marketing setup. One is the seller, second is the affiliate or the advertiser and the third one is the consumer. The seller might not be actively participating in the market, however, being the brand and product creator, he will share the profit from the revenue generated through affiliate marketing.
The affiliate or the advertiser who will publish can be a company or an individual who will market the seller’s product by attracting the customers by highlighting the benefits of the product. He gets paid a portion of the revenue generated if the consumer buys the product.
The consumer is the one who drives and completes the whole process of affiliate marketing. He gets the product rarely at a high price as the affiliate’s share is included in the retail price.
How does the affiliate get paid their share?
This actually depends upon the affiliate marketing program and the affiliates input in driving the product’s sale. The affiliate or the publisher can be paid per sale, per click or per lead that he generates.
How to pick the affiliates and channels for an effective affiliate marketing setup?
With a 10.1 % growth in the affiliate marketing spending, 81% or brands and 84% of the affiliates leverage the power and benefits of the affiliate marketing industry. These numbers are predicted only to increase in the year 2019 and ahead. With such market coverage, it becomes quite important to pick and use the most common as well as the most trending ways to get an effective affiliate marketing set up.
Here are the channels to pick your affiliates from-
Large media websites– There are sites which are created to attract huge traffic, in millions at all times. Due to such massive footfalls, they tend to promote and make sales for the product using banners and contextual links on their pages. This practice promises a sure shot revenue for the seller and the publisher.
Influencers– Individuals boasting tremendous following and the power to influence a large segment of people in their buying decisions are termed as influencers in the world of affiliate marketing. Through their social media pages, blogs and videos etc., it’s quite easy for them to promote a product. They make the sales through that and get paid with their share of revenue generated.
Bloggers– Bloggers comes next in accumulating the seller’s conversions through their highly followed and top-ranked blogs. They write a review after sampling the product and based on his review the customer is compelled to buy the product and sales are made. He gets paid his commission in return.
Emails– Email marketing is old but still is an effective way to increase the affiliate marketing income. The email lists are used by the publishers and the email newsletters are sent with the hyperlinks to products. Highlighting the benefits of the product, it becomes easy for an affiliate to spread the word through emails that also gives it a personal touch in their marketing campaigns.
How can you set up your affiliate network effectively?
In order to get a foothold in the affiliate marketing industry, you need to first gauge as to how are you going to track the sales and commission involved in the process, even before you start to look up for affiliates.
Your affiliate dashboard should provide you with a comprehensive look at your clicks, trials, sales and the commission. The powerful tracking will ensure a seamless and hassle-free work approach to your affiliate marketing set up.
In the year 2019, it is anticipated that constant testing and optimization of your conversion rates will be required to get better results with comparatively lesser efforts.
To achieve that, there are apps and software available that can help you track, analyze and optimize your affiliate marketing campaigns in real time. VaultPro is one such software that can get your affiliate network set up instantly.