You have started selling online and have been able to drive traffic to your online store and earn some sales. But after this sweet moment of the first impulse, comes the part where you must think about how to promote your store. Maybe it's due to lack of time or simply because you do not know how to continue or create a marketing strategy, the truth is that you feel a bit stuck.
That's why we wrote this post. If you've been wasting time thinking about what other marketing actions to carry out and you've forgotten the power of an affiliate marketing strategy and how you can expand the reach of your business, as well as the relationships you can generate with other vendors around you of the world. We want to show you how you can start an affiliate program for your ecommerce business.
What is Affiliate Marketing?
In short, an affiliate marketing strategy is a commission-based program that motivates affiliates to help merchant selling its product or service. If you implement an affiliate program, then any vendor can sign up and send online traffic to your store. In return, the sales that are generated from that interaction give them rewards.
Usually a fixed amount of money or counted from sale’s percentage. In the following chart we can see how affiliate marketing works:
? In essence, these affiliates are doing your job. How important is affiliate marketing scheme for the growth of your business? Mike Geary started selling a fully digital product in 2007. As it was a non-tangible product, he was able to offer his affiliates a percentage of the sale payment.
He put his offer in Clickbank - a popular destination for affiliate sellers. Hundreds of interested parties saw their offer and began to promote their product, because it was offering a fairly generous reward - about 50% of the sale. According to an article in Quicksprout, Mike's earnings grew close to $1 million per month, due to the affiliate program he implemented
All Mike had to do was sit down, post the offer, and wait to see how interested salespeople did their job.
Benefits of Having Affiliate Programs
There are many benefits you have here but at least, I underlined few essential reasons why you should get started on it:
According to some research, 16% of the purchases happened online is done by the affiliates. Another research also outlined that average online order of online store is 31% higher in stores which has affiliate marketing scheme. Most importantly, you only pay someone when he generates qualified sales or leads.
With this, you never lose on advertising budget!
Advanced Social Proof
People always want to see what other people experience with the product or services. With affiliate marketing scheme, there will be many people helping you provide reviews. If your product is doing good, the happy buyers will leave a positive review.
Trust build, you make more sales!
How to Start Affiliate Programs
Before you start doing affiliate programs, you should know that the affiliate marketing does not work well for all businesses. In some cases, it does not necessary because your profit margins are not big enough. Your affiliate programs must offer a striking profit.
So that it’s worth your time and effort as a seller.
The best possible ways to know if an affiliate scheme works for your ecommerce store is to check if other businesses in your market are doing it. If it works for them, it will most likely work for you. Here are some other questions to ask:
- Do your competitors already have affiliate marketing?
- Are your own or similar offers reviewed online?
- Are there comparison portals in which own or similar offers are compared?
- Are there any blogs that are niche specific for your offer?
- Do you have a newsletter and does it contain editorial topics?
- Are new newsletter subscribers important to you?
- Do you receive qualified inquiries over the Internet and could these requests be launched from other websites?
You can search on Google and find out any type of business that is implementing an affiliate program.
For example, perform the following searches:
- "(Name of your competitor) affiliates"
- "(Competitions) affiliate program "
- "Affiliate marketing (your competition)"
Once you have determined whether an affiliate program works for your business, find out how you can implement one for your Ecommerce store.
Get an Affiliate Tracking System
Getting into affiliate network is considered as the best choice to get your affiliate programs set up. However, they will most likely charge you when you join the network. In case you want to build your own tracking system, here is the software that can help you:
Omnistar affiliate software
Being preferred by hundreds of businesses, Omnistar is the ideal affiliate software because it offers a platform that you will not want to leave when you do your initial test. It has large clients such as Macy's or Cisco - guarantee that the software is excellent.
You can start with your free 15-day trial.
Find Qualified Affiliates in Your Niche
The potential of taking your offers to groups of people that you cannot reach for yourself is incredible and capable of multiplying the profitability of your business. One of the questions we often hear is: "How to attract the best Affiliates to my product?". I have prepared three key aspects for you to answer this question.
1. Take care of the quality of your product. A good quality product has a low rejection rate and, of course, is more likely to attract the attention of professional Affiliates. In addition, it is essential that your product is well configured on the platform, with all the information that Affiliates need to work.
2. Offer a differential in your commissions. Professional Affiliates look for good products that offer good commissions, which is not synonymous with sharing the benefits. Think about the potential that a greater volume of sales has when multiplying your income.
3. You Should Make Everything Clear. Include the following information for better affiliate recruitment:
- The description of the Product and the Affiliate Program
- The duration of the cookies and how to assign a commission
- The niche, format and form of access to the product
- The disclosure tools configured for Affiliates: alternative pages, alternative dynamic pages, means of disclosure and delivery of bonds
- The link to the main sales page and the support email
Also, the strategies differ in affiliate marketing. Here are some examples of goals that can be tracked through affiliate marketing:
- Qualified visitors (traffic from human clicks, not bot, or random clicks)
- Sales in online shops
- Qualified contact requests
- Email subscribers
- Downloads of eBook
- App Install
- Downloads of software
- Registrations for trial accounts or freemium offers
- and many more possibilities
Of course, you can also try to achieve multiple goals through affiliate marketing. However, finding and specializing in a particular niche is one way to stand out from the competition and succeed.
Contacting an Affiliate in Your Niche
Often in affiliate marketing, few publishers deliver good results. Therefore, it's not the crowd that matters, it's the class of publishers. Finding really good affiliate partners or getting them noticed is work-related.
There are many ways to find suitable affiliate partners. You can become active yourself or promote your affiliate program in relevant places where affiliates are looking for affiliate programs.
- Sign up with affiliate networks like affilinet, AWIN or TradeDoubler. Mostly, they are the first point of contact for publishers to find suitable affiliate programs.
- Create your own subpage to your affiliate program on your website and link it in the footer on your website. This way, potential partners quickly realize that you are offering a partner program.
- Sign in to portals listing affiliate programs. For example: Offervault.net
- Make sure your affiliate program is found in affiliate search engines like affilixx.com.
- Subscribe to affiliate marketing social networking groups such as LinkedIn, Facebook, Pinterest, and post your affiliate program there. Here you can also find relevant publishers. Connect with relevant publishers. Maybe, together you will find a good opportunity for working together.
- At trade fairs and special affiliate conferences, you'll also find active publishers who are always looking for rewarding affiliate programs.
- Take a look at where your competitor presents itself. Maybe there are also relevant websites for you.
- Search for relevant publishers yourself and address them. For this you can look for the search terms relevant to you in search engines, whether there are thematic portals, niche sites, test and comparison portals, voucher portals, cashback portals, specialist blogs or online magazines listed.
Determine Your Ecommerce Affiliate Program Commission Percentage
Determining the affiliate commission percentage is crucial. Let’s say, if you give too low percentage, there will be no one interested. However, if the commission is too high, it won’t be good for your business.
Therefore, I list some questions you need to consider before setting up your commission percentage:
- Do your selling prices offer enough margin that you can still afford paying for affiliate commissions on sales?
- Is your product searched online or bought online?
- Do you run display marketing and do you care about the visibility of your brand or offer?
- Do you know what is worth a click, a request, a sale or a new newsletter subscriber?
As a quick reference, I might consider that you should put 5%-10% commission if you sell physical products. If it is digital product, then the popular percentage is between 30%-50% of the product price.
Again, this is just a quick suggestion. The final number solely depends on you.
Affiliate Marketing for Beginners: Conclusion
After you have started your online store, directed your product-oriented traffic, and made some initial sales, it can be difficult to determine what steps to take to further grow your business.
One approach that is often overlooked is the effectiveness of affiliate marketing, and knowing how to create an affiliate program that helps your clients and advocates to do your marketing for you.
The affiliate scheme offers retailers the unique advantage of being able to quickly achieve reach on the Internet and, at the same time, advertise success-based advertising. Due to the wide range of business models of the dealers, a suitable target group is addressed with each program. Only in this way is it possible to introduce a brand or an offer to a broad audience and to obtain a direct reaction from the users.
The big plus for the ecommerce business owner is that, he pays only for successful conversion. Because Affiliate Marketing works on a "performance-driven" basis, the merchant pays for advertising only if he is definitely successful, such as a click, lead (for example, submitting email address) or a sale can post.
The type and amount of commission vary according to the affiliate marketing program and are based on the behavior of the customer. Depending on whether the referred visitor made a purchase or just browsed, the affiliate earns money.
Are you interested on starting your own affiliate marketing scheme for Ecommerce? Let us know in the comment below!