WHAT IS AFFILIATE MARKETING?
Affiliate marketing has become so popular that every business and internet user is aware of it. Affiliate is a marketing tactic to drive sales and contribute significantly to online revenue.
Let’s have a quick look at some recent statistics about affiliate marketing.
81% of merchants and 84% of publishers have leveraged the power of affiliate marketing.
Affiliate marketing accounts for 15% of total revenue from digital media
In the United States, spending on affiliate marketing has increased by 10.1% percent each year. It is estimated to reach $6.8 billion in 2020 and $8.2 billion in 2022
Affiliate programs generate up to 30% of sales for advertisers.
35% of affiliates earn more than $20,000 per year
These statistics sound impressive. So how can we define affiliate marketing precisely?
Affiliate marketing is well-known as an advertising model in which businesses compensate third-party publishers to drive traffic and generate revenue for their products and services. Publishers are affiliates who will earn a commission when promoting other companies’ products.
An affiliate is not a salesperson in the organization. An associate works independently. The affiliate seeks for an enjoyable product, then promotes the product and earns an amount of money from each purchase they make. The system tracks affiliate sales and commissions.
Affiliate marketing is a strictly performance-based marketing method. Affiliate marketing provides businesses with a 100% return on their investment. Unlike other online marketing methods, affiliate programs help merchants both minimize costs and grow the customer base.
Brands and affiliate marketers work in a revenue-sharing relationship. For the brands that have products and services and want to generate more sales, they offer financial motives via an affiliate program. For people who have no product and want to make money, they look for some products that have value and earn income as affiliates.
Common types of affiliate marketing:-
Coupon sites-Recently, smart online shopping has become a prominent trend. People tend to search for available coupon codes from all marketers before purchasing their desired product. Coupon sites that provide these coupons have quickly become one of the most popular affiliate channels.
Media sites-Media sites can be considered as big players in the affiliate game. These websites are designed to drive a tremendous amount of traffic, then a large audience base.
Content sites-Most reviews and posts of bloggers are likely to rank higher and more organically in the search engines. Therefore, bloggers excel at both driving traffic to the merchants’ sites and increasing the sellers’ conversions. Furthermore, working with niche content sites even results in better conversion rates.
Email-Despite its older origins, email is still a common communication channel. Some affiliates have utilized their email lists to promote the seller’s products. They also use various campaigns to collect as many emails as possible. Then they send specific offers or newsletters regarding the advertised products or services.
Social Media Channels-Social platforms such as Facebook, Twitter, Instagram, Youtube have become the primary channel people interact with each other. Influencers who have the power to impact others will benefit the most from affiliate marketing via social channels.