Companies are looking for new opportunities and techniques to boost sales. As much as it is to attract new clients, it is also necessary to retain the existing customers. You should know that the cost to attract new clients is more than to retain the current ones. The customer acquisition costs have been rising by about 60% in the past 5 years for both B2B and B2C companies, making it necessary for you to find new ways to boost sales without additional work.
Several businesses are considering affiliate marketing to diversify their revenue streams. They're creating their programs to increase sales in new markets or participate in making extra income. According to Statista, the spending on affiliate marketing in the states was predicted to reach $ 8.2 billion by 2022, a 195% increase from 5 years ago.
Affiliate marketing involves an affiliate registering to an affiliate program offered by an advertiser to market and sell their items on a commission-based payment model. The affiliate markets the item or service using a link that drives traffic to the company's website. If the lead shops the item, the affiliate gets a percentage from the sale. From a business viewpoint, it can be considered a way to grow the marketing team by recruiting people via 3rd-party companies paid only if the sales are made.
An affiliate marketing program is an easy way to grow brand awareness & market reach without spending tremendously on marketing. For instance, if you have 25 affiliates in your program, each marketing your items to their audience could get your products before tons of people each time. That's a substantial number of brand impressions you'd have to produce yourself.
After evaluating billions of searches on smartphones, the study found that paid ads only accounted for 11.38% click-through rates, organic searches produced 26.68% click-throughs, and 61.49% accounted for zero click-throughs.
Affiliate marketing helps you produce more click-throughs without spending extensively on paid ads or marketing.
Paying for performance instead of clicks guarantees affiliate marketing as a low-risk marketing channel. Instead of using a marketing budget to create leads, you will develop direct clients to build relationships with and upsell.
Affiliate marketing can dramatically influence your SEO and the backlinks you'll receive through affiliate blog posts & social media posts. Search engines will shoot up your rankings based on these backlinks. This is undoubtedly successful if you're working with high-performing affiliates & a super-engaged audience that shares your product or brand's posts and links.
It is indeed tough to drive traffic to your business website. SEO & marketing efforts are responsible for your organic search results that can significantly impact your sales number. Moreover, it's just not about traffic, it's about quality people who aren't just bouncing away.
Affiliates help your industry and market by getting you targeting traffic suitable for your business. The traffic is pre-screened by your affiliate, easing it to maintain relationships whether they purchase from you or not.
The challenging work of attracting new users is already done when they shop via your affiliate program. Affiliate marketing turns them from new into an existing user, and the purchase is a sign of future buying potential.
Now it's time to start promoting them via email marketing. They're a bit differently engaged customers and need to be marketed differently.
Affiliate marketers want to collaborate with top paying affiliate programs and stick with you to produce the sales that'll bring in extra revenue. Make sure that your affiliate program offers them the adequate earning potential to make it worth it. If they gain a fair commission, they'll resume with you long-term, growing this revenue stream in the future.
Marketing is one of the essential parts of your business, and it can be a tedious process. If you lack a management team, it can take your business away from making further progress. This is where affiliates come into the picture, allowing you to focus on other tasks.
If you are a start-up or a small enterprise, considering expansion, affiliate marketing lets you scale your business at your speed & at a minimal cost. You can test out new products & marketplaces via affiliates and develop your business at a rate you can regulate. 99% of people commenced their business using affiliate marketing.
Users are spending more and more time on smartphones and apps; hence, it's necessary to have partners within your affiliate program who control the mobile market. For instance, one such app in the US is Ibotta, connecting users with lifestyle brands, retail, grocery, and rewarding them with cash for purchasing things they require. Among various mobile user growth, it's good to look at affiliates who have a mobile user experience that simplifies things and is accessible for the user.
The affiliate program is far beyond coupons and deals with partners. To generate incremental revenue on a performance basis within your program, consider collaborating with affiliates who are advanced in e-commerce tech, including deep website integration & AI.
One such instance is RevLifter: The company helps brands deliver incremental sales, more conversion, and clients by customizing deals for advertisers across marketing channels. It uses AI to understand real-time signals from customers' on-site behavior & offer the right deal to the right client at the right time.
Affiliate marketing can be a simple formula to create new revenue streams & grow your business. It is a long-term solution for your organization as it takes time to either build your progress or produce income by participating in an affiliate program. With an advance investment and minimum hours, affiliate marketing can be a great way to grow your business.