Affiliate marketing is something that retailers often turn to in times of uncertainty, particularly due to the channel’s stability and scalability.
Our Head of Affiliate Marketing, Luke Atherton, has pulled together the top 5 ways in which affiliate marketing can help support your growth goals, not only during the impacts of the current climate, but beyond…
- The CPA model is performance-based and offers more stability
Due to the CPA (cost per acquisition) payment model adopted by the vast majority of affiliates, this channel is likely to be heavily relied upon over the coming months. As you only pay per acquisition and usually have a window within which you can cancel the commission on orders (i.e. fraudulent or return orders), this helps to stabilise your costs. Additionally, retailers control their own CPA. Usually, you can either pay your network on a ‘one size fits all’ approach, or you could utilise a varying commission structure based on: new vs. returning customers, full-price vs. sale price, product margins, country or more.
- Affiliate partners take on the responsibility of generating sales and help to broaden your audience
In joining forces with affiliates, this gives you access to a pre-established network of relevant audiences. Your partners essentially take on the responsibility of generating your sales (as they only profit on acquisition) so are motivated to earn their commission through sending you the most valuable traffic and helping you convert your existing users into customers.
- Affiliate marketing/ partnerships can scale with your website
As you only pay per acquisition, this means that the channel can scale with your website. In times of uncertainty, you are able to review whether you need to reduce or increase commissions to encourage sales or join forces with new partners who could help you access a whole new audience.
- Affiliate partners can help you access foreign markets
Affiliate marketing can be a cost-effective way to enter into the global marketplace. Through utilising affiliate partnerships that are based internationally, you can lean on their local knowledge to help strategically market your products. This is also a lower-risk method of trialling your products internationally if this is not something you have explored before to review how well your brand or products would translate across different demographics.
- Affiliates’ site content is relevant
As different affiliates usually focus on different niches, the audiences that you are given access to through the partnership should be high-quality, relevant traffic based on the affiliate’s niche and own content strategy.