So you have an online store and you're getting some traffic.
For anyone that owns an online store, you know that traffic and conversions are your top priority. By now, you've been thinking of ways you can promote your store. If you haven't thought about or checked into affiliate marketing, you need to. Today we're talking all about affiliate marketing and how you can grow your business using affiliates.
Watch here or read all about it below.
You know me, I want you to have five different revenue streams, or as I call them sales buckets for your product-based business.
Affiliate marketing is a really great way to add another revenue stream.
What is affiliate marketing and why should you consider it?
Well, affiliate marketing simply put is a reward based system that incentivizes your customers or your marketers to promote your products in exchange for a commission. The idea of affiliate marketing may seem daunting but it is really rather straightforward. You pay out a fee when a sale has been made and you generated revenue.
Your customer or your marketer signs up for your affiliate program. They send visitors to your store and any sales that you get as a result of the traffic that they brought you, they get a percentage of the sale.
It's just this simple, the affiliate puts a link to your website on their website or on their social media. Then a customer clicks and buys your products. The conversions are tracked and the affiliate gets a commission on the sale.
Bottom line, you have other people doing your marketing and bringing you new customers.
Some people may balk at the idea of paying a percentage of the sales but look at the return on the investment. Remember, you would pay a sales rep commission off of wholesale. You are paying a smaller amount because you're paying an affiliate a commission off retail.
You have better margins when you're retailing your product and yet you're getting more traffic because of those affiliates. You are expanding your brand.
You have to do the math to figure out how much you can afford to give up to do affiliate marketing. Can you afford 5%? Can you afford 10%? Can you afford 50%?
Think about it when you're deciding and figuring out what you can afford to pay. The more you pay, the more traffic you're going to get because the affiliates are incentivized to drive traffic to the programs where they get better commissions. That's a point to think about as you're deciding how much you can afford to pay and what your commission rate will be.
How do you get started?
You can start by adding a plug-in to your website or by joining an affiliate network. If you don't want to join an affiliate network, you can do your own tracking by downloading an app. Say you're using Shopify for an example, there's a few apps or plugins that you could use.
You install that affiliate software onto your website and then it's up to you to advertise that program and drive traffic to your program. Some examples of apps that you could use would be Referral Candy or Lead Dyno.
The pros are, it's not as expensive to get started, but the cons are you have to drive the traffic and you have to promote your own program. If you want to do the easier way that costs a little bit more money, you can join an affiliate network. They provide a marketplace where your affiliate program will be advertised.
The Network already has the marketplace and they advertise it. They have the marketers who have signed up with them to do affiliate marketing. All the marketers have to do is sign up to your program and then the network that you've joined will track the traffic and commissions. They issue commission checks and reports. It's a lot easier but it's a little bit more expensive.
For example, some of the networks you could join would be Share a Sale, Commission Junction or Linkshare.
If you decide to do an affiliate program, be generous with your commissions.
Think about how much are you spending on ads and what does it cost you to bring in a new customer? The affiliate is doing the same job but probably for less than it would be for the ads. Think about that as you're deciding on commission rates. Just be generous.
Don't forget the key point with affiliates is they are bringing you, new customers. That's what's important. Think about the value of a new customer and what it costs to bring a new customer in.
I think it's worth it and I think you should consider doing an affiliate program. I want you to come on over to my Facebook group, Product Biz Made Easy and tell us are you using affiliates or are you considering using affiliates?
Make sure that you sign up for my weekly webinar series, Product Biz Made Easy where we talk all about sales and marketing strategies and systems for your product based business. You can find that at beckyjanderson.com/weekly-webinars.