- 1 What is affiliate marketing?
- 2 Benefits of affiliate marketing program:
- 3 What to look for in an affiliate marketing program?
- 4 Conclusion:
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What is affiliate marketing?
Affiliate marketing is marketing in which an affiliate or marketer promotes another company’s products in return for a commission.
It is an advertising model in which a company recompenses third-party publishers to generate traffic or leads to the company’s products and services. The third-party publishers are affiliates, and the commission fee incentivizes them to discover ways to promote the company.
Benefits of affiliate marketing program:
Affiliate marketing program helps you to increase brand awareness among the new audience.
Affiliate marketing program is cost-effective and low-risk you have to pay affiliates after they have generated sales for your business.
Affiliate program helps you to increase leads and sales in a targeted manner. Affiliates have access to audiences who match your perfect audience, and they can link to any product page or landing page that you choose.
It helps you track the ROI of word-of-mouth. Each and every sale is traced back to the affiliate responsible.
What to look for in an affiliate marketing program?
For affiliate marketers, there is not a thing more important and more challenging than performance. But getting there means searching the best platforms and programs for your niche and goals. In a fast-changing industry, it can be tough to know which way to go, whether beginner or advanced.
Growth of the affiliate marketing program is currently at around 27 percent per year globally, according to social media Today, with countries like the United States and the United Kingdom main the way.
1. Click Traffic:
This is the number of clicks you managed to operate through your program over a certain period of time. This is one of the basic affiliate marketing KPIs to look at because it’s an important sign of how well your program is growing.
For example, a higher amount of click traffic compared to last year show that your program is seeing some growth.
2. Top Affiliates:
Make a record of your top 10 affiliates who contribute the most revenue to your program each year. You should nurture your relationships with them to avoid losing your partnership with them.
The best way to track this affiliate marketing KPI is by allocating a unique UTM code to each affiliate. You can use UTM.io to make a UTM template for a specific program. You can then customize this template to make a unique URL for each affiliate.
3. Percentage of Customers:
Part of tracking your affiliate program performance involves ensuring that the program is still active. This means you have need of to look at whether or not the program is still attracting new customers.
If not, there is no meaning to keeping the program running as you could end up wasting time and resources without gaining any profit. Some affiliate programs may continue to take in new customers even after years of activation, while others may stop attracting a new audience just after a few months.
4. Conversion Rate:
Conversion rate is one of the most essential affiliate marketing KPIs to track. It is the comprehensive number of conversions divided by the total number of clicks.
This gives you a great idea of how well those clicks are actually converting into sales. It can also assist you to recognize how many clicks it typically takes to drive a single conversion
5. Average Order Value:
Average order value is another one of the essential affiliate marketing KPIs to track if you want to estimate the profitability of your program as well as the profitability of each affiliate. This is the average amount used up every time customers buy something from you. So a higher average order value shows that people are spending more for each purchase.
6. Type & Numbers of Products:
Many affiliate marketing programs will keep it simple for beginners like: one product, one revenue. Ideally, you will get into a flow where these types of programs will appear as limiting to you as they are.
The only way to advance as a professional affiliate marketer, and the Legendary Marketer way, is to find ways to maximize the revenue of the people you bring into the fold.
7. Refund Policies:
Many affiliate programs will have refund policies to go along with their products. We’ve found that a generous policy is a great way of converting a lead to a sale, particularly with informational products. See, consumers usually live with the cost of their buying decisions even when not completely satisfied.
8. Read the general terms and conditions:
As in any agreement, you have to carefully read the terms and conditions of your collaboration. All the expectations and requirements should be formulated in a simple way to ensure that both the company and you are on the same page. Sometimes, what happens? You might have some problem with a particular condition that can act as a deal-breaker.
For example, some affiliate programs restrict driving sales through specific traffic channels. And some specify that affiliate won’t earn their commission if the transaction is incomplete or cancelled or a subscription is cancelled within a certain period.
9. Program competitors:
If you have been already successful using a specific affiliate marketing program, take a look at your brand competitors if they have some good affiliate programs to join. Providing your audience with additional products in a similar category increases your conversions.
Choosing the right affiliate program is the most important decision for an affiliate. There is no perfect affiliate program, you need to balance for your success. Hope this information will help you to choose your affiliate program.