What is affiliate marketing?
Not Just The Formula to Make Money Online
The concept of Affiliate Marketing is not new in recent years. However, the effective application and application of the business model still receives great attention.
Whether you are a business owner or a marketing director, you should refer to the article below. Surely you will have more knowledge and new experience to apply in the development marketing model for your company.
What is affiliate marketing?
“Affiliate Marketing is an Internet-based marketing method connecting suppliers of products and services online with target customers through a third party. Those are the partners that own the blogs, the website, the target user community. Collaboration between parties brings resonant benefits to both consumers, suppliers and partners.”
According to Wikipedia
Some Affiliate Network models are in vogue:
[+] Physical products.
[+] Discount code.
Affiliate Marketing system
Affiliate marketing can be seen as the process of promoting and marketing products through many different parties. In particular, each party will receive a share of revenue according to their contribution.
As such, you can be both a product creator and a marketer. And still benefit from the basic idea of the concept of “revenue sharing”.
[+] Suppliers (Advertiser): Businesses or individuals who want to advertise their products/services.
[+] Affiliate marketer (Publisher). The independent party carries out the promotion for the company’s products/services that require advertising and receives commissions from them.
[+] Affiliate network plays an intermediary role between the advertising needs and the advertising implementers. Help provide affiliate services, calculate the effectiveness of advertising, calculate the traffic and costs the two parties must pay each other. Management and decision making if there is a dispute or fraud… Usually people need ads and implementers find each other. Through an associated service provider. Affiliate service providers must provide technical platforms to support operations for their customers.
How does affiliate marketing work?
Affiliate marketing often uses cookie tracking to log deals. The overall process as described in Dave Chaffey’s Ecommerce Management book Ecommerce Management is described in the following image:
Affiliate Marketing is an important part of every business’s online business strategy. In both product marketing strategy and tactics, Affiliate Digital Marketing is considered as an important factor to consider.
If you are the owner of a business or you are the director of strategic marketing, you should refer to the three important steps below to operate effective online media channels:
REACH (Target Approach): Leveraging and coordinating online marketing tools will help the goal of promoting the brand in your marketing strategy faster. Including: Affiliate Marketing – SEO – PPC – Online PR – Social Media marketing….
ACT & CONVERT: It is very important to measure the actions of the target users in relation to your company’s online business.
At this stage, you need a technical support team. Help you attach conversion tracking codes correctly. With important points such as: Page Fill Form, Order Button…
ENGAGE: It’s great when your old customers come back to take action. Use interactive creation and feedback tools.
Building close relationships with customers is an important tactic in this competitive online business. Content Marketing, Mobile Marketing, Customer Care, etc.
Why businesses should use Affiliate Marketing?
In the world, the measurable results and profits generated from the Affiliate Marketing channel are increasingly effective for online businesses.
- The payment policy of this Affiliate Marketing channel is based on specific conversions. And based on 2 main mechanisms: CPC (cost per click) and CPA (cost per action).
- Ensuring that online businesses achieve revenue targets while still controlling costs and budget spent.
- Reach the right target customers.
- Easy to update continuously.
- High ROI.
- Reduce the risk of virtual users, virtual mouse clicks.
- Cost per action is effectively managed.
- Promote the brand through the large affiliate channel system.
The industries should apply affiliate marketing model such as:
- Hotel, reservation
- Air tickets, travel
- Make up
- Online course
AFFILIATE MARKETING model
For businesses when starting to deploy Affiliate Marketing model. The types of Publisher (affiliate marketers) that are commonly selected include: Coupon (discount code), Cashback (refund) and Content (publishers create content such as reviews, livestreams…).
However, the 3 most effective Publisher models that increase the value of your Affiliate channel are:
Mass Media Publisher
Digital content marketing (content on digital channels) currently does not stop at the blog posts. It includes online newspapers, social media channels like Facebook, Youtube…
The current newspaper pages are promoting their electronic news channel. For example CNN, Fox, Forbes, Reuters… millions of people read online every day.
If the business can borrow the power of such publishers, it will provide a great opportunity to add value to the business.
Although the clickthrough rate (CTR) for such publishers may not be as high as that of traditional publishers. However, thanks to the large amount of traffic, it allows the brand to reach a larger customer base.
Usually, companies that want to promote their brands/products on online newspapers will often think of book forms. However, they can fully cooperate with your company as a publisher.
That is, without having to spend a large amount of money to book articles, your products will still be in the newspaper. That article will include the affiliate link. If readers click on and buy successfully, that page will receive a commission.
The form of Cashback (refund) in Affiliate Marketing which succeeds in sharing a part of its profits with users. With the form of refund, customers will buy goods with the money they save.
As for Charity Publisher model (Marketers up all have social activities), when you collaborate with publishers for charity. They will share a portion of their profits for social activities. From there, customers will feel more meaningful by the amount of money they want to spend.
A lot of people want to help under difficult circumstances but they don’t have time to do so. So the quickest and easiest way is to send money to individuals and the charity organization.
According to a survey of 300,000 customers worldwide of Accenture. Up to 63% of customers prefer buying from companies that are active in social activities.
The advantage of this form is that your brand value will be significantly increased in the eyes of consumers. Please work closely with such publishers to implement a meaningful and methodical charity campaign. Then the revenue will really explode.
When today, customers must constantly receive countless ads every day. Sometimes make them uncomfortable with brands. With this new Publisher model, businesses can:
- Improve your brand experience with your users thanks to the publishers’ ability to target customers.
- Based on the amount of data available, combined with technology and algorithms. It will help this publisher better understand the needs of users to make the appropriate offer.
Take the example of Cashback publishers, who hold a lot of information about the user’s online shopping behavior. As well as the ability to spend each month of those users.
Imagine that, if they use that amount of data with financial offers. To provide credit loans to users shopping during the month. Such models are increasingly developing and will be the trend in the near future.
Another example, RevLifter – a tool to help companies have a panoramic view of customers’ shopping journeys. Next, they recommend to the company highly personalized offers/promotions.
Suitable for each customer object file. Thereby helping to increase the value of the cart, conversion and attract more new customers.
How to do affiliate marketing effectively
1. Launch affiliate marketing
First, you need to determine if affiliate marketing really fits your business’s business model. Most of the answer is yes if you belong to a commercial company (Ecommerce Company).
Then you need to clarify some questions before moving on to the next step:
- Competitor analysis
- Choose and work with an affiliate network. Affiliate marketing abroad is participated by many people: Amazon, Clickbank, Sharesale, Commission Junction…
- Determine how affiliate marketing will be applied in your company’s business model?
2. Set marketing goals
When you are starting your affiliate program or even if you have an established program, goals are very important. When you have a goal, you can follow the three-step path:
- Know what you want to achieve.
- Determine your activity and then measure.
- Refine and improve it.
Make sure your goals ensure SMART (Specific, Measurable, Achievable, Relevant, Timely).
Examples of some common goals you can refer to for your program:
- 10% increase in annual sales.
- Increase sales value by 20% per month.
- Increase average order value by more … in December 2020.
- Increase the number of Affiliate affiliates to 30% by the end of this year.
3. Recruiting collaborators Affiliates
Recruiting Affiliates helps you promote your image as well as address your goals. Some issues to keep in mind when hiring collaborators for the program:
- Identify appropriate collaborators affiliate: male or female, age, region, interests…
- Review subjects in descending order of priority. Customers have purchased, potential customers, subscriber fan page, Youtube channel…
- Prepare content to call collaborators to participate. Pay attention to the factors that collaborators are most interested in and highlight advantages of products, services and tracking platforms to create a certain trust.
- Deploying collaborators recruiting message through advertising channels, Facebook posts…
4. Inspection and compliance
Testing for collaborators’ network is very important. To ensure you your sales programs are always driven by the goals set.
Besides, compliance of collaborators Affiliate is very important. Because you want to know that affiliates promoting your brand are doing it correctly.
Many broadcasters tend to use the wrong logo. Or failing to comply with company sales promotion programs. Not to mention, the collaborator’s website may also contain/promote other non-mainstream programs. Does not match the product message of your business.
Therefore, verification and compliance issues are an integral part of before you want to expand and develop your Affiliate marketing network.
5. Develop affiliate marketing network
You need to perform the following issues to best support affiliate marketing collaborators, win – win cooperation.
- Welcome email with instructions for implementation.
- A series of tutorials on how to promote appropriate products.
- Create a separate group for operators and announcements.
- Give promo codes to collaborators to give customers.
- Inform collaborators in advance of promotions so they have a plan.
- Share information about the conversion rate of the website, the best-selling products…
- Create library of support banners.
- Train collaborators when the company finds an effective method.
Besides, you should create competition programs among collaborators Affiliate. After recruiting collaborators and obtaining appropriate support, you need to promote the effectiveness of the program. Typically, you should organize TOP racing campaigns to encourage collaborators to participate more actively.
A few points to keep in mind when organizing a TOP race for affiliate collaborators:
- Often combined with corporate campaigns or a highlight of the year (holidays…)
- There are bonuses in addition to the commission: For example, if the revenue reaches xxx, the bonus is yyy.
- Publish the results after the race ends: via email, Facebook group…
6. Review of new opportunities and approaches
- Set up important indicators to track.
- Discussing issues collaborators found it difficult and helped them.
- Continuously summarize and improve every smallest detail.
- Share the successful case study of collaborator TOP to all collaborators.
- Continuously update collaborator’s questions and queries about a contact, for example the collaborators FAQ page
- Assessing the results against the set objectives, proposing the implementation of experiments to improve.
As an Affiliate Marketing, you can absolutely use other methods of Digital Marketing such as:
- Social media marketing
- Video marketing
- Goolge ads, Facebook ads…
- SEO web blog sharing knowledge…
Effective Affiliate Marketing Management Tips
Manage conversion commissions
One of the important things when using affiliate marketing to target revenue for online businesses is conversion commissions.
Conversion commission level is a factor to promote affiliates promoting products and services to suppliers. And also need to be carefully calculated to ensure cost optimization.
Cookie retention time
The EPC (Earning per click) index of affiliates is greatly affected. By the time the Cookie is saved, the user visits the affiliate site. Based on that to close the sale conversion.
Content orientation as well as updating attractive promotions of businesses to affiliate sites is extremely necessary.
For mutual benefits and businesses also avoid some unnecessary risks. It relates to his reputation. Everything can be controlled if you know optimal management.
Choose the right Affiliate network
Choosing the right Affiliate Marketing network is a big decision for online businesses. Business owners need to analyze and select reputable networks and platforms.
To ensure the rights of all parties involved as accurate measurement will be a long-term business strategy with Affiliate Marketing tool.
Affiliate Marketing is still considered the hottest tool to make money online today. And the document devoted primarily to the reading audience is Publisher.
Hopefully the knowledge we provide can help business owners and marketers. Help your business model grow richer.