What is Affiliate Marketing and how does it work?
Affiliate marketing has had a huge impact on the marketing industry. We come across marketing every day, without even realising it.
What is affiliate marketing?
Shopify defines affiliate marketing as an ‘online sales tactic that lets a product owner increase their sales by allowing others targeting the same audience – “affiliates” – to earn a commission by recommending the product to others.
I’m sure we’ve all come across people on our Instagram explore page with thousands of followers promoting some sort of weight loss tea or hair growth tablets. This is affiliate marketing! Businesses often reach out to Instagrammers with a large number of followers resembling their target audience to promote their product or service.
How does affiliate marketing work?
Affiliate marketing is based on commission. So when customers buy a product because of an influencer, the influencer will then receive a percentage of the profit. Influencers are given a specific discount code to share with their followers. This means that their followers can use the discount code when making a purchase. This allows the business to track the success of its marketing campaign.
When an affiliate has been found through a specific network, a tracking cookie is placed in the buyer’s browser. Therefore when the advertiser’s website is being visited by clicking a link provided by the affiliate, it can be tracked. This also allows the success of the affiliate’s campaign to be tracked.
While businesses do have to give a percentage of their earnings to affiliates, it’s still definitely a worthwhile investment. Not only do affiliates increase your sales, but they’re also great for boosting brand awareness in your target audience. Also, if done correctly, this can be a very effective marketing technique. It is a more organic approach to sales, which consumers prefer.
To sum up…
Are you finding that your current traditional marketing methods aren’t getting the results you want? It could be worth giving affiliate marketing a go. At Verb Marketing we can help you. Our fully managed affiliate marketing service delivers risk-free revenue, increased brand awareness and improves website traffic. We connect you with affiliates that match your business. No contracts, it’s a no brainer. After all, there’s no reason why it can’t work for you! Contact us today to find out more.