What is Affiliate Marketing and how does it work?
Affiliate marketing has had a huge impact on the marketing industry and is something many of us come across every day without even realising it.
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.
Affiliate marketing is usually commission based, so when customers buy a product because of an influencer, the influencer will then receive a percentage of the profit. Some influencers are also given a specific discount code that their followers can use when making a purchase, allowing the business to track the success of their affiliate marketing campaign.
Alternatively, if the affiliate has been found through a specific network, a tracking cookie is placed in the buyer’s browser when the advertiser’s website is being visited from clicking a link provided by the affiliate. 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 as the product isn’t being forcefully sold and appears to be a more organic approach.
To sum up…
If you’re finding that your current traditional marketing methods aren’t getting the results you want, it could be worth giving affiliate marketing a go. After a bit of research and finding an influencer that fits your business, there’s no reason why it can’t work for you!