Opinions expressed by Entrepreneur contributors are their own.
Affiliate marketing is one of the most interesting and lucrative industries on the Internet, in which commissions are earned from promoting a company and/or driving a sale. It consists of a vigorous hub of web publishers who want to monetize their sites, and is a great opportunity for marketers and advertisers to partner with others to promote their products, services, brands or affiliate programs. I have been involved in this field as an affiliate marketer since 2007, and can safely say that I love what I do, not least because it allows me to connect directly with my audience without having many intermediaries.
However, there are a few things I wish I had known before I started.
1. Track success metrics
There is no way to grow an affiliate website or earn more from it if you don’t know how many visitors visit that site every day, and where they come from. Therefore, it’s critical to track analytics and determine which marketing channels are bringing in the most traffic so that you know where to focus efforts when it comes to promoting affiliate offers.
Here are some of the metrics you need to track:
- Monthly visits and unique daily visitors. The more your site gets, the higher chances there are for making sales.
- How many sales did you garner this week? Track each affiliate offer’s performance to determine which offers are converting the best.
- How much was earned from each offer? It’s vital to track how many sales are generated from each affiliate program, since every publisher gets a different commission from selling the same product. This will help determine which affiliate network and products convert better for your site or blog, and to make better offers to get yet more sales.
- Which countries are visitors from? This metric will indicate which country’s audience converts better to yours, and so help select the right offers for your market.
2. Don’t expect huge earnings overnight
If you’re just starting out as an affiliate marketer, don’t expect success too quickly, because thousands of web publishers have been doing this for years, yet still struggle to find revenue. I’m not suggesting avoiding goals, merely that it’s important to be patient and to work enduringly hard in order to see significant results. This is a business like any other, so income will depend on how much time, effort and patience you’re willing to invest.
3. Never stop learning
One of the most important lessons I’ve internalized over years as an affiliate marketer is that there is no end to learning or knowledge sharing. This industry changes very quickly; new trends appear all the time, and old ones die out quickly. So-called gurus retire their affiliate sites every few months only to launch new ones, so you need to be ready to take advantage of changes and to spend resources on learning — absorbing affiliate marketing blog posts, interviews and case studies along the way.
4. Avoid overvaluing your product or service
One of the first things many marketers do when they start an affiliate website is to promote their own products and services, but it’s important not to overvalue them, because this will only backfire in the long run. Remember that you need your audience more than they need you, so provide valuable resources, information and insights that will help them to solve their problems. Start by building authority in a niche, share free content consistently and get involved in the community. Then, once you get real traffic coming to your site, create an offer that’s closely related to what you’ve already shared on your blog or website.
5. Don’t sell visitors short
One of the biggest mistakes I see affiliate marketers making repeatedly is trying to sell their visitors short instead of providing high-quality offers that match well with what they want and need. For example, if someone is looking for a dog bed or a leash, they wouldn’t buy an offer related to yoga classes, because it’s completely irrelevant and doesn’t match what they’re searching for. So, before trying to sell your visitors something, make sure that you’ve done research and arrived at offers that closely match what an audience is looking for.
6. Embrace testing
Another blunder I see often is guessing what works best instead of testing ideas before investing time, effort and money. This is why I suggest A/B testing tools for at least some campaigns, as they will give valuable insights on what’s working right now, without any risks.
7. Don’t leave money on the table
Many affiliate marketers are quick to start promoting a new offer the moment it goes live. Still, they fail to fully optimize and promote before making it available. In many cases, this means that you’ll be leaving a lot of money on the table by not testing your landing page, images, copy and ad copy first. This doesn’t necessarily mean spending days or weeks running A/B tests, but at least try to split-test before promoting an offer broadly. This will give you a better chance of converting more visitors into subscribers or buyers, because you’ve taken the time to work on optimizing everything from start to finish. This is the process I use for every new campaign for my online shop, and it works like a charm.
8. Don’t be afraid to give up
Lastly, remember that it is not a vice to give up on something that’s clearly not working. Even though it might be hard to walk away from an affiliate campaign or website, it’s vital to ask if results are worth the time and effort, then possibly put that energy into something that has a better chance of succeeding. Don’t let others make you feel bad about switching things up, because there is no such thing as doing everything right, so just do what makes sense.
At the end of the day, there is no absolute right or wrong way to do affiliate marketing, but you should at least have a rough plan — one that includes knowing how much you’re willing to spend on advertising, where your niche traffic is coming from and what offers are converting best. The more time and effort you invest into learning and testing everything first, the more likely it is that you’ll succeed.
During COVID, Affiliate Marketing Is Emerging As a Cost-effective Channel For Brands
Opinions expressed by Entrepreneur contributors are their own.
You’re reading Entrepreneur India, an international franchise of Entrepreneur Media.
With the outbreak of the pandemic, going for performance-oriented channels has become a prerequisite for stability. Several advertisers are struggling with low marketing budgets and a pressure to drive return on investment (RoI) through limited spends, especially owing to current times. The most common dilemma for companies is to decide where to focus their marketing budgets on, after investing in one’s own in-house paid channels. “Affiliate channels’ often provide desirable solutions, as the performance of such activities can be assessed and paid for. When the budgets are lower, investing on a marketing channel where one gets to pay per lead or pay per transaction, could be the safest bet during the current crisis compared with other marketing channels.
With the ongoing challenges of customer acquisition and the pressure to get RoIs, the advertisers have tried to come up with the online business approaches in order to depend less on offline means.
Despite the evolution of marketing practices and strategies, amid the big quantum of content available online today, brands are finding it difficult to reach out to their target audiences in an effective manner. Taking the current health crisis into consideration, customers are more concerned about health and safety, thereby influencing their choices with respect to financial services such as in the insurance segment, over the others.
This holds especially true for brands operating in niche segments, such as the banking and financial services sector which offer specialized products and services. Their marketing content, essentially, is about communicating “what’ the brand is offering, “why’ the customer must opt for it and “how’ can the customer acquire the same. It’s not easy to convince people to trust someone to deal with their money and life’s savings.
Why companies in the BFSI sector must opt for affiliate marketing
FinTech has transformed the BFSI sector drastically. From payments, loan applications to insurance, almost every service in the banking sector is going digital at a rapid pace. Apps, banking services and products are also updated regularly to enhance user experience, and make financial services easier and more convenient for consumers. The digital shift reflects prominently in the adoption of digital payments as well. A 2019 KPMG report showed that non-cash transactions are growing at a CAGR of 12.7 per cent. The number of merchants accepting digital payments has also skyrocketed, growing from around 1.5 million in 2016-17 to 10 million in 2019.
However, due to COVID-19, investor sentiments are at an all-time low and this is likely to cause severe disruptions in the banking industry all over the world. Banks will now have to regroup their departments and teams to chalk out counter-strategies to maintain good assets and earnings.
To tap into the growing digital opportunity, BFSI brands must leverage innovative marketing strategies in order to increase their sales by targeting the right customers. Working on an affiliate marketing strategy could be one of those options which could aid the financial services sector with cost-effective solutions, while driving up traffic. In an affiliate marketing setup, publishers cannot treat the BFSI brands’ products and services like other commodities.
As all of their offerings revolve around money, it is integral for brands to prioritise generating a need for these services among their target audiences. The key to effective brand communication, in the BFSI domain, is transparency in information delivery. To cater to this marketing requisite, opting for affiliate marketing can prove to be highly useful for the BFSI sector. By signing up relevant publishers as affiliates, BFSI advertisers can reach out to their target consumers in a trust-based ecosystem for communicating their key brand messages.
Affiliate with whom and where?
For affiliate marketing programmes, BFSI brands require those publishers who have the required ingenuity for curating relevant information in the right category of the sector. With everything going online from doorstep delivery of daily groceries through just a click, to getting the health checkup or tests done at home, users are now more aware about such needs. The probability that they will go searching online for services and also transact online is very high. It would be an opportune decision to reach out to the target audience in such a manner, as it is likely to generate faster results and direct interaction with a user looking for a service.
Furthermore, countless other possibilities open as affiliate networks facilitate revenue sharing mechanisms between the service provider and a publisher when one’s link gets clicked. Compared to several other digital marketing options which depend on user accessibility and high costs between corporations for using certain platforms, affiliate marketing’s targeted content is more likely to fetch dividends. The post-pandemic growth reality will be a difficult pill to swallow and affiliate marketing solutions can make the changes positive and palatable. This will not only be an economical option, it will also help companies acquire customers who are looking for a particular service, while simultaneously incentivizing the publisher too. Beyond sales and on-boarding of new customers, the average time spent by an Indian working professional or Internet user has increased multifold due to pandemic. This goes to show that people will continue to look for their necessities online across multiple websites and portals. It shall open up opportunities for brands to increase awareness about one’s services across several sectors without the need to remain confined to one’s own market segment. Below are some of the platforms where companies in the financial sector can join affiliates to target more consumers:
Blogs: Online blogs are one of the most trusted platforms for the BFSI sector. Specialized content publishers who demystify financial services and products such as loans, insurance, credit cards, overdraft protection for consumers, are the most sought-after ones for the BFSI brands in affiliate marketing. They cater to an audience that actively seeks out experts’ advice before making all financial decisions. Bloggers also get an opportunity to drive traffic to specific services offered by different BFSI verticals. Bringing publishers on board who operate in this domain helps the brands drive high-impact marketing campaigns which deliver fast results. Some of the websites that feature such content are Cashoverflow.com and Goodreturns.in.
Business news websites offering guidance on personal finance: Various news portals such as NDTV Profit, CNBC TV-18, etc., feature content that consumers can avail to manage personal finance, insurance policies, etc. These websites are regularly accessed by keen observers on finance and banking, who are one of the primary target audiences for brands in the BFSI sector.
Comparison sites: Comparison sites invite immense traffic of consumers who are interested in getting the right deals in financial services which are most suitable for them from the budget and consumption point of view. Brands dealing with financial services such as personal banking, insurance policies, credit card policies can avail these sites to target potential customers.
Contextual advertising: Contextual advertising is a marketing model where affiliates or publishers can target consumers based on their specific interests. These platforms provide relevant content, targeting a particular set of audience for whom unnecessary features are eliminated based on their past browsing behavior, making it one of the most effective platforms for brands in the BFSI sector. The companies can also get their products featured in specialized content meant to meet specific ends.
E-mail inventories: Brands can supply relevant information to potential and current consumers via newsletters in their email inboxes. Information on latest offers, new updates on products and useful information on services can be relayed to the customers who otherwise find ads, SMS-marketing intrusive and use ad-blockers on their devices. BFSI companies can tie up with content affiliate sites that send out value-based articles and ideas with other exciting information about the brands, promoting more subscriptions and sales.
A win-win for both: the brands and the affiliates
By making the most of the growing digital presence of consumers, affiliate partnerships can prove to be one of the most cost-effective ways for banks and financial institutions to convert consumers online. The fast and approved online transactions help the BFSI brands acquire more control over their businesses than the other conventional marketing practices. Moreover, in creating affiliate marketing campaigns for the brands in the BFSI sector, the publishers also have more opportunities to earn big commissions compared to the other e-commerce campaigns. Brands operating in the BFSI sectors generate more sales and earn more profits on their products and services as compared to the non-financial brands. For every customer gained, the publisher gets an opportunity to earn a couple of times more commission on it than it can from, say, when a consumer buys a stationery product. Big banks pay commission basis the pay-per-scale model. Most financial institutions offer commission of this type to bloggers.
And last but not least, players in the BFSI sectors can get a fair chance to incorporate multiple marketing tactics and test innovative strategies in an affiliate marketing programme without the slightest worry, since rewards are paid only on a performance basis which is well accounted for.
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