Opinions expressed by Entrepreneur contributors are their own.
A newly-created project should manage significant issues to survive the first year of operating. The key target to hit, especially in a highly-competitive market environment, is finding product-market fitting. Affiliate marketing is giving a variety of instruments to reach that goal. And even more: It engages potential customers, who can become a core audience — and some can even become brand ambassadors in the future.
Here are some bulletproof tactics of how to launch a new brand, service or app using affiliate marketing channels.
Why affiliate marketing can be an effective strategy channel to use
An affiliate partnership is based on a сost per acquisition model (CPA). The advertisement provides results in the form of sales and target actions, which gives direct profits. Worth noting, the affiliate marketing advantages are:
- The absence of reckless risk-taking investments.
- Promotion is taking place only among the relevant audience.
- The wide range of different niches to be efficiently used.
But the main thing is that the budget spent is under your control. The basic operating principle of affiliate marketing is you get what you pay for.
According to Publift, 86% of audiences are suffering from ad blindness, meaning they simply do not see the ads. To get confidence that the budget won’t be wasted on irrelevant clicks (cost per click) or views (cost per view), the affiliate partners’ reward depends on the success of the promo campaign.
Having all these advantages of affiliate-based tactics, it’s time to roll out our very first affiliate marketing campaign step by step.
Step 1: Creating an in-house affiliate program or joining a travel affiliate network
Building your affiliate program is not a cheap exercise. However, big brands like Expedia or Booking.com could do that. So looking for a proper travel affiliate marketing network would be a more realistic option. Their framework and experience combined with the right tools should help you as well. The cooperation with external CPA platforms (i.e. Travelpayouts, CJ, AWIN, Partnerize or others) seems more manageable, especially for the newcomers.
Step 2: Propose a suitable affiliate offer
It must be based on an analysis of competitors and companies’ ROI models. The proposal should include commission rate, cookies lifetime and payout policy.
The cookies’ duration is the length of time when a customer and an affiliate are associated together. It starts from a client’s click on the link and may last from one session up to a year. If it has expired, the partner won’t receive a commission from a purchase.
Also consider determining a payout policy: a variety of actions, which are taken into account as target ones and being paid. Pay-per-click (PPC), pay-per-action (PPA) and pay-per-impression (PPI) models are concentrated on different aims — the number of clicks, lead generation and sales guarantee, respectively.
3. Get a list of top-notch affiliates
The subscribers and followers of a partner should be your final target audience. For example, if you have a coupon service, the potential users’ audience from your partners should be interested in travel deals, coupons and discounts. Keep on the influencers with high-quality content. It’s okay if they’re local bloggers with fewer than 5,000 subscribers, compared to the more popular ones with 1 million or more subscribers.
The figures for the blogger subscribers are not as important as the quality of the audience — the major thing is how many sales a partner can attract. The affiliates with a low traffic volume can also become a great source for your actual sales among the loyal and active audience.
4. Sharing your brand’s values with partners
The affiliates will recommend your service to their audience, so they should be aware of your brand values. A simple solution is to create a promo or landing page to share with potential partners. On this page, you can provide product features, strengths, tips, etc. Go even further, and create a media kit with a detailed description. But remember, not all the affiliates are willing to go through a 30-page document. So be sure to create a summary that includes all the basics.
5. Analyze the efficiency of the campaign
Usually, at the launch of an affiliate campaign, it’s enough to provide partners with affiliate links. By using them, an affiliate would provide and drive traffic to your site or link for app download. Efficient cooperation can also encourage other ways to contact the audience in the future as well. It could be such effective formats as search forms, banners or APIs. While affiliate partners attract their audience, your task is to analyze the quality of incoming traffic.
The essential point of the first stage is to inspect the affiliate campaign’s effectiveness (to improve it for the future). The initial traffic flow and sales will indicate further actions to be done. For example, you can try reaching partners with different target audiences or using additional tools to attract a new audience yourself. You could also try changing program conditions or pushing extra promotions. Traffic analysis is an everlasting process for the affiliate program optimization, as well as the identification of anomalies and possible violations on the partner’s part.
Affiliate marketing is not a one-shot game. So be prepared for different experiments with advertising formats and channels. Perhaps, you would figure out that social media promotion is a better way than traffic from travel blogs or vice versa.
This process demands flexibility, constant self-improvement and deep analysis of audience behavior. Don’t panic if the first results of the campaign don’t match your expectations. Launching an affiliate program is just the beginning of a long journey. Affiliate marketing is, in our humble experience, the most cost-effective marketing channel worth taking a chance on.
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.
Check Out the Second Minecraft Legends Developer Diary
Google Core & Product Reviews Update Done, Local Search Ranking Bug Fixed, Search On Event Recap & More
LinkedIn Professionals Share Their Best Unusual LinkedIn Marketing Hack
Twitter Tests New Tweet View Count Display to Better Highlight Content Reach
5 Social Media Advertising Tips to Nail Your Efforts and Get Your Expected Results
This Week on Xbox: Grounded is Here, Upcoming Releases and Much More
Daily Search Forum Recap: September 30, 2022
B2B PPC Experts Give Their Take On Google Search On Announcements
The 21 Best Lead Generation Tools in 2022
UK teen died after ‘negative effects of online content’: coroner
Google Updates Documentation On Meta Descriptions
Explore the Path to Digital Future: Interconnect, Integrate and Innovate
Daily Search Forum Recap: September 5, 2022
Microsoft Advertising Gains Pinterest Import, More Google Imports, & More
Google Again Says Spikes In Crawling Activity Not A Sign Of The Helpful Content Update Rollout
How To Launch Your First Google Ads Remarketing Campaign
The Ultimate Timeline of Google Algorithm Updates (+ Recommendations)
Confusion Over Google Search Console’s HTTPS Is Invalid And Might Prevent It From Being Indexed
7 Tips For Creating Instagram Story Ads That Convert
Google Adds More Options to Manage Ad Assets and Extensions
SEO6 days ago
Here’s How Much You Can Really Make From Affiliate Marketing
SEO7 days ago
Google On Percentage That Represents Duplicate Content
MARKETING6 days ago
How We Increased a Client’s Leads by 384% in Six Months by Focusing on One Topic Cluster [Case Study]
SEO4 days ago
Google Announces 5 Changes Coming To Mobile Search