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Best of Both Worlds: Affiliate and Influencer Marketing

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1 year ago

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TikTok started testing an affiliate program with creators as part of its TikTok Shop initiative that was launched a few months ago. Participating creators can showcase products from sellers in their videos and live streams and earn a commission (between 5% – 20%) for any resulting sales. These videos and live streams are marked with an “Eligible for commission” label, similar to the “Paid Partnership” label used for sponsored content by creators.

The affiliate program is part of TikTok’s efforts to support brands in driving sales and to generate their own revenue. Competitors, like Instagram and YouTube, have also explored similar affiliate programs.

The Intersection of Affiliate Marketing and Influencer Marketing

Since the pandemic, brands have increasingly explored affiliate marketing, too. In most cases, they’ve investigated how to inject it into their influencer marketing efforts. As people were forced to stay home, brands secured budgets to collaborate with influencers on sponsored content. This allowed them to connect with consumers who were spending more time on mobile devices and to generate content assets as in-house studios became obsolete.

This increased investment in influencer marketing programs garnered attention from leadership and executives, as well as other departments such as performance marketing. This led brands to focus on the return on investment (ROI) of the dollars they were putting into creators instead of traditional marketing tactics.

Despite the passage of time since March 2020, brands are still navigating how to effectively integrate the strengths of both affiliate marketing and influencer marketing into their strategies. A great deal of friction exists today as brands see affiliates and influencers as the same when they are actually two very different types of creators.

Here are a few factors that I believe are important for brands to successfully integrate the strengths of both affiliate marketing and influencer marketing.

Understand the Differences Between Influencer and Affiliate

It’s important to recognize that influencers and affiliates are not the same. Influencers focus on creating content and building an audience, while affiliates are primarily focused on driving sales. Affiliates may not always produce high-quality content or have a large audience, but they excel at getting their audiences to take action. Influencers typically receive guaranteed payments, whereas affiliates earn commissions based on conversions. Understanding the differences helps brands align their strategies accordingly, whether they partner with influencers, affiliates, or both.

Utilize a Hybrid Payment Approach

Brands can utilize hybrid payment models that combine flat-rate payments with performance-based incentives. This approach enables creators to receive a guaranteed payment while also tying their additional earnings to the performance of their content through affiliate links or codes. This allows marketers to understand their ROI and incentivizes creators to go beyond their campaign deliverables. This model aligns with where the industry is heading — creators of all sizes receiving some form of payment for producing content.

Explore a Pay-for-Performance Model Beyond Conversions

Many affiliate programs traditionally focus on rewarding creators solely for generating sales. However, there is a growing trend where creators are paid based on other key performance metrics commonly used in influencer marketing campaigns, such as impressions, engagements, clicks, CPM (cost per thousand impressions), or CPE (cost per engagement).

TikTok and Instagram have started to embrace this approach through programs like Branded Missions and Reels Play Bonus Program. In addition, there are emerging influencer marketing platforms that use these models for challenge-based campaigns. They compensate creators based on top to middle of the funnel results and provide marketers with more visibility and predictability on campaign outcomes.

Leverage the Appropriate Channels

Choosing appropriate channels based on a brand’s product or service is crucial. While Instagram and TikTok may be popular platforms for influencer marketing, they may not be the best fit for driving conversions for certain products and services, especially those with a longer customer purchasing journey.

Activating creators on channels that align with the customer purchasing journey is important. For example, consumer packaged goods (CPGs) are easy to promote through short-form video content on Instagram and TikTok. However, tech or mattress products may require longer-form content on blogs, newsletters, or YouTube.

Provide Incentives for Viewers to Support Creators

Provide viewers with compelling reasons to make purchases directly from creators rather than from other sources like Amazon

Offer exclusive discounts, limited-time offers, or unique product pages to incentivize viewers to complete purchases through the affiliate links shared by creators. Make it convenient and enticing for viewers to buy directly from creators versus going elsewhere.

Utilize Long-Term Partnerships

Embrace long-term partnerships with creators to build sustained exposure and trust with their audience. The “one and done” approach may not be as effective, as it takes repeated exposure to a product before a consumer makes a purchase. It takes time for consumers to be exposed to a product or service multiple times before making a purchase. By working with creators on long-term partnerships, brands can increase the chances of conversions and build stronger relationships with the audience, which can drive long-term success.

Empower Creators to Succeed

Brands should actively share relevant data, insights, and resources with creators to help them optimize their content. This includes providing information on historical performance data, such as successful channels, messaging, and creative ideas that can contribute to the creators’ success in promoting the brand.

While creators are experts in their field, brands can provide valuable assistance, especially when it comes to data-driven aspects like affiliate marketing. Brands should approach creators similarly to how sales enablement specialists support sales teams.

Test, Learn, and Iterate

Affiliate and influencer marketing integration is still in its early days, so it’s important to continuously test, learn, and iterate. Brands should be open to trying new strategies and experimenting with different types of creators, payment models, briefing methods, and other innovative approaches to optimize their affiliate marketing efforts in collaboration with influencers.

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Invest in Yourself with a Lifetime of StackSkills Courses for $29.97

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3 hours ago

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September 8, 2024

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Invest in Yourself with a Lifetime of StackSkills Courses for $29.97

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

As a busy professional, finding time to invest in your education can be challenging. But what if you had lifetime access to an online learning platform that lets you learn whenever and wherever you want? That’s exactly what StackSkills offers—and right now, you can get lifetime access for just $29.97 (reg. $600).

StackSkills is an intuitive, user-friendly platform that’s perfect for anyone looking to enhance their skills without committing to a rigid schedule. Whether you’re a parent returning to the workforce, a business owner looking to gain new skills, or simply someone looking to keep up with ever-evolving industries, StackSkills provides the tools and flexibility you need to stay ahead.

With instant access to a pre-selected library of more than 1,000 courses—with new courses added monthly—there’s something for everyone. The platform’s range of beginner to advanced courses covers professional topics like IT, development, graphic design, finance, business, marketing, and more.

There are even personal growth topics like mindful meditation. And with more than 350 of the web’s top instructors, you’ll be learning from some of the best in the business.

One of the greatest advantages of StackSkills is the flexibility it offers. Instead of being tied to a specific time or place, you can access the platform from anywhere and learn at your own pace. Whether you have 15 minutes during your lunch break or a few hours on the weekend, StackSkills is designed to fit seamlessly into your busy life.

Consider a business owner looking to improve their finance skills to better manage their company’s growth. They can browse the available finance courses, find what suits their needs, and immediately start building the expertise necessary to take their business to the next level. And with course certifications, they can demonstrate their newly acquired skills to clients and stakeholders.

Whether you’re starting from scratch or looking to take your knowledge to the next level, StackSkills has something for everyone.

Get lifetime access to all of StackSkills courses for just $29.97 (reg. $600) through September 29.

StackSocial prices subject to change.

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Best US Cities to Start a Business, Entrepreneurship: Report

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September 7, 2024

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Best US Cities to Start a Business, Entrepreneurship: Report

What city is best for starting your business? While several factors should play into a decision, a new report from fintech company SumUp has identified the top 10 for entrepreneurship based on tax data, the number of millionaires in the city, and even Google searches.

New York topped the list because of the opportunities it offers across industries, from tech to fashion, and its 4% sales tax, which was the lowest of the group. New Yorkers also frequently Google “how to get rich” and “how to make it in business,” the study found. The city also offers access to over 30 WeWork coworking locations, the most of all the cities in the report, which theoretically could help startup employees collaborate.

Related: Worried About AI Stealing Your Job? A New Report Calls These 10 Careers ‘AI-Proof’

Chicago came in at No. 2, with SumUp researchers highlighting its 120,500 millionaires and high interest in entrepreneurship through tracked Google searches. They also found that Chicago stood out for finance startups.

Rounding out the top three was Miami, “where the weather is warm and taxes are low,” according to the study. Travel, tourism, and commerce startups thrive in this city, which has 0% personal income and capital gains tax.

Related: These Are the Top 15 Jobs With the Highest Entry-Level Pay

Here’s a complete list of the top ten cities for entrepreneurship, according to the report.

1. New York

Number of millionaires: 349,500

Personal income tax – highest income: 10.90%

Sales tax: 4.00%

2. Chicago

Number of millionaires: 120,500

Personal income tax – highest income: 4.95%

Sales tax: 6.25%

3. Miami

Number of millionaires: 35,300

Personal income tax – highest income: 0.00%

Sales tax: 6.00%

4. Los Angeles

Number of millionaires: 212,100

Personal income tax – highest income: 13.30%

Sales tax: 9.50%

5. Dallas

Number of millionaires: 68,600

Personal income tax – highest income: 0.00%

Sales tax: 6.25%

6. Austin

Number of millionaires: 32,700

Personal income tax – highest income: 0.00%

Sales tax: 6.25%

7. Houston

Number of millionaires: 90,900

Personal income tax – highest income: 0.00%

Sales tax: 6.25%

8. Seattle

Number of millionaires: 54,200

Personal income tax – highest income: 0.00%

Sales tax: 6.50%

9. Washington

Number of millionaires: 28,300

Personal income tax – highest income: 10.75%

Sales tax: 6.00%

10. Boston

Number of millionaires: 42,900

Personal income tax – highest income: 9.00%

Sales tax: 6.25%

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What Is Founder Mode and Why Is It Better Than Manager Mode?

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2 days ago

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September 6, 2024

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What Is Founder Mode and Why Is It Better Than Manager Mode?

Paul Graham, the founder of famed startup accelerator Y Combinator, coined a new term this week that has taken over social media: founder mode.

In an article released on September 1 and publicized on X over Labor Day weekend, Graham separates “founder mode” from the traditional “manager mode” route by noting key differences in management styles and organizational structure. Graham’s X post has over 21 million views at press time.

Related: How to Start a Multi-Million Dollar Company, According to an IBM Engineer Turned Founder

Founder mode means that the CEO interacts with employees across the organization, not just their direct reports. The startup, even as it grows into a large company, is less hierarchical; the CEO could do “skip-level” meetings with employees, for example. Graham gave the real-world example of Steve Jobs running an annual retreat for who he thought were the 100 most important people at Apple — regardless of where they were on the corporate ladder.

Manager mode, meanwhile, is less hands-on and involves more delegation to other people. Founders can grow companies and run them effectively without switching to manager mode, Graham stated.

“Hire good people and give them room to do their jobs,” Graham wrote. “Sounds great when it’s described that way, doesn’t it? Except in practice, judging from the report of founder after founder, what this often turns out to mean is: hire professional fakers and let them drive the company into the ground.”

Related: How to Start Your Dream Business This Weekend, According to a Tech CEO Worth $36 Million

Graham gave the example of Airbnb CEO Brian Chesky, who tried to follow conventional “manager mode” wisdom to hire good people and let them do their jobs.

“The results were disastrous,” Graham wrote.

Chesky had to pivot to a different “founder mode” style of management and explained in an interview last year that founders have multiple advantages over managers: They have owned every part of the process of building a company, from start to finish; They have built the company up, so they can rebuild it; and they have permission to rebrand the company or make major changes.

In the past few days since Graham released his essay, the social media world has begun exploring what it means in humorous and insightful ways. One post drew a comparison between micromanaging and founder mode.

Other posts from women founders addressed the question: Can women be in founder mode too?

Chesky wrote on X earlier this week that women founders had been reaching out to him since Graham released the essay about how they can’t run their companies in founder mode the same way men can.

“This needs to change,” he wrote.



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