AFFILIATE MARKETING
The Pros and Cons of Your Brand Using Affiliate Links
Opinions expressed by Entrepreneur contributors are their own.
In today’s world of digital publications, online shopping and influencer recommendations, more media outlets are turning to affiliate marketing programs to make easy money. Essentially, these programs partner with editors and media outlets to promote your products in exchange for a percentage of commission. The affiliate program, and the outlets that partner with them, get a piece of the profits from purchases made through their links — in turn, your brand gets in front of bigger audiences.
On top of being a helpful sales tool for some companies, we’re also starting to see more and more top-tier media outlets that only recommend brands with affiliate links. Brands that don’t have them may miss out on some great coverage opportunities.
There are tons of programs to choose from, and you can expect them to take anywhere from 5% to as much as 30% of sales. Programs like Amazon, CJ Affiliate, GiddyUp and so many others can help your company get into high-performing articles in popular publications. So, the question is: to affiliate or not to affiliate?
Before you make a decision, it’s important to review the facts. To help you know if this move is right for your company, let’s talk about the pros and cons of signing up for affiliate links:
Related: An Affiliate-Marketing Program Might Be the Perfect Move
Pros
The most noteworthy benefit of affiliate marketing is the increased press coverage, which hopefully results in higher sales. As a PR firm, we see our clients’ opportunities increase significantly when they work with an affiliate program since outlets are much more incentivized to include them. It is an especially helpful advantage for brands in more competitive industries such as beauty, fashion and tech — where just a few great press placements can truly make or break your year.
Another benefit of affiliate marketing is that the coverage received is considered an earned media placement, which holds much more value in the eyes of consumers. Affiliate link articles are less conspicuous than traditional paid ads and appeal to viewers seeking authentic, trustworthy recommendations.
As experts in the communications field, we know that authenticity matters to audiences, with statistics consistently placing it high on the list of consumer values. One recent study showed that 88% of respondents desire to support brands that appear authentic in their marketing efforts. A well-crafted affiliate article reviewing and recommending your products just may be the perfect strategy to resonate with those buyers.
Affiliate programs provide great opportunities for marketing, brand awareness and potential sales. Before deciding if they are the right step for your brand, let’s review some of the downsides to keep in mind.
Related: A Step-by-Step Guide to Your First Affiliate Marketing Campaign
Cons
Before joining an affiliate program, consider whether or not your brand’s profit margins will comfortably allow for the percentage of commission to be paid. The sweet spot for affiliate marketing seems to be midsize-to-large companies that benefit from the press coverage and can afford the cost of it. Small brands need to take a look at their books and review all options when it comes to marketing strategies.
Consider working with an external agency that has the expertise to decipher if an affiliate program is a good fit for your brand. Our clients often ask us if affiliate marketing is right for them, and the truth is, it varies on a case-to-case basis.
In addition to knowing what your brand needs, an agency can help you review the various affiliate program parties and the differences in percentage commissions they take. For companies that are short on staff members, navigating the market for the best-fitting affiliate partnership, setting the account up, and monitoring the program can be too heavy of a lift. Don’t be afraid to ask the experts to step in.
If you’re unsure if your company can afford the cost and labor of managing an affiliate program, consult with an agency or public relations expert to learn more about your options. The right partnership just might offer the press coverage (and revenue) you’ve been looking for.
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AFFILIATE MARKETING
23andMe Board Resigns: ‘Differences’ With CEO Anne Wojcicki
Days after proposing to settle a data breach lawsuit for $30 million, 18-year-old genetic testing company 23andMe now faces another public hurdle: Seven independent directors of its board resigned on Tuesday through a pointed letter addressed to CEO Anne Wojcicki, who is now the only remaining member of the board.
The resigning directors, among whom were YouTube CEO Neal Mohan and Sequoia VC Roelof Botha, called out Wojcicki for not submitting a “fully financed, fully diligenced, actionable proposal” to take the company private over the past five months. They wrote that their strategic direction for 23andMe was different from Wojcicki’s.
“Because of that difference and because of your concentrated voting power, we believe that it is in the best interests of the Company’s shareholders that we resign from the Board rather than have a protracted and distracting difference of view with you as to the direction of the Company,” they stated.
Related: 23andMe DNA Technology Helps Family Find Kidnapped Daughter After 51 Years
Wojcicki, who co-founded the company in 2006, controls 49% of 23andMe votes. In July, she submitted a proposal to buy all the shares she didn’t already own at $0.40 per share and take the company private. A special committee created by the company rejected her proposal, stating that it wasn’t in the best interests of shareholders.
Anne Wojcicki. Credit: Kyle Grillot/Bloomberg via Getty Images
Wojcicki told employees in a memo on Tuesday that she was “surprised and disappointed” by the resignations and would immediately begin finding replacement directors. She stated that “taking 23andMe private will be the best opportunity for long-term success.”
23andMe, which was valued at $6 billion in 2021 shortly after going public, is now a penny stock worth 34 cents per share at the time of writing. The company has until November 4 to bring its stock price up to at least $1 per share or risk being delisted.
23andMe has faced a number of public setbacks, including a data breach in October that impacted nearly 7 million accounts and appeared to target people with Chinese or Ashkenazi Jewish ancestry. Customers filed a class action lawsuit in January and 23andMe proposed a $30 million settlement earlier this month.
23andMe’s core product is a $99 ancestry kit that requires a customer to submit their spit in exchange for genetic insights. A $199 kit advertises health predisposition reports. The company is also developing drugs in-house and testing them.
Related: 23andMe Hackers Selling Stolen User Data, Including DNA Profiles of ‘Celebrities,’ on Dark Web
AFFILIATE MARKETING
How to Grow a Business: Yum! Brands Co-Founder David Novak
As the co-founder and former CEO of Yum! Brands, one of the world’s largest restaurant companies with a portfolio including franchises like KFC and Pizza Hut, David Novak drove tangible results.
In the 17 years he was CEO, from 1999 to 2016, Novak helped scale the company to eight times its original size, from a market capitalization of $4 billion to $32 billion. However, Novak credits the numbers to a more qualitative than quantitative aspect of leadership — creating the right work culture.
In a conversation with Masters of Scale host Jeff Berman that aired earlier this month, Novak explained how he steered Yum! Brands from the beginning.
“I made my number one priority to really create a powerful culture where everyone counts,” Novak said. “That became job number one for me as a CEO, because if I can create that right work environment, people will innovate and people will go further.”
Novak explained that early on, he tried to learn from companies that were winning or consistently delivered good results. He went out and visited companies including Walmart, Home Depot, and General Electric.
“We met with them,” Novak said. “Then we came back and we codified what’s really driving the success of these companies that allow them to get to great results year after year.”
Novak, who oversaw 1.5 million employees globally, began emphasizing recognition and encoding it into Yum!’s culture. In previous interviews, he talked about how he would use recognition to motivate employees. In one case, at KFC, Novak gave away rubber chickens and $100 as an award for a job well done.
Today, Yum!’s culture remains one of recognition and collaboration, per its public-facing culture page.
AFFILIATE MARKETING
Amazon CEO Mandates Employees Return to Office 5 Days a Week
Amazon CEO Andy Jassy made a case — and a mandate — for in-office work on Monday.
In a publicly available message, Jassy said that Amazon’s 1.5 million-plus employees must return to the office five days per week starting January 2. Amazon is also bringing back desk assignments to the offices that had that structure pre-pandemic.
Jassy positioned the move as a better way to work and a return to life before Covid.
“We’ve observed that it’s easier for our teammates to learn, model, practice, and strengthen our culture; collaborating, brainstorming, and inventing are simpler and more effective; teaching and learning from one another are more seamless; and, teams tend to be better connected to one another,” Jassy stated.
Amazon CEO Andy Jassy. Photo by Michael M. Santiago/Getty Images
Jassy also said that situations that require remote work like sickness, an emergency, or being on the road are still acceptable.
However, these examples of remote work are the exception to the new rule, not the norm.
Amazon employees have been back in the office at least three days per week as of February 2023. A July report from Bamboo HR showed that one in four executives secretly hoped employees would quit over stricter return-to-office policies.
“Strengthening our culture remains a top priority for the s-team [senior leadership team] and me. And, I think about it all the time,” he wrote. “We want to operate like the world’s largest startup.”
Under the new policy, working from home two days per week is no more. The office culture is returning to how it was before the pandemic, to strengthen work culture and drive better results, Jassy explained.
Related: Dell Reportedly Told Remote Employees to Come Back to the Office or Forgo the Chance to Be Promoted
Amazon joins companies like Salesforce and Walmart that have implemented stricter return-to-work policies.
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