How Can You Gain the Maximum out of Affiliate Marketing?
The people who have been in the digital marketing industry for a long time are aware about the wonders that affiliate marketing does in terms of fetching revenues. They are well versed with the fact that it is the most lucrative way to earn money online. Before we delve into the question – ‘How to extract maximum benefits out of affiliate marketing?’ let us first start from the starting.
What is Affiliate Marketing?
In simple words, it is a traditional form of marketing in which a third person (known as an affiliate) refers a potential customer to your website through a link that is provided on his website or mobile application.
In return for the traffic or sales that are gained by your website through his website or mobile application, he receives a commission. Thus, the higher the traffic or sales coming through his website or mobile application, the higher the commission he receives.
To understand it better, consider the brokers who roam about in the localities to find people who are looking for houses in rent. They have a deal with the house owners that they would take a certain charge in return of finding them a client. Once the house is given on rent, the broker takes his commission.
In the same manner, once the user is diverted to the website, the affiliate charges a commission. The commission varies from $1 to $10,000 depending on what product you are promoting or what quantity of traffic you are getting. The terms and conditions of the agreement are different based upon the needs of the website.
How Does Affiliate Marketing Work?
Websites need to track the record of affiliates who are sending the traffic and/or making the sales through their websites or mobile applications. This is achieved by tracking the URL that connects the affiliating website or mobile application with your website.
Now- a-days, many leading websites are offering affiliate marketing through e-mail submission, generating a unique link that can be used by the affiliate wherever needed. The link is easy to track and directly diverts the user to the targeted product or service.
If the diverted user makes a purchase on the targeted URL, affiliate is eligible for a commission. In fact, if the user lands but doesn’t makes a purchase within the days that are mentioned in your Terms of Service, the affiliate makes no money.
In short, it is essential that the content that contains the targeted URL convinces the reader to make a purchase.
Why Do Companies Use Affiliate Marketing?
The use of affiliate marketing expands the client base of the website. In simple words, the products or services that are up on the websites are displayed at various other places, thereby attracting larger group of people to the websites.
Companies try to have maximum affiliates associated with their websites in order to grab the potential customers from all possible sources and divert then to their websites. The more the number of people is landing on the targeted URL, the higher is the chance of sales on the website.
How to Extract Maximum Benefits Out Of Affiliate Marketing?
Now that the idea about affiliate marketing and its working is clear, an affiliate must be concerned to make the maximum benefits out of the affiliate programs that he has taken up. There are two aspects in this.
- How can an affiliate make maximum benefit out of the marketing campaign
- How can a website make maximum benefit out of the marketing
The Affiliate: Companies are quickly reaching out for affiliates who can provide them affiliate marketing on the mobile devices as a majority of people have shut down browsing on the internet and moved to their shining mobile phones. The affiliates who have mobile applications with a large daily customer base or most download are likely to make the maximum out of affiliate marketing. In short, if an affiliate wishes to have even a minimum of 10$ in his pocket, he must have at least 1000 downloads on the mobile application that he is running.
The company: Reaching out to affiliates who have high incoming traffic (preferably higher than your website) is the key to success. The thing that matters to the company is the conversion rate. Suppose if 10 users land on the website but only two of them makes a purchase, the conversion rate becomes 20%. The affiliates who can give conversion rate of over 50% (i.e. 5 in every 10 users make a purchase) are the key to gain the maximum benefits out of affiliate marketing. As a secret, the trends show that mobile applications are having better conversion rates than desktop accessed websites. This is a hint for the companies to make associations with mobile friendly affiliates.
What Role Does Influence Play in Affiliate Marketing?
Building relationships takes you into the multi-million industry of influential marketing that forms the backbone of affiliate marketing. Having a ‘popular influencer’ associated with your company, which engages a large group of people is another form of affiliate marketing that only smart companies employ. Suppose that the influencer is promoting your product or service, and imagine the user traffic your website shall gain. The conversion rate is definitely going to rise. It may even be 100%.
Qualities of an Influencer
An ‘influencer’ is a person who is capable of reaching out to the targeted audience, encouraging participation from the users, converting their followers into customers of the product and building relationships with them. So, affiliates who focus on influential people rather than the target market as a whole gain much more, for they know who is going to be interested in the particular product or service.
Companies Retain Influencers
In other words, companies should talk to the right people and establish the most productive connections, to gain the most out of affiliate marketing. And also, they must concentrate on retaining the association with those affiliates for a long period of time. In an appreciable span of time, the most influential affiliates become the virtual assets to the company.