For online stores, marketing solutions always bring the positive change of boosting sales. Thus, it is necessary to follow new marketing trend in order to prepare adequately for the next business cycle. Now, we are in the first months of 2016, ensure that almost eCommerce merchants will put particular attention on predicting that “What is Hot Trend?” and “What is Next ?”. And the best answer is Affiliate Marketing Program, which is highly appreciated by the experts and businesses, with the convincing proof is that the Affiliate Budget is expected to increase by 72%, according to CJ Advertisement Co., a full-service ad agency that exclusively serves personal injury brands.
Why is 72%? and Why is Affiliate Marketing such important that the merchants need to focus on? Let solve the question together with this post to see the details about Affiliate Marketing helping you be ready for your store’s improvement.
According to common conception:
Affiliate Marketing is a type of performance-based marketing in which a business rewards one or more Affiliates for each visitor or customer brought by the Affiliate’s marketing efforts.
From that, each person will have thoughts about Affiliate Marketing, and in my opinion, simply:
Affiliate Marketing is the marketing between people and Affiliates will receive commission per their customer’s successful purchase.
In Affiliate Marketing, there are four core players: Merchants, Affiliates, Network, and Customers.
Merchants (brands/ vendors) are the people who supply products, services, and brand to refer.
Affiliates (collaborators/ publishers) take a responsibility of referring products to friends.
Referred Visitors who are referred by Affiliates and come to buy products.
The network is where Affiliates and Customers meet and takes care of the payments.
There is a similar method to Affiliate Marketing, which is Referral Marketing. If not researching deeply, you can make a little mistake because of their form marketing. Both of them use the third parties to advertise and sell. However, in Affiliate Marketing, Affiliates work for vendors due to the commission or financial motivation while the major thing of Referral Marketing is the trust in the vendors and their products.
With the above comparison, you understand in detail partly about the working rule of Affiliate Marketing.
Affiliate Marketing builds the network relying on the rights and responsibilities of Affiliates. The following diagram describes all:
In the picture, five elements are participating in process working of Affiliate Marketing, they are Merchants, Products, Affiliate Networks, Affiliates, and Commissions.
The first, the Merchants will create and sell their products to the target market and build an Affiliate Networks for own. People who create an account and joins in the networks are Affiliates working as a the merchants’ collaborators.
Next, Affiliates will use available tools like links, banners, email from Affiliate Networks to promote the products. Affiliates are in charge of sending to friends and encouraging them to buy. In case there is a successful purchase from Affiliate’s customer, the order enclosing the name of referrer is transferred to the merchant. From the dealer, the Affiliate Network receive the notification of sales to proceed and then give commission for the Affiliates. That is the significant benefits for Affiliates.
Moreover, Affiliate Network will take over Merchants’ management Affiliate Program such as following and evaluating the results or solving the conflict.
Differ other marketing techniques, Affiliate Marketing establishes the individual benefits for each participant: Merchant, Affiliate, and Referred Visitor.
Applying Affiliate Program means that the retailers are focusing on build a representative sales force professionally. The team sale will assist you to expand the awareness of your brand as well as achieve the target of your sales. Besides, the outstanding benefit is Affiliates may be on behalf of you to care new orders directly and carefully as one-one rule in Customer Care service.
In Affiliate Marketing, Affiliates have a great influence on the result of the marketing campaign, so the rewards for Affiliates is worthy of concerning. Affiliates will receive the commission if they have the order from their friends who they have referred before.
Those who buy any products through Affiliate link, the best price is offered for them with a huge discount amount. Especially, they also have opportunities to become Affiliates and have a great chance to get more rights as normal.
In summary, the outstanding benefits Affiliate Marketing brings to Merchants even Affiliates or Referred Visitors confirm that Affiliate Marketing is one of the best ways to make online money. And now may insist that Affiliate Marketing is the leading tendency to engage every relationship firmly, simultaneously, make a significant remark to improve your revenue.
If your store is running Magento platform, you can try Affiliate extension for Magento 2