How Small Businesses Can Benefit From Affiliate Marketing
If you have been in the e-commerce space for a little while, you are most likely familiar with the term “affiliate marketing”. But if you just started your business, the term might be new to you as sometimes there is no dedicated marketing team promoting your business yet. As a form of outsourcing, it allows brands to experience marketing within their niche without wasting unnecessary resources.
For small businesses, running your own affiliate program can provide several benefits. We will introduce you to our top five:
The main benefit of running an affiliate program is that it is entirely performance-based.
Because affiliates are only paid a commission once the desired action has taken place, they’re more motivated to drive the conversion you’re looking for. This reduces the inefficiencies often related to other marketing techniques where paid traffic does not always convert to a sale but still incurs costs.
Paying for sales and leads (as opposed to traffic – clicks or views) means that affiliate marketing is a very low-risk marketing strategy. Your ad spend will directly relate to an acquisition (sale or lead) that drives revenue back into your business.
Boost Brand Awareness
Affiliates can be found in every market and product category that exists today. By recruiting reputable partners to your affiliate program, you will take advantage of their vast audiences – often exceeding a few million active users. These partnerships grant the opportunity to expand out into new markets, giving your brand a much stronger online presence and enabling a recognisable brand with minimal effort.
Easy To Track
One of the greatest benefits of doing affiliate marketing is the fact that it can be tracked. You can attribute each invested resource to its generated income.
Tracking is an important part of building an effective affiliate marketing strategy because it allows you to see which affiliates work and which do not. This will help you spend your money more effectively by continuing to invest in the types of ads that seem to get the best results.
The good news: you do not need to be an affiliate marketing guru to run a successful program. Affiliate marketing employs a “test and learn” strategy, where you engage with various affiliates to try different campaigns and secure relevant placements at your own pace, while only paying for sales and leads that your affiliates generate.
In conditions of limited budget and resources, small businesses are the ones who could benefit the most from a wide range of online partners rewarded on a performance model.
That is why the core principle of Grow is to adapt Tradedoubler’s technology and experience in affiliate marketing to the needs of small businesses: simplicity, flexibility, automation.