Have you ever logged onto your social media account to see someone posing with a new product, telling you how awesome it is? If you look at the description, chances are they have a discount code you can use to get a percentage off.
This is a style of affiliate marketing.
Affiliate marketing is an excellent way to get the word out about your products and services to a broader audience – more than you likely could with regular marketing. It’s a massive market worth over $12 billion and shows no signs of slowing down.
So, how does affiliate marketing work, and is it worth setting up for your business? Our Corporate Business Solutions reviews break down affiliate marketing and why it’s worth considering.
Affiliate Marketing 101 – How It Works
At its core, affiliate marketing is when you have someone who advertises your products and services to their following. It can be through their social media accounts, blog posts, YouTube channels, and other platforms that reach a following.
A typical affiliate will either purchase your product at a discounted price or receive something small for free to begin. Then, they share their personal experience with your product, which would draw in others to try it themselves.
An affiliate would have his or her discount code that they would share with their followers. You often see the discount code as their name for 15 percent off the purchase price. It’s enough to entice someone to buy, but not too steep that you’re losing money. When someone uses this code, the affiliate will gain a small commission from the sale (think of it as their paycheque for bringing you in more sales).
It doesn’t have to be a discount code, though. You can also provide the affiliate with a unique URL that they share with their followers. When someone uses said link to make a purchase or sign up for a service, the affiliate will receive a commission that way.
Is It Worth Having an Affiliate Marketing Program?
For starters, affiliate marketing is probably one of the least expensive forms of advertisement out there (besides word of mouth, which is free). The great thing about it is that you only pay the affiliate when a sale is made. If the affiliate doesn’t generate any leads, you don’t pay a cent.
Another benefit is that your affiliate marketer reaches his or her established audience. There’s a decent chance that many of their following doesn’t know about your business. As the affiliate shares posts about your products and services, your brand awareness increases. It’s a way for you to reach a wider audience, gain new clientele, and establish relationships you may otherwise not have gotten.
Of course, one of the main benefits of affiliate marketing is a boost in sales. Even after you pay out the small commission, you’re still increasing your sales. Not only that, because you’ve gotten the word out to a new client, but you also increase your chance of having a repeat customer and having them share with their following too.
Affiliate marketing is a win-win for both sides. The affiliate earns a few bucks as you gain brand awareness, customers, and sales.
If you go this route, create criteria for who can be an affiliate of your brand. You’ll want trustworthy people that will help positively promote your business.