As a marketing manager, it’s important to understand the various strategies that can be used to drive sales and revenue for your brand. One such strategy is affiliate marketing, which involves affiliates promoting your products or services in exchange for a commission on any resulting sales. Affiliate marketing is a win-win situation for both the brand and the affiliates, as the brand benefits from increased sales and exposure, while affiliates benefit from the opportunity to earn a commission by promoting products they believe in.
According to recent data from CJ Affiliate, affiliates generated $6.5 billion in sales for their advertisers in Q3 2020 alone, demonstrating the significant potential for revenue through affiliate marketing (CJ Affiliate, 2020). This is particularly true for e-commerce brands, as affiliates can help drive targeted traffic to a brand’s website and increase the chances of conversion. In fact, Impact found that affiliate marketing can generate up to 30% of a brand’s online sales, making it an effective way to reach targeted audiences and drive sales (Impact).
To effectively leverage the power of affiliates, brands often utilize affiliate networks like CJ Affiliate, Impact, AWIN, and ShareASale. These networks provide brands with access to a large pool of affiliates and offer tools and resources to help brands effectively manage their affiliate programs. These resources can include tracking and measurement tools, marketing materials, and support from experienced affiliate managers.
One of the key features of these affiliate networks is their ability to track and measure the performance of affiliates. This allows brands to see which affiliates are driving the most sales and revenue and to allocate their resources accordingly. It also allows brands to see which products and promotions are performing well, which can inform future marketing efforts.
In addition to tracking and measurement tools, affiliate networks also offer marketing materials and support from experienced affiliate managers to help brands effectively manage their affiliate programs. These resources can be invaluable in helping brands optimize their affiliate programs and drive even more revenue through their affiliates.
Proactive affiliate managers play a crucial role in helping brands successfully leverage the power of affiliates to drive incremental revenue. These professionals work closely with brands to identify the right affiliates to join their programs and to ensure that they are properly incentivized to promote the brand’s products. They also work closely with affiliates to provide them with the resources and support they need to effectively promote the brand’s products. This can include providing affiliates with marketing materials, training, and access to tracking and measurement tools.
In addition to recruiting and supporting the right affiliates, proactive affiliate managers also work to identify and address any potential issues with non-incremental affiliates. By closely monitoring the performance of affiliates and taking action when necessary, they can help ensure that the brand’s affiliate program is running smoothly and effectively driving incremental revenue.
Overall, affiliate marketing can be a powerful source of incremental revenue for brands. By utilizing affiliate networks and working with proactive affiliate managers, brands can effectively manage their affiliate programs and drive sales through the efforts of motivated affiliates. According to AWIN, affiliate marketing can offer an average return on investment of 8:1, making it a cost-effective way for brands to reach new customers and drive sales (AWIN, n.d.). In addition, affiliates can help increase brand exposure by promoting a brand’s products through their own networks and channels, resulting in increased brand awareness and potentially driving more sales (ShareASale).
In conclusion, affiliate marketing is a great idea for DTC (direct-to-consumer) brands to invest in growing the channel due to its ability to drive significant incremental revenue. By promoting your products and driving targeted traffic to your website, affiliates can help increase sales and exposure for your brand, particularly for e-commerce brands.
Utilizing affiliate networks like CJ Affiliate, Impact, AWIN, and ShareASale can provide your brand with access to a large pool of affiliates and offer valuable tools and resources to effectively manage your affiliate program. These resources can include tracking and measurement tools, marketing materials, and support from experienced affiliate managers.
Proactive affiliate managers can also play a crucial role in helping your brand successfully leverage the power of affiliates to drive incremental revenue. These professionals work closely with you to identify the right affiliates to join your program and to ensure that they are properly incentivized to promote your products. They can also provide affiliates with marketing materials, training, and access to tracking and measurement tools to help them effectively promote your products.
Overall, investing in the growth of your affiliate channel through strategies like these can be a cost-effective way to drive incremental revenue and achieve your marketing goals. Therefore, affiliate marketing is a great idea for DTC brands to consider as they look to grow their business and drive revenue.