If you research Digital Marketing, you have undoubtedly heard about Affiliate Marketing and its specifications.
After all, just in 2020, sales through affiliate marketing grew about 72% according to the Awin Report 2021, one of the biggest names in the segment.
These data brought even more visibility to the modality and aroused the interest of companies that do not apply it yet.
But, what is Affiliate Marketing, in fact, and how does this modality really work?
These and other questions will be properly answered during today’s article.
So, if you want to know everything about Affiliate Marketing, as well as the main types of promotion and the main channels, read on!
What is Affiliate Marketing?
In a nutshell, Affiliate Marketing is a form of Digital Marketing that uses affiliates, or advertising partners, to increase sales.
It is a “win-win” relationship between companies and affiliates.
This is because companies can sell more products without having to hire more CLT employees.
Affiliates, in turn, receive commissions with high percentages for each sale made.
How Affiliate Marketing Works
Affiliate Marketing works as a partnership between companies that want to increase their sales and professionals that want extra income.
Or even a main income promoting products and earning commissions.
Simple, don’t you think?
An interesting detail about this modality is that digital products such as ebooks, consultancies, mentorships and online courses can also be disclosed.
Advantages of Affiliate Marketing
Among all the advantages of Affiliate Marketing, the one that stands out is the low acquisition and maintenance cost of the teams that promote their products.
After all, there is no formal working relationship and, if the team does not reach the sales targets, the business strategy will not be harmed.
In addition, other benefits of Affiliate Marketing are:
- saving the company’s resources and investments, as it does not need to maintain a fixed team or even suffer losses with unsold resources;
- improves the company’s SEO reputation as multiple outbound links will point to the same domain (sales page or producer site);
- affiliates don’t need to invest a lot to get started: their first sales can be organic, that is, just investing time and energy in free advertising;
- there is flexibility for affiliates, who decide how much time they want to devote to selling.
Main types of disclosure for Affiliates
There are many outreach strategies for affiliates.
But the most common are the costs for activities performed by the user, as you can see below.
CPC
The acronym CPC is nothing more than Cost Per Click and, as its name suggests, affiliates receive an amount each time a user clicks on their ad or link.
CPA
Cost per Action can be considered an “advanced step” for the customer in your funnel.
After all, in this modality the user needs, in addition to clicking on something advertised, to perform another more “valuable” action, such as registering for an event or downloading free material.
CPM
In the case of banners, Cost per Thousand Impressions is the most recommended, as the company pays the advertiser when 1000 impressions are reached.
Therefore, in this case, the more traffic on the affiliate’s website, the greater his remuneration and the greater visibility the contracting company will have.
CPV
Finally, one of the highest remunerations is the Cost per Sale, which is a form of commission for each sale made, whose value will depend on the specifications of each company.
While all rewards are valid incentives for affiliates to stay engaged and excited, achieving a satisfying level of engagement isn’t always easy.
To improve the quality of deliveries of the product team, responsible for managing digital products, there is a OKR definition for product teams.
Studying more about this Objectives and Key Results (OKR) tool can make all the difference in a company’s environment and results.
Product advertising channels
There are many possibilities for promoting products as an affiliate, such as:
- Social networks: Instagram, Facebook, Pinterest, LinkedIn and Twitter;
- Email Marketing: to create relationships with potential buyers and nourish them with deep content before offering your products;
- Outreach through videos: YouTube can be your greatest ally when it comes to generating video content and offering products as an affiliate.
It is important that all metrics are recorded, even if in Excel tables, both by the affiliate, and for the entrepreneur or his team.
After all, it is only possible to stipulate remuneration, to maintain control over the numbers of impressions, with a well-defined data organization.
And this happens, for example, in the Basic Power BI Functions, from Microsoft.
Which companies adopt Affiliate Marketing?
Companies like Amazon, Magazine Luiza, Cloudshop, Hotmart and Eduzz successfully use Affiliate Marketing strategies.
These are all big companies and, without a doubt, Affiliate Marketing strategies contribute to the growth and positioning of the brand in the market.
As you can see, Affiliate Marketing is a great way to achieve greater visibility for brands in the digital market, it is an ally to the source of income of affiliates, who earn according to their performance.
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