Affiliate marketing. For some people, this can be a lot of work. For some businesses, this can be the tool they need to get their business off of the ground.
About 83% of marketers use affiliate marketing to increase their business’ brand recognition.
If you own a business that has this goal, it could be worthwhile to team up with an affiliate marketing company.
Why should you do this? What are the biggest benefits? What are the biggest things you need to know before doing this?
This is your guide.
One of the biggest benefits of affiliate marketing is that you get free advertising if you go this route. The way this works is that you do not have to pay any money upfront. We will discuss in the next section how you pay for this type of marketing.
For right now, what you need to know is that you do not have to worry about coming up with the funds for ad space. Some companies spend millions of dollars on prime advertising slots.
If your business does not have that kind of advertising budget, this can be a great alternative to get your product or service out there.
Paying for Results
Going off free advertising, you need to create an incentive for people to advertise your content. With affiliate marketing, you can create this incentive without having to pay anything upfront for advertising.
So, what do you do? You give the people that are advertising your product or service a commission every time someone uses their link to buy your product.
This is a fee that you and that person agree upon before you give them the right to use your affiliate link. Normally, this is a flat fee that is a small percentage of the retail worth of your product.
For example, let’s say that you sell sneakers online. You want to increase your business and you use an affiliate marketing agency to do this. The incentive here would be to give that agency a few dollars for every pair of sneakers people buy with their link.
It creates an incentive for that person to promote your product heavily and you do not have to invest in people that do not deliver results to you. The phrase “you get what you paid for” rarely applies more than here.
Exposure to New Audiences
Another benefit to affiliate marketing is that you could get exposure to new audiences. One way to do this is by working with certain social media influencers.
Here, they could advertise your product on their social media pages and in any pictures or videos they post on those pages.
How do you find the right social media influencer for you? You can work with an influencer marketing agency.
They can determine what social media influencer would be a good match for your product. Then, you can come up with an agreement to work with that social media influencer.
In addition, they can get you more exposure to new audiences because a lot of social media influencers have certain niches. However, a lot of them can have audiences on the younger side. Gen Z, for example, may be more likely to see advertised content on social media than they do on cable television.
If that is an audience you are trying to reach, then you have to act accordingly and have your content displayed where they are.
What if you want to go the other way and get an audience that is mostly Gen X? In that situation, you would find a social media influencer that caters to that audience.
You may assume that they do not spend the same amount of time as younger people on social media. If that is the case, then it could be beneficial to go to one of the more limited places where they do spend time on social media.
Better Chances at Profit
Finally, affiliate marketing can also improve your chances of profit. This is especially the case if you are a business owner who lacks marketing experience and funds.
The lack of funds can be a big problem when using other forms of marketing. If you dry up those funds without an immediate return, you may not have enough money to operate other parts of your business.
If you have a lack of marketing experience, it could also be a big problem because you may not know how aggressive you need to be with marketing. You could waste your money on the wrong platform and the wrong audience, and you may end up taking too much advertising space.
Affiliate marketing allows you to have fewer consequences with marketing decisions. Yes, you want to see an increase in sales. However, marketing mistakes here are less likely to hurt you in the short term.
Hire an Affiliate Marketing Company
These are some of the biggest benefits of working with an affiliate marketing company.
As a business owner, this type of marketing allows you to take less risk in the marketing department. You only have to pay for results, it does not require any money upfront, and you could even increase your chances of making a profit. You can’t beat that.
On top of this, you may even get exposure to new audiences that you did not consider before.
Do you want to know more? Check out our Digital Marketing articles.