Right now most businesses are looking for new strategies to increase sales and revenue. In this post, you will learn why affiliate marketing can save your business?
Retaining existing customers is essential, but attracting new ones to balance your sources of income. For B2B and B2B companies, customer acquisition costs (CAC) have increased by nearly 60% in the last five years, so you need to find new ways to increase revenue without additional work.
Affiliate marketing is a channel that many companies are considering expanding their revenue streams. They are designing their programs to increase sales in new markets or they may be involved in making extra cash.
The U.S. is expected to reach $ 8.2 billion in affiliate marketing spending in 2018. Statista reported an increase of 195% from five years ago. Who doesn’t want to get involved in that action? Whether you want to start your own or participate in one, here are some ways affiliate marketing can save your business right now.
1. Extended Reach
Running an affiliate marketing program is an easy way to expand brand awareness and market reach without having to invest heavily in marketing. For example, if you have 25 affiliates in your program and everyone promotes your products to their entire audience, you can get your products in front of thousands of people every time. These are substantial brand impressions you have to produce (or pay for) yourself.
Even if you pay for seals, you won’t get a positive response. After analyzing billions of searches on mobile devices, Spark Toro found that paid advertising generated only 11.38% click-through rates, organic searches generated 26.68% click-throughs, and 61.49% zero click-throughs.
However, with your affiliate program, you are generating more click-throughs without investing significantly in marketing or paid advertising (yes, you are paying a commission to an affiliate marketer, but this is much lower than other channels).
2. Targeted traffic
The challenge is always to increase traffic to your business website. Organic search results depend on your SEO and your marketing efforts can significantly impact your numbers. You also want good traffic, and people who don’t surf to your site bounce.
By working with affiliates who understand your industry and market, you will get the targeted traffic that your business needs. This traffic is pre-qualified by your affiliate, making it easy for you to maintain a relationship whether they buy from you or not. You have now created brand awareness with traffic and topped with them in the future.
3. Engaged with new customers
The effort to attract new customers through your affiliate program has already been completed. Affiliate marketing makes it easier for them to be new and existing customers, and buying is an indicator of future purchasing power.
Now is the time to start marketing to them through email marketing. Tag affiliate customers as affiliate customers and consider running a special campaign for them because they can contract with their affiliate purchase. They are a slightly different engaged customer and need to sell differently.
4. Increased SEO
Your SEO is heavily influenced by affiliate marketing and the backlinks you get through affiliate blog posts and social media posts. Search engines will increase your rankings based on these backlinks and images, as your affiliates also share your products and links. This can be especially effective if you are working with high-performance affiliates with a highly engaged audience that shares posts and links about your product or brand.
5. Limited startup costs
Starting an affiliate program is not free, but your time, resources, and money are less invested in your marketing budget and resources budget. Once you have your program set up, you will need minimal time and resources to manage, and your hardworking employees will be free to focus on your core business. Whether you run your program or participate in someone else’s program, your business will continue to generate revenue in parallel to your core operations.
6. Trusted partners
Affiliate marketers want to partner with highly paid affiliate programs and collaborate with you to generate sales that will generate additional revenue for you. Make sure your affiliate program gives them enough earning potential to make it worthwhile. If they earn a solid commission, they will continue to be with you in the future, increasing this revenue stream.
7. Deeper Relationships With Existing Customers
If you’re participating in an affiliate program by recommending products to your customers and audience, you’ll deepen the customer relationship. How? Because you’ll be recommending other products and services that can help them too. You’re offering them more value by seeking out, reviewing, and recommending these products. Research the products thoroughly to ensure they’re complementary to your business and will add value to your customer’s experience with your products or services.
8. Increased earnings
By creating your affiliate program and participating in affiliate programs as a publisher, you create two different sources of revenue for your business. You will be able to earn fast as a publisher because you have already established a relationship with your audience. This usually takes longer for affiliate marketers, but you are one step ahead of them. That income can sustain your business as you develop your affiliate program and move it off the ground.
There is no limit on how much you can earn as an affiliate marketer or program owner. It all depends on how good your affiliate network is and how engaged your audience is. Affiliates want to earn as much as possible, which increases the revenue you earn through your program. Similarly, when you are a publisher, you also want to earn as much as you can from a participating program. Due to the low cost of product and delivery, digital products and services usually offer higher payment rates than physical products. But it depends on the program you are a member of.
Affiliate marketing is an easy way to create new revenue streams and save your business. This is a long-term solution for your business as it takes time to develop your program or earn an income by joining an affiliate program.
In both cases, this will only cost you time. With upfront investment and ongoing hours, affiliate marketing is an effective way to save your business once the financial recovery begins.