What does affiliate marketing mean?
Affiliate marketing for you as an advertiser on an affiliate network involves products and services being sold by so-called affiliates. This does not mean that the products must be sent to the person who will sell. Instead, affiliate sales work with recommendations and links directly to the original online store.
Anyone who acts as an affiliate can therefore tip their readers on a blog or followers in social media about your product. This can be done with a link or perhaps with a unique bonus code that shows you that the customer came from this affiliate.
If there is a purchase, the person who sent the customer, i.e. the person who is an affiliate, receives a certain percentage in compensation. If there is no purchase, there will be no compensation. This bears repeating: compensation on sale, no compensation if there is no sale!
Affiliate marketing only costs when it gives something
When you do not want unnecessary expenses and feel that it is not the right time to start new collaborations and campaigns, affiliate marketing is perfect. After all, you take no risk and you have great influence over the compensation, commission, that will be given to your affiliate.
Two important points to consider with affiliate marketing:
- You can adjust the commission level so that the compensation becomes financially viable. You can also stimulate specific collaborations with better commission if you want.
- You only pay compensation if there is a sale.
This gives you a safe collaboration that only involves a cost as you actually see an income from it.
Key Benefits of Affiliate Marketing in Troubled Times
Being able to control costs for collaborations and to only pay for actual sales opportunities is something you benefit from regardless of how the economy looks at the moment. In addition to this, there are some specific benefits of affiliate marketing that are especially important during troubled times:
You get a low investment cost
Your investment in affiliate marketing lies in finding the right channels and partners. This can of course take some time, but you can also get good help from us via our affiliate network. If you were to start a collaboration which then turns out not to yield anything, it is possible to end it.
As long as your products and services are visible on reputable sites and in channels that you think rhyme well with your business, there is nothing negative about that. On the contrary, you can see that this leads to your online presence being strengthened so that more people discover your brand and buy from your online store.
When you find influencers or sites that feel like a very good match for what you sell, you can put a little more energy into the collaboration. You might give away products for reviews or pay a little more commission to get endorsements in videos and longer posts.
How much you want to spend on this is up to you and you can proceed carefully. By testing this type of collaboration step by step, you will see how much it gives. This brings us to the next benefit…
You take a minimal risk
Since it costs basically nothing to get started with affiliate marketing, you take a very small risk. You can step up where you see that it works to sell more. You don't have to buy anything in the bag. It is the same thing as minimal risk which few other sales methods can offer.
With this type of marketing, your profit margins become predictable. It makes it much easier for you to plan collaborations and decide where you want to invest a little more.
You get passive income
When you cooperate with affiliates, it can lead to passive income. This is especially so when you have a system where the actual sales process takes place automatically on your online store or in some other way. Whoever is affiliated with you does the work of explaining and showing your product. The sale takes place automatically in your store and the money lands in your account.
This can happen around the clock and wherever you are. It's not like you have to monitor every sales effort and make sure to row it to port. This gives you time to develop your projects and to do other things that have nothing to do with your business.
Strategy for successful affiliate collaborations
When the goal is to reduce costs for marketing but still bring in more sales opportunities, affiliate marketing is your best method. But of course it is important to find the right collaborations that will give the most. Here are some key points to keep in mind.
Bet on this to affiliate marketing success:
- Channels that align well with your brand. Look at other posts and presentations to decide if you think an influencer or a particular website fits your brand.
- Collaborations where you can reach new target groups. With affiliate marketing, you have the opportunity to quickly reach new target groups to spread your brand and sell more.
- Projects with a lot of traffic and many followers. It is of course a big advantage if the channel or website you choose to collaborate with has plenty of traffic. But also find out if that traffic comes from people who might be interested in your products.
- Seriousness. A stable website or YouTube channel is preferable to something that can be perceived as weak. As this collaboration can continue indefinitely, it is very good if your partner offers stability and a platform that continues to grow.
During troubled times, affiliate marketing is a safe and secure choice. It only costs your time to choose the right partner and then a commission if there is a sale. In addition, this is an investment that can pay off in the long run as the collaboration can develop and open the door to new target groups and sales potential.