What is affiliate marketing?
In essence, this type of strategy is based on a collaboration relationship between the online store and a group of traffic providers, called affiliates. These people promote the store and encourage potential customers to place an order. For those orders, affiliates receive a commission on sale..
Compared to other strategies, the affiliate marketing model does not involve financial risks. The basic principle is “cost per result” because the store pays only one percent of affiliate sales. Thus, the worst case for the store is that it will not increase sales, but then the expenses will not increase.
How can stores use affiliate programs?
Affiliate program for your shopify store is an online services marketplace that brings together store owners with a large and diverse group of affiliates. Stores set a commission to pay from affiliate marketing sales.
This business model was adopted to ensure growth for both stores and affiliates. Since commissions are generated from sales, affiliates are encouraged to generate qualified traffic, which is likely to lead to new orders. Traffic brought to the store can be generated in a number of ways: blogging, PPC, email marketing, etc.
Do you want to open an online store?
Affiliates bring traffic as valuable as possible but do not deal with actual sales. That task is the store. Increased traffic does not guarantee increased sales. Because affiliates take over some of the store’s marketing activities, you can focus on optimizing the site itself and the conversion rate.
Affiliate marketing cannot replace all other traffic or marketing sources. Rather, you should treat this strategy as an accelerator of the company’s growth. Traffic and sales by affiliates depend heavily on the store. Customers record an increase of approximately 20% in sales.
The ideal time for a store to develop an affiliate marketing strategy is once it has already 100-200 orders per month. Success in affiliation involves a certain degree of knowledge and experience in marketing.
What is the conversion rate and average order value?
First of all, it is worth mentioning that the affiliate team regularly publishes statistics related to the results of customers, affiliates and the platform itself.
However, these are not the only areas that can take advantage of affiliate marketing. If a start-up discovers a good niche and has a convincing offer, a group of affiliates can take on many excellent marketing outcomes. Affiliate marketing brings together experts in PPC, price comparisons, email marketing and many other areas.
Growing industries offer many opportunities to online stores, but yet the most important aspect is the company’s value proposition.
How do affiliates monitor transactions?
Transactions influenced by affiliates are detected using two elements:
When a user accesses an affiliate link, a cookie is placed in that user’s browser. Stores that benefit from Affiliate marketing services have an integrated tracker on the page announcing the completion of an order. That code monitors whether the buyer has the cookie mentioned above in the browser.
When the tracker detects such a cookie, it confirms the transaction as being decisively influenced by the affiliate. At that point, both the store and the affiliate are notified of the transaction and the associated commission.
Once the order is confirmed by the store administrator, the commission is taken from the online store account and sent to the affiliate.
The e-Commerce site does not pay each commission separately. A single invoice is issued to the Affiliate marketing team, which distributes the right affiliate amount.
How much does an online store pay for affiliate marketing services?
Customers can test the affiliate marketing free platform. There is no cost of integration or monthly payment by the store owner before paying the affiliate commission. Affiliate marketing packages are very affordable, with a trial version. The main costs of affiliate marketing are the percentage of sales that affiliates receive. The paid amount is decided by the owner and the business model is designed in such a way that the marketing services offered to the affiliate marketing affiliates can only bring profit.
The most important thing for an online store is to establish a satisfactory percentage. Affiliate marketing makes more than 50,000 affiliates available to e-Commerce sites.
How does affiliate marketing help customers to have successful campaigns?
The store’s team is the best-prepared and has the most tools to manage their marketing campaigns. However, affiliate marketing has adopted a number of ways to help e-Commerce sites achieve optimal results:
- Technical support and platform-friendly information.
- Organizes training for agents and specialists.
For companies that have not used affiliate marketing strategies in the past, affiliate marketing also offers support for learning and the initial launch of an affiliate program.
Other important tips and information
An online store needs to do a rigorous market research. This is great advice for any entrepreneur, because a store, especially a digital one, needs to know its target audience, competition, and communication channels to launch and grow. Online commerce is all commerce, so the store needs to know its market well.
Start with a Facebook store. So you can find out if there is a demand for your products and you can get experience interacting with those first customers.
To this end, other typical aspects of online commerce, such as the choice of suppliers and transport methods, should take precedence. An online store involves many technical challenges and, without a performance platform, these first issues can sabotage a new online store.
No matter what you try, you should be sure that you efforts in affiliate marketing are in the right direction. You need to ensure that you are taking the right steps and avoid making any mistakes when it comes to starting off affiliate marketing. Another important aspect that you need to keep in mind is not get carried away by initial success. You need to make sure that your efforts are continued so that you always have success. On the contrary, if you do not encounter success initially, do not give up.