As the world’s reliance on the internet grows, brands continue to look outwards for opportunities to increase their exposure and brand awareness. The clutter in social media and display advertising is bigger than ever. Having your products promoted through trusted editorial or video content carries progressively more weight.
This is where affiliate marketing comes in. Affiliate marketing is a form of promotion that works incredibly well when tied to a sound content marketing strategy.
What is affiliate marketing?
Affiliate marketing is the process where an affiliate (generally a publisher or content creator) earn commission for leads or acquisitions they drive for a partner or client’s products. Leads, sales and acquisitions are tracked using unique tracking links that allow the affiliate to share in the profit of each customer.
For example; our team partners with a software company, for every lead we generate for them we receive $50. These leads can generally be created any way we please and opens up a world of strategic marketing campaigns to drive leads. Brand’s generally look for affiliates that have a loyal following and large reach to push their products as far as possible.
How does affiliate marketing work?
Affiliate marketing marketing requires 3 parties:
This is often a content creator, publishing network or news website with significant reach. This can either be a company or an individual. The affiliate will often hold the trust of a particular demographic. The affiliate’s audience trust helps persuade consumers of the product value.
Affiliates are often most impactful when they have a specific audience or a niche. Their followers are often particularly loyal and trusting. Brands that fit within their niche are likely to receive very high click through rates here.
The seller or advertiser, is the organisation trying to gain exposure and leads for their product. They’ll agree on a rate per lead, acquisition or sale with the affiliate. The seller will usually provide product information or resources to help the affiliate with promotions.
Instead of throwing a load of money at traditional advertising, sellers can now pay only for leads or sales directly tied to the marketing activity. Without affiliate marketing, sellers are generally paying to expose their brand to a much wider audience without the certainty of ROI. This also increases the onus on the publisher to create content that drives results.
In this instance, the customer is generally a follower or regular consumer of the affiliate’s content. The stronger that the trust this customer has with their audience, the stronger their persuasion capabilities and influence will be. When the customer purchases the product, the affiliate and the seller will share in the profits.
Is affiliate marketing right for your brand?
If your organisation is already using influencers or publications to promote their products, then affiliate marketing is the logical next step. If there are influencers within your niche that you feel could promote your product effectively then it could be a fantastic opportunity for your brand.
The great thing about affiliate marketing for ‘the seller’ is that if an affiliate campaign is unsuccessful and they don’t sell any products or generate any leads, then they don’t have anything to pay.
Pinstripe Media engages in affiliate marketing strategies with organisations around Australia and the world. If you’re interested in collaborating on an affiliate marketing program, get in touch today. Having access to our own publishing network gives our partners huge reach across the country for affiliate programs.