Affiliate marketing is growing at a rapid pace in the US. 63% of the brands feel that the biggest challenge of marketing is to generate leads and traffic. Thus, SAAS affiliate programs are an easy way to promote products and market the services to take any product or service to its full potential.
The concept behind an affiliate program is simple. Companies share a decided percentage of all sales, leads, or traffic that their affiliate partners bring. While companies get a significant increase in profit, affiliate marketers get a recurring commission for product/service promotion.
Top 5 Reasons why you want Affiliates in your company
If it’s your first time offering online services or SAAS products, note that launching even a better product than your competitors might not be enough. You can make sales through landing pages, free trial, reward programs, social media marketing, free subscriptions, and email marketing.
Even then, you will need help from outsiders to promote your company. Whether you own a SAAS company, clothing brand, Amazon listing, or any kind of online business. Now is the right time to introduce your affiliate program and increase your sales by up to 200%.
Here are some important factors explaining how affiliates can increase your business in 2021.
Before an affiliate could post content about the product on his platform, he tests the product himself. Here is how it helps:
This makes the promotional/marketing content user-generated and authentic. Authentic and user-generated content is effective especially if your target audience includes the young generation. A survey suggests that 84% of youngsters influence their purchasing decisions by reading user-generated content.
Brands allow the affiliates to show their practices and insights. Thus, increasing product awareness and sales within 10 minutes. Quick online reviews by the affiliates are as effective as referrals and personal recommendations for many customers out there.
Acquiring new customers is certainly the most difficult step in any business. It is time-consuming and keeps every entrepreneur up late. If you are targeting a large audience, the statistics will not be in your favor due to cold outreach. Even marketing to thousands of people may not yield your desired results.
This is where affiliates shine!
Each affiliate partner of your company gets to promote your product in a different way. For example, if you have 100 affiliates, think of them as 100 different minds to bring you leads.
While some excel in social media marketing, some are too good with blogging, and others may be running Google ads. Thus, you get more sales every month – increasing your revenue.
The good news for brands is that they can enlist as many affiliates as they want for this time-consuming challenge.
Each affiliate has different techniques and promotional channels. You do not have to pay them anything. They only get paid if a new customer visits their site, make a click, and purchase the product.
As we know, the traffic rate for each niche is different. For example, if you sell automotive products, you can enlist an affiliate whose audience is looking for car products. Most of the affiliates understand your industry and already have experience in making quick sales. They already have active platforms and thus, will surely receive targeted sales from the warmed-up audience.
With the unique affiliate links on their marketing platforms, you will have sales coming up every minute. Affiliates make it easier for the brand to maintain a relationship with a new customer while going forward with sales.
Almost 81% of brands take affiliate marketing as one of their biggest sources of leads. This number will continue to increase as more brands in the United States are looking to enlist affiliate marketers. To them, it is cheaper than hiring employees. And here’s how:
Most brands require a cash flow, like start-up fees to market the products they are selling. Therefore, they need sales representatives who can go door-to-door and make sales. However, these times are long gone.
Affiliate marketing is cost-effective and cheaper than hiring employees. This line of work is relatively straightforward, for the brand as well as the affiliate. The affiliates do not have to pay any affiliate program fees while the brands can take advantage of online sales.
Moreover, brands do not have to pay for a sales representative’s commutation expense. Imagine hiring an employee and deploying a separate commutation budget so he can make sales. On the other hand, imagine hiring an affiliate and giving him adequate training from the comfort of your home. You get targeted online sales while the affiliate gets a recurring commission.
Affiliates are happy to work on commission. While most affiliates work on a pay per sale, others work on a pay per lead and pay per click. Pay per sale is the standard structure of affiliate marketing.
In this affiliate marketing program, the merchant pays a percentage of the product’s sales price on a recurring basis. However, he only receives the payment after the visitor makes a purchase.
Pay per lead is a more complex system as compared to pay per sale. In this program, businesses compensate the affiliates based on the lead conversion. An affiliate marketer must persuade the new customer into clicking the affiliate click and complete the desired action.
The action might be anything. From signing up for a form or a free trial to newsletter subscriptions or downloading marketing software. Whatsoever the action, if the visitor completes an action, the affiliate will receive his cut.
Lastly, the pay per click system is quite like Pay-Per-Click campaigns. This affiliate marketing program focuses on an incentive. The brands incentivizing the affiliate partners to redirect visitors from their platforms to the product’s website. The affiliate partners must engage the consumers to the extent where they will go to the merchant’s website.
The goal of pay per click affiliate system is to drive traffic to the merchant’s website.
Lead generation plays an integral role in having prospective consumers. Performance marketers are quite transparent when it comes to lead generation. It generates an incentive for them in the form of payouts, rewards, and bonuses.
Retail-focused recruitment companies pay you by the number of purchases you make. However, lead generation-based offers to pay you by examining the contact information of the person.
An advertiser looks for information that is likely to convert or is authentic. Therefore, affiliate marketers, influencers, and bloggers are quite transparent about the traffic on their website.
Through affiliate marketing, an advertiser knows that he is spending money on a platform where his targeted audience is present. The quality of lead generation gradually deteriorates, regardless of the niche or industry. Therefore, advertise use affiliates to get insights from the channels (such as Facebook) that bring them quality leads and prospects.
A limitation of other lead generation channels is that visitors do not share explicit or personal data. However, affiliates overcome this challenge as well. In affiliate marketing, customers know what exactly what they are signing up for.
Therefore, they give every cent of consent to use their data. When customers permit affiliates to use their data, the information becomes more granular as compared to other marketing channels.
When it comes to generating leads from affiliate marketing, the risks are quite low. Affiliate marketing programs allow you to build long-lasting customer relationships. Instead of using your budget to create leads, you can use it to nurture new prospects and leads.
Another reason why affiliate marketing is a perfect solution for generating quality leads is that the method is cost-effective. You do not need to invest in a whole marketing/sales team. Instead, you can pay them only for the work they do, which is to redirect customers to the merchant’s website.
Lastly, affiliates aids in your marketing team’s search engine optimization strategy. SEO is the heart and soul of any intent marketing. The number of backlinks, outbound links that affiliates create goes a long way to boost your SEO strategy. SEO content becomes important if you need visitors to share their details with you.
When launching a product or a service, you need people to vouch for it. Affiliates provide long-term benefits to your marketing campaigns. Your promotional campaigns get a boost from your very own affiliates.
You see, affiliate marketers have their affiliate networks to spread the promotional content to the audience. They do not only boost your marketing campaigns but also spread your campaign message to a wider base of audience.
Suppose you have decided to add a new feature to your marketing software. You have the resources to share the information, however, you do not have a big reach. That’s where affiliate marketing’s magic works.
You can give the feature information to your affiliates beforehand and they will help you spread the word. This will not only create a buzz but will also help you gain traffic and sales. Moreover, the affiliates do not remove the affiliate links from their blog articles. Therefore, consumers will keep coming in the long term.
If you give discount codes to the top-performing affiliates, who knows you get an additional boost for your marketing campaigns.
This phenomenon leads us to affiliates improving your return on investment. Affiliate marketing is one of the most interesting areas of promotional marketing. As we have mentioned above, it is cost-effective and does not require any preparation upfront. You hire people to promote your products from their platforms. So, there’s no direct cost involved except for affiliate training.
The rate of ROI on your affiliate recruitment program depends on your strategy. The more promising affiliate marketers are, the higher the ROI you get to enjoy. Your product plays an integral part in affiliate marketing. How much your product sells and how much a marketer earns a fee through your program will affect the ROI.
If you manage your affiliate program well, you can expect a stable growth in revenue every year.
Your affiliate marketers contribute to building your brand. A brand should think of them as their business partners who represent the brand. Your affiliate marketer’s success is directly proportional to your brand’s success and reputation.
If the affiliate marketers are active and have a worldwide reach, it will help you grow your business worldwide. Your brand’s reputation is somehow in their hands. If you enlist top-performing affiliates, you would be running a worldwide business in no time.
To take advantage of your affiliates’ reach, you should establish ground rules by eliminating controversial niches from your affiliate program. It is not the quantity that matters but the quality of the sales.
Hiring good affiliate marketers will add to your brand image and will create brand awareness in the long term. That is the reason why most of the brands try to target affiliates who align well with their products.
Affiliates can also help build your brand’s social proof. A brand needs to create its social influence as it affects consumers’ purchasing decisions. The effectiveness of social proof relies on affiliates as their behavior has a considerable effect on their audience. Therefore, affiliate marketing gives the potential to grow your business and drive sales in the long term.
Marketing your products and services requires a lot of capital and some brands might not have that. That is why enlisting affiliate marketers is an optimal way to boost your sales and grow your business worldwide. The greatest advantage of hiring affiliate marketers is that they have their platforms to make sales.
As brands are looking to grow their businesses, affiliate programs are in demand. This has risen the number of affiliate marketers in the industry. The high demand allows you to be selective with the affiliates you want to work with. You should only select motivated and top-performing affiliate marketers. As it will lead you to better sales and quality leads.
Give affiliate marketing a try and get ready for new leads, prospects, customers, and sales.