Discover The Power Of Affiliate Marketing For Ecommerce
Affiliate marketing is one of the most common ways of making money online.
It involves a retailer paying commission to an external website for traffic and/or sales that come through it.
For example, if you have a website that focuses on the niche of kids’ products, you could partner up with a retailer in the field in order to refer traffic to them.
Any sales that result from visitors using your link will translate into commission for you for referring that traffic.
This is an easy and effective way to monetize any website when done right, with endless potential for growth.
As famously said by Bo Bennet, “Affiliate marketing has made businesses millions and ordinary people millionaires”.
There are various reasons why this method is so powerful, and the very first step is to look at the facts and stats, true for 2020.
- An Overwhelming Majority Use This Method - 81% of marketers leverage the power of affiliate marketing.
- It Plays A Significant Role - 15% of total digital media advertising revenue is attributed to affiliate marketing.
- Steady Growth - In the US, affiliate spending increases by 10% every single year.
- A Natural Choice For Revenue Generation - Almost 13% of website owners choose affiliate marketing as their go-to method for passive income.
Very rarely in the online space do you get a mode of marketing that has way more pros than cons, making it a great choice in most cases.
- No Barriers To Entry - Affiliate marketing costs nothing to apply, and simply involves embedding a link on your website to refer traffic.
- No Expertise Needed - There is no ecommerce or technical expertise needed to get started.
- No Investment Required - Instead of buying inventory and having to sell it, you simply refer buyers to the place where they can buy what they need.
- Minimal Responsibilities - Seeing as you are just the referrer, all issues relating to quality of the product or its delivery are not your concern, leaving you with minimal liabilities on a retail level.
- Freedom, Flexibility, And Independence - You can add and remove affiliate links as you see fit, and you are not bound in any way to customers or retailers.
- There Is No Cap - As far as scalability goes, the sky is truly the limit with affiliate marketing.
There are some additional perks for ecommerce store owners in particular:
- Seeing as you have a website, applying affiliate marketing is effortless.
- Delivery, customer service, and all logistics are under the complete responsibility of the retailer, freeing you up to focus on marketing.
As mentioned above, there are few disadvantages - but still a few caveats that should be noted.
- The Markups Are Lower - Compared to traditional ecommerce or dropshipping, the markups can be razor-thin, leaving you heavily reliant on volume of traffic to make significant income.
- It’s Hard To Keep Control - Customers can go around you, and not always use your referral link. This is an integral characteristic of affiliate marketing and the only remedy is ample volume which will offset this disadvantage and make it still worth your while.
- It’s A Slow-Starter - It takes time to build up your traffic flow and the graph of revenue is typically a gradual one. It’s not a fast game.
The Top Recommended Affiliate Marketing Programs
Some of the best programs for ecommerce include:
- Amazon Associates: Earn up to 10% of the value of product sales. A major perk is that the total sum of the checkout amount is what you’ll get paid for, even if the customer bought additional products which are not related to you. However the affiliate link is only valid for 24 hours which is a downside that can cause you to easily miss some sales.
- eBay Partners: Enjoy the most diverse offering of products to promote, in a simple affiliate system which also offers you double commission for the first three months. eBay Partners pays 50-70% out of the fees associated with the sale.
- Shopify Affiliate Program: From a B2B perspective, Shopify is great if you refer fellow ecommerce store owners to this leading website builder. You can up to earn 200% of your referral’s subscription fee which is certainly worthwhile. It’s harder to find B2B referrals than finding retail clients for products, nonetheless, it is a very lucrative opportunity when it arises.
How To Find Affiliates For Your Own Ecommerce Site
You can use the flipside of this model to seek affiliates to promote your products.
Classic ways to do this include inviting influencers within your niche to promote your products, or getting your store featured on relevant blogs.
Establishing strategic relationships is the key to finding affiliates, and it can be as easy as simple as reaching out.
Remember, your products can enrich someone else’s blog, so it’s a win-win situation. With some business-oriented thinking, finding affiliates can be surprisingly easy.
There is no clear-cut answer whether affiliate marketing is for you, but there is a clear overload of advantages when compared to the disadvantages.
This model is best when you have a website up and running, and when your goal is to attract traffic in any case.
This way you can plug in a potentially lucrative income stream, which is secondary and passive, with utmost ease and with no added cost or effort.