How do I know if affiliate marketing is right for my business?
Affiliate marketing – the biggest providers of which are cash-back and voucher-code sites – is seen by many online retailers as a risk-free channel. After all, goes the argument, you only pay if your affiliates deliver sales.
However, it doesn’t work for everyone and there are a number of issues retailers should bear in mind when exploring their affiliate options.
Matt D’Alton, managing partner at marketing agency Navigate Digital, says one of the first issues to consider is whether you can afford to pay commission to affiliates while also providing compelling offers to consumers.
He says: “You might need to discount your products and you’ll have to pay commission on any sales, so you need to ensure you’re still making money once all that’s taken into account.”
D’Alton adds: “You should also examine if there’s any flexibility in your commission structure, as many affiliates will offer increased levels of exposure in exchange for increased commission.”
In addition, businesses will want to stand out and ensure publishers promote them over their competitors, which means offering great discounts or exclusive products.
D’Alton says retailers should ensure using affiliate sites doesn’t damage their brand or lead to existing customers not buying from the retailer directly because they expect a discount. Finally, D’Alton advises building an effective, two-way relationship with affiliates.
He says: “It’s easy to think of it as just you providing the offers and them selling, but if you take the time to listen they can provide insight to help maximise sales.”
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