There are several advantages and benefits for a company that decides to invest in the affiliates, as it appears as an opportunity to profit on the internet. However, it is still a very unknown topic in the business world.
First, however, it is essential to understand what this concept means. It refers to a part of marketing that focuses on selling products, whether on the internet or offline, through referrals through links.
With this, for each purchase made thanks to disclosure, the affiliate earns a correct percentage as a form of remuneration. So becoming a way of remuneration very effective.
This can be used to use dissemination links for publications on social networks, inserted in the middle of a text for blogs, in banners located on your page, among other means.
In fact, this is an area that has been gaining many followers in recent times, with accelerated growth, since competition has grown considerably, but it is still on the rise.
This strategy is widely used to attract new customers, as it ensures an increase in the company's reach and, as a consequence, an increase in profit, mainly due to the growth in product sales.
There are several affiliate program platforms available on the market, enabling a separation and definition of the niche in which it will be inserted.
The receipt of the financial return from this strategy can be defined with the company, being by a percentage or value already established. Furthermore, with regard to the profit scope, it can be broken down into cost per action, per click or per view.
The first concept refers to the definition of an action, and the company will pay according to the number of times it is performed. The most used is the one that evaluates in relation to sales, but there are those referring to the number of entries or by targeting pages.
The second is one of the best known, which refers to the frequency of clicks on a particular link, making the affiliate receive according to this number.
The latter is the least common, however it refers to the remuneration that occurs according to the number of views that certain content generates.
Emergence of affiliate marketing
The first time the affiliate market emerged was in 1989, when William J. Tobin implemented this strategy as it is known today. He used it in his company, called PC Flores eGifts.
In 1996, Amazon used this type of market by launching a program called Associates, translated as “associates”. It attracted the interest of many people, becoming a role model for salespeople who wanted to integrate such a program.
Then, in 1998, the first affiliate networks were created, but it was only in 2000 that the legitimacy of the strategy was consolidated. And, since then, it has gained prominence in the business world.
Understand the importance of the affiliate market
With the growth of the digital world and commerce within these platforms, investing in strategies to increase results has become essential. That's because the customer can quickly analyze all their options.
Furthermore, with this market, a company is able to consolidate its image in the midst of high competitiveness. It is a way to expand the ways to make sales without being in person, an essential point between the years 2020 and 2021, due to the pandemic.
5 Top Mistakes to Avoid
There are a few things you need to do to avoid bad surprises when implementing affiliate marketing in a business. To prevent this from happening, the main errors that should be cut out of a company's routine will be analyzed. Being them:
- Collect but not analyze information;
- Not knowing your consumer audience;
- Forget about visitors;
- Change the font;
- Not planning.
Therefore, as a way to ensure that these habits will be excluded from a company, each of them will be understood separately and in more detail, check:
- About information
Collecting information is vital for the success of this strategy, because analyzing the return on investments indicates the success of what was implemented, not to mention the competitive advantage that is generated.
For example, if a company building automation understands that its results increase when affiliates are on social networks, it can focus on this type, developing and growing.
This information must be analyzed according to the behavior of the public and the user's experience, understanding their steps and at which times there was greater withdrawal from consumers.
- Know your consumers
An essential point for any company that wants to implement anything is to know the consumer public. Thus, there is a guarantee that the strategies will achieve the goals and reach people who can actually buy.
Thus, there is a reduction in spending on investments and actions that will not yield results, as they will not reach their target audience. With that, the company starts to have a focused work, increasing the team's productivity.
For example, a company of surface treatment who know that their audience is geared towards people who have just bought a house or are undergoing a renovation, can focus on affiliates in the home and decor niche to improve their results.
- think about the visitors
One mistake that should not be made is allowing the visitor to wander aimlessly around the site. That's because this becomes the way to not convert into results. You must invest in efficient strategies to turn visitors into consumers.
For this, it is important to insert objective and clear instructional sentences, helping the consumer to choose what he/she wants. Basically, the main point is to implement a strategy that values and improves the user experience.
When the visitor has a good time during his time on a website, the chances increase considerably that he will start consuming what that page or brand offers.
For example, if a visitor enters a site that sells custom shirts, he must like the page, understanding all the ads and how to get there, to be able to buy and become a customer.
The consequences of this become very good, as among them are: an increase in the number of customers, in the company's profit and an establishment of its image.
- don't change font quickly
Sometimes, when there is a drop in conversion, a big action for managers is to change the source of traffic. However, this is one of the big mistakes. It is necessary to define a source and stay in it until it works, it is not allowed to give up.
It is necessary to invest in carrying out tests to make it easier for the company to understand if what was implemented is correct. However, in addition, the tactics used must be gradually adapted to ensure improvement.
So if a company acoustic treatment, for example, wants to enter this market, it is important that she does an analysis with tests, making it possible to understand if what she is doing is right.
- make a plan
One of the big mistakes is to exempt yourself from carrying out a planning. When a goal plan is established, the company is able to assess when it reaches those that were established by it.
In this way, it is possible to increase the productivity of your team, which feels more motivated to be able to develop together with the company. Consequently, there is an increase in the company's profit.
In addition, there is an organization guarantee on who promoted a certain strategy and who should be rewarded. For this, it is important to hold an online group meeting with the affiliates separately, ensuring a specific and organized definition.
So, for example, a company that sells inductive sensor you need to bring together your affiliate representatives to pass on the strategies you want and increase your results.
Main advantages of using affiliates
Using the affiliate market can be a very effective and beneficial strategy for a company that implements it and for an entrepreneur who enters this process as an advertiser. Soon, some of these advantages will be discussed, as follows:
Flexibility of work
When entering work through the digital world, a person gains the opportunity to make his work more flexible, since he can work anywhere and at any time, allowing him to create his routine, following only the delivery of work on time.
For example, if a person wants to become an affiliate of a seller of sinks, she only needs to post on her social networks about the brand, but creating her own schedule.
Choice of niches
It is possible to define which niche you want to invest, be it something of your specialization or a topic of interest only, because what matters is to get people to buy a certain product or service.
For example, a person can define whether they want to invest in their niche study of temperature transmitter and engineering in general, which is formed, or if you want to insert yourself in the fashion environment, your passion.
Low initial investment
To start with this strategy, the expenses are not excessive, since the partnership pays off and prices are not high. Also, they get paid according to their performances.
Another point is that it is a much more beneficial tool as it does not require the creation of expensive software. Using social media to spread your advertising can be very interesting and cost-free.
For example, if a company exhaust ducts want to enter this market, she just needs to enter the digital world and find affiliates willing to close deals, without having to spend several resources in an attempt.
The affiliate market is growing and should be increasingly adopted by people, due to its benefits and expressiveness in results. However, it is very important to consider certain information to prevent errors in your application.
This text was originally developed by the blog team Investment Guide, where you can find hundreds of informative content on different segments.