What Exactly Is Affiliate Marketing? (& Why Should It Be Part Of Your E-Commerce Growth Strategy?)
To have success in the e-commerce space, a blend of different marketing activities has always been king. A strong website and ad campaigns come together to drive traffic and generate online purchases, yet we’re seeing more and more that the highest levels of growth are driven by an even more diverse range of marketing channels.
Email marketing, search engine optimisation and affiliate marketing have all played an equally vital role in some of our greatest e-commerce successes in recent years, but when pitching growth strategies to our clients, we’re increasingly met with the same question: what exactly is affiliate marketing? Affiliate channels are currently driving 10% of all e-commerce sales in the UK, so if you’re not clued up on exactly what affiliate marketing is and why your e-commerce business should embrace it, you’re missing out on a huge opportunity.
Affiliate Marketing Defined
Simply put, affiliate marketing is a performance marketing strategy that enables e-commerce businesses to promote their products or services through partner organisations and networks: the affiliates. This approach allows you to reach audiences that your existing marketing efforts may be unable to access. For example, partnering with affiliate networks targeted at students may help you increase levels of brand awareness and revenue among a student audience.
This type of marketing strategy will look different depending on the type of business you’re running and the products you sell. Partnering with influencers might be the perfect solution in some sectors, whereas well-positioned discount offerings will be a more effective approach for others to drive sales.
How Does Affiliate Marketing Work?
While the partnership-style model might seem like a complex way to market your products, the affiliate marketing process is remarkably simple. The affiliate channel, whether that’s an influencer, cashback programme or voucher site, actively promotes your products to its own audience. This may be through a sponsored social media post or blog article on their website, or via a specific discount code. It’s a win-win scenario for both sides of the partnership; you (the e-commerce business) only incur costs when a purchase is made, while they (the affiliate) receive a commission for their efforts in securing this purchase.
Why Affiliate Marketing Should Be Part Of Your E-Commerce Growth Strategy
With an understanding of exactly what affiliate marketing is, you naturally may wonder why it’s a valuable consideration for your business. If you are looking to unlock sustainable growth sustainable e-commerce growth, here’s why affiliate marketing should be part of your strategy:
Cost-Effective & Low Risk
By far one of the greatest advantages of affiliate marketing is the fact it has a performance-based model. Unlike many digital marketing channels where you pay for exposure regardless of the outcome, your affiliates will only earn a commission when they achieve a specified goal: a sale. This means that you’re only paying for actual and measurable results, with limited upfront costs or financial risk.
Easily Scalable & Adaptable
If your affiliate marketing efforts do take off, it’s easy to scale and adapt your network to suit. As revenue grows, you can take advantage of the huge range of affiliate networks available to build new partnerships and introduce your brand to even more new audiences. Equally, you can scale back your strategy depending on seasonality and demand, ensuring that relevant traffic is driven towards your brand at the right times.
Enhanced Brand Visibility
With the help of affiliates, your products can reach audiences who may not otherwise come across your brand. Affiliates offer social proof that lends credibility to their recommendations, meaning that their audience is likely to place the same trust in your brand and make a purchase to give your products a go.
Get Your Affiliate Programme Underway Today
If you’re keen to try something new and embrace the benefits of affiliate marketing within the e-commerce space, now is the time to start. At Fuel, we can help you set up a suitable affiliate marketing programme, ensuring that you are working with the most appropriate partners, communicating with them in the right ways, and subsequently showing your brand off to the most relevant audiences.
We’ll help you to further enjoy the low-risk nature of affiliate marketing by working with you on a percentage of revenue basis, with fair programme management fees and the support of dedicated affiliate marketing experts.
If you have any further questions when it comes to understanding exactly what affiliate marketing is, or wish to explore how this type of growth strategy would work for your e-commerce business, don’t hesitate to reach out to us online or email seve@fuel-growth.com directly.
