Before diving into its work, let us first understand affiliate marketing. Affiliate Marketing is performance-based marketing wherein a business rewards one or more affiliates for visitors brought by the affiliate’s marketing efforts.
Although it is growing rapidly worldwide, across the retail sites in the country.is still at a maturing stage. However, statistics reveal that the industry has recorded a growth of 500% in the past three years in terms of sales linked to affiliate marketing. Affiliates are contributing to almost 15 percent of the total sales
A majority of entrepreneurs face several hurdles, including budget constraints. Due to this, they cannot adopt traditional marketing method as it is quite expensive. So, affiliate marketing is a wonderful resort for them as it is economical and very effective.
Affiliate Marketing is a Boon for Entrepreneurs
Affiliate marketing is undoubtedly an affordable mode of advertising. Some major ways it is done are organic search engine optimization (SEO), paid search engine marketing, paid-per-click (PPC), email and content marketing, and sometimes display advertising. Here are some reasons why entrepreneurs should choose affiliate marketing:
- It helps you grab a lot of attention from the customers/visitors; if you run your affiliate campaign through a proper affiliate network, it plugs your offer into existing traffic channels, helping you get traffic faster.
- It does not require you to be a master of everything. If you lack the knowledge of SEO, Google Adwords, and social media, you can still promote your business by getting affiliates proficient in these, and you are good to go.
- Affiliate marketing is profitable marketing. You are only required to pay for your results, unlike traditional advertising. You have to pay the affiliate only when a sale is made.
- You need not have a big sales team. Instead, you can hire an affiliate manager who, in turn, can recruit other affiliates. This reduces the risk and helps you save money.
- The last and most important advantage is that you get to discover new markets. It is impossible to reach out to all demographics and verticals in traditional marketing methods, irrespective of your marketing team’s size. However, with the help of affiliates, you can reach your idea’s maximum potential in the market and re-target it to new markets if required.
Now, let us have a look at the case where affiliated marketing proved to be quite successful.
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David McSweeney of Top5SEO.co.uk
A UK marketer and SEO expert, David, has worked in this industry for the past 15 years. He grew his marketing site in just six months, making a profit of $4000.
In the first month, he created and set up his site, chose a product, and chucked down a plan to monetize it. He did detailed research about the selected product and wrote deep reviews. He had around 800 visitors in the first month and made about $115.
In the second month, he wrote a blog that accompanied his site. In the blog, he spoke about creating the content and working on link-building. He managed to have around 2,200 visitors and earned a profit of about $391. In the third month, he expanded his blog and increased the number of visitors and profits.
The graph depicts how his business grew within six months. All this required a lot of hard work. It took almost 234 hours of effort to create content, research products, build a site, and earn links.
Case Study by Delhi School of Internet Marketing
Statistics speak about the success of everything, and so is the case with affiliate marketing. The Delhi School of Internet Marketing (DSIM) studied affiliate marketing and discovered astonishing facts.
As per DSIM, around 40% of marketing professionals have quoted affiliate marketing as one of the best mediums for digital marketing. About 38-40% of entrepreneurs consider affiliate marketing as of the topmost customer acquisition method.
Mobile devices have been recorded as one of the best mediums for creating traffic through affiliate marketing. The records state that around 50% of the crowd is generated through mobiles. These, in turn, have helped in deriving 30% of the sales.
For example, ShareASale, a prominent affiliate network, has more than 1,000,000 affiliate accounts registered.
Step Up Your Affiliate Marketing Game with Social Media
More than 50% of top affiliate programs fall into four categories: Fashion, Sports, Health and Beauty, and Travel. The infographic below clearly depicts how content marketing and social media have enhanced sales for companies. Social media boosts the sales and visibility of companies three times higher than any other medium.
The graph indicates e social media platforms that have worked most for promoting brands online. Social media has proved to be one of the best modes of affiliate marketing. The other popular marketing tactics are videos, blogs, e-newsletters, and pay-per-click and email advertising.
With increased digitization, lower costs, and higher ROI, a growing craze of e-commerce companies is involved in rising affiliate marketing. It is certainly going to increase with time.
So, affiliate marketing is a boon for all startups and entrepreneurs in this age of digitization. But one needs to be patient and persistent as building your brand through affiliate marketing takes up a lot of time and effort.