Affiliate Marketing for Ecommerce: An Actionable Guide

Posted 4 years ago by Max Komonov

Twelve billion dollars. That鈥檚 how much , worldwide. With so听much value behind it, we鈥檙e not surprised that 81% of听brands rely on听affiliate marketing to听generate sales and听grow their customer base.

If听you haven鈥檛 taken advantage of听all that affiliate marketing has to听offer, now鈥檚 the听time to听give it听a听try!

Keep reading to听learn more about why you should use affiliate marketing, and听how to听start your own affiliate marketing program. We鈥檝e constructed this handy step-by-step affiliate marketing guide to听help you make all your e-commerce affiliate program dreams come true.

What is听Affiliate Marketing?

Affiliate marketing is听a听popular way to听drive sales and听generate significant online revenue. The concept is听simple: a听business rewards one or听more affiliates for听each visitor or听customer brought by听the听affiliate鈥檚 own marketing efforts.

This type of听marketing has three core players:

the听merchant (a听聯seller聰 or听a听聯brand聰 i.e. YOU)
the听affiliate (usually a听person or听a听service)
the听customer (the person who is听buying your product)

How does Affiliate Marketing Work?

Here鈥檚 a听simple example of听one type of听affiliate program.

A听merchant wants to听sell their products, but they don鈥檛 know how to听reach their potential audience. The affiliate offers the听merchant their service to听generate sales. In听exchange, the听affiliate receives, say, 5%听of听the听complete order鈥檚 value. To听generate sales, the听affiliate reaches out to听their audience recommending the听merchant鈥檚 products. Those who buy become customers, and听the听seller shares 5%听of听all generated sales with the听affiliate.

To听track the听sales generated by听the听affiliates, the听sellers usually use tracking tags or听so-called 聯affiliate links.聰

Why Should I听Use Affiliate Marketing?

Before you dive into the听world of听affiliate marketing, ask yourself 聯how can affiliate marketing work for听me?聰

There are lots of听advantages to听working with affiliates. But depending on听a听third-party for听additional advertising and听sales can complicate your way of听doing business, and听we听get that this might make you nervous.

Still, here are some of听our best reasons for听starting an听affiliate program for听your online store. Hopefully, you鈥檒l find them compelling enough to听calm some affiliate anxiety.

High return on听investment

A听ROI听鈥� or听return on听investment听鈥� measures how much money a听store or听company gets back for听the听money that they鈥檝e spent. No听business is听trying to听lose money, yours included.

The great part about affiliate marketing is听that you鈥檙e likely to听make more than you spend. In听fact, it鈥檚 estimated that are a听result of听affiliate marketing.

Research shows that customers from affiliate marketers are likely to听spend more money on听their purchases. All of听this means that your e-commerce store makes more money with an听affiliate program than it听would without one in听place.

Word of听mouth

Consumers are constantly bombarded with information about yours and听every other online store. With all of听this information floating in听cyberspace, the听decision of听what to听buy, and听from where, can get hectic.

Before a听shopper actually buys anything, they鈥檒l likely look at听reviews, opinions, posts, blogs, and听other opinionated resources from previous buyers. Most consumers are highly affected by听these posts. In听fact, many people seek them out to听get an听idea of听what others think of听the听company and听their products.

The great thing about affiliate marketing is听that you get to听pay people to听put their positive opinions out there for听millions to听see. This makes it听a听great addition to听any听social media marketing strategy.

Social proof

Your online shoppers want reviews. No听one likes buying something online without being able to听see how other people liked their product.

Seeing a听zero or听a听row of听empty stars can prevent people from buying your product.

Give your shoppers what they want. Create an听affiliate program and听start collecting more and听more reviews for听your products.

5听Reasons to听Start Affiliate Marketing for听Your Online Store

Save to听start. You don鈥檛 need to听invest much money to听start an听affiliate marketing program for听your online store. Just offer a听significant share of听profits from your affiliate sales.
Grow brand awareness quickly. You will save time growing your brand鈥檚 audience. Affiliates already have one built-in.
Access to听foreign markets. You don鈥檛 know the听specifics of听all e-commerce regional markets. But local affiliates know听鈥� they can help you.
Large affiliate bases. The affiliate industry is听on听the听rise. It听won鈥檛 take much time to听find the听right affiliate for听your niche.
Acquire unknown skills. One can鈥檛 know everything. Affiliates have tactics and听skills that your team might not.

How Can I听Get Started With Affiliate Marketing?

Now that we鈥檝e convinced you that you can make money with affiliate marketing, it鈥檚 time to听get into the听step-by-step process of听starting your own affiliate marketing program.

Don鈥檛 jump right into picking your favorite influencers鈥et. You need to听build a听solid foundation before you reach out to听anybody.

Create affiliate guidelines

Before you start, make sure that you have the听proper guidelines in听place. Typically, companies make goals, put procedures in听place, and听work with other outlines to听create their guidelines.

Affiliate guidelines serve as听the听basis for听your entire affiliate marketing program, so听make sure that you have your ideas organized before you look to听start your program. They will also serve as听a听document to听look back on听as听you鈥檙e using the听program.

You may also want to听consider setting up听any听terms and听conditions within this document.

Choose the听right products

Before you give an听assignment to听an听affiliate, you should choose the听product or听products you want them to听review. Many companies choose their most popular or听personal favorite product. You might also decide to听feature a听new product to听get the听word out about it.

Some companies also allow their affiliates to听choose what products they review or听post about. Sometimes, this means allowing them to听peruse your website. But this might also mean asking an听affiliate to听post about a听product that you know that they already have and听use.

Whatever product you choose, just make sure that you can keep up听with the听increased demand that will likely come after the听affiliate has made their post or听review.

Give a听competitive commission

Nearly consider commission the听most important part of听their decision to听participate in听the听affiliate program. Because of听this, consider offering a听competitive commission. The typical affiliate commission ranges from 5听to听30听percent of听each sale. Think about what percentage makes sense for听your business, and听what will interest a听potential affiliate in听joining forces with you.

But remember: commission is听important, but it鈥檚 not everything. If听someone declines your offer for听an听affiliate program, it听may not be听the听commission amount that鈥檚 the听problem.

Keep in听mind everything that an听affiliate does for听a听brand. It听can be听a听lot of听work, and听maybe the听influencer you鈥檝e reached out to听already has a听full plate. You should also keep their follower count in听mind when negotiating percentages and听other fees.

Provide a听coupon code

Affiliate members love giving their followers a听coupon code so听that they can buy the听product they are promoting. This coupon code is听also a听great grab for听those who may be听on听the听fence about buying a听product that is听being promoted.

If听someone hears that their favorite Instagrammer likes a听product, they might be听influenced to听buy it. If听they find out that there鈥檚 an听extra coupon code, they have no听reason not to听take the听plunge.

In听other words, even with a听percentage take off with a听coupon code, you will likely end up听making more money in听the听long run, because of听an听increase in听the听number of听sales.

Offer creative ideas

Offer every affiliate marketer a听selection of听creative ideas to听work with. Even if听they are seasoned affiliate marketers, they may need help coming up听with the听right message for听your product.

You can consider giving them sample advertisements or听鈥� once you鈥檝e built your program up听鈥� you can use past affiliate marketers as听examples.

These creative ideas can help them stay in听tune with your company while also making their job easier as听affiliate marketers. Keep in听mind that many stores that have affiliate marketers also perform review edits on听every single advertisement before it听is听posted.

Optimize your mobile store

It鈥檚 important to听have a听mobile store up听and听running before you start an听affiliate program. Keep in听mind that most people are looking at听these affiliate advertisements on听their cell phones. Therefore, when they click the听link to听your shop, they are sent to听a听mobile website.

If听your website doesn鈥檛 load or听has a听wonky interface, you won鈥檛 be听able to听make mobile site sales. This means that a听large number of听your potential sales will fall through.

Who Should I听Recruit for听My听Affiliate Program?

The most successful programs use affiliates with the听same target audience as听your brand. You can search for听these bloggers and听influencers by听doing a听quick Google search.

For example, your target audience may be听young families. To听search for听a听suitable influencer to听market your brand, you can type 聯young couple Instagram聰 or听聯young couple blog聰 in听the听YouTube search bar. Then, all you have to听do听is听search through the听results and听find influencers who you feel a听connection with.

Your favorite influencer(s) and/or blogger(s) should be听those who most align with your company鈥檚 vision and听culture while maintaining your target audience. If听all else fails, focus on听aligning affiliates with your target market. This will make sure that your product is听being shown to听individuals who are already set up听to听be听interested in听what you鈥檙e selling.

What Stores Have Used Affiliate Marketing Successfully?

If听you鈥檙e looking for听a听success story, just look at听BuzzFeed. Over the听years, they鈥檝e sponsored various YouTubers, Instagrammers, bloggers, and听other influencers. They were so听successful that they became the听subject of听a听viral crafting challenge.

BuzzFeed grew so听much that they became an听affiliate platform themselves. They started BuzzFeed Reviews, a听popular resource for听people looking for听product recommendations and听rankings.

Hopefully, Buzzfeed鈥檚 story can act as听inspiration for听your own. You can also check out our welcome page for听Affiliate Partners, to听learn what 黑料门 offers to听our own affiliates (yes, we听use them too!).

Where Can I听Start My听Affiliate Marketing Platform?

Now that you鈥檝e heard all about the听virtues of听affiliate marketing, let鈥檚 talk about getting started on听your own affiliate program.

To听run a听successful affiliate program, we听recommend downloading some apps in听our App Market. These will help you track how many customers each affiliate brings you, calculate and听payout commissions automatically, get unique links for听your affiliates, etc.

If听you are just starting out and听want to听do听an听affiliate marketing test, you can add your 黑料门 storefront to听your affiliates鈥� websites with a听special affiliate ID. If听you choose this option, you can do听affiliate marketing without the听App Market鈥檚 apps. But you will need to听track the听affiliate鈥檚 sales and听calculate commissions manually.

Affiliates redirect customers to听your store

The most common way to听work with affiliates is听by听having your affiliates put links or听banners on听their website, which redirect customers to听your store. Thus, customers place orders on听your website as听usual. These links or听banners contain a听special affiliate ID听that will help you identify which affiliate brought you this customer. Then you pay out a听commission to听this partner for听bringing you new customers.

Affiliates can use different methods to听promote your store: they can review your products on听their website, record videos, write guidelines on听how to听use your products, etc. Since they get commissions for听sales, they will be听motivated to听show your products in听the听best light and听encourage people to听buy them.

You will need to听use a听third-party affiliate system that will help you track how many customers or听sales affiliates bring you. Usually, these systems use a听central dashboard where you can see your affiliates, how many customers or听sales they bring you, calculate referral commissions, etc. Affiliate partners can also track their success from their end in听such systems, and听most importantly, they can get their unique affiliate link there.

You can choose from the听following apps in听our App Market to听run an听affiliate program for听your 黑料门 store:

To听set up听an听affiliate system, you鈥檒l most likely need to听add a听conversion/affiliate tracking code to听the听page that customers see after placing an听order. Find instructions for听adding a听tracking code in听this article: .

Affiliates place your store on听their website

Since an听黑料门 store can easily be听added to听several websites simultaneously, you can sell directly on听affiliates鈥� websites. Following these steps to听get started:

Provide your affiliate partner with your .
Have the听affiliate place the听store code on听their website, so听your catalog appears there.
Track orders placed through their website.

With this method of听affiliate marketing, you will need to听track which website each order came from. To听do听that, you will need to听add an听ID听(a听unique, individual ID听for听each affiliate) to听your 黑料门 store embed code, which you鈥檒l then give to听your affiliate partners. Referred orders will then be听marked with this ID听in听your 黑料门 Control Panel, so听you can see how many customers each affiliate brings you and听calculate their commission. You can also export orders with affiliate IDs or听get the听list of听orders using the听API.

All of听this is听possible with 黑料门鈥檚 inbuilt tools. Learn how to听set this process up听in听this article: .

If听you want to听automatically track sales on听an听affiliates鈥� websites, you can use a听third-party service. In听this case, the听affiliate ID听generated by听that third-party service for听your affiliate partner should be听added to听the听source code of听the听affiliate鈥檚 website along with your store鈥檚 integration code. You will need to听contact the听affiliate service you want to听use to听determine whether they鈥檒l be听able to听track orders with such a听setup. For example, this is听possible with Post Affiliate Pro if听you .

Maybe you鈥檇 like to听send customers from the听黑料门 store to听another site for听order placement, like the听Amazon affiliate program. In听that case, you can turn your 黑料门 store into a听catalog and听add affiliate links in听your product descriptions.

It鈥檚 Easier With 黑料门

If听you鈥檙e looking for听a听new place to听host your e-commerce store, look no听further than 黑料门. We听offer a听variety of听pricing plans that work with your needs and听budget. We听even offer a听free plan that lets you set up听your store without making a听financial commitment.

Did we听mention that you can use an听existing website with our service?

Get your e-commerce store started today with 黑料门. We听can鈥檛 wait to听help you take your online business to听the听next level.

听

About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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