What makes an affiliate program so valuable, and how do you know when it’s time to start one?

Why Your eCommerce Store Needs an Affiliate Program

Cost-Effective Marketing

Affiliate programs are essentially performance-based marketing strategies. This means you develop partnerships and pay affiliate partners when they drive results, whether a sale, a lead, or a new customer. According to a report by Forrester, affiliate marketing is responsible for 16% of all eCommerce sales in the U.S., which is on par with email marketing and ahead of display advertising and social commerce (https://go.forrester.com/). Since affiliates are incentivized to promote your products, you can gain access to new audiences without the hefty upfront marketing costs.

Expand Your Brand Reach

Imagine having a team of motivated individuals promoting your products across blogs, social media, and niche communities—each with unique followers. This is the beauty of affiliate marketing! By partnering with content creators, bloggers, influencers, and coupon sites, you can reach potential customers you might not have been able to connect with on your own. A survey conducted by Rakuten Advertising found that over 80% of advertisers run affiliate programs, with 40% planning to increase their budget for affiliate marketing in the coming years (https://rakutenadvertising.com/), clearly showing the growing trust in the affiliate model.

Increase Sales & ROI

Affiliates bring in quality leads because they have an audience that already trusts them. As a result, the conversion rate from affiliate traffic is typically higher than other marketing channels. According to a study by Business Insider, affiliate marketing is expected to grow to $8.2 billion by 2025, showcasing its effectiveness as a sales channel (https://www.businessinsider.com/). With a well-structured affiliate program, your store can experience a steady flow of new customers and increased sales.

Affiliate marketing allows brands to leverage the creativity and reach of content creators. It’s a partnership that benefits both the brand and the affiliate, driving sales and awareness simultaneously. – Geno Prussakov, Affiliate Marketing Expert.

How to Know When It’s Time to Start an Affiliate Program

Your eCommerce Store is Generating Consistent Sales

If your store has a steady stream of sales, it might be time to scale up. Launching an affiliate program can help build on this success. Affiliates are often more motivated to promote products that are already popular because it’s easier for them to convert sales.

Your Product or Service Has a Strong USP (Unique Selling Proposition)

Before launching an affiliate program, ask yourself: “What makes my product special?” Affiliates are more likely to invest their time and resources in promoting products that stand out from the competition. If your eCommerce store has a clear USP and you’ve received positive feedback, then affiliates will see the potential, too.

You’re Ready to Scale Your Marketing Efforts

Scaling your marketing without blowing your budget can be challenging, but that’s where affiliate programs shine. According to a study by AM Navigator, affiliate marketing offers one of the highest returns on investment (ROI) among digital marketing channels (https://www.amnavigator.com/). Launching an affiliate program could be the perfect solution if you have been looking for a cost-effective way to scale.

You Have a Solid Conversion Funnel

Affiliates will promote your products, but it’s up to you to convert visitors into customers. Before starting an affiliate program, ensure your website is optimized and ready to handle increased traffic. This includes a streamlined checkout process, engaging product descriptions, and strong landing pages. If your conversion funnel brings consistent results, adding affiliates can supercharge your sales

An affiliate program can be a game-changer for eCommerce businesses looking to expand their marketing efforts without risking a big upfront investment. It allows you to reach new audiences in a cost-efficient way. – Karrine Magnussen, Solais Marketing Founder.

Ready to Start Your Affiliate Program?

If you’re seeing consistent sales, have a strong USP, and are ready to scale your marketing, consider launching an affiliate program. With the right strategy and partnerships, you can tap into new audiences, boost sales, and increase your brand’s reach. 

References:

• Forrester. (https://go.forrester.com/)
• Rakuten Advertising. (https://rakutenadvertising.com/)
• Business Insider. (https://www.businessinsider.com/)
• AM Navigator. (https://www.amnavigator.com/)