Modern businesses are all oriented towards results and financial performance. With competition rising in literally all industries, reaching your customers should be a number one priority. Mainstream advertising channels are proving to be less and less effective, as people tend to avoid TV and banners.
Thus, we wholeheartedly recommend you to try out affiliate marketing as an alternative way to grow your customer base. There are several distinct advantages that referral programs have over well-known solutions.
Looking at AWIN data from the 2017’s report, the affiliate marketing grows at an unprecedented rate. Only in the U.S., companies spent about $83 billion on digital advertising, with no signs of slowing down. The number of referral partnerships grew as well, reaching an audience like never before. Although TV is considered to be a mass media channel, affiliates seek to challenge that claim.
A large portion of our planet’s population has access to the internet, making the affiliate marketing quite a tool to have. Companies outside of the U.S. realized this as well, like organizations originating from the U.K. and Australia.
Attractive yet Cost-Effective Marketing Programs
When handing out rewards to affiliate marketers, business owner seeks results, rather than abstract graphs. You have specific metrics, such as the number of desirable actions taken, the number of retained customers, and page views that really matter to your business. Thus, instead of spending millions on a TV ad, you can dedicate a lot smaller budget on affiliates that are much more effective.
For startups, there is no need for banners, expensive Facebook campaigns, and Twitter teams. All that effort is in the hands of the referral partnerships.
Unlimited Scope of Partnerships
What makes affiliate marketing quite attractive for both marketers and businesses is the scope of partnerships. You can have as many referral professionals as you would like, often not limiting them in number. Rewards account for some leads you wish to generate, meaning that one or thousands of marketers would suffice all the same.
Businesses also have the option to provide different types of affiliate marketing programs. You can create different levels of rewards, depending on the desired action types. You can also tackle different spheres of operations by involving sales-oriented or marketing-oriented affiliate partnerships.
Running on Performance
As mentioned before, using specific directives and metrics, marketers would have no issues in locating the right direction towards potential leads. This saves time but also improves performance. Without desirable actions data, organizations cannot be sure whether the advertising tools are successful or not. Putting in a limitation on rewards by introducing a set of objectives ensures your marketing force knows that they are aiming for.
Thus, by offering small-sized rewards, such as sales percentage, can go a long way in creating a healthy affiliates relationship. Marketers would work harder if they see no results, benefiting your organization in the process. Additionally, performance-driven strategy offers insights on how the market behaves regarding advertising effectiveness.
Reaching Out Wider Audience
What makes this particular marketing tool interesting is the lack of any boundaries. Organizations can reach customers outside of their countries. Partnerships with affiliate marketers that come from outside of your region also help achieve new leads that are unfamiliar with your language and culture. Thus, as the AWIN report specifies, the referral advertising is a global marketing strategy.
Affiliates can operate on several languages, have numerous sites, and even handle customer relationship for you. Without spending money on one ad to be translated into several languages, affiliate marketers can introduce your products to a wide audience all over the world.
Gathering all five advantages, it is clear why we would suggest affiliate marketing to be a regular part of your advertising efforts. It is easy to implement and even more comfortable to fund, as lead-generation may take some time to grow. Referrals are all results-driven, meaning that only by increasing your revenues can you see the rise of affiliate marketing costs.
With win-win situation for both sides, affiliate marketers would jump at the opportunity if you have a clear goal in mind. Marketing concept should thus be predetermined. It is essential to plan since the referral tool is quite powerful.