Here are some startling statistics to start your day:
- 81% of companies have affiliate marketing programmes.
- 15% of the digital media industry’s sales are brought by affiliate marketing.
- 38% of marketers view affiliate marketing as one of best customer acquisition methods.
- In 2015, affiliate marketing accounted for $10 billion of Amazon’s revenue
Harnessing affiliate marketing for your e-commerce site
Affiliate marketing connects sellers with independent marketers who are willing to invest time and money to sell a product. It is usually performance-based, thus advertisers only pay when affiliates take a specific customer action. In an e-commerce context, this action is often an online purchase, which makes affiliate marketing very profitable.
Ecommerce store owners work with other websites that publish content and review products. Online sellers can leverage the influence, traffic, and expertise of the website to drive sales for their business, and pay only after the sale is complete.
The method of affiliate payment is frequently termed as pay-per-sale.
Amazon rewards affiliates with a portion of each “qualified sale.” Based on the Amazon Associates website, affiliates can make up to 10 percent.
The concept of a “qualified sale” is crucial in affiliate marketing: the ecommerce merchant must explain clearly beforehand what counts as a qualified purchase. At the same time, when an affiliate promotes the seller’s products, he/she must accept what a “qualified sale” entails.
This is a real-life example of a “qualified sale”
- The lead clicks on a desired affiliate link.
- The defined product should be added to cart after the click.
- The customer has to make payment for the product bought.
It takes both software and time.
Online retailers need a way to recruit affiliate marketers, track their sales, and process commissions for qualifying sales. And these require work.
Affiliates will need to understand the advertiser’s target audience, the advertiser’s product, and the advertiser’s brand. To help you, sellers may provide “talking points” describing brands and products. Merchants can also create approved banner ads and provide graphics and brochures.
The Digital Spacee helps YOU sell your product
The Digital Spacee offers lead generation projects that follows the above-explained “pay per qualified lead” model. All you need to do is sit back and wait for potential clients knocking on your door, while we do the marketing for you. Learn more about our services here.