Why is it good to use Affiliate Marketing for Brands?

Today, social media influencers use #affiliatelink when they send a story on their Instagram profiles. You might ask “What does that mean?” and “Why they use it?”. In today’s blog we are going to explain the nature of affiliate marketing and how brands can benefit from it.

Before start, we need to remind you that when influencers make an agreement with brands to promote brands’ product in their social media, in most countries it is regulated as the promotion campaigns between influencers and brands should be transparent. To make the collaboration understandable by followers, influencers use hashtags like #affiliatelink.

Affiliate links are the links that are created one by one for the influencers by brands. When a follower of influencer swipes up or click the link, influencer’s follower goes to a landing page of the brand which collaborated with the influencer. Generally, this landing page is formed up by products of a brand. When the follower continues with the landing page and decide to buy a product from there, brands know that this consumer is a follower of an influencer and follower came the brand’s website via influencer’s affiliate link. After the purchase completed, brand gives sales commission to that influencer on the rate they agreed before. So, affiliate links are trackable links where influencers shares on their social media platforms to make his/her followers buy that linked product to earn sales commission. The whole concept called as “affiliate marketing” on the brand side.

Source:Heiko Hildebrandt (2020), What is Affiliate Marketing? Target Circle

What are the benefits of affiliate marketing for brands?

You make performance based payment to the influencer

On contrary to most of different marketing campaigns, with affiliate links, as a brand you can understand which influencer generated sales for you. This helps you to understand which influencer is performing well as you know the exact sale generated by influencer you can measure ROI easily. Furthermore, as you give commission according to sale, if influencer sells less then you pay influencer less, if influencer sells more, you pay more.

You can choose your affiliate partner

It is very important to work with influencer you wished to work. As you are from brand side you know which influencer can represent you best for brand image, brand character and such. So, you invite influencers to your affiliate program. Affiliate programs are long-term projects so during this period you developed relations with influencers and influencers are like your brand ambassadors.

Low risk

If you have low marketing budget affiliate marketing is good for you as you make performance based payments. If you achieved to sell more products, then you pay more and if the marketing campaign with the influencers was not successful then you pay less amount of money. Because of this mechanism, affiliate marketing is less risky than other marketing campaigns where you pay money directly.

Detailed data and statistic generation

As affiliate links are generated and are tracked by Google, you can get lots of data about consumer behaviour on your website. As we explained before, you already know that consumer came from which influencer or where but moreover to this you can measure lots of things such as how much time a consumer spends on your website, where he/she click on your website, at what point he/she decided to buy your product. By knowing these metrics, you can understand at which point you need to develop more and you can adapt and change these points at the future.

It helps you to increase your SEO

There is a fact that if you are not in the first page of Google then you are not existing. As people click your affiliate links, you are spotted in Google indexes and this increases your SEO as your web site categorized as “relevant” and “popular”. When you get the first page of Google search engine then your web site is more visible for customers and this helps you to sell more products.

Less time need for marketing

As your affiliate partners create contents constantly, you don’t need to spend time and effort create marketing projects and contents. Influencers are promoting your products as most suitable as possible according to their profile to sell more and you are relax to see others work for you.

Consumers trust influencers

It is fact that before making purchase decision, humans tend to get recommendations. Today’s world, social media is the biggest of recommendation center and according to researches 92% of searches product recommendation before buy it. In digital world, influencers are the biggest recommendation source. So if an influencer is going to earn more money when they promote your product then basically they will recommend it.

Nowadays, Affiliate Marketing is used by different brands from small start-ups to biggest firms. If you want to create an affiliate marketing system and you are in search for influencers, you can use ILONSI. To download our application, you can use App Store or Play Store.