Table of Contents
- What is Affiliate Marketing?
- 1. Lay out measurable goals for your affiliate program
- 2. Find affiliates who share your target audience
- 3. Skip existing affiliate networks
- 4. Use affiliate marketing software instead of an existing network
- 5. Make your application easy to find
- 6. Carefully screen affiliates
- 7. Choose a diverse affiliate base
- 8. Create an affiliate agreement
- 9. Train affiliates on the fundamentals
- 10. Optimize your program for mobile
- 11. Offer competitive but sustainable commissions
- 12. Pay commissions on time
- 13. Only pay for results
- 14. Change up commissions to keep affiliates engaged
- 15. Reward successful affiliates with more incentives
- 16. Optimize pages on your website for affiliate conversions
- 17. Consider offering coupons to increase conversions
- 18. Keep affiliates in the loop
- 19. Know how to detect and stop affiliate fraud
- 20. Refine your affiliate program based on data
Affiliate marketing is a powerful strategy that can help your online business reach new audiences, increase sales, and boost your bottom line. By partnering with content creators and entrepreneurs, known as affiliates, you can leverage their trusted recommendations to promote your products or services to their audience. In return, affiliates earn a commission for each customer they bring to your business through their marketing efforts.
Affiliate Marketing Best Practices
To ensure the success of your affiliate marketing program, it’s important to implement the best practices outlined below. These practices will help you establish measurable goals, find the right affiliates, create a solid contract, and effectively manage your program. By following these guidelines, you can become an affiliate marketing guru and drive significant results for your business.
Affiliate Marketing Best Practices
What is Affiliate Marketing?
Affiliate marketing is a performance-based digital marketing strategy where a business rewards affiliates for each customer they bring through their marketing efforts. Affiliates promote relevant products or services on their own channels, such as blogs, social media, or videos, using tracked links (affiliate links). When a person clicks on the affiliate link and makes a purchase, the affiliate earns a commission for the sale.
Affiliate Marketing Best Practices
This win-win situation benefits both the affiliate, who earns passive income, and the business, which gains new customers from the affiliate’s audience.
Affiliate Marketing Best Practices
Now let’s dive into the essential affiliate marketing best practices that will help you succeed:
1. Lay out measurable goals for your affiliate program
One of the first steps in creating an affiliate program is to set measurable goals. Define what you want to achieve with your program and how you plan to measure your results. This could include tracking metrics such as average order value from affiliate links, sales from unique customers clicking on those links, or other relevant data.
Two essential metrics to track are total affiliate sales and affiliate link conversion rates. These metrics will help you gauge the success of your program and make necessary adjustments along the way. Set SMART goals (specific, measurable, attainable, relevant, and time-bound) to ensure clarity and effectiveness.
2. Find affiliates who share your target audience
When selecting affiliates for your program, it’s crucial to find individuals or businesses that share your target audience. Look for affiliates who are social media influencers, bloggers, or niche experts in your industry. They should have a large following and produce high-quality content consistently.
Take the time to research potential affiliates and analyze their audience, engagement, and reach. Ensure that their area of focus aligns well with your brand and that their content resonates with their followers. Authenticity and trust are key factors to consider when choosing affiliates, as their ability to build a strong relationship with their audience will greatly impact their selling power.
3. Skip existing affiliate networks
While existing affiliate networks can help you find affiliates, it’s generally best to avoid using them. These networks charge additional fees (up to 30% of sales) and own the affiliates’ data, limiting your control over your program. Additionally, networks have no incentive to keep affiliates engaged with your brand, as they benefit from affiliates working with multiple brands.
Instead, opt for affiliate marketing software, which provides you with full control over your program. This software is more cost-effective and allows you to own all of your affiliate data. With software, you can customize an affiliate portal, track affiliate sales, and build meaningful relationships with your affiliates.
4. Use affiliate marketing software instead of an existing network
Affiliate marketing software is a superior alternative to existing affiliate networks. This powerful tool gives you complete control over how you set up and manage your affiliate program. It offers cost savings over using a network and allows you to own all of your affiliate data.
With affiliate marketing software, you can easily create an affiliate portal, automate commission payouts, and provide resources to your affiliates. This software streamlines the process of tracking affiliate sales and communication, making it an essential tool for running a successful program.
5. Make your application easy to find
If you want potential affiliates to apply to your program, make it easy for them to find your application form. Include a link to the application in your affiliate marketing materials, such as landing pages, email newsletters, social media posts, and other relevant channels.
To optimize your website’s application page for SEO, include keywords related to your niche along with the phrase “affiliate program.” This will help potential affiliates find your program more easily through search engines.
Consider creating multiple “apply now” links if you have different application categories or targeted affiliates. Each link should direct potential affiliates to the appropriate page, optimized for specific keywords or affiliate types.
6. Carefully screen affiliates
Once you receive affiliate applications, it’s essential to screen them carefully to ensure that only the best affiliates join your program. Create a screening process that aligns with your brand’s requirements and goals.
When screening potential affiliates, consider the following factors:
- Niche: Investigate the affiliate’s niche, audience, engagement, and reach. Ensure that their area of focus is well-suited for your brand and that their content aligns with your offerings.
- Previous affiliate promotions: Check which brands the affiliate has previously partnered with and how well their campaigns performed in terms of conversions and sales.
- Promotion techniques: Ask potential affiliates about their preferred methods of promoting your brand. This will give you insight into their marketing knowledge and compatibility with your affiliate marketing plan.
- Ethics and background: Verify the ethics and background of potential affiliates to ensure that they align with your brand values. Check their social media accounts and online reviews for any red flags.
Consider conducting interviews with your top potential affiliates via video conference to make well-informed decisions.
7. Choose a diverse affiliate base
To maximize the reach of your affiliate program, select a diverse range of affiliates who cover various channels and segments of your audience. This includes bloggers, social media creators, and experts in your niche.
Regularly evaluate your affiliate mix to ensure it reflects the channels your customers frequent. If a new platform emerges that your customers enjoy using, consider finding affiliates on that platform.
Customize your affiliate training sessions to cover promotional expectations for each channel your affiliates span. This will help them effectively promote your brand on their respective platforms.
8. Create an affiliate agreement
An affiliate agreement is a written contract that outlines an affiliate’s responsibilities and protects your brand from fraudulent activities. Affiliates must sign this agreement before joining your program.
Include the following details in your affiliate agreement:
- Affiliate responsibilities: Define how often an affiliate should post content about your brand and where they can publish it.
- Promotion guidelines: Specify what affiliates can and can’t do to promote their links, including the use of your logo and brand name.
- Brand portrayal guidelines: Provide guidelines for how your brand should be portrayed in blog posts, social media posts, and other promotional materials.
- Your brand’s responsibilities: Outline what resources and support your brand will provide to affiliates.
- Commission structure: Clearly state the commission rate and the criteria for earning commissions, as well as the payment schedule.
- Unethical activities: List unethical activities that will result in termination of the affiliate agreement.
Refer to a template or consult with a legal professional to create a comprehensive affiliate agreement that protects your brand’s interests.
9. Train affiliates on the fundamentals
During the onboarding process, train your affiliates on your brand’s standards and promotional expectations. Review the details covered in the affiliate agreement and provide additional information and resources as needed.
Show affiliates how to access marketing assets, such as product images and videos, and explain where and when these resources will be updated. Provide access to your affiliate portal, which allows affiliates to send messages, access resources, and track their sales.
Affiliate management software can simplify the creation of an affiliate portal without the need for coding.
10. Optimize your program for mobile
As more people use mobile devices, it’s crucial to optimize your affiliate program for mobile. Ensure that your application page, affiliate portal, and resources are mobile-friendly. Additionally, review the pages that affiliates direct leads to and optimize them for mobile to maximize conversion rates.
Over 70% of ecommerce purchases are made on mobile devices, so it’s essential to provide a seamless mobile experience for potential customers.
11. Offer competitive but sustainable commissions
When determining commission rates, aim for a balance between competitiveness and sustainability. Research the commission rates offered by other brands in your niche to ensure that your rates are competitive.
Offer cash payouts for sales to attract affiliates to your program. However, you can also consider offering additional rewards, such as tech items or valuable gear, to top-performing affiliates.
If your business operates on a subscription model, consider offering recurring commissions for both new subscribers and renewals. Ensure that the commission structure is sustainable for your business.
12. Pay commissions on time
Paying commissions on time is crucial for maintaining positive relationships with your affiliates. Timely commission payouts demonstrate that you value and appreciate their efforts. Delayed or inconsistent payments can result in the loss of valuable affiliate partnerships.
Affiliate marketing software automates the commission payout process, making it quick and efficient. It eliminates the need to manually track payments and ensures that affiliates receive their commissions on time.
13. Only pay for results
To protect your business from fraudulent activities, only pay affiliates for actual sales rather than clicks or impressions. This prevents affiliates from generating illegitimate clicks or impressions to increase their commissions at your expense.
Additionally, consider implementing safeguards to ensure that affiliates earn commissions only when a customer’s purchase is not canceled or returned. This ensures that you’re paying for actual ROI rather than fraudulent or temporary sales.
For B2C businesses, award commissions based solely on sales, not impressions, clicks, or leads. However, for B2B businesses with longer lead-to-sale cycles, it may be appropriate to offer commissions for leads in addition to sales.
14. Change up commissions to keep affiliates engaged
To keep affiliates motivated and engaged, periodically change up your commission structure. This prevents affiliates from feeling stagnant and ensures that they continue to earn competitive commissions.
Consider temporarily offering higher commissions during slower periods to incentivize affiliates to drive more sales. This can help boost your revenue during sales slumps and keep affiliates motivated.
Regularly review your commission structure to ensure that it remains competitive and aligns with your goals.
15. Reward successful affiliates with more incentives
Show appreciation for your top-performing affiliates by offering additional incentives. This rewards their hard work and encourages them to remain loyal to your brand. Consider temporary or lifetime commission raises or valuable gifts when affiliates reach specific sales milestones.
You can also provide cash bonuses for affiliates who achieve a certain amount of monthly or quarterly sales. Additionally, offer bonuses for the top-performing affiliates on a monthly or quarterly basis.
Rewarding successful affiliates helps foster a strong relationship with them and motivates them to continue promoting your brand.
16. Optimize pages on your website for affiliate conversions
When leads directed by affiliates reach your website, it’s essential to optimize your landing pages, product pages, or store pages for conversions. Clearly communicate the value of your products and demonstrate how they meet the specific needs of your audience.
Ensure that these pages are user-friendly, visually appealing, and provide a seamless purchasing experience. Use persuasive copy and compelling visuals to encourage leads to make a purchase.
17. Consider offering coupons to increase conversions
To further incentivize conversions, consider attaching discount coupons to each affiliate’s link. This encourages potential customers to make a purchase by offering them a discount.
You can offer limited-time discounts or permanently tie a discount to each affiliate’s link. Decide whether to offer a set dollar amount or a percentage off the purchase. Consider implementing scaled discounts to drive higher average order values and benefit both your business and the affiliates.
Remember that coupons should complement authentic and valuable content produced by affiliates to encourage their audience to click on the links.
18. Keep affiliates in the loop
Regularly update your affiliates on new brand and product developments, as well as any changes to the affiliate program. Create an affiliate-only email list, newsletter, social media group, or Slack group to facilitate communication and provide updates.
Transparency is key when interacting with affiliates. Clearly communicate which information should be kept confidential and provide channels for affiliates to contact you with questions or concerns.
19. Know how to detect and stop affiliate fraud
Stay vigilant for any signs of affiliate fraud and take immediate action to address it. Affiliate fraud can take various forms, such as bidding on paid ads for your brand’s keyword, sending spammy emails, or generating fake traffic.
Regularly monitor affiliates’ sales metrics and be alert to any unusual activity, such as abnormally high conversions or sales within a short period. If an affiliate misrepresents your product or disregards your brand’s identity, take appropriate action to protect your business.
Refer to your affiliate agreement to terminate relationships with affiliates engaged in fraudulent activities that harm your reputation or revenue.
20. Refine your affiliate program based on data
Continuously analyze the performance of your affiliate program and refine it based on the data you collect. Monitor metrics such as new affiliate recruitment, affiliate-driven sales, conversion rates, lead-to-purchase time, and lead quality.
Identify high-performing affiliates and those who are not meeting expectations. Use this data to refine your affiliate base, allocate more resources to top-performing affiliates, or adjust commission rates. Consider implementing A/B testing to compare different strategies and continue using the one that yields the best results.
By leveraging data and making data-driven decisions, you can optimize your affiliate program and drive significant ROI.
In conclusion, implementing these affiliate marketing best practices will set your online business up for success. By setting measurable goals, finding the right affiliates, creating a solid contract, and effectively managing your program, you can maximize the potential of affiliate marketing. Remember to continuously refine your program based on data and maintain open communication with your affiliates. With dedication and strategic implementation, you can become an affiliate marketing guru and achieve remarkable results for your business.