Even if you haven’t reaped the benefits of affiliate marketing yet, you’ve probably heard of it. According to Forbes, the category now accounts for more than 15% of e-commerce purchases, putting it on level with email marketing and ahead of both social commerce and display advertising as a driver of e-commerce transactions.
So, what exactly is affiliate marketing, and how exactly does it work? Is it also appropriate for you? We will answer your burning queries in this blog!
What is Affiliate Marketing?
The referral program is comparable to affiliate marketing (also known as an associate program or referral program). We haven’t seen a better succinct description of affiliate marketing than this one provided by Pat Flynn, the founder of Smart Passive Income (SPI):
“Affiliate marketing is the process of earning a commission by advertising the products of other people (or companies).” You find a product you enjoy, advertise it to others, and earn a percentage of the revenues from each sale.”
Affiliate marketing programs are focused on income sharing. If you have a product and want to make extra money, you can promote similar products or services from another firm, who will pay you for your referrals. Affiliate Marketing for Dummies is, of course, always available online, but it’s probably not necessary!
What is the definition of eCommerce Affiliate Marketing?
eCommerce affiliate marketing simply extends affiliate marketing to the internet. A commission is earned when an online merchant promotes another company’s products, services, or website on their own website. It’s actually that easy!
Today, ecommerce affiliate marketing is an increasingly popular method for growing sales and generating online revenue that benefits both brands and their affiliate marketers. This has led to an increase in the number of businesses joining affiliate programs—in fact, 81 percent of brands now use the power of affiliate marketing!
Sky is the limit in terms of how much money you can make as an ecommerce affiliate marketer. Perhaps you simply want a consistent, dependable income (many affiliate marketers are content to earn approximately $20K per year). That’s fantastic! Or, like Jason Stone, you can go all in. He began in 2014 and now has an amazing six million followers, giving him the moniker “Millionaire Mentor.” It’s entirely up to you!
What Is the Process of Affiliate Marketing?
Affiliate programs can be set up in a variety of ways. Most programs, however, entail a corporation supplying their affiliate partners with a unique trackable code that they can share with their consumers and clients. The affiliate is rewarded each time a code is used to make a purchase.
Affiliate programs typically use one of three commission structures:
Structure of Purchase-Based Commissions When someone uses their code to make a purchase on the merchant’s website, the affiliate partner is compensated.
Commission Structures Based on Traffic The affiliate partner is compensated depending on the number of people referred to the company’s website, regardless of whether those visitors make a purchase or take some other action.
Commission Structures Based on Customer Acquisition The affiliate partner is compensated when their promotion aids the merchant in closing a new deal or gaining a new customer.
The Amazon affiliate program, known as “Amazon Associates,” is one of the most prominent affiliate programs available. The affiliate marketing example is structured on a commission basis. Website owners and bloggers can become Amazon Associates for free, which allows them to promote Amazon products on their sites by creating links. Then, anytime one of their clients or site visitors clicks on a link and purchases a product from Amazon, they will receive a referral commission.
The Advantages of Becoming a Member of an Ecommerce Affiliate Program
Why would your ecommerce company want to participate in an affiliate program? There are numerous benefits to affiliate marketing; here are a few of the most important.
1. Establish a New Revenue Stream
Joining an affiliate network is a quick and easy option for ecommerce firms to add another cash stream—and what business owner doesn’t want to improve their overall earnings? With a referral program, you’ll earn an affiliate commission every time one of your contacts makes a purchase from your affiliate partner. So, by simply marketing their products or services on their behalf and referring your contacts to them, you can start earning extra money right away! Check read our blog post, 5 Best Affiliate Marketing Tips That Will Make You More Money.
2. Set yourself up from other online retailers.
There is a lot of rivalry in the ecommerce market, and joining an affiliate network can help you differentiate yourself from competitors by allowing you to deliver more value to your clients. You’ll be able to connect them with the products and services provided by your affiliate partner without having to go through the effort, cost, and bother of supplying them yourself. Customers will appreciate it when they can get a recommendation for a product or service they require from someone they trust, sparing them the time and trouble of having to find a partner on their own. This will help you earn higher customer satisfaction rankings in addition to affiliate commissions!
3. Increase the Size of Your Audience
Affiliates can be found in almost every market and product category. So, whether you want to build a name for yourself in retail or carve out a niche in the woodworking world, there is a website for you. What’s more, many of these affiliates will already have a large visitor base. This allows you to get your name out there in their circles with no effort or money. You might even consider these partners to be an extension of your current marketing or sales team!
4. Easily Scale Your Business
Modern ecommerce business owners are constantly striving to expand their customer base, boost revenue, and make continuous improvements in order to keep up with changing consumer tastes and differentiate themselves from the competition. Joining an affiliate program might be beneficial! When you create a new revenue stream through referral commissions, you can use that extra cash flow and revenue to build your business.
For example, you may develop new products, purchase new equipment to better your business operations, or deploy software that would improve your ability to engage with your consumers. This will allow you to make modifications that will help your business develop and your clients be more satisfied!
5. Become a member of an Affiliate Network of Like-Minded Businesses.
An affiliate network can be a terrific location to meet other business owners and build vital professional contacts. When you join a community of businesses dedicated to assisting one another in increasing their client base and revenue, you may achieve your business goals faster, attract more consumers, and realize larger profit margins while assisting other businesses in doing the same. It’s a win-win situation for everyone!
5 Best Affiliate Programs for Ecommerce Companies
Which ecommerce affiliate programs should you join now that you’ve learned about some of their advantages? Remember to select an affiliate program that is connected to your and your customers’ aims and wants. With that in mind, and in addition to the aforementioned Amazon Associates program, here are a few places to start investigating.
You can earn affiliate commissions through Shopify’s affiliate marketing program for any user who signs up for a paid Shopify plan using your unique referral link. By linking to blogs, webinars, video tutorials, tools, and automated funnels built by Shopify for your usage, you will be able to save time and money on having to create content yourself. It’s an excellent affiliate program for ecommerce sites!
Bluehost’s affiliate program is extremely popular in the web hosting industry because of its low-cost plans ($2.95/month) and substantial commissions (one-time payouts start at $65 or more).
Bloggers and merchants who advertise Dreamhost benefit from excellent conversion rates as well as access to text links and banners to promote the platform. Furthermore, their affiliate managers are well-known for offering exceptional customer care and assistance!
You can use the eBay Partner Network to promote eBay products on your ecommerce site, social media platforms, blog, or website. You’ll earn affiliate commissions on every product sold through your link, and there’s an almost limitless supply of intriguing products to advertise, including hot trending products and daily discounts.
With over 11 million users in 190+ countries, Fiverr is one of the world’s largest digital service marketplaces. The Fiverr Affiliates Program pays you for every first-time buyer with no referral limit or lifetime attribution. This adds a lot of value to your customers because you can link them with any freelancers they may require when their internal team is overburdened or they require extra assistance during their busiest seasons.
Establishing an Affiliate Relationship with the Fulfillment Lab
While an affiliate partnership is undeniably appealing to those seeking to increase recurring residual income online, you’re unlikely to find it unless you join a reputable affiliate program. After all, you’ll only get the large commission you’re after if your customers desire to buy from the firm you’re referring them to!
As a result, the Fulfillment Lab designed its referral program with you and your customers in mind. But what distinguishes ours from the others? Here are three key reasons why forming an affiliate partnership can result in more value and higher profits for all parties involved.
It’s Simple to Begin Earning
We understand how busy you and your customers are, which is why we designed an affiliate program that is centered on speed and convenience. When you sign up, you’ll get access to free materials that will help you easily market and sell our services to the contacts in your database.
Your consumers will benefit from the same simple methods and quick results once they join up for our services. Our proprietary fulfillment software enables them to begin utilizing our fulfillment capabilities in minutes rather than days.
Profits have increased since everyone is involved.
An affiliate agreement with The Fulfillment Lab is a streamlined solution for all parties involved to generate additional cash. Your job is done once you’ve passed along your referral to your contacts and they sign up. With mass volume profit sharing, you’ll continue to earn lifetime commissions on each shipment, resulting in an additional money stream for you with no further work!