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All About Affiliate Marketing: How to Effectively Apply It to Your Business

Nowadays, the ways to promote a business are more varied than ever, and affiliate marketing has become one of the most used and appreciated forms of reaching consumers . More and more businesses include collaboration with affiliates on their list of priorities, especially since it is a field worth over 17 billion dollars globally.

affiliate marketing

Whether you work in the fashion, cosmetics, technology, or travel industries, affiliate marketing can bring you amazing results, especially if done right.

If you want to discover how affiliate marketing can help you grow your business, but also what you need to consider to have scalable results, then you’ve come to the right place. In this article, we at Sameday  have prepared everything you need to know about affiliate marketing: how it works, how to streamline your strategy, but also which platforms to use.

 

What is affiliate marketing?

affiliate marketing

Affiliate marketing is a promotion model in which various people who are not part of the company’s staff choose to promote the brand’s products in exchange for a commission they receive on sales. These collaborators are called affiliates, and the commission is the reward they receive from the brand for increasing sales of products, services, or generating traffic to the site.

The most common type of result for which affiliates receive a commission is the generation of sales, with the commission being the equivalent of a percentage of that sale, but there are other types of objectives as well. For example, some brands reward their affiliates for potential customers brought to the site, the number of downloads of an application, or clicks on a specific page.

In other words, if you want to expand the ways you promote your business, affiliate marketing is an alternative worth considering. Not only will you pay for concrete results, but the chances of reaching as many potential customers as possible are significantly higher compared to other promotion methods.

 

How does affiliate marketing work?

 

Affiliate marketing has an intuitive and easy-to-use operating mechanism, both for brands and for people who want to become affiliates. This promotion mechanism involves three parties without whom the process itself could not be completed: the seller, the affiliate and the customer.

  • Seller – This can be any type of business, whether it’s a large company with dozens of employees or an individual selling services or products. This category can also include budding entrepreneurs who have an online store or a dropshipping business. It’s worth noting that affiliate marketing can promote all types of products, including digital ones like an eBook, software, or course.
  • Affiliate – Also known as a publisher, this can be any person or business who wants to promote another brand’s products. In other words, the affiliate promotes another brand’s product either in the form of videos, blog posts, or photos, and also provides a link where it can be purchased. For each purchase made from that link, the affiliate receives a commission. The commission varies from one brand to another, but is generally between 5% and 15% of the product value.
  • The Customer – Without the customer, the company’s goal of generating sales cannot be achieved, but the condition is that the person who purchases the products knows that you are promoting them. Lately, that “Sponsored” tag has become mandatory in influencer marketing campaigns, a phenomenon that also extends to affiliate marketing. Transparency has become a criterion that makes the difference in the brand-customer relationship, especially in an environment so populated by advertising and promotion, such as the online one.

If we were to translate the steps in the affiliate marketing process into a list, it would look something like this:

  • The affiliate enters your company’s affiliate program and obtains a link for selling your product;
  • The product is then promoted through this link on the affiliate’s social media, personal blog, or other public pages;
  • Customers click on the respective link and purchase the product;
  • The affiliate program records the transaction;
  • The purchase is confirmed by your company and sent to the customer;
  • The affiliate receives a commission in the form of money.

In addition to an attractive commission, affiliates will choose to promote products from established or trusted brands. If your brand is just starting out and your products are not yet well-known, don’t be discouraged. There is a lot of competition among affiliates for high commissions, so many affiliates will choose to promote promising brands that are just starting out. To gain customer trust, choose to partner with trusted partners like Sameday. With our services, both you and your affiliates will know that the products reach the customer in a timely manner. Moreover, our partners benefit from the Unno app , which helps you gain time, control, and clarity over your deliveries.

 

How many types of affiliate marketing are there?

affiliate marketing

When it comes to promoting products through affiliate marketing, there are several ways affiliates reach their target audience. In some cases, the affiliate has actually been using the products for a while and chooses to promote the brand for that very reason. In other cases, affiliates start using the products or services strictly for promotion, and a third situation is where they don’t need to use them, but simply reference the product in an article and add the affiliate link.

Based on these three product promotion scenarios, affiliate marketing falls into three main categories , namely:

 

Unattached

 

In this affiliate marketing model, the person promoting the products does not use or have any connection with the products, but only promotes them in a purely virtual manner. At the same time, the affiliate has no expertise or authority in the respective field, nor does he use the products or services in any way. Basically, he cannot recommend the product or service as a specialist, but only present them objectively to the client.

The most common promotion tool for the unattached model is PPC ads, where the affiliate link is added. Unattached affiliates are usually people who want to increase their monthly income, but do not want to invest too much in their online image, personal website or customer relations, nor do they want to buy products to promote them through methods such as video tutorials or personal photos with the product.

 

Connected

 

This strategy can be used by those who have a generous community of people in a certain field, but do not necessarily want to test the products they promote. These affiliates have influence in a certain niche, but also a significant number of followers on social networks, which gives them the advantage of reaching more people and generating more sales.

Although they have the experience and expertise to recommend products or services in a particular niche, there is also the possibility of making wrong recommendations, especially if they have not tested or used the products in question. The cost of such a mistake can even be the loss of followers or their trust, which is why it is important to pay close attention to the products being promoted.

 

Involved

 

As the name suggests, in this type of affiliate marketing strategy, the person promoting the products is directly involved in their use and presentation. Basically, the affiliate uses the product first, before recommending it, having an authority in the field and a community to match.

Involved affiliates use videos or reels as their main means of promotion, in which they talk about their experience with the product. This is considered the most effective method of affiliate marketing, but also the most expensive in terms of time and resources invested. However, in the long run, involved affiliates have the most to gain, especially if they build a reputation in a certain field and generate sales with many zeros.

 

5 reasons to promote your business through affiliate marketing

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When you have an online store you want to reach as many potential customers as possible, in a short time and with a low budget, especially if you are just starting out. What affiliate marketing does is offer you all these advantages plus many more, so that you can expand your business in a healthy and lasting way.

Here are five reasons to consider affiliate marketing as a promotional tool for your business:

 

1. High ROI (Return on Investment)

 

Global statistics confirm that affiliate marketing is an effective strategy, being used by over 80% of international brands and accounting for 16% of global e-Commerce sales. In addition, over 40% of marketers worldwide claim that affiliate programs are the most important channel for acquiring new customers.

Customers choose to spend more money on products when they are recommended on external channels, not owned by the brand, in addition to the brand’s own channels. This fact is also reflected in statistics, with 84% of companies confirming that ROI is better among affiliate marketing campaigns, compared to other marketing channels.

 

2. Increasing brand credibility

 

The more publicized and well-known a brand is, the more trustworthy it is perceived to be by the general public. Buyers usually instinctively seek recommendations or opinions before purchasing a product or service they have never used before. If the recommendations are positive, the chances of the purchase being completed increase significantly.

Following affiliate marketing campaigns or collaborations with influencers, don’t forget to add the reviews you get to your site. Either you choose to post them in the form of photos, text blocks, or even videos in which affiliates talk about the tested and recommended items. You will see an increase in brand awareness almost instantly, and sales will be commensurate.

When it comes to increasing brand credibility, courier services also play a crucial role . It is important to offer customers multiple delivery options. With Sameday, shoppers have the option to have their packages delivered to their doorstep or pick them up from the nearest easybox . This method is not only much more practical, but has helped numerous businesses generate more sales and gain a competitive advantage.

 

3. User-generated content

 

According to the latest statistics , 80% of users have purchased something thanks to an online recommendation from an influencer or trusted person. While paid ads help reach people who have never heard of your online store before, reviews and recommendations influence the audience to make a purchase. Through affiliate programs, you not only reach more consumers, but you also encourage other customers to share their experience with the brand online.

You’ve probably seen posts on social media with dozens of comments where users are expressing their honest opinions about an item they purchased from a particular brand, generating even more traffic and engagement. In addition, users are more likely to engage in such a conversation if they see that other consumers have done the same. In short, the more recommendations and reviews there are, the more likely it is that other users will share their personal experiences with the rest of the world.

 

4. Increase website traffic

 

Website traffic plays an important role, especially when you have an online store. More visits to your website means a better chance of generating sales, rising in search engine rankings, and reaching more potential customers. Customer loyalty is extremely important, but gaining new customers is essential in the long run.

According to statistics, 65% of affiliates use content marketing to promote products, and the main type of content is blog articles.

 

5. Creating brand ambassadors

 

Affiliates can quickly become brand ambassadors, especially if the affiliate marketing program is solid, profitable, and the products live up to expectations. Just as customers can fall in love with a particular product or company from the first use, turning into loyal customers, the same mechanism applies to affiliates.

Thus, strengthening a bond between brand and affiliates can have more long-term benefits than simply generating sales. Brands that create an emotional connection with both potential customers and affiliates receive three times more recommendations and positive reviews than those that do not, a fact confirmed by statistics .

 

Useful tips for 5-star affiliate marketing

 

As in any field or activity, quality is what will make the difference, and affiliate marketing is no exception to this rule. To implement a successful strategy and generate as many sales as possible with the help of your affiliates, it is necessary to take into account a number of factors, such as:

  • Commission Offered – To attract quality affiliates, you need to implement a very well-designed reward strategy. The average commission for affiliates is currently between 5% and 15% of the sale value, but it can vary depending on the industry, price, product margin, and the value of the affiliate. For affiliates with a very large number of followers, commissions are more generous, because the ROI is better. To ensure that you offer commissions at market standards, the best method is to check your competitors’ affiliate programs and see what commissions they offer.
  • The right affiliates – It is said that the right products, presented by the right affiliates can do wonders in terms of sales and increasing brand awareness. In other words, it is also your duty as an entrepreneur to find the right affiliates. Fortunately, there are numerous tools through which you can do this, such as Grovia , a platform that provides you with potential collaborators, depending on the type of business and the selected criteria.
  • Affiliate Connection – Maintaining a close relationship with your affiliates will help you build long-term, profitable partnerships. Some ways to keep them engaged are to constantly let them know about new products, upcoming campaigns, and provide them with the necessary promotional materials. If you position yourself as an engaged and dedicated business, you will attract reputable affiliates, who usually only work with trusted brands. Earn their trust and you will enjoy many long-term benefits, including new collaborations with reputable influencers.
  • Create promotional materials – In some cases, such as unattached affiliates, you need to come up with promotional materials yourself. Since a certain category of affiliates does not create their own visual content, you need to come up with the banners, texts or videos yourself to support the collaboration in the most professional way possible. Affiliates can use banners in PPC ads, in social media posts or even in articles, the visual component being an essential criterion in the acquisition process.

 

Examples of affiliate marketing platforms from Romania and Europe

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There are several ways to create an affiliate network to promote your business. In addition to thorough research and directly contacting affiliates in your field, there is another option: listing your business on an affiliate marketing platform .

These platforms operate on a subscription basis. Businesses create an account, where they upload promotional materials and details about the affiliate program (commission, terms and conditions). Thus, affiliates eager to promote new products enter this platform where they can choose from numerous businesses, including yours.

Here are the most popular affiliate marketing platforms in Romania and Europe , which you can also use to promote your online store:

 

2Performance

 

This is one of the most popular affiliate marketing platforms in Romania, with over 100,000 affiliates and millions of transactions from customers across Europe. Through 2Performant you have access to advanced results tracking tools, from real-time statistics to an advanced KPIs system. You have the opportunity to upload your own banners and advertising materials, but also to maintain contact with affiliates through a powerful, real-time messaging system.

The payment system is secure, and in just a few clicks you can set up the entire commission and payment system. Everything is automated and supported by AI, so that the entire experience on the platform is intuitive for both businesses and affiliates.

 

Profitshare

 

Also known as the top-selling affiliate marketing platform in Romania, Profitshare has generated sales of over 2 billion lei. In addition to promotional materials that can be uploaded to the platform and used by affiliates, there are also numerous useful tutorials dedicated to both businesses and affiliates.

Unlike other platforms, on Profitshare entrepreneurs can promote their affiliate program in a way that reaches as many affiliates as possible. In addition, various contests are organized to capture the attention of affiliates and maintain their interest for as long as possible.

Profitshare and 2Performant are the most used affiliate marketing platforms in Romania, especially by brands that have a target audience in the country. However, if your business also addresses an international audience, then it might be a good idea to also try:

 

Start promoting your business effectively through affiliate marketing

 

Now that you’ve discovered what affiliate marketing is, how it works, and what the best methods are to grow your business with it, all that’s left to do is get to work.

Start developing your own affiliate network, which you can grow from one month to the next. Only through an effective strategy, a well-established commission system, and a long-term relationship with affiliates can you grow your business organically and sustainably.

And since every e-commerce business needs a reliable partner to deliver products on time and in perfect condition, start shipping with Sameday today. Thanks to our services – easybox and Sameday point – customers will receive their orders quickly and conveniently, while your business will be seen as a trustworthy brand that puts customer satisfaction first.