Affiliate marketing can be a mysterious concept for many e-commerce brands. They often struggle to understand how to find affiliates and how to effectively work with them. In this episode of eCommerce On Tap, Nathan invites Lauren Lee, Director of eCommerce Sales at ClickBank, an affiliate network that provides a general overview of affiliate marketing and its various strategies.
Join in as they explore the different types of affiliates, discuss the role of networks, and highlight the benefits of leveraging performance affiliates to extend your reach, boost brand awareness, and drive customer acquisition.
Understanding Affiliate Marketing
Affiliate marketing is an umbrella term that encompasses various strategies and types of affiliates. Understanding the different types of affiliates can help e-commerce brands navigate the landscape more effectively. The most common types of affiliates include:
1- Influencers
2- Publishers or bloggers
3- Performance affiliates.
The first two are rather straightforward. Influencers have a strong presence on social media and can help promote your brand to their followers. By cutting deals with these influencers, you can leverage their audiences and generate sales.
Similarly, publishers and bloggers can collaborate with you to increase brand awareness and drive traffic to your storefront or product listings.
Performance affiliate includes media buyers and email list managers. Performance affiliates buy media and drive targeted traffic to your designated landing pages. Although a bit more complicated than the rest, this approach allows for low-risk paid media and offers valuable insights from experienced affiliates and is explained in detail below.
Other than the ones described above, ambassador programs can also function as affiliate marketing partnerships. These programs leverage influential individuals to promote your brand and products.
Another entity that’s become common in the market is affiliate networks. These platforms, such as ClickBank, Commission Junction, and Awin, connect brands with eligible affiliates. They provide a space to track, pay, and foster collaborations. It’s important to explore different networks and find one that aligns with your brand’s goals and target audience.
Benefits of Affiliate Marketing
This performance-based marketing model offers several perks that make it an attractive option for both merchants and affiliates.
Cost Effective Advertising
Unlike traditional advertising methods that require hefty upfront investments, affiliate marketing operates on a pay-for-performance basis. Merchants only pay affiliates a commission when a desired action, such as a sale or lead generation, is achieved. This eliminates the risk of spending marketing dollars without guaranteed returns.
Wide Reach and Targeted Audiences
It allows businesses to tap into a vast network of affiliates, each with its own unique audience and reach. This enables merchants to access new markets and target specific customer segments that may be difficult to reach through other marketing channels.
Affiliates often specialize in specific niches, allowing businesses to leverage their expertise and connections to reach a highly targeted audience. This precision targeting increases the chances of converting leads into sales and boosts overall marketing effectiveness.
Performance Based Results
Unlike other advertising campaigns, you only pay for what you get with affiliates. You can decide on the cost that you’re willing to bear for the acquisition of a customer and negotiate a deal with your affiliate. Rather than measuring advertising on clicks, impressions or reach, the affiliates only get paid when you get a sale or have someone sign up.
Scalability
With a well-designed affiliate program, businesses can attract a large number of affiliates who promote their products or services across various online channels. This exponential growth in the number of brand advocates can significantly expand the reach and customer base of the business.
Moreover, as the affiliate network expands, merchants can leverage the collective efforts of multiple affiliates to drive traffic, generate leads, and increase sales, without incurring additional marketing costs.
Branding
When affiliates promote a merchant’s products or services, they act as brand ambassadors, introducing the brand to their own loyal audience. This can result in increased brand awareness and a positive perception of the merchant’s offerings.
Additionally, positive reviews and recommendations from trusted affiliates can enhance the credibility and trustworthiness of the brand, influencing purchasing decisions.
Leveraging Performance Marketing Affiliates
Performance marketing affiliates can be a powerful asset for e-commerce brands, yet many hesitate to engage with them due to concerns about competition with other advertising channels. However, instead of viewing performance affiliates as competition, Lauren advises brands to adopt a strategic approach to leverage their presence and expertise in driving traffic from alternative channels.
For example, if you excel at scaling paid media on Facebook or Google Ads, you can tap into the expertise of performance affiliates to explore other platforms like YouTube, TikTok, Instagram, or Pinterest. By diversifying your traffic sources, you can optimize your marketing efforts and benefit from affiliates’ specialized skills.
When considering performance marketing affiliates, several factors come into play. First, assess your margins to ensure you can afford to pay affiliates. When considering performance marketing affiliates, brands should evaluate factors such as their margin, customer lifetime value (LTV), and product characteristics.
Lauren agrees that having a healthy margin is essential to ensure brands can compensate affiliates appropriately. Understanding the LTV of customers acquired through affiliates helps determine the payout structure and affordability.
Lauren is of the opinion that certain industries lend themselves well to performance marketing affiliates. In her experience, fitness, supplements, health, wellness, and digital products such as e-learning and courses often see success with this approach.
However, performance affiliates can thrive in various verticals, so it’s essential to evaluate your margins, customer lifetime value, and specific product offerings.
Structuring Landing Pages for Performance Marketing Affiliates
Creating effective landing pages is crucial when working with performance marketing affiliates. These pages differ from typical e-commerce store pages or those directed by influencers. Landing pages for performance affiliates should focus on the solution your product offers rather than the brand ethos. Since performance affiliates drive cold traffic, it’s essential to capture attention quickly.
Video content is highly effective for engagement and conversions. Utilize testimonials, product information, and creative content to demonstrate the benefits of your product. Blend direct response elements with modern aesthetics, incorporating influencer-like content to engage visitors and drive conversions.
Crafting a winning landing page strategy involves structuring your content in a way that maximizes performance. Begin with a compelling headline that grabs attention and clearly communicates the value proposition. Use concise and persuasive copy to highlight the problem your product solves and emphasize the unique selling points.
Design a visually appealing and user-friendly layout that guides visitors toward the desired action. Use eye-catching graphics and strategically placed call-to-action buttons to encourage conversions. Incorporate social proof elements, such as customer reviews, ratings, and case studies, to build trust and credibility.
Implement responsive design to ensure your landing pages are optimized for various devices and screen sizes. A mobile-friendly experience is crucial since many users access the internet through smartphones and tablets.
Continuously monitor and analyze your landing page performance. Test different variations, headlines, visuals, and calls to action to optimize conversion rates. By analyzing data and making data-driven improvements, you can refine your landing pages to achieve higher performance and increase affiliate-driven sales.
ClickBank offers comprehensive resources and guidance on building high-converting landing pages. Their education and resource center is freely accessible, providing valuable insights into landing page structure, necessary tools, and copywriting tips.
About Clickbank
ClickBank is a leading affiliate network that has been empowering entrepreneurs and digital marketers since its inception in 1998. With over two decades of experience in the industry, ClickBank has become synonymous with success, offering a platform where businesses and affiliates can thrive together.
As a trusted and reliable affiliate network, ClickBank provides a robust marketplace with a wide range of digital products in various niches. Whether you’re a merchant looking to promote your products or an affiliate seeking profitable opportunities, ClickBank offers a comprehensive solution tailored to your needs.
ClickBank offers merchants a powerful platform to showcase and sell their digital products. From e-books and online courses to software and membership sites, ClickBank’s marketplace provides access to millions of potential customers.
Merchants benefit from ClickBank’s extensive network of affiliates who drive targeted traffic and promote their products to a global audience. With ClickBank’s advanced tracking and reporting tools, merchants gain valuable insights into their sales performance, enabling them to optimize their marketing strategies and maximize revenue.
About Lauren Lee
Lauren Lee is a seasoned professional in the field of eCommerce, currently serving as the Sales Director at ClickBank, a leading affiliate network. With an impressive track record and extensive experience in digital sales and marketing, Lauren brings a wealth of knowledge and expertise to her role. She is passionate about driving growth and maximizing revenue for ClickBank’s merchants and affiliates.
With her strategic mindset, strong leadership skills, and deep understanding of the eCommerce landscape, Lauren plays a pivotal role in shaping ClickBank’s success and ensuring the success of its partners. Her dedication to excellence and results-driven approach make her an invaluable asset to the ClickBank team.
