Is Affiliate Marketing The Most Cost Effective and Efficient Form Of Marketing?

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Tourist
11 0 3

Affiliate marketing appears to be a very attractive form of marketing for ecommerce businesses due to the security of only paying the affiliate a percentage commission from every guaranteed sale. This seems far less risky than spending £1000's on a marketing campaign with no guaranteed return. 

However, I wasn't sure if I was missing the full picture here. Are there any negatives to using affiliate marketing services? Or any other information I am missing before proceeding with this marketing technique. 

To people who have history using affiliate marketing services please advise as I am sure I'm not the only one wondering this? 

Thanks in advance, 
Tom Hoskin

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New Member
4 0 0

Hi Tom,

I was curious if you went the affiliate route?  I am looking to do the same thing for my online store, but wanted to see if others have had success and if so which app and marketing site you were using?

Thanks

Traci

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Excursionist
41 0 7

Hi Tom,

Fellow UK shopify user here :)

We are considering using brand ambassadors. I know the campus rep scheme works well in the US, not sure if it has been successfully replicated in the UK though?

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Shopify Partner
1 0 0

I'm researching affilliate programmes myself. Only paying out on a guaranteed sale removes a lot of risk (such as sites with fake traffic showing your ad or generating clicks). The main one I've found from research that remains is fraud.

E.g. affiliate generates sale, you pay affiliate, sale gets cancelled as fraudulent, you can't get your money back from affiliate.

Having fraud checks, or a longer payout cycle should help.

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Shopify Partner
6 0 3

Hi all, 

Tom, you will get a lot of benefits when implementing a referral program for your customers. It's a fact that referred customers have higher retention rate and their value is 16% higher than regular customers. So you're getting customers that will stick with your business.

Ross, referral programs are very popular in the UK, here you can find a very successful example, so give it a try and you won't regret it. Check out our templates here.

Steven, you are right fraud is a big concern but it's also manageable. The easiest way to get rid of fraud is to put a hold on the redemptions requests, some companies do 3 month and some less. It really depends on your business and how you want to do it.  We recommend 3 months as you won't get chargebacks after 3 months. 

Thanks

 

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Tourist
9 0 2
There are many things you need to consider when it comes to Affiliate Marketing (AM). Firstly, most affiliate campaigns are only useful if you are already converting your visitors into sales. I know this might sound a bit obvious, but a lot of people I speak to about AM believe that more visitors = more sales! So getting lots of affiliates on board will boost sales right? Not necessarily! Affiliate Marketers - good ones any way - will only work with retail sites that have a high conversion rate. So unless your conversion rates give them something that's blog worthy, you need to look at alternative ways of marketing your site...for now. I'm not saying AM won't work for you straight away, because it does for some people. Just don't look at AM as a direct replacement for other marketing channels. Set something up to get started, using an app like Refersion which has a basic level you can use for free. This will allow you to turn customers into Affiliate Marketers. Become a leader though, don't expect people to instantly start working hard for you, simply for a 10% commission rate (or whatever you choose). Contact these people and make sure they know exactly what they signed up for and give them support. Annoyingly you can't get away from Google Ads. Just be careful with your budget. Start small and look for niche keywords, but not that niche that you use phrases no one would really use. Once you start improving your conversion rates, Google will allow you to do Cost Per Acquisition adverts. Start to build up your social networks and learn EVERYTHING that will help you to make the most of these potentially free platforms. Use something like Hootsuite to sync your social media accounts. The best affiliates are those that share your material for free. Whatever you sell, hopefully you've done some research into the kind of customers you attract, try to find ways of getting articles featured on relevant blogs. Then by engaging with people you can start introducing your AM opportunities. Think of it as building a network of the best sales persons. You want the best sellers in your team, not just people who can generate traffic. Once you have the above in place you are ready to start looking at AM as a serious channel of marketing. But there is still a lot of work to do once it's set up. Not everyone can be lucky enough to set up an AM programme and run it on auto pilot...so if you're looking for an easy way to generate more sales over night, AM is not the solution. Done correctly Affiliate Marketing can be hugely successful!
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New Member
7 0 0

Any recommendations on which affiliate program to go with? Something like Refersion or joining a larger referral network? It has to be pretty inexpensive if we're talking about a new store/brand that may not have a lot of sales to justify high price tag.

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Tourist
9 0 2
Refersion allows you twenty (I think) Affiliates on their free package...
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Shopify Partner
6 0 3

Hi Ilya,

GeniusReferrals is very inexpensive, you get 20 advocates for free and you pay as you grow. 1000 advocates are just $45/month. 

Also, you will get a full set of features to set up, manage and monitor your affiliate program and a fanatical support team. 

Check it out, you won't regret it. 

 

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Tourist
8 0 1

Affiliate marketing is attractive form of marketing for Ecommerce business and Ecommerce websites.

 The security of only paying the affiliate a percentage commission from every guaranteed sale.

This seems far less risky.

Nidhi vyas
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