Written for Influencer Intelligence
According to recent statistics, 80% of brands run an affiliate programme, with an industry market value of over $17bn in 2023 – and its no wonder when studies suggest affiliate marketing can deliver 88% higher revenue per shopper. Brands such as Walmart, Apple, Birchbox, Airbnb, Modcloth and many more recognise the value of affiliate marketing in raising recognition and increasing sales.
When looking at affiliate marketing with influencers, the practice differs from other types of influencer marketing, in that an affiliates ultimately earns a commission based on every sale made. A more performance-based tactic, affiliates only make money when an action is taken (be it purchase or click). Furthermore, affiliates apply to a brand or network for the right to promote products, rather than a brand having to necessarily reach out and source influencer partners.
It’s a win-win scenario for both parties in that creators earn extra income relatively easily and brands can harness creator influence and only have to compensate affiliates if sales are generated.
Here are some top tips for brands in using influencers to maximise the success of their affiliate programmes.
Choose The Right Influencers
As with all influencer campaigns, it is essential for brands to work with the right collaborators. Businesses should seek out affiliates with credibility in their space or niche, who are more likely to understand the target audience and cater to user intent. Similarly, a pre-existing affinity is advised as a good understanding of the product will come across authentically within content.
Select The Best Network
There are a number of networks that facilitate affiliate marketing and record transactions. Whether it be Rakuten, LTK, Awin or otherwise, each platform will have its own inherent structure and usage benefits for creators and brands. Do your research and identify the most appropriate network for affiliate activations.
Define Commission Structure
Before engaging in affiliate programmes, the commission or reward structure must be clearly defined so that potential affiliates are aware of brand expectations and any other important rules of conduct. Prepare guidelines for affiliates to ensure content is on message and meets eligibility requirements.
Disclose Affiliate Partnerships
As with traditional influencer marketing, brands should endeavour to ensure creators are correctly disclosing affiliate partnerships or posts. Be transparent and upfront about the compensatory nature of content and the financial incentive or bias behind it. Consumers won’t respond well to being misled.
Assess Performance
It is essential that affiliate marketers have a solid tracking system recording and assessing the performance of campaigns – be it tracking links or other metrics. Affiliate marketing is performance-based, and poor monitoring will defeat the object entirely. Brands should look into automated systems that provide in-depth analysis.
Go Seasonal
An easy way to increase revenue during peak shopping periods is to run targeted customer campaigns around seasonal holidays. From Black Friday to New Year – affiliate marketing may see an uplift around topical touchpoints. Brands should utilise discount codes and coupons throughout the year.
There are a myriad of affiliate programmes out there, all with unique pricing structures and functionality. One of the largest and most pioneering examples is Amazon.
Introduced in 1996, the Amazon Associates programme has over 90,000 companies on its roster. Commission rates differ according to product category, but the highest is games which offers 20%, but conversion rates are competitive. Besides commission, affiliates benefit from lots of Amazon perks, such as the chance to create their own Amazon Storefront or benefit from sign-ups or traffic and with millions of products to choose from, it’s become the most popular affiliate channel. For brands, Amazon provides a strong performance dashboard to track earnings and clicks over time. The hashtags #amazonmusthaves has become ubiquitous on TikTok, with 21.9bn views, whilst the more organic #amazonfinds has 54.5bn to date. On Instagram, the tags #Amazonaffiliate and #Amazonpartner are often used in conjunction with links.
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