5 Challenges You Need to Overcome in Order to Make the Most Out of Affiliate Marketing22-Feb-2021
Word-of-mouth marketing is a perpetual and powerful tool that businesses and marketers have used for centuries. Nowadays, marketing technology innovators have taken that strategy one step further by creating affiliate systems.
The success in affiliate marketing lies in a simple strategy: to get other people to market and sell your products and services as a third-party affiliate partner and give them a commission for every sale made through their efforts. With affiliate marketing systems, businesses can assign unique codes and links that tag an affiliate when a deal happens through their channel.
Of all the companies today, 81% of brands have adopted an affiliate marketing system. It’s clear that everyone wants a slice of the pie, but not all affiliate programs are successful. A great deal of them miss their targets.
The Challenges of Affiliate Marketing
Learning how to start an affiliate marketing program is only a part of the equation. The next step is actually to get sales through affiliate marketing. As easy as that is said, it’s not always easy to do. Successful affiliates and affiliate campaigns demand that a lot of customers buy a product. And the news is that customers really love their money, and they’re not always willing to let it go.
There are a variety of challenges that affiliate marketing programs run into often. What problems do affiliate marketers have? Here are some of the few.
The Traffic Challenge -
The most common among the current challenges of affiliate marketing is getting visitors. Let’s face reality--not all people have a million subscribers on YouTube or followers on Facebook and Instagram. Getting big influencers to join an affiliate program can be challenging, and many affiliate marketing participants don’t have the traffic to make a dent.
The Conversion Challenge -
Marketers cannot ignore the risks of affiliate marketing. While we spend precious dollars on affiliate systems and programs, we’re pulling funds away from other possible strategies. So it all boils down to conversion, but getting great conversion rates on affiliate marketing programs can be challenging. The average conversion rate on affiliate marketing efforts is often between 1% to 5%.
The Brand Messaging Connection Challenge -
On some occasions, an affiliate marketer might have ample followers and traffic, but connecting the product in the affiliate system doesn’t always match their brand. For instance, a fashion influencer might find a good affiliate marketing deal for a finance course, but how do you marry those two worlds?
The System Challenge -
Another reason why affiliate marketers fail is that the system they use doesn’t match their needs. Sometimes they don’t really even have a strategy or system in place at all. Using the right affiliate system is crucial because it automates the cookie tagging process so that credit is given where it is due at all times.
The ROI Challenge -
The greatest challenge that affiliate marketers face is getting a return on investment. Affiliate marketing is not cheap. Spending in the US hit $6.8 billion in 2020 and will likely hit $8.2 billion by 2022. But getting returns on dollars spent for ads, human resources, affiliate systems, commissions, and other expenses will come to play.
The Fraud Challenge -
In a perfect world, all people who’ll join an affiliate program will have noble intentions. But we all know that’s never the case. Some affiliate programs fail mainly because of the lack of protection from loopholes and fraudulent transactions. That’s why having a system that detects fraud is a key element.
Solutions to Common Affiliate Marketing Challenges
So what solutions can affiliate marketers and companies running affiliate programs turn to to get better results? Here are just five that could increase your chances of success in affiliate marketing significantly.
Work with individuals and brands that share your values -
The key to affiliate marketing success is getting influencers as affiliate marketers. 75% of marketers claim to have allocated money for influencer marketing. But that doesn’t mean any vlogger will do. Companies with affiliate programs and their affiliates must overlap in some way. They can share an industry, ideology, value, or belief. There needs to be coherence in messaging for an affiliate partnership to work. Otherwise, it only comes out as a sleazy upsell with no heart whatsoever.
Make an affiliate offer irresistible -
There has been an unprecedented growth of affiliate marketing amidst the COVID-19 pandemic. But much of that is due to the spike in e-commerce as people sheltered in place. As communities gradually step out of their homes and more companies move to digital solutions, the competition will rise as demand decreases. That’s why putting an irresistible offer on an affiliate program is helpful. Attach a discount or a freebie when a customer buys through an affiliate partner. But make sure to discuss with affiliate partners who will be shouldering the discount cost. between 1% to 5%.
Maximize on social media -
There is no questioning the power of social media channels. Facebook, Instagram, and TikTok each have over a billion people on their platforms. Merging social media marketing with affiliate strategies will turn your affiliate program into a successful endeavor. Many affiliate programs offer social media training and paid advertising templates to their affiliates and consistently provide re-tooling and skills upgrading workshops. This strategy allows affiliates and their partner companies to see better results in what is arguably one of the biggest marketing platforms in the world right now.
Give value first -
The benefits of affiliate marketing are tremendous for affiliates and affiliate program owners. But for a marketing program to work, the customers need to receive some advantages too. One way that successful affiliate marketers do that is by offering value upfront first before making an upsell.
Some affiliates make lead magnets in the form of white papers, free courses, or other digital products that they use as a funnel squeeze. An email or chatbot funnel often follows. By offering value first, affiliates build trust before making any upsells, making the conversion a whole lot smoother than merely selling at the onset.
Use reliable marketing systems and tools-
The final key to having a successful affiliate marketing system is finding the right marketing software for your campaign. A successful affiliate marketer will need the right tools for social media marketing, email marketing, pay-per-click ad campaign running, and many other activities they might run to turn traffic into sales.
Moreover, affiliate marketing system curators also need to make sure that they have the right affiliate marketing tracker system. In some case scenarios, an affiliate system can have marketing campaign automation features of its own, too, to marry the two most important tools to a successful affiliate marketing program. Getting the right marketing tools like Offer18 will turn any affiliate marketing program into a money-making machine that benefits both affiliates and campaign coordinators.
Affiliate Marketing and Growth of the Home-based and Passive Income Trends
The internet has created a whole world of opportunities for people to earn from the comfort of their own homes. Affiliate marketing is one of them. Apart from having the potential to help people make a profit in their pajamas, they’re also relatively passive income generators.
But make no mistake- affiliate marketing is not a get-rich-quick scheme. It requires a lot of hard work, most especially in the beginning. It can also demand a high level of strategic thinking and some form of investment, whether in the form of time, energy, or even resources. But as strategies evolve and systems improve, the world of affiliate marketing will get better. And when it does, many people will reap the harvest of their labor.