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While the world of marketing has seen some important new trends and technologies, one strategy has seen an impressive rise in popularity in recent years: affiliate marketing.
Affiliate marketing has been around for years, but it has only recently been featured in the media as a “side hustle.” Millennials and Gen Z have recently become interested in the idea of making money passively, and affiliate marketing has proven to be a proven way to do so.
And why is it so popular? Here are two big reasons.
- Easy to manage for brands and businesses.
- Economically speaking, it's a win-win.
Let's take a closer look at how affiliate marketing got to this point and the benefits your brand could be missing out on.
Related: 5 ways entrepreneurs can increase their visibility with affiliate marketing
Origins of affiliate marketing
First, a little history lesson. For those who don't know, the concept of affiliate marketing was introduced by William J. Tobin, founder of PC Flower and Gifts, in the late 1980s and early 1990s. But it wasn't until Amazon that the program became more fleshed out and made available to the public.
Amazon's idea was to allow individuals to promote their products and earn commissions from sales generated through referrals. Of course, this concept was revolutionary because it introduced a performance-based marketing approach where brands only paid for actual results, such as sales and leads.
Over time, this model has gained traction and, combined with current technological advances, has become a mainstream marketing strategy that brands cannot afford to participate in.
Related: 3 Tips to Get Started with Affiliate Marketing
Reasons behind the trend
Today, affiliate marketing is exploding in popularity. Several important factors may be responsible for its current rise.
First, e-commerce has grown exponentially over the past decade, with more people than ever shopping online, providing a huge incentive for affiliate marketing. The rise in online shopping has created more opportunities for creators and affiliates to earn a small commission while promoting the products and services they love.
For marketers and brands, especially small and medium-sized businesses, affiliate marketing is attractive because of its low costs and low barriers to entry. If you're on a tight budget, affiliate marketing is a great way to maximize your ROI without breaking the bank.
Additionally, creators and brands are increasingly relying on social media, especially influencer marketing. Through the simple process of promoting products and services, it's easier than ever for people to build an audience online and generate additional revenue for both themselves and their brands.
With all this in mind, it's no wonder that the affiliate marketing industry has grown rapidly and is worth over $17 billion today. So let’s take a look at why the rise of affiliate marketing is advantageous for brands.
Related: When the world gets dark, will your business keep the lights on?
Benefits for your brand
Brands have a lot to gain by participating in affiliate marketing, and a lot to lose by ignoring it. Here are some reasons why.
First, it's a huge expansion of your marketing team, and you can leverage affiliate marketing to connect with new and engaged audiences at a low cost.
Second, it increases brand credibility. Positive reviews and recommendations from trusted affiliates can significantly increase a brand's reputation.
Consumers are more likely to trust product recommendations from individuals they follow and admire. please think about it. When was the last time you bought something just because you saw it on a video or in a photo?
Additionally, affiliate marketing can improve your brand’s SEO efforts. Backlinks serve as a pathway to your website. With backlinks from various affiliate websites, you will end up creating a massive roadmap of products that will eventually lead to your website and increase your visibility.
Next steps in affiliate marketing
With all this in mind, the future of affiliate marketing looks very promising.
We will likely see a surge in personalization efforts. Advances in tracking systems and content marketing allow brands to tailor affiliate marketing strategies to individual consumer preferences and provide a more personalized and engaging shopping experience.
Additionally, new social media platforms have been popping up rapidly in recent years, and the more of them, the better. More platforms = more opportunities for success.
Finally, the future of affiliate marketing will be shaped by the evolution of consumer preferences and online shopping behavior. As more consumers rely on online platforms for their shopping needs, affiliates and brands will continue to have new opportunities to drive engagement and improve ROI.
As brands continue to recognize the benefits of this marketing strategy, it is likely to continue to be an important element in the marketing landscape. By relying on affiliates, brands can expand their reach, improve credibility, and drive revenue while providing affiliates with a profitable and flexible revenue stream.
So, should your brand embrace affiliate marketing? The answer is clear: Yes!
