If you spend a lot of time on social media, especially Instagram, you've probably seen affiliate links or made purchases. When an influencer talks about a product and says, “Swipe up for the link,” they are referring to an affiliate link. If you click on it and buy the product, the influencer will receive a return. It's usually a mutually beneficial relationship, as businesses get more traffic and customers, and influencers get a cut of those sales. It's a great way for bloggers and Instagram influencers to actually make money.
Affiliate links are a low-cost way for businesses to introduce their products to valuable new audiences, but developing an effective affiliate program takes time and effort. So what do small businesses need to know about affiliate programs? Industry experts offered their advice to Business News Daily.
What is an affiliate link?
An affiliate link is a URL that a publisher (affiliate) uses to send traffic to a retailer's website. According to Amit Khera, head of marketing at Gen 3 Marketing, affiliates are his web publishers who drive traffic to online retailers in exchange for a commission on each sale.
Danny Koulianos, head of strategic partnership advertising with online marketplace eBay, said these trackable links allow brands to track which publisher partners drive consumer traffic and sales to their e-commerce sites. It is said that you can check if there are any.
“Affiliate marketing is a highly effective marketing channel that allows businesses, including small and medium-sized businesses, to leverage affiliate marketing to reach and engage shoppers within their marketplace.” [with] brand [they] Otherwise, you may not be able to connect,” Koulianos said.
Kela noted that for retailers, affiliate income can account for 10 to 20 percent of online revenue. [Read related article: Amazon Business: What It Is and How It Can Benefit Your Company]
How do affiliate links work?
When a business sets up an affiliate program, it invites partners such as publishers and influencers to join the program. Companies then often provide content to affiliates to promote their products. These may include banner ads and promotional codes.
Kela added that different types of affiliates promote their products in different ways. There are three main types:
- Coupon/Sale: These affiliates offer a variety of coupons and have strong SEO or email lists (e.g. RetailMeNot).
- customer loyalty program: These affiliates offer users incentives to purchase through their links, such as reward points or cashback (e.g. Rakuten).
- Content/Blogger: These affiliates are often the most desirable as they facilitate discovery at the top of the funnel (e.g. MoneySavingExpert.com).
“Companies often work with outsourced program managers (OPMs) to manage programs on their behalf,” says Kela. “OPM has strong connections with top affiliates and can also negotiate for more exposure and lower commissions. They utilize best practices to deliver the strongest programs possible.”
Through affiliate networks, small businesses can partner with publishers they wouldn't have access to on their own, Koulianos said. “These new partnerships will help us reach and target a wider range of potential customers. Affiliate Links will monitor the performance of each publisher's individual links and give businesses a deeper strategy for their overall affiliate program and success. provides insight.”
What types of businesses should use affiliate links?
Kela said all B2C e-commerce businesses should utilize affiliate links. This includes businesses that sell tangible goods, services, and even virtual products.
“Companies can also use affiliates to pay for sign-ups and leads (i.e. medical device companies that follow up with cold calls to close deals),” Kela advised.
Customer acquisition is the key to small business growth. This is a lead generation guide to improve your process.
Koulianos said affiliate marketing should be used by brands and small businesses looking for ways to increase traffic to business sites and increase reach and sales in a cost-effective manner.
“It can also be used by blogs, websites, mobile apps, shopping platforms, and browser add-ons that seek to increase consumer purchases in exchange for a commission,” he added.
Advantages and disadvantages of affiliate links
Driving traffic and sales to your business website takes some trial and error. Affiliate links may seem like a no-brainer, but there are a few things to keep in mind. Khera and Kourianos outlined some of the benefits and drawbacks for businesses considering joining affiliate programs.
advantage
- You can increase your sales with no or low risk.
- It is published for free through various types of publishers. This is especially useful for bloggers and content sites promoting products.
- Affiliate programs not only increase customer reach, traffic, and revenue, but also help build brand awareness and loyalty.
- It is a cost-effective business method because you are paid based on results.
Cons
- You need to develop some kind of model to avoid overpaying for certain types of sales. Affiliates should receive different rewards depending on the type of users they drive to their site.
- These programs require strong management and oversight to be successful and advance your brand.
- Affiliate links may conflict with other ads belonging to your business from other channels.
- You may not have complete control over all exposures.
“[Your] Affiliate links may appear alongside questionable content and disreputable tactics,” Koulianos said. “Especially for small businesses that don't have the bandwidth to monitor all affiliate publishers, it's important to rely on an affiliate network to help vet each publisher's partners to ensure their brand is protected. .”
Additionally, “for advertisers, the primary purpose of affiliate links is to drive site traffic and consumer sales,” he said. “The success of an affiliate program depends on the success and conversion of affiliate links and partnerships. Ultimately, this is a great strategy that allows businesses to increase brand exposure and increase sales.”
Positive reviews of your business are more effective than advertising. Affiliate programs with trusted publishers can take advantage of both approaches.
Affiliate links can be a powerful tool
Affiliate links can be a powerful tool for businesses by helping them reach a wider range of customers and encouraging influential voices to promote their customers. However, like any strategy, they are not guaranteed to be successful. Developing a program that works for you will likely require some trial and error.
Additional reporting by Alex Halperin.
