One aspect of digital marketing that many product led companies are overlooking, and which would have been a huge money spinner for them is affiliate marketing.
What is affiliate marketing?
According to Google’s English dictionary, Affiliate marketing is a marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.
In simple terms, affiliate marketing is when a company that sells products or services online creates a way for people to tell others about their products and services for which they get a certain percentage of the sales generated from the people who visited the company’s website through the affiliate’s link.
How will your company benefit from affiliate marketing?
, you have for yourself thousands of marketing managers who get paid only a commission on sales. You’re not paying them salaries, neither are you paying for their health, life and retirement benefits. You definition are not buying them an official car either. You get it? You are saving huge costs!
Secondly, you are reaching the online communities of your affiliates which you never may have been able to penetrate unless you are ready to spend thousands upon thousands of dollars on penetrative marketing, but here you are just spending 5-10% of sales (even if nobody buys immediately, you still got free publicity)
Thirdly, affiliate marketing if done right, can sky rocket your sales. Traffic from all your affiliates will definitely result in sales, which I believe is the ultimate aim of having the business in the first place.
So how do you set up an affiliate program?
There are already platforms that serve as aggregators for affiliate marketing programs like impact.com and clickbank.com where your affiliate marketing program can be set up and hosted for you. For this, you will require an Affiliate marketing executive/Product Owner to own that side of the business and to act as a liaison between the platform and the company. Companies like Canva, Yogaburn, and Numerologist use affiliate marketing aggregators.
However, if you’d like to develop your own platform from scratch like jumia.com KOL platform, I’d advise an agile scrum product development and management process. A scrum team which consists of a product owner PO, a scrum master SM, and the development team DT, should be set up.
The PO, who should ideally have a a digital marketing and strategy background takes up the work of understanding the product requirements, setting the product vision and liaising with the team as well as the stakeholders.
The scrum master is, well, the scrum master!
While the development team take the product vision and convert it into a platform that makes it easy to register as an affiliate, manage your affiliate dashboard, raise tickets, get paid and so on.
In conclusion, I’d say give affiliate marketing a try, with the right people in the right place, it’s bound to help your business thrive
Digital Marketing, Strategy, and Communications Professional.