Affiliate Marketing


Hey everyone, it’s Jessica with Oberlo. Today we’ll talk about what affiliate marketing
is, and how you can use it to grow your dropshipping business. Plus, we’ll share 3 awesome tools that you
can use to set up your own affiliate program. Let’s dive right in. What Exactly is Affiliate Marketing? “Affiliate marketing is the process of earning
a commission by promoting other people’s products. “You find a product you like, promote it,
and earn a piece of the profit for each sale you make.” Dropshippers can take advantage of this marketing
tactic by creating their own affiliate marketing programs. To do this, you ask affiliates to promote
your product in exchange for a commission on the sales they make. To see this in action, let’s take a look
at how MVMT uses an affiliate program to promote their watches and sunglasses. They have an affiliate program page on their
website, detailing the key information affiliates need to know. They show the commission affiliates can expect
to earn on each sale they make for the watch brand — in this case, 10% of the sale. And, they tell you that the referral period
is 15 days. This means that after a customer clicks an
affiliate’s link, they need to buy within 15 days for the affiliate to collect their
10% commission. Also, MVMT clearly details the money affiliates
can expect to earn promoting their products. This can help entice affiliates to get involved. We can tell from this information that if
an MVMT affiliate were to sell one product a day, they could make $405 per month. But, if they sell 100 products per day, they
can make a whopping $40,500 each month. With all this in mind, let’s talk about… How to set up an affiliate marketing program
for your dropshipping business. First things first… You need an app to help you create and manage
your affiliate program. Let’s run through 3 great options. First up:
Option 1: Refersion This Shopify app allows you to build a custom
affiliate program, register affiliates in a few simple steps, and easily review affiliate
performance. And, you can set up automatic payments through
PayPal. Each of your affiliates has access to their
own unique dashboard, where they can download affiliate links and banners to add to their
websites. There’s also a handy email channel you can
use to communicate with your affiliates. In addition, Refersion makes it easy to find
new affiliates. It enables you to set up campaigns to turn
new customers into affiliates. And, the app lists your affiliate program
in the Refersion market directory. Refersion is free for 14 days, so give it
a try to explore its features. Option 2: FriendBuy
This affiliate marketing tool helped popularize the ‘Get $15’ section that you may have
seen on ecommerce sites. It’s used by established ecommerce brands
like Warby Parker, Birchbox, and the Dollar Shave Club. FriendBuy has all the features you need to
set up an affiliate program, but it is more expensive than Refersion. FriendBuy’s price tag may be fairly steep
if you’re just getting started. Option 3: ShareASale
This tool is for more developed dropshipping stores. You need to pay a few hundred dollars to access
the ShareASale network. On top of that, you’ll also need to pay
a 20% transactional fee, and at least $25 each month. But, unlike many other affiliate networks,
ShareASale’s affiliates are all pre-screened. That’s why ShareASale is a great way to
find high-performance affiliates who can drive sales for your business. Okay, so you’ve chosen an affiliate marketing
app. Next, you need to… Set the parameters of your affiliate program. First up? Decide how much commision you’re willing
to offer. How much you offer is up to you. A higher rate will obviously attract more
affiliates. But it’ll also eat into your profit margins. Still, making less profit on that first sale
isn’t necessarily a bad thing. Why? Because affiliate marketing isn’t just about
making sales. It’s also a great way to hook in new customers. And this is important. Repeat customers spend 67% more than new customers! And what’s more, a 5% increase in customer
retention can increase company profits by 95%. So, if you can turn those new customers into
repeat customers, consider giving your affiliates the lion’s share of that first sale. Plenty of businesses actually lose money in
the short term by paying affiliates a high commission rate. They do this because they know that in the
long run, they can turn a profit reselling to those same customers. So, start by working out your current profit
margin. To help, there’s a link in the description
to Shopify’s Profit Margin Calculator. Research how much commission your competitors
pay their affiliates — most businesses clearly state their affiliate commission rates on
their website. With this information, you can then set more
competitive rates, or add bonuses and incentives. Now, it’s time to… Find affiliates to promote your products. If you use a service like Refersion, or ShareASale,
your affiliate program will be available to affiliates in their network. But, you can also grow your affiliate network
yourself. The easiest way to get started is to… Get your customers involved. To do this, encourage customers to refer a
friend to your store for a cash incentive. You can also promote your affiliate program
on your website, on social media, and in your email marketing campaigns. Also, each time you make a sale, promote the
details of your affiliate program in your purchase receipt email. Remember, existing customers are already familiar
with your brand. And after they’ve had a positive experience
with your business, it’s likely that they’ll be happy to tell their friends and family
about it. To sweeten the deal further, provide them
with a discount code to share. Next… Reach out to influencers in your niche. It can be tough to find partners who have
an existing online audience, and are interested in what you have to sell. But — just like when trying to find new
customers — the more niche your product is, the easier it is to cut through the noise,
and connect with affiliate partners. Another benefit of niche marketing is that
influencers in an industry tend to know each other. So, once you’ve developed a relationship
with one influencer, it’s often easy to expand your network partnerships. To reach out to influencers, browse popular
Instagram hashtags in your niche. Then, identify accounts with at least a few
thousand followers and high engagement. These are the influencers who are most likely
to benefit from becoming an affiliate. Then, check to see if they’re an affiliate
for other brands already. Why? Because if an influencer repeatedly promotes
the same product, that’s a good sign that they’re doing well with affiliate marketing
— and so, might be interested in your products. Often, influencers will have an email address
in their bio, or on their website, specifically for business enquiries. So reach out to them personally. In summary, affiliate marketing is an incredible
opportunity for dropshipping stores. So choose an affiliate platform, create your
offer, and start partnering with affiliates to grow your business! What do you think–would you try affiliate
marketing? Why or why not? Let me know in the comments below, and I’ll
reply with my thoughts. Thanks for watching, and if you’d like to
see more videos like this, be sure to hit the subscribe button, and turn on the notification
bell. And until next time, learn often, market better
and sell more.

8 Comments

Add a Comment

Your email address will not be published. Required fields are marked *