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    Affiliate Marketing: why it is interesting for your business

    14 setembro, 2021

    Nowadays, the Internet can be seen as a great ally for companies. After all, the means to sell and promote products and services online are increasingly improved, requiring that digital entrepreneurs have knowledge in digital marketing and know how to take advantage of opportunities to succeed in their businesses.

    Given the advantages that the Internet provides us with and the countless innovations that have emerged over time, today everyone can sell and/or buy anything over the Internet. It is certain that you have already tried to sell or buy some clothes, a used object or a piece of furniture on OLX, on Facebook sales groups or on other online sales platforms and apps.

    Nowadays, selling and buying over the Internet is an easy practice, quite different from ten years ago, for example, when we didn’t have apps, platforms, websites, blogs or social networks. But one of the great difficulties for companies, despite all this, is to increase their sales, making a profit with little expenditure in the online environment.

    Various sales strategies have emerged, and one of them, which is becoming increasingly prominent around the world, is Affiliate Marketing. Have you already heard about it? In this post we will explain everything you need to know about this strategy. It can help you increase your sales. Read on and find out how to implement it!

    What is Affiliate Marketing and how does it work?

    Affiliate Marketing is a digital marketing and sales strategy in which organizations affiliate with people or other companies that will help promote third-party products and services on the Internet. In this way, there is a mutual aid in exchange for a commission when a sale is made as a result of the dissemination made by the affiliate. This disclosure happens through ads on websites, blogs and social networks of affiliates, with the aim of selling the product or service of the company that hired the affiliate.

    This business model is a great alternative for small entrepreneurs and for those who wish to earn some extra income on the Internet, because its implementation is relatively simple, easy, practical and highly efficient for both users. And large companies also come out in profit and reduce high costs by negotiating with affiliates who can diversify the dissemination of their products and thus make more sales and impact more customers.

    For this cooperation in the dissemination by the affiliates to work effectively, the interested company creates the Affiliate Program, which is a system that controls the commissions paid to affiliates who make sales through promotion on their websites and blogs, online stores or social networks. With this, affiliates access the platform, register and generate unique links to be inserted in the ads they make for the company’s products.

    This way, when someone is impacted by the affiliate’s ad on their website or social networks and clicks on the ad, the user is directed through the link to the company’s sales page and, if the purchase is made, a percentage of the value of the product or service will be passed on to the affiliate as a commission on the sale. This is why this business model is so interesting, both for companies and for affiliates who adhere to it.

    The advantages of adopting this strategy

    Now that you understand what Affiliate Marketing is and how this strategy works, let’s understand the advantages of adopting it. One of the great advantages for both (companies and affiliates) is the ease of joining this type of business, considered a two-way street.

    For companies, the possibility of having several sales channels spread across the Internet without spending money on the production of ads is very interesting. The only investment to be made is in the Affiliate Program, but there is also the possibility of joining an existing platform to ensure affiliate commission.

    For affiliates, the big advantage is that they can earn money on the Internet through a business model that is super easy to implement. They do not have to worry about product creation, stock quantities, or delivery procedures. The affiliates’ only concern is with the dissemination of the product or service: they must use creativity, working on convincing the customer to make the purchase.

    As consumers on the Internet are increasingly demanding and change their behavior regularly, the affiliate must also worry about how to advertise and how to direct the ads properly so that the target audience is reached. But everything can be done with practicality and low cost, which are the main points of attraction for the affiliate to join this type of business.

    Types of dissemination for affiliates

    Affiliates advertise products and services on their own internet channels, such as websites, blogs, and social networks, both organically (doing Content Marketing for a blog, for example) and through paid media (running ads targeted to the target audience of the company they affiliate with).

    There are several ways of dissemination that the affiliate can use and they can be negotiated between the seller (the company) and the affiliate (the publisher). Let’s talk a bit about the main categories so you can learn more about them.

    1. CPC (Cost Per Click)

    This program focuses on incentivizing the consumer to click on an ad made by the affiliate. The affiliate must make every effort to get the customer to click on the ad. It is not necessary that a sale is made for the affiliate to receive his commission; it is enough that the ads (on the affiliate’s site, blog or social networks) receive clicks – the affiliate will get paid for that.

    2. CPA (Cost Per Action)

    In this case, clicking on the ads is not enough to generate the commission payment. In addition to the clicks on the ads, the user must perform an action within the ad page, such as making a registration, requesting a quote or even making a purchase. Unlike the CPC (where the focus is only on the click on the ad), the CPA requires a good media campaign and the affiliate’s effort to make the user interested in interacting with the ad page, performing an action, whatever it may be.

    3. CPM (Cost Per Mille)

    CPM is based on a fixed amount that the affiliate receives, set by the advertiser, who will make the payment whenever the ad reaches a thousand views, regardless of the number of clicks it receives or if some action is performed by consumers. This type of advertising is interesting for affiliates who have some recognition in the digital environment, a good number of views on their sites and good interaction on their social networks, because their ads can always be seen and thus be paid recurrently.

    4. (CPS) Cost Per Sale

    As the name implies, in this model the affiliate earns only when there is a purchase by the customer. He receives the commission from codes or links generated, which associate that the sale was made through the dissemination of an affiliate ad. The commission is processed automatically.

    Companies that use Affiliate Marketing

    The Affiliate Marketing strategy can be used by many different types of companies that invest in internet business, such as online stores, online course institutions, tourism and hosting companies, application, info-product and electronics developers, bars and restaurants, among others.

    Companies can set up their own Affiliate Programs or make use of existing affiliate platforms to sell their products and services on the commission system that works on these platforms.

    In Affiliate Marketing, participants are paid for the performance of their ads, i.e. affiliates only receive commission when the target of their ads is completed, be it CPC, CPA, CPM or CPS. Therefore, affiliates are extremely committed, because the more results they bring to the companies, the more sales are made and the more commissions are paid.

    Best affiliate platforms

    The most famous and currently used affiliate program platforms are the following:

    – Hotmart: considered one of the best options in the current market, it works mainly with online course sales. The platform provides a whole structure that defines the amounts to be paid to affiliates, with commissions that can reach up to 80%;

    – Monetizze: this platform has the possibility of being linked to Google Analytics and it is mainly focused on converting customers. Besides organizing products with affiliates, Monetizze has resources that provide information and fundamental data to improve conversion and, consequently, increase the commission acquired by affiliates;

    – Afilio: created in mid-2008, this platform is focused on performance – the client only pays after conversions are achieved. This brings reliability to the client in relation to the platform; and

    – Eduzz: with a feature that allows you to recover abandoned or lost sales, Eduzz is a platform that does not let any lead go through the process, identifying the reasons why customers abandoned the purchase, thus being able to establish plans to avoid this in the future. Payment is made directly to the affiliate account and the platform also organizes all the necessary documents.

    Now that you have seen that Affiliate Marketing is a very efficient and interesting sales strategy for companies that want to increase their sales and for people who want to earn some money, making an extra income, how about evaluating this idea for you or your business? You also know that Affiliate Marketing offers a lot of benefits for everyone involved, so how about investing in it? Have you thought about it? If you still have questions, we can help you. Get in touch with us!

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