The producer of the product or service achieves higher sales and extra promotion through the affiliate network
The affiliate publisher promotes the product in exchange for a share of the profits they generate (On a pay-per-performance basis as a commission for actual sales or leads generated)
The consumer receives targeted content from publishers they have a connection with, and have access to new and exciting products they may not have otherwise come across
But as other sophisticated digital marketing techniques emerge in the forefront – does affiliate marketing still have the edge regarding ROI (return on investment)? Today we explore affiliate marketing’s relevance in New Zealand as we head into 2019. Does it remain effective as a marketing method and a win-win for all? When will affiliate marketing really take off in New Zealand.
Affiliate Marketing is Risk-Free
Small to medium-sized businesses in NZ often need to be risk averse. This requires a constant monitoring of ROI on any marketing campaign you run, as marketing campaigns that are too costly are simply too risky for a growing business. They eat up a chunk of expendable cash that you may need to develop your business differently.
A consistent benefit of affiliate marketing as a digital marketing channel is that it is risk-free. Payment is on a pay-per-performance basis, so you only pay a commission for actual sales or leads generated. This is a key difference to traditional forms are marketing, where you pay for a wide reach without a guarantee of sales conversions to generate revenue. Essentially you are paying a digital salesperson on commission. This minimizes risk and maximises potential sales, perfect for most small or medium-sized businesses.
Affiliate Marketing offers Exposure
Affiliate marketing is a great way to get your product or service seen, but is it the best option in terms of sales generated or money saved compared to other forms of marketing?
One of the main benefits of affiliate marketing is that it achieves a perfect balance between promotion and publicity. An affiliate network like S.L.I.C.E. Digital gives you access to a network of publishers promoting your product or service to their own targeted audience base. This gives you great exposure to a wide audience, whilst still only paying for actual sales.
Good affiliate publishers tend to have a trusted targeted audience, meaning that your product will be viewed with confidence. Choosing the right affiliate is a crucial step in a successful campaign. They should:
- Have an audience you are looking to target
- Be an individual or business that you trust
- have a legitimate reason to be promoting your brand, product or service
- Have a large enough audience to set up the win-win situation we highlighted above
- Be willing to discuss with you the modes of promotion they choose
The S.L.I.C.E. Digital Network gives you access to New Zealand’s largest network of affiliate publishers, websites like Air New Zealand Air Points Mall, The Lovely Registry, NZ Compare, Finder.com and Cuponation all partner with S.L.I.C.E. Digital advertisers on a pay for performance basis. An affiliate program with S.L.I.C.E. Digital gives you the ability to review and approve publishers who wish to promote your product or services. This allows you to be as selective as you like about those who are promoting your product or service, and the modes of promotion they use.
Cost and Time
As anyone working for a small to medium-sized business will be aware – time and money are usually a scarce resource as the company grows and expands. Money is vital as you reinvest profits to scale-up, and develop your offering in response to feedback you receive.
Effective marketing and promotion form a vital part of the equation as your business grows. A key challenge is that most growing businesses do not have the human resource capacity to form their own marketing team, with specialist skills. Outsourcing to a specialist marketing agency can be costly, and may not be an option. Affiliate marketing is a perfect middle ground, allowing you to cut cost and time expenditure by outsourcing to another individual, who receives a commission for sales generated.
As the affiliate marketing model generates incremental sales, your marketing spend will grow organically (in the form of commissions) keeping pace with growing sales and the growth of your business.
How Does Affiliate Marketing Compare?
Affiliate marketing is a smart, flexible form of marketing that allows you to partner with a number of digital representatives. Affiliate networks like S.L.I.C.E. Digital provide a perfect platform to access a network of over 1000 affiliate publishers to promote your product and service.
How does it compare with some of the new and emerging techniques we see in present day?
We are seeing programmatic marketing continue its rise into 2019 and beyond. Programmatic marketing places targeted advertisements in front of web users with a specific data profile. It is efficient, targeted and promises exciting returns. On the other end of the scale is ‘free’ social media marketing like Facebook, Linkedin, Twitter, Instagram, or Pinterest to name a few. Social Media’s impact can be more unpredictable, especially for a fledging business. But it can provide a huge ROI for very little effort, and is highly recommended.
Of course, any growing business should consider these approaches, along with other more costly, but higher return marketing options as they continue to grow. Marketing is, after all, a multi-layered approach. But, as your business starts to grow, affiliate marketing is one of the best ways to boost your exposure and brand recognition.
Conclusions – Is Affiliate Marketing Relevant or Irrelevant
S.L.I.C.E. Digital operate the only affiliate network based in New Zealand and focussed on the New Zealand market, clients include Kathmandu, Citta Design, Mr Vintage, iSubscribe and over 60 other advertisers and we have no doubt that affiliate marketing is an essential part of the digital marketing mix for businesses of all size.
In 2019, affiliate marketing remains a relevant, helpful and risk-free alternative to more ambitious and costly marketing campaigns and is recommended for ecommerce websites operating in NZ. It is low-cost regarding time and investment, and it essentially guarantees increased sales, profits and exposure.