Affiliate marketing refers to retailers placing links on other sites to generate traffic, increase exposure, and raise revenues. Tags are put on each link to identify from where they originate. This practice is win-win because those who allow links to be added to social media pages and blogs receive a commission on every purchase made as a result of their participation in the affiliate program.
The strategy is becoming more relevant and profitable due to the popularity of online shopping. The closing of many physical retail stores is proof that more people are shopping online. This method is more convenient, typically costs less money, and can be done twenty-four hours a day.
One statistic that supports the claim of increased relevancy of this type of marketing is the money spent by retailers. In 2016, that amount was 4.7 billion dollars and is rising at approximately 10 percent every year. The projected spending by 2020 is 6.8 billion.
Perhaps the most important statistic involving affiliate marketing infographic for retailers to follow is the one that determines which categories are among the top to earn money via links. Fashion, sports, and wellness, in that order, make up the top three. This is critical information for retailers interested in beginning an affiliate program and bloggers looking to add links.
Affiliates on Social Media
The benefits of utilizing social media for affiliate programs are exponential in nature. First, retailers can create buzz and reach untapped audiences which increases business exposure. Second, it generates huge increases in revenue due to the potential of having links shared on personal pages.
This leads to a domino effect that will result in more customers and improve conversion rates. The motivation for people to add affiliates to social media pages is the commission rate. Influencers, a term for bloggers and social media participants in affiliate programs, can earn up to 10 percent on certain orders. Rates are usually based on the type of purchase made with everyday items incurring lower rates and luxury items fetching the highest commissions.
Searches using the keywords affiliate marketing have risen by 30 percent, indicating an interest in retailers to explore this strategy. Business owners will want to do a search to learn how affiliate marketing works and the reasons to join the trend.