To effectively promote your company’s products you’ll need an effective digital marketing strategy to promote your company’s products and services. One popular trend in today’s marketing campaigns is affiliate marketing.
Around the world, affiliate marketing increased by 300 percent between 2017 and 2018. A recent report by Influencer Marketing Hub in 2022 estimated international spending for affiliate marketing would reach $13B by the end of that year.
Companies who have used affiliate marketing have discovered it not only quickly generates more leads but is cost-effective. This is because marketing is based on the affiliates’ performance.
Companies in Malaysia are also beginning to adopt this global digital marketing trend, so it’s essential to understand what affiliate marketing is; and what your company needs to know to take advantage of these strategies to help grow your revenue.
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What is Affiliate Marketing?
Companies with products to sell use affiliate marketing and want to expand their market presence. They partner with people with a dedicated following of potential customers seeking additional products to sell.
Using this system, companies with products to sell (affiliate merchants) pay the seller (affiliate marketer) a commission for each product purchased through the links on their website. Social media influencers with a dedicated following can seamlessly include links to the merchants’ products in their blogs or websites.
Why Affiliate Marketing Program is a Good Strategy?
Companies that have used affiliate marketing strategies have learned it has increased their ROI while decreasing their marketing expenses. It also results in increased product advertising and promotion without a significant investment.
Here are some of the benefits of affiliate marketing for an Affiliate Merchant:
You Don’t Pay In Advance for Advertising
Since the affiliate marketer is responsible for promoting your product, you don’t spend money you might generally outlay for advertising. Although your company will expend some energy finding trustworthy marketing affiliates, you no longer need to advertise those products.
As your company’s relationship with a marketer develops, you can relay more products to them and feel assured they will generate revenue for you without extensive monitoring.
Affiliate Marketing is Simple to Operate
The affiliate marketer bears the cost and effort of advertising your product. Your company can partner with as many affiliate marketers as possible – since you pay them only when clients buy products using their links.
Your efforts regarding those products will now be limited to calculating the revenue generated by each affiliate. You will know which affiliates can be given more of your company’s trust – and more of your products.
Affiliate Marketing Increases ROI
Statistics have shown that companies using affiliate marketing have a higher return on their investment (ROI) – since they avoid the expense of advertising.
Your marketing department can select affiliate marketers whose audiences will likely be potential customers for your products. People who are fans of the affiliates’ websites will read about and learn about your products. You may have yet to have the opportunity to reach those clients – but the affiliate attracts them and prompts them to buy your product.
Tracking the Success of Your Affiliates
When you entrust an affiliate with your product, you will want to record the sales each affiliate generates. It’s essential to choose a quality tracking program.
Tracking systems have begun to detect sales directly after your affiliates’ sites are browsed and purchases clients later complete on a separate device. Some clients use one device for browsing and another for completing the sale. These devices now use “cross-device tracking” to credit the sale appropriately. Tracking programs allow your company to keep records of all sales made by each affiliate.
This allows you to motivate your affiliates to increase their sales, If necessary, and reward affiliates with the highest sales rate. Motivation and reward will help inspire your affiliates toward better performance.
Some tracking systems provide the ability to track all conversion steps. They let you see which social media sites attract the most profitable client traffic. They can also show you whether your sales often come from blogs, educational articles, or discount codes. They can analyze whether the discount codes you offer generate enough sales to justify their continued offering.
Success Stories of Affiliate Marketing
Love, Bonito is a famous women’s wear company. Starting in 2005 in Singapore, their products now have customers across Asia (3). By partnering with affiliates, the company increased its revenue by 20%. In addition, 60% of the orders during their time of increase came from new customers. (2)
Lazada Affiliate Network
If you’re looking for an example of a successful affiliate site, Lazada is an international e-commerce website.
Sellers and buyers can find a platform where they can have a quick, convenient shopping experience. As of 2021, it boasted 560 million customers and was Malaysia’s second-most popular platform. Their platform could serve as an online department store, offering electronics, baby items, health and beauty, household items, pet accessories, and many product categories.
How Can I Find Out More About Affiliate Marketing?
Suppose you want more information about affiliate marketing or to learn more about digital marketing Malaysia in general. In that case, you should partner with a company that can provide support and education about all the options that could help bring your business to the next level.
Kredence Creative Solutions is a business consultant and marketing agency. Based in Kuala Lumpur, we are uniquely equipped to work with emerging Malaysian companies as they increase their business acumen and optimize their brand recognition. Check out our website and learn more about what we can offer your business.