In the past, we heard from all sides how beneficial PPC advertising is. After all, you only pay for clicks. In that case, how advantageous is it to pay only for the sale made? This is affiliate marketing.

What is affiliate marketing

It is the cooperation of the e-shop with external sellers or affiliate partners. Their reward is a predetermined percentage of sales.

Partners can include individuals, well-known youtubers and bloggers, entire magazines and portals  more or less anyone. Sales are tracked using unique links through which affiliate partners direct customers to e-shop sites.

So what are the advantages and disadvantages of affiliate marketing for e-shops?

Commissions are paid only for completed transactions. No commission is paid for cancellation or returned goods within the statutory period of 14 days. It is calculated from the amount without VAT and without shipping.

  • Affiliate partners are motivated to do quality advertising, without sales they have no reward.
  • When the e-shop acquires a regular customer who buys directly through the site in the future, the commission from sales is eliminated.
  • Among the vendors, they are capable influencers and open the way to an audience that is otherwise difficult and expensive to reach.
  • Many stores do not know how to start affiliate marketing or how to do it effectively. Businesses that grasp affiliate advertising properly gain an edge over the competition.
  • It is necessary to take care of the system – communicate, organize, invoice. Leading a successful affiliate program requires a minimum of 10-15 hours per week.
  • Unfair practices of partners, they can damage the reputation or try to rob false orders.

Smaller stores find it difficult to acquire skilled partners. Selling unknown goods is more difficult than selling the goods of a popular store that runs its own advertising campaigns. An experienced partner knows this and chooses stores. Visit https://www.james-scholes.com/evergreen-wealth-formula-review  for the best solutions now.

 

Whether it is the disadvantages of affiliate marketing for e-shops or partners, most of them can be easily eliminated or reduced. How?

How to simplify everything

It always pays to connect with someone who knows what he’s doing. This is also true in affiliate marketing.

The agency takes care of the interests of businesses and partners. The entire course of the affiliate program is regularly analyzed, evaluated and reported.

A look at the numbers, what you earn and what you pay

An affiliate program for an e-shop usually generates 5-15% of the total turnover. If you have an eshop, count it, it is a realistic assumption.

Example:

You have a furniture store. Based on the amount of margin, other advertising activities and analysis of the competition, you will decide that it will be appropriate to set the commission to 10%.