Affiliate marketing can be a difficult concept to handle yourself. If you are already looking after a brand or company, trying to handle all aspects of the marketing can only add extra strain to the process. So, it only makes sense to outsource the job to an affiliate management agency, right?
It turns out it depends. If you are considering getting involved with an affiliate marketing agency, read on for all you should know before you get started.
When do you need affiliate management?
Before you do anything, there are a few basic questions you should ask yourself to ensure that you are not wasting your money.
Do you have a decent online presence or online business? The point of affiliate marketing is to lead traffic to a particular website, your website. If your only online presence is your social media, there will be nowhere for traffic to go. If you have an online presence only as a side project and not as a means to sell products, gain eyes, etc. there wouldn’t be much point.
How new is your business? Brand new businesses will not benefit from affiliate marketing as they don’t have much brand recognition yet. New businesses might want to focus on building a following to begin with, or establishing their company, and affiliate marketing might take a back seat.
How much does your company earn in online sales? It has been established that generally, companies earning less than £4 million a year will have trouble breaking even with affiliate marketing, since there will be fees and payouts included.
On the other hand, if you are running a business with an established brand and you have the money to do it, affiliate marketing management can be a very useful tool and a very effective tool.
Affiliate marketing can greatly advance your sales, and in turn your income, by drawing more eyes to your business. It is most effective when run by an affiliate manager or team who know what they are doing well, to get the most for your money.
To put it simply: affiliate marketing is made for any business with something to sell, who want more eyes on them.
What benefits are there?
An affiliate management agency can offer a range of benefits that you and your business can take advantage of.
For one thing, an affiliate manager can bring a level of experience to the table. You can gain insight off of past marketing campaigns and have access to a wealth of wisdom from a seasoned affiliate manager. If you go into affiliate marketing with no knowledge, an affiliate manager will be able to guide you into the right direction. An affiliate manager with experience will allow your campaign to get off the ground faster, giving you results quicker.
They can also offer a lot of industry insights, not just with their wealth of previous knowledge, but by showing up to industry events where they can learn about new technologies and methods of getting your name to new ears. They can gain more methods by meeting with experts in the field and networking with potential partners.
It will also save you a lot of money in the long run to use an affiliate company. You won’t have to spend money training an affiliate manager, or on tools like programs and resources that you would need if you were to take on the task in-house. You might even find that, with the uptick in sales you will see in your business, affiliate managing companies might just pay for themselves.
What are you looking for in an affiliate manager?
To make sure that you are getting the most for your money, you have to know what you are looking for. Don’t be afraid to ask questions when you are shopping around for an affiliate management company. You are entitled to knowing what you are paying for.
Ask about the affiliate marketing team. How much experience do they have? What kind of affiliates do they typically bring in? Ask if they have a particular industry they specialise in and consider if you fit into it. If you don’t, ask how they will vet and research your industry to accommodate you.
Make sure that they report their findings and results to you in an appropriate manner. Can they offer you reports based on raw data from the network and present it to you in a clear and concise manner? Can they detect trends and patterns in the data? Will they be able to outline these trends and advise you going forward?
And finally, ask about cost. The cost of an affiliate manager varies depending on conversion rate, but it comes in a percentage, and some ask for a higher percentage than others. Make sure you understand the payment scheme before you commit to a manager.
For more information on affiliate marketing, or for some personalised advice, book a free call with a member of our team.
