Maximize eCommerce Sales Using Affiliate Marketing

How does affiliate marketing work?

How affiliate marketing benefits all parties

For the advertiser

  • Low costs — Most affiliate marketing happens through larger, interconnected affiliate networks which charge a small fee. There may also be time dedicated to identifying potential affiliate partners; the only other significant costs are commission payments which are factored into pricing.Unlike other advertising models like paid social or Google Search, affiliate marketing is very kind to cash flow with virtually zero ongoing costs.
  • Improved SEO — In eCommerce, anything which increases the amount and quality of website traffic is gold dust. Affiliate campaigns deliver this surprisingly well. The more high-value links to your website, the more authority your site has, which affects the long-term standing of your site.More directly, prominent affiliate links can have a ‘halo effect’ wherein more people search for your products online and navigate to your webpages. This can directly increase Google search rankings without any extra costs.
  • Hot audience — Usually in marketing we talk about cold and warm leads; affiliates have two major strengths which make leads red hot.First, by partnering with ultra-relevant affiliates, the entire audience is a potential lead with an active interest in your industry, niche, or product type. This level of relevance is almost impossible to attain with traditional advertising.Second, the level of trust between affiliate and audience overcomes multiple objections and increases the likelihood of purchase. There is less “convincing” required because the audience believes they’re seeing relevant, qualified products.
  • Reputational boost — If your product becomes associated with a highly-respected affiliate in your niche, this association can work wonders for your reputation and overall brand awareness. Since consumers trust third parties more than the sellers themselves, this can help increase brand awareness and sales.

For the affiliates

For the customer

Affiliate marketing opportunities for eCommerce

Blogs

Email marketing

Youtube videos

Coupons and promotions

How do affiliate commissions work?

  1. Payment per sale — The standard approach, also known as CPS (or Cost Per Sale). The eCommerce sets the product price and affiliates earn a percentage of each unit sold. If the affiliate generates a ton of leads but none actually buy using their link, then unfortunately they don’t get paid. (The eCommerce can, however, still benefit)
  2. Payment per lead (or CPL) — Unsurprisingly, some affiliates are therefore contracted to generate leads, not customers. This can work like a traditional ad campaign: affiliates drive traffic to a landing page with an email form, lead magnet, or similar. The more verified leads, the more they earn.
  3. Payment per click (or CPC) — The simplest agreement of all is for affiliates to increase web traffic. This is less popular because it doesn’t require a particularly engaged audience or high purchase intent; it just needs volume. Affiliates are paid based on any increased traffic.

How to structure affiliate commission

Maximize sales by choosing the best-fitting affiliates

Can any eCommerce business benefit from affiliate marketing?

How to get started with affiliate marketing

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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2Checkout (now Verifone)

2Checkout (now Verifone)

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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