The landscape of affiliate marketing has transformed dramatically over the years, expanding from traditional publications and bloggers to now include influencers as key players. Understanding this evolution and leveraging the right strategies can help your brand thrive in this competitive space. Let’s dive into the history, best practices, and actionable insights for working with affiliates and influencers.
The Evolution of Affiliate Marketing
Affiliate marketing began with traditional publishers and bloggers, focusing on written content to drive traffic and sales. In the early days, influencers were rarely included in platforms like CJ, ShareASale, or Rakuten. However, this changed with the emergence of platforms like LTK (formerly RewardStyle), which enabled influencers to earn affiliate commissions by driving sales—just like their publishing counterparts.
Now, most affiliate platforms embrace influencers because of their proven ability to convert sales. This shift benefits brands significantly, as they only pay for performance, commonly referred to as rev-share, commission, or affiliate commission.
Why Influencers Hesitate with Commission-Only Deals
While commission-only models are appealing to brands, finding influencers willing to work under these terms can be challenging. The issue often lies in the demands placed on influencers.
For example, an influencer might receive an offer of $2,000 for a one-minute video, but the contract comes with a lengthy list of rules, deliverables, and negotiations. Compare this to posting a product from Sephora through an affiliate platform like BrandCycle, where the influencer earns an 18% commission without dealing with contracts or detailed expectations.
Key Insight: To attract influencers, make your brand easy to promote. Platforms like LTK have made it simple for influencers to discover brands with the highest commissions. A prime example is Stanley Cups, which reportedly offered 25% commissions—far above the industry average. This incentivized influencers to promote their products, creating a snowball effect of brand visibility.
Building Long-Term Partnerships with Influencers
Your customers are more likely to buy from people they know, like, and trust. Influencers who consistently post about your brand build credibility and familiarity among their audience.
Best Practices for Long-Term Partnerships
Test Performance First: Start with a few posts to gauge the influencer's ability to drive sales.
Offer Hybrid Compensation: A combination of a set fee and commission creates a win-win situation. The influencer feels valued, and the commission motivates them to go the extra mile.
Focus on Relationship Building: Regular communication and showing appreciation (e.g., sending gifts or personalized messages) foster loyalty and trust.
Choosing the Right Platforms
You don’t need to be on every platform to succeed. Start with these proven options, especially if your target audience is women:
LTK (LikeToKnowIt): A leader in affiliate marketing for influencers.
ShareASale: Ideal for brands looking to expand their affiliate network.
CJ Affiliate (formerly Commission Junction): A robust platform for tracking and managing affiliate relationships.
Collective Voice: An up-and-coming platform worth exploring.
For video-focused campaigns, TikTok Marketplace is an excellent tool for generating sales and brand awareness. While it doesn’t provide customer data for retargeting, it’s a powerful platform to capture attention and drive conversions.
The Importance of Networking and Industry Knowledge
To succeed in affiliate and influencer marketing, invest time in understanding best practices for each platform. Here's how to get started:
Leverage Google: Research platform-specific strategies to connect with influencers.
Ask for Introductions: If you have industry connections, use them to your advantage.
Build Relationships: Network with platform representatives, show appreciation, and ask for insider tips.
Affiliate and influencer marketing has come a long way, with influencers now playing a pivotal role in driving sales. By simplifying the process for influencers, leveraging top-performing platforms, and fostering long-term partnerships, you can create a program that not only builds brand awareness but also generates measurable results.