Affiliate Marketing Benefits (Brands, Creators & Customers)

Affiliate Marketing is the prevailing marketing method of the early 2020s. You can hear about it in every corner of the internet. Affiliate marketing is the game changer.

Yes. But it is just not about the brand only. 

Affiliate Marketing is a tripartite win-win structure that benefits all of the elements in affiliate marketing, including:

• Advertisers (businesses, brands, or merchants): They are those who own the products or services being promoted through affiliate marketing.
• Affiliates (publishers): They are individuals or companies that promote the products or services of merchants through various marketing channels.
• Consumers: The ultimate target audience for the products or services being promoted by affiliates.

Affiliate marketing is a mutually beneficial ecosystem that, by its essence, thrives on collaboration, trust, and innovation.

Let’s dive deeper into this win-win-win situation for advertisers, affiliates, and consumers alike.

Affiliate marketing is important for the economy

The global affiliate marketing industry is set to grow significantly and become an important part of the digital economy. By 2024, it’s projected to reach $15.7 billion. Here are some insights great contribution to the digital economy:

• Job opportunities: According to a report by the Interactive Advertising Bureau (IAB), digital marketing contributed $108.5 billion to the U.S. economy in 2020, supporting over 738,000 jobs.
• Sales: It accounts for 16% of all U.S. eCommerce orders. Globally, it drives 15-30% of eCommerce sales, making it one of the most effective digital advertising techniques.
• Sustainable business model: Large brands can generate up to 25% of their online sales through affiliate marketing. Small and medium-sized enterprises (SMEs) that engage in digital marketing, including affiliate marketing, experience higher revenue growth compared to those that do not, as reported by Deloitte.

1. 05 Benefits of Affiliate Marketing for Businesses

Affiliate marketing allows businesses to increase sales without reaching customers directly. But that’s just a benefit among many. Here we’ll dig deeper and clarify why Affiliate marketing could be the perfect strategy for your business.

1.1. High return on investment rate

Affiliate Marketing is a performance-based marketing model. Businesses only pay for affiliates when there is a successful order or a successful desired action, such as sales or leads. 

This means they only spend money on advertising that generates sales. This efficiency has allowed companies to allocate their marketing budgets more effectively, resulting in higher ROI (Return On Investment).

According to a report by IAB Marketing, an average business can earn $14 for every $1 spent on Affiliate, an ROI equivalent to 1400%. 

Isn’t it lucrative? 

1.2. Increase brand awareness 

Affiliate marketing is a great driver of business awareness through advertising on different platforms. 

Each Affiliate partner has a diverse following and therefore businesses can reach a wider and more diverse customer base. This gives your brand more opportunities to convert potential customers.

A 2022 study by Shopify found that 40% of consumers discover new products through word-of-mouth recommendations, which includes affiliate marketing efforts.

1.3. Effective marketing methods

The businesses’s partners (affiliates and publishers) are extremely knowledgeable about a specific marker and can see a clear way to approach customers in that segment. 

In addition to having a deep understanding of end-users, they are well-versed in various forms of marketing techniques, as well as having the capacity to promote across multiple platforms.

Above 80% of businesses deploy affiliate marketing and it is a cost-effective way to acquire new customers.

1.4. Access an in-depth look at user insights

Affiliate marketing isn’t just about sales, it’s also about data.

Affiliate marketing allows businesses to track and evaluate affiliate’s performance easily. They can set their eyes on metrics such as conversion rate or customer activity from affiliate partners. 

A well-targeted, broad-based Marketing campaign can provide a diverse source of data. With that information, brands can have better insight and improve the performance of subsequent campaigns.

76% of marketers believe affiliate marketing provides them with valuable customer acquisition data.

1.5. Foster long-term partnerships for sustainable growth

Building strong relationships with affiliates is crucial for the long-term success of the brand.

As long as the businesses can understand the needs and motivations of affiliates, they can brand’s goals with those of their partners.

Then, loyalty and dedication increased, resulting in high outcomes.

Moreover, established affiliates often have a deep understanding of their audience’s preferences and behaviors, allowing them to provide valuable insights and feedback to optimize marketing strategies further.

By keeping a strong line of ongoing communication with affiliates, businesses can unlock the potential of affiliate marketing strategy. Most businesses with successful affiliate programs spend a huge amount of effort on building strong relationships with their affiliates.

2. 05 benefits of affiliate marketing for affiliates

For both the Affiliate and Publisher, participating in the Affiliate model brings great benefits. The rewards are far beyond money or passive income. 

2.1. Low initial investment 

As an affiliate,  you DO NOT need products in your warehouse, consulting customer care, or R&D.  

All you need is a laptop with an internet connection and a good idea. That is why Affiliate Marketing is accessible to everyone.

According to an over 90% of affiliates require no upfront investment to get started.

Cost-free methods of approaching the audiences are the main reasons for the practice:

• Use free platforms like YouTube, Instagram, or a blog to reach out to the audience.
• Most marketing tools offer free versions.
• Content that is values focus.

And, of course, you can also spend more and more money to make your model grow faster. For example, running ads, or hiring a manager to build a system… 

Anyhow, when, you still need time and effort to succeed. But, getting results takes time and effort. You need the ability to market products and build your community, and at some points, money does help!

2.2. Low risk

The best benefit the affiliate marketing is that your model is flexible and easily switches operating models.  Most of the affiliates switch between different affiliate programs as market trends change.

As an affiliate is not required to store products, they can easily switch to another program that is suitable with their community or websites.

As an affiliate, you can also choose any supplier or product that is suitable to the niche in which you have expertise. Each supplier and product will have its advantages and disadvantages and you can do some risk-control evaluation to decide which is the most suitable one. 

2.3. Unlimited profits

One of the things worth mentioning in Affiliate marketing is profit. there is no ceiling for the amount of profit you can get. 

The only ceiling is your capacity. 

Whether it is the domestic market or international market, the potential profit is unlimited. You may not believe it, but many people have earned hundreds of thousands of dollars every month. Of course, it is not easy money, but that’s the truth.

2.4. Flexible work schedule

Affiliates have the freedom to choose their own work schedule and location. Actually, many affiliates are digital nomads – who combine remote work with travel.

They can determine how much time and effort they want to dedicate to their affiliate marketing activities.

This flexibility allows them to balance affiliate marketing with other commitments, such as full-time jobs, studies, or family responsibilities.

2.5. Passive income

The passive income can come from your community member who is continuously making purchases through your referrals. 

At least half of affiliates generate a portion of their income passively, through recurring commissions or subscriptions.

For example, there is a website that compares the prices of golf clubs. The website appears with different products detailed in terms of price, quality, warranty policy, etc., and the audience can choose the appropriate product by clicking on the website. If that audience places an order, the website owner will receive a commission. Their system is automatically generating income day and night, regardless of the weather.

3. 04 Affiliate marketing benefits for customers

Benefits from the Affiliate program for End Users include:

3.1. Reliable products

Many customers trust the recommendations of affiliate marketers whom they follow regularly.

By partnering with reputable affiliates, customers can feel more confident about the quality and reliability of the products they purchase.

Customers often trust the recommendations of affiliate marketers they follow regularly. By partnering with reputable affiliates, customers can feel more confident about the quality and reliability of the products they purchase.

3.2. Chances to buy high-quality products

With e-commerce, all geographical barriers are eliminated.

For example, sitting in the US, you can order an item in Southeast Asia. What does this mean? It means that merchants in both places are competing against each other, leading to lower prices, better product quantity, and better customer service.

Who benefits when brands compete? Consumers.

Consumers will now have the best choices for themselves.

3.3. Opportunities to get discounts and special offers

End users often have the opportunity to save money through discount codes or special offers from affiliate partners.

In this way, customers can find better deals than buying directly or through third-party distributors

End users often have the opportunity to save money through discount codes or special offers provided by affiliate partners. For example, a 2023 survey by Rakuten Marketing found that 81% of consumers were motivated to make a purchase based on an influencer’s discount code. In this way, customers can find better deals than buying directly or through third-party distributors.

For example, a popular tech influencer partners with a laptop brand and offers a unique discount code to their followers. As a result, customers who use the code at the checkout receive a 15% discount on their purchases (and the influencer still gets commission!). This not only incentivizes the purchase but also ensures customers are getting a deal they wouldn’t find elsewhere.

3.4. Multiple choices of products

Today customers can easily find information about products or services they love, with info from multiple bloggers or influencers.

A 2022 study by the Pew Research Center found that 81% of internet users turn to online reviews and comparisons before making a purchase source

Such platforms provide useful insights about the product or service, including reviews, user guides, and product comparisons.

This practice helps them compare between different products or services and find the best option for their needs.

For example, an affiliate can work with many different partners and brands. Therefore, you can follow some trustworthy bloggers and buy good products from their recommendations.

Conclusion

Affiliate marketing can be the most financially effective and scalable way to improve your online business. Furthermore, it’s becoming a trend of the digital era, as it brings tons of benefits to everyone joining the program, as well as consumers in general. 

In short, it’s a win-win-win solution. 

For some inspiration, you can try to take a look at our post on Affiliate marketing program.

Herein we will walk you through unique strategies that can boost your growth,  website’s visibility, and community. Start skyrocketing with affiliate marketing and expanding your business’s customer base right now!