Why Is Affiliate Marketing Important?

Safalta expert Published by: Yashaswi More Updated Wed, 23 Feb 2022 11:57 PM IST


Check out why Affiliate Marketing is important here at Safalta.com

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Affiliate marketing, an appropriate marketing solution for every eCommerce store? It may be the common question each business like you concern when they have known about Affiliate marketing and needed to find a way to improve their work. In affiliate marketing, affiliates or independent marketers are responsible for promoting a brand’s products or services in exchange for commissions. In other words, they will earn a piece of the profit from each website visitor, sale, or lead they generate. From the perspective of businesses, the number of affiliates able to participate in a brand’s affiliate program is unlimited. In addition, check out this course on Digital Marketing-  Digital Marketing Specialization Course.


The modern model of an affiliate program

The traditional model of an affiliate program has 4 parties:

  • Affiliates or Advertisers: Use their own ways to entice potential buyers to take action (for instance, clicking on the link, filling out a form, making a purchase, etc.). In exchange, they will receive a commission for each sale
  • Consumers: The determining factor for the success of any affiliate program.

    Source: Safalta.com

    They reflect the marketing results of affiliates. Each consumer successfully converted contributes to the final commission the affiliate get from the brand
  • Product creators or merchants: Who create and provide the products or services
  • Network: The bridge connecting brands and affiliates. It’s usually in the form of an online platform where both merchants and affiliates can join in to find suitable partners

In order to meet the needs of eCommerce merchants, along with the advancement in technology, this traditional model has the appearance of a new component - The agencies.


They play the role of monitoring the whole process of an affiliate program, including:

  • Help to find right affiliate partners for the brand
  • On behalf of the merchants, negotiate with affiliates for a commission accepted by both sides
  • Measure the performance of affiliate programs

For networks, we know they are online platforms with the participation of several brands and affiliates. Meanwhile, agencies are experts supporting the brand in starting affiliate programs successfully.

 Register here to prepare for the course you are interested for.


6 Benefits of Affiliate Marketing


A new stream of profit

A potent affiliate program is made up of long-lasting relationships between the 2 most essential parties: The brand and affiliates.

With proper implementation, affiliate marketing will become one of the most profitable sales channels, resulting in your sales and brand awareness. 3 points make affiliate marketing a potential stream of profit:

  • The merchant can gain several leads, traffic, and sales by partnering with influencers or experts who match the business’s core audience
  • Unlike the in-house sales team, affiliate marketing functions as a passive sales funnel that works 24/7
  • Affiliates and your sales team can be a great combo when they’re working well together. In most cases, affiliates raise the interest of consumers (cold traffic or leads). The sales team is responsible for nurturing and converting these leads into customers


Win-win relationships lead to value creation. It’s not exaggerating to say that affiliate marketing is one of the most cost-effective marketing tactics these days.

Why? Let’s evaluate it from 3 angles:

  • Most of the marketing activities are done by affiliate marketers. In other words, it’s the affiliates (not the brand) who bear the chunk of attached costs
  • The nature of affiliate marketing is commission-based. So obviously, you only have to charge affiliates from the sales they generate
  • In terms of cost, this marketing tactic is far more effective and budget-friendly than paid advertising that requires you to charge for every click

Beyond the aspect of cost-effectiveness, lost cost also means low risk. As mentioned above, you only have to pay affiliate commissions when there’s an actual conversion. That’s also why affiliate marketing is recommended for businesses on a tight budget.


Increase Competitive Advantage

Over time, affiliate marketing has become a popular marketing tool for global marketers. This also makes the competition between affiliates more intense than ever.

However, you can more or less increase your business’s competitive advantage via the indirect influence of the affiliates. And whether the promotions of affiliates succeed or not, their marketing effort still has a positive influence on your brand awareness.

Related Story-  How To Become A Digital Marketer? - 2022 Guide


A new approach to audiences through influencers

Another great benefit is the opportunity to approach entirely new audiences. By offering influencers in your niche and popper deals, you could quickly achieve new customers and improve your brand awareness.

In other words, affiliates take money to promote your company and products. Without wasting much effort, you’ve broadened your audience. But the best part is you, at the same time, gain reputation and trust within audiences.


Learn from affiliates

Each affiliate marketer has its own methods and marketing strategies to promote a brand’s products or services. Affiliates with impressive performance bring back various marketing ideas to apply in your company’s workflows.

Things you can learn from the best publishers in your affiliate network:

  • The affiliates’ audience data
  • The communication style they use with the audience
  • How they address their audiences’ needs and link these issues to your business’s products/ services
  • Channels they use to approach your target audience and which is the most effective on.
  • All provide valuable insights helping you improve the effectiveness of your marketing activities.

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Easy to track and manage affiliate performance

The more data you can extract from affiliate programs, the more you can modify it for better results. Affiliate marketing analytics contain 2 main components: KPIs management and affiliate performance analysis.

Some of the key metrics that you can (and should) track in your affiliate program:

  • Revenue/ Return on Investment (ROI)
  • Orders and AOV (average order value)
  • Clicks/ Impressions/ Leads
  • Percentage of earned commissions of affiliates
  • Conversion rates
  • Cost Per Acquisition (CPA) of customers and the affiliates
  • Onboarding length customers and affiliates
  • Customer lifetime value (LTV)

Especially via the trackable affiliate links businesses proactively provide affiliates in the program, the process of tracking and analyzing affiliate activities with their results is easier than ever.



Affiliate Marketing draws more profits than you expect

Let’s imagine that your store is running as you have not heard about Affiliate marketing. You still continue to sell products as well as make a great effort to create fantastic promotion program to boost your sales. As you know, the purpose of advertising is giving the customers a rare opportunity to encourage more their purchases. Thus, it is counterproductive if the promotion is too much and frequent.

On the contrary, Affiliate marketing is an opposite solution. If you want to go fast, go alone. But if you want to go far, go with friends. Because of that, Affiliate program helps you build your sale force called as Affiliates. They are empowered to promote products more widely, especially, they can take care of new clients who is referred before by them instead of that you must take over in the past.

However, What is the reason to ensure Affiliates always try the best to work for you? and What is the motivation to persuade the customers to make a purchase through Affiliate’s referral? The questions are the highlights you only see here, the beneficial relationship in Affiliate marketing. The Affiliates will receive an amount of commissions which is the reward name while referred visitors will have favorite items with the significant discount and have rights to be an Affiliate to make money. Especially for you, the revenue comes from not only the sales of ordinary selling products but also the sales of Affiliates. As a result, Affiliate marketing has an influence on your turnover through the effectiveness of Affiliate network.





In summary, affiliate marketing is definitely one of the most affordable and low-risk investment options for eCommerce businesses.

Still, for small businesses or startups, it can be not easy at first to find and attract influential affiliates to your affiliate program. With proper implementation, it’s just a matter of time to make your affiliate program a second revenue stream for your Magento store.

How big is the industry of affiliate marketing?

Global investment in the industry is at or above $13 billion and in the U.S. it is around $6.8 billion.

What questions should I ask an affiliate program?

Some of these questions you can ask-
  • How much traffic can this affiliate network attract? ...
  • How many affiliate programs does this network offer? ...
  • Does the affiliate network offer quality customer support? ...
  • Has the affiliate network developed innovative tools to help advertisers succeed?

What are 3 main components of a successful affiliate marketing program?

  • A good product as the basis for your program.
  • An optimized product landing page to drive conversions.
  • Active, engaged affiliates to promote your product effectively.

Do you need followers for affiliate marketing?

There is no specific ideal number of followers for affiliate marketing, however, a good number of 5,000 to 15,000 followers is enough to become an affiliate marketer. 

Which platform is best for affiliate marketing?

ShareASale. ShareASale is one of the most popular affiliate networks out there.

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