If you’re working to promote a brand, a service business or just about any other type of business, both types of marketing will be useful for you to know about. There are quite a few similarities and areas of overlap between these types of marketing, but there are also distinct differences. Let’s take a look at the most important similarities and differences between influencer marketing and affiliate marketing.
Let’s say you have a promotions page where you’re promoting a product via affiliate links. If you currently get 5,000 visits/month at a 2% conversion rate, you have 100 referrals. To get to 200 referrals, you can either focus on getting 5,000 more visitors, or simply increasing the conversion rate to 4%. Which sounds easier? Instead of spending months on blogging, SEO, and social media marketing to get more traffic, you just have to increase the conversion rate by 2%. This can include landing page optimization, testing your calls-to-action, and having a conversion rate optimization strategy in place. By testing and optimizing your site, you’ll get far better results with much less effort.
For example, say you want to sell tablet cases for the new iPad. You find a distributor willing to sell them to you for $10 each. You take them to your storefront and make a product listing for that product at $20. You go about doing the marketing, the outreach, and the customer engagement necessary to make people aware of your site and your storefront.
“Cost of goods changes from time to time, product prices drop, etc. One mistake I made was not re-calculating all commissions to determine they were set correctly. After doing some digging, I realized that commissions on a few of our products were way higher than what they should have been. One way to fix this is to re-adjust commissions each year,” she explained.