In this two-part series, you’ll unlock six proven tips that are set to boost your affiliate marketing revenue, strengthen your affiliate program, and gain an effective approach to protect revenue from the devastating impact of affiliate fraud.
Six tips to skyrocket your affiliate marketing revenue
As we hit the halfway mark of 2023, affiliate marketing continues to grow, with the U.S. spend on this key channel forecast to hit $13 billion by the end of this year. Furthermore, leading businesses worldwide already generate up to 30 percent of their online revenue from the affiliate marketing channel. Undoubtedly, affiliate marketing must simply be a core component in the growth strategy of every digital marketer in 2023 and beyond.
Here are six tips you can leverage to successfully harness your affiliate marketing revenue potential:
1 – Grow customer loyalty
Motivate affiliates to expand loyalty traffic and drive higher average order values (AOV) through hybrid payout models. By leveraging a cost per acquisition (CPA) payout on the first customer acquisition combined with a revenue share structure for subsequent purchases from the same customer incentivizes affiliates to prioritize loyalty traffic. As customer acquisition costs continue to increase (an estimated 60 percent from 2017 to 2022) focusing resources and marketing dollars on existing customers who typically spend 31 percent more than a new customer just makes sense in 2023.
To access additional tips on growing customer loyalty, download a copy of our Four Ways to Future Proof Your Affiliate Network ebook.
2 – Leverage advanced insights
Speed up access to accurate data including essential metrics, KPIs, and custom reporting dashboards in order to identify new, revenue-generating opportunities. This growth intelligence empowers data-driven decision making and the ability to remain competitive in a fast-paced, and evolving affiliate industry.
3 – Unlock greater campaign control
Manage an affiliate program in-house to access flexible commission structures, real-time performance insights, and more fruitful, direct affiliate relationships to increase profitability. By managing your affiliate marketing program in-house, you also avoid expensive network fees, which usually amount to an additional 10-30 percent on top of the commissions owed to affiliates.
Learn more about the benefits of an in-house affiliate marketing program here.
4 – Deliver a great affiliate experience
Build strong affiliate relationships by implementing affiliate technology that includes a customizable affiliate portal. This enables you to enhance communication with your affiliates, create greater transparency, and deliver a self-service affiliate experience. These combined benefits fuel campaign optimizations that lead to increased revenue.
Discover the essential affiliate portal features you need to deliver a best-in-class affiliate experience here.
5 – Launch an affiliate referral program
Incentivize existing affiliates to refer other partners to your affiliate program to generate additional traffic and revenue. Affiliate referral programs help foster new partnerships and boost profitability, thus enabling marketers to streamline affiliate recruitment and more effectively allocate resources. There are a myriad of ways to customize an affiliate referral program that works for your business including unique payout methods, different incentives per affiliate, referral duration based on seasonality, plus so much more!
Check out this blog to learn everything you need to know about creating an affiliate referral program.
6 – Diversify partners and verticals
Guarantee the flexibility and long-term viability of your affiliate program by incorporating a wide array of verticals and partners to ensure business continuity even in a shifting economy. Three actionable ways to begin diversifying your program include identifying verticals with similar audiences, pinpointing verticals with a similar conversion path, and partnering with different types of affiliates (influencers, bloggers, etc).
Explore practical next steps to diversify your affiliate program right here.
Your plan for success
Congratulations, you’re well positioned to make excellent strides toward increasing your affiliate marketing revenue. For more information on effective strategies, tips, and best practices to optimize your performance, check out our resources here.