Having access to large group tools can be scary for small businesses. Indeed, the budget is not the same between a multinational and a small online business.
Thus, when we talk about the possibility for e-merchants to benefit from the same power in communication as a large group without severely denting their cash flow, some do not have confidence. And we can’t blame them.
However, this is to misunderstand the very principle of affiliation. Because yes: for VSEs, affiliation is an interesting and profitable solution .
Affiliation or performance-based pay
Although the concept of affiliation was born long before Amazon, it was this GAFA that popularized it. Indeed, Amazon offered many partner sites (affiliates) to promote certain specific products. For each click or sale generated (depending on the program), the affiliate remunerates the affiliate in the form of a commission.
Thus, by opting for a give-and-take partnership, Amazon has made it possible to multiply its turnover while redistributing part of it to its partner sites.
Given the success of this performance-based program, affiliation has spread on the web and has continued to evolve. Thus, today, everyone can access it, regardless of size and purpose.
From a simple banner to discount coupons, including the possibility of appearing on price comparison sites or the publication of sponsored articles : everything is possible. Not to mention the fact of appealing to stars of social networks to talk about yourself.
And all this with an initial investment almost nil (only the expenses related to the creation of the promotional tool are to be considered) and a controlled expense . Indeed, what pleases so much with affiliation is the fact that it is able to self-finance quickly since you will only pay your affiliate if he meets the objective set . Which, in turn, makes him want to do his best to get people talking about you.
How to use affiliation when you are a small TPE?
When you’re running a small business, there are many things to manage at the same time. Very often, we favor the main tasks, which generate income. And we turn to all the optional elements (such as marketing and communication) when we have time.
Therefore, it is obvious that SEO is not on the agenda. Time-consuming and long to set up, small structures prefer SEA; more immediate (but also more expensive). Especially to make people talk about you during important events (sales, end-of-year celebrations, back to school, etc.).
However, it would be a shame not to take advantage of the strike force of affiliation , which you can also combine with paid referencing if you wish. Indeed, these two business levers are not necessarily competitors. On the contrary, they complement each other very well.
You have two choices: take care of finding the right partners yourself or entrust the task to a professional who knows your needs perfectly.
About us, as an agency specializing in the travel, fashion and home sector, we know precisely your expectations and your needs. This allows us to help you design coherent and impactful communication materials . But also to study with you the right distribution strategy while using the best platforms and the best partners.
TPE and affiliation: a few figures to know
Every year, the CPA (Collective For Digital Marketing Actors) offers us a barometer of affiliation which is interesting to look into.
We see there, in fact, that for 1 euro invested, it is possible to generate 27€ in the travel and tourism sector, 19€ for the decoration and home sector and 8€ for the clothing and accessory sector . But not only ! Because, taking the Home and Garden sector as an example, it has been identified that the average basket has increased by €57 between 2017 and 2018 . And all sectors are also experiencing an increase, either in the average basket, or in the conversion rate or in the ROI of campaigns.
To find out more, feel free to download CPA’s 2018 Affiliate Barometer. It is located here .
Thus, by focusing on VSEs, it has been verified that small e-merchants who have used affiliation have experienced a 20% increase in their turnover.
In turn, if you want to improve your online visibility and/or your turnover, do not hesitate and entrust us with the creation and distribution of your affiliate campaign. To find out more about the technology used and the process, contact us now.