Avoid the affiliate marketing pitfalls

By | October 29, 2019

“Build quality links with affiliate marketing. Avoid poor links which have given affiliate marketing a bad name“

Quality affiliate marketing

Affiliate marketing is a type of performance-based marketing where an affiliate is rewarded for each visitor that it directs towards the retailer website and receives a financial reward for doing so. The affiliate does the marketing to attract the customer to its site and then links it to the retailer site. In many cases, these are traditional marketing techniques. For this reason, also affiliate marketing is sometimes confused with referral marketing which also drives customers to the retailer, but the relationship is much more based on trust and relationships rather than purely on financial reward. In order to have a good effect, one should select affiliate marketing partners which operate in an area close to that of the retailer. For example, if you are working in the automotive area another automotive partner might be a better candidate than a flower growing company. Affiliate marketing can be considered another channel for reaching your customers just like the other channels that are available online such as Search engine optimization, e-mail marketing and even display marketing. Affiliate programs require a significant effort to maintain and it is unusual to get good results using automation or with poor management. Affiliate marketing has received a bad name due to some uncontrolled affiliate programs. These used spamming, trademark infringement, false advertising, cookie cutting, typosquatting, and other unethical methods.

Affiliate marketing example:

screenshot and credit by autocom.dk for example
screenshot and credit by bilpriser.dk for example

Here an example from a comparison site for car prices in Denmark. Bilpriser.dk is becoming dominant in this area and attracts about 28.000 monthly visitors. They determine prices for used cars and facilitate selling cars by advertising them on their website. They have a co-operation with autocom.dk who also facilitate selling cars but through car auctions. Autocom has used bilpriser to attract traffic to their site through affiliate marketing. You can see this on the screenshots on the right. Bilpriser customers doubled conversion to 10%. More and more people are trusting the current online technology and are shopping and doing business online and these allow further professionalization of affiliate marketing. This trend has already been completed in offline media where advertising is already professional and competitive. This will mean that competition will increase and it will be more difficult to get noticed but also the reward for succeeding will be greater.
It is possible these days to use outsourced (affiliate) program management (OPM) companies. OPM companies perform affiliate program management for the retailer as a service. This is the equivalent of the advertising agencies promoting a brand or product in offline marketing.

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