Affiliate Marketing – New Trend in Marketing

In a report on VTV1, a new type of Marketing – Affiliate – was mentioned, making it so that although it has just been introduced to Vietnam – affiliate marketing – has broken through to become the form of product and service promotion chosen by most suppliers.

1. What is Affiliate Marketing?

Afiliate marketing – also known as affiliate marketing – is a form of promoting a supplier’s products or services through partner websites to users. In general, Affiliate marketing is similar to the brokerage model in the traditional environment but is more optimized so that users can perform it in the online environment through links.

Many studies have proven that Affiliate Marketing is one of the best forms of marketing in sales and increases conversion rates. This is a powerful marketing channel because people often trust the opinions of people they know and trust such as family, friends, celebrities on social networks or stars.

2. Affiliate marketing model and benefits.

This model consists of 4 main components:

• Advertiser: also known as a Product and Service Provider, with the desire to increase online business efficiency by paying third parties to introduce their products.
• Publisher: those who directly promote the Supplier’s products through online channels to attract customers to buy the Supplier’s products
• Affiliate Network: an affiliate marketing network as an intermediary connecting Suppliers together, create links, advertising banners for products… play a role in evaluating the effectiveness of promotion, resolving disputes, collecting money and paying commissions to participating parties.
• User: are those who directly use the product or service of the supplier through images, content posted on the website, blog or some other digital marketing channels.

The benefits of Affiliate marketing are quite obvious.

• The first benefit it brings is optimizing advertising costs, Affiliate operates on the advertising fee model – Cost per Action – meaning that the supplier only pays a fee when the click completes the goal. Unlike Google Ads which charges per click or Facebook advertisingok is calculated based on the number of impressions, Affiliate only charges commission when you sell products.
• Create convenience and flexibility: Affiliate marketing is almost not bound by the working environment, working time, flexible in choosing products suitable for the market at each time.

3. Is Affiliate Marketing difficult or easy?

Although it is a marketing model that brings many benefits and profits to participants, according to data from warriorforum.com the failure rate when starting with affiliate marketing has reached 95%. Therefore, you need to prepare yourself with the skills and mindset:

• Affiliate marketing requires a process to build a brand and optimize appropriate marketing strategies to attract more potential customers. In addition to spending time, it also costs money to maintain and develop these channels.
• In Affiliate marketing, all products and services can be marketed, so sometimes because of high commissions, people choose to ignore products that can easily reach potential customers. Focusing on a specific service industry is equally important in Affiliate.

4. Ways to increase website traffic when doing Affiliate Marketing

• SEO: no matter what field or industry you work in, doing SEO is the way to help you increase website traffic in the most long-term and sustainable way because when SEO keywords are successful on Google, the traffic to your website is completely free and the level of reaching potential customers is relatively high.
• Run Google Adwords ads; This form is applied to reach customers the fastest when your affiliate website is too weak, SEO cannot reach the top immediately. Even though you get to the top right away, you need to carefully consider the cost compared to the commission received from the product.
• Find traffic through social media channels: share, articles with valuable, positive messages to customers. Create multiple social media accounts to increase brand awareness. Attach website links to social media sites…

Affiliate Marketing is becoming a popular trend of Marketing Online. To be able to implement Affiliate Marketing, you must have a solid understanding of SEO, Google Adwords, and Social Media.