Why Your Brand Needs to Utilize Affiliate Marketing in 2022

Marketing is constantly evolving to meet the needs of the consumer. With so many different ways to market your product or services, it’s tough to decide which ones are the most profitable for your brand.

Now, there never is one correct answer, but with the direction of how marketing as an industry is going, it’s safe to make some calculated assumptions – one being affiliate marketing. According to Statista, affiliate marketing spending in the United States increased from $5.4 billion in 2017 to $8.2 billion in 2022.

Today we’ll be reviewing why affiliate marketing is beneficial to your brand.


What is affiliate marketing?

Affiliate marketing is a performance- based model of marketing revolving around revenue sharing. Brands reward third-party publishers or affiliates when they successfully generate traffic, leads, or sales to the brand’s products or services.

Most affiliate marketers share the same tactics to generate revenue for the brands they are partnering with, but it is important to know the several different marketing channels available to help advertise your products or services.

Benefits of affiliate marketing

  • Avoid up-front costs and decrease risk

A lot of brands that are still finding their footing in the marketplace do not have the financial resources for a full-fledged marketing or advertising department within their company – so you have to get creative sometimes. Affiliate marketing offers a cost-effective approach to getting your brands name out there without having to spend a fortune. Since affiliate marketing is based on a performance-based model, you only have to spend or compensate your affiliates when they generate a sale or lead.

  • Boost brand awareness

When you begin working with affiliates, you begin to open new doors for consumers to know what your brand is. Your affiliate’s main goal is to use their own following or audience they’ve already established to, at the very least, drive more traffic to your website. With other marketing and advertising strategies, you may not get the results you were looking for, but with affiliates and their pre-established following, the likelihood of establishing a presence for your brand is much easier and geared more toward the type of consumer who is more likely to purchase your product or service.

  • Better understand your customer

After working with affiliate marketers, you can begin collecting data to gain unique insights into who your ideal customer is. Where did they come from? Why are they buying? What are their needs/desires/interests and other demographics? All  of  this information can be compiled together to develop better ways to market and strategize your brand for the future to improve conversions.

  • Flexibility with marketing needs

Unlike other marketing tactics, affiliate marketing allows you to scale up or down your marketing efforts with little to no cost whatsoever. Since affiliate marketing is based on a performance model, you don’t have to worry about being locked into a service or spending X amount of dollars within a certain period  of  time for advertisements. As your brand’s marketing needs change, so can your affiliate program with no hesitation.

  • Higher ROI

Due to affiliate marketing’s low start-up and ongoing costs, it tends to have a much higher return on investment than a majority of other marketing strategies. This is in part because consumers are learning about your product from an affiliate they have come to trust, which also ties back into boosting your brand’s awareness.

The reality of affiliate marketing

With the unfortunate gaining traction of fake news or fake Amazon reviews, consumers are looking for someone to trust and look out for their best interest when purchasing a new product.

Due to this, affiliate marketing has quickly become a key component of brand’s marketing strategies. As the industry continues to grow and the benefits become apparent to businesses (no matter their size), you can anticipate seeing more brands implementing this strategy in their marketing methods in the near future.

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