Affiliate marketing dates back to the late 90s but it has exploded in popularity and growth in recent times. With social media coming into play, monetizing engagement has become much easier. The estimated total spending on Affiliate Marketing in 2023 is $10 billion and 76% of publishers find the best benefit of affiliate marketing is easy monetisation.
Benefits of Affiliate Marketing for Publishers
The unique concept of the publisher getting paid every time a reader clicks on an advertised product link and purchases it makes it a fantastic way to leverage the expertise online to earn additional income. What makes it a great channel for revenue generation is that it drives awareness and keeps users engaged throughout the sales funnel. Here are a few more reasons:
Diversifies revenue streams: Affiliate marketing allows publishers to diversify their revenue streams by earning commissions on products or services sold through their referral links.
In fact, 94% of publishers do not adhere to just one affiliate marketing network (influencermarketinghub). In this way, they can compare program performance and utilize the unique features of each affiliate network by maximising their earnings and reach.
Offers value to readers: Affiliate marketing allows publishers to offer their readers additional value by introducing them to products or services that may be of interest to them. Recommending products or services that align with the audience’s interests can increase audience engagement and establish trust.
Low barrier to entry: It requires little to no investment, making it an accessible monetization option for new or small publishers. It is often free to join which makes it an attractive option for publishers who may not have the resources to invest in other monetization strategies.
Performance-based model: Affiliate marketing is a performance-based model, meaning publishers only earn a commission when a sale is made, making it a low-risk, high-reward strategy. They have a direct incentive to create high-quality content and drive targeted traffic to the merchant’s website in order to maximize their earnings. The merchant can increase their sales and reach new customers through the publisher’s marketing efforts making affiliate marketing a win-win situation for both.
Mastering Affiliate Marketing: The Wirecutter’s Tactics for Success
Most publishers often look up to and try to draw inspiration from The Wirecutter because it has mastered the art of affiliate marketing. With high influencing power it is constantly creating reviews and content for customers with purchasing intent.
The tactics that Wirecutter use is easy:
- High-quality content with affiliate links: It uses well-written text that includes affiliate links. The structure of the content instils in readers a sense of confidence that they are perusing a review of great authority. This helps people buy the right products with appealing content.
- Maximizes affiliate link usage: It uses every single opportunity to add its affiliate links to its high-quality content with no buzzing ads making the user experience smooth and easy.
- Disclaimer that builds transparency: The affiliate disclaimer present on all pages shows transparency gaining the trust of their readers.
- Newsletter: The Wirecutter allocates more resources towards acquiring newsletter subscribers as they tend to spend a greater amount of time on the site, click on more links, and have a higher lifetime value compared to other readers of the website. Therefore, the team believes it is worthwhile to invest more time, money, and website space upfront in order to gain these valuable subscribers.
Wirecutter’s Successful Affiliate Marketing Strategy and Revenue Growth
The success of The Wirecutter’s affiliate marketing strategy can be attributed to its focus on in-depth product reviews and recommendations, as well as its transparency with readers about the use of affiliate links. By providing high-quality content and disclosing affiliate relationships, The Wirecutter has built a level of trust with its audience, which has led to increased conversions and revenue.
- Between its establishment in 2011 and 2016, the company managed to earn $150 million in revenue through its affiliate programs in partnership with various merchants.
- There was almost 2.8 more million traffic in 2022 than in 2021.
Despite the Covid-19 pandemic, Wirecutter saw a 20% increase in affiliate revenue during the Q4 of 2022.
Tips for a Successful Affiliate Marketing Program for Publishers
In order to have the right affiliate program, there’s not much that needs to be done and there is no one-size-fits-all affiliate strategy. But you can always follow the content publishers’ journey that ensures a successful affiliate program.
- Identify relevant and popular merchants, sign up for their affiliate program and get approved.
- The focus should be on producing high-quality and engaging content that will attract readers and encourage them to make purchases. Strategically place the affiliate links within the content to encourage clicks and conversions. Well-written and informative content with relevant links can go a long way.
- Track the performance of the affiliate links using specialized tracking tools provided by the merchant or third-party affiliate networks.
- Optimize the content placement and link strategy based on the performance data to improve the conversion rate.
Publishers who get their strategy in place from the start, see appropriate revenue growth along with a subscriber base. But despite having years of experience, many publishers fail. They fail to understand their audience, and their preferences, add value, and get them to take a specific action. Successful publishers not only provide great offers to their readers but also maintain a favourable relationship with their various brands. They can form partnerships that will benefit both for years through affiliate marketing.
Following the footsteps of Wirecutter and focusing on producing engaging content and strategically placing affiliate links, publishers can diversify their revenue streams and offer value to their audience. With proper tracking and optimization, it can be a low-risk, high-reward strategy for publishers to increase revenue and establish long-term partnerships with readers and merchants.