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Affiliate Marketing For Startups – Yes Or No?

Andrej Csizmadia

Andrej Csizmadia

Last modified on April 16, 2014 at 1:00 pm

Clients have been asking me whether affiliate marketing is a good strategy for startups and other businesses trying to grow. They often sound sceptical but my answer is always YES. If I had to point out any disadvanteges of starting an affiliate program in an early stage of growth, only very few would come to my mind, if any. I will get to these later, let’s focus on the advantages first.

The Pros Of Running An Affiliate Program

To make sure that we’re all on the same page, let’s see Wikipedia’s definition of affiliate marketing:

“Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts. The industry has four core players: the merchant (also known as ‘retailer’ or ‘brand’), the network (that contains offers for the affiliate to choose from and also takes care of the payments), the publisher (also known as ‘the affiliate’), and the customer”.

– Wikipedia, The Free Encyclopedia

For those of you, who prefer visualisation over text, here’s a short video on what affiliate marketing is and how Post Affiliate Pro works:

Post Affiliate Pro™ | Voted Best Affiliate Software

Why Is Affiliate Marketing A Good Option For Startups?

According to eMarketer, “46% of marketers consider affiliate marketing to be “very cost effective” as it relates to customer acquisition, second only to email”.

  1. You only pay for results
    Unlike traditional advertising methods, affiliate marketing is the most cost effective one. If your affiliates don’t perform and bring leads, they simply don’t get paid. Have you ever received a check from Google saying that your AdWords didn’t bring enough revenue so they’re giving you your money back? Me neither.
  2. You don’t spend time on advertising
    Let others do the work for you so you can worry about other, more important issues, or issues that you have skills for. You don’t need to be a marketing expert, neither you have to learn any marketing methods to run an affiliate program. Simply setup your affiliate program and then payout your affiliates once a month. That’s where your job ends.
  3. Get lots of traffic and improved SEO
    Lots of affiliates generate lots of backlinks. In addition Post Affiliate Pro makse sure that all of your links are SEO friendly.
  4. Find Super affiliates and you’re golden 
    You don’t need hundreds of affiliates to succesfully run an affiliate program. In general, most of businesses have 3-5 Super affiliates who generate more than 50% of the revenue from their whole affiliate program.

What are super affiliates and how can I find them? Stay in touch, subscribe to our newsletter and you will find out in our next week’s blogpost! Meanwhile you can test Post Affiliate Pro in a free Demo.

Andrej Csizmadia

Andrej Csizmadia

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