Affiliate Marketing: How to use Affiliate Networks

Did you know that LEGO, one of the world's most iconic brands, doesn't spend millions on advertising campaigns to reach more people? Instead, it uses affiliate marketing to significantly expand its reach. Through its affiliate programme, it allows content creators and specialised sites to promote its products and receive a commission for each sale. This not only expands its global presence without major advertising investments, but also offers affiliates the opportunity to generate additional revenue.

Many companies, both large and small, follow this same model to increase sales with minimal risk. Although it may sound complicated, the truth is that implementing an effective affiliate marketing strategy is much easier than you think if you have the right tools and knowledge.

In this article, we'll explain how affiliate marketing works, its benefits, and some practical strategies to make the most of it.

What is Affiliate Marketing?

Affiliate marketing is a model in which companies reward third parties (affiliates) for directing traffic or generating sales through promotional links. Affiliates can be influencers, specialised blogs or small websites that, y promoting a company's products, earn commission for each conversion.

One example is influencer Sara Dietschy, who uses affiliate links in her tech videos. Her audience buys the recommended products through these links, and she receives a commission. This model is attractive for companies, as it expands their reach without the need for costly advertising campaigns.

How does Affiliate Marketing work?

Although it may seem complex, affiliate marketing is a simple process that any business can implement with the right tools. It is based on a partnership in which all parties involved benefit from the conversions generated. The process involves four main components: the advertiser or merchant, the affiliate, the affiliate network, and the consumer.

The advertiser is the company that promotes products or services and offers commission for each conversion. The affiliate is the content creator, influencer or webmaster who promotes the advertiser's products on their platform in exchange for a commission. The affiliate network is the platform that facilitates the connection between advertisers and affiliates, managing sales and commissions, with examples such as Amazon Associates or Rakuten Marketing. 

Finally, the consumer is the end user who makes a purchase or takes action through the link provided by the affiliate. This process, when implemented strategically, is extremely effective, does not require large upfront investments, and enables companies to reach new markets without costly advertising budgets.

Benefits of Affiliate Marketing

Affiliate marketing offers multiple benefits for all parties involved, creating a win-win structure. 

For affiliates, it offers the possibility of generating passive income without the need to invest in products or stock. In addition, affiliates enjoy flexibility, as they control which products to promote, adapting to the needs of their audience. Another advantage is the low risk, as they do not bear the costs of production or distribution, but merely promote the products. 

For merchants, affiliate marketing provides an extended reach because, by partnering with affiliates, companies gain access to audiences they would not be able to reach on their own. Affiliate recommendations are often perceived as more trustworthy than direct advertising, which increases brand credibility. They also only pay for conversion, reducing risk. 

Affiliate networks also benefit by facilitating the connection between merchants and affiliates, simplifying management and providing tools to measure performance and optimise campaigns. 

Effective Affiliate Marketing Strategies

Implementing an affiliate marketing strategy requires a planned approach. The selection of profitable niches is key to ensuring success. Both merchants and affiliates should select products that suit their audience. For example, the tech market is a niche in which affiliates can generate large sales by leveraging their credibility in the sector. 

In addition, the creation of quality content is essential to generating traffic and conversions. Affiliates should create relevant content such as reviews, tutorials or product comparisons, which not only informs but also engages the audience. Good content is key to converting clicks into sales. 

It is equally important to use tracking tools and platforms to track sales and measure campaign performance. Platforms such as Amazon Associates or CJ Affiliate offer robust solutions that enable merchants and affiliates to monitor conversions in real time and adjust their strategies based on results. 

Examples of Successful Affiliate Marketing

Relevant cases of successful affiliate marketing include the Shopify Affiliate Program and the Udemy Affiliate Program. 

Shopify has developed one of the most successful affiliate programmes in e-commerce. Affiliates promote Shopify and earn commission for every new customer who signs up through their links. This strategy has been instrumental in Shopify's global growth. 

Udemy, on the other hand, has used affiliate marketing to reach students around the world. Its programme enables content creators to generate revenue while promoting relevant courses to their audiences, helping the platform's global expansion.

Popular Platforms for Affiliate Marketing

There are a number of specialised platforms that facilitate the management of affiliate programmes:

1. Awin: Global affiliate network connecting advertisers and affiliates in sectors such as fashion, travel and finance.
2. ShareASale: Popular platform for physical and digital merchants, offering advanced tracking tools.
3. Impact: Focused on affiliate marketing automation and optimisation, with tools for large campaigns.
4. FlexOffers: This connects advertisers with a diversified network of affiliates, offering support in sectors such as finance and e-commerce.

Conclusions

Affiliate marketing is one of the most cost-effective and efficient strategies for businesses looking to increase their reach and generate revenue without large upfront costs. Collaborating with affiliates who already have engaged audiences enables brands to expand quickly. If you have not yet incorporated this strategy, now is the time to do so and take advantage of the tools available to maximise your performance.

At the Universidad Internacional de Valencia (VIU), of Planeta Formación y Universidades, we understand the importance of strategies such as affiliate marketing in the success of our students in the business world. Through our programmes, such as the Master's Degree in Digital Marketing and Analytics and the Bachelor in Marketing, we provide our students with the necessary skills and knowledge to implement digital marketing tools and strategies effectively, enabling them to stand out in a highly competitive business environment.