Diving into the World of Affiliate Programs for Small Businesses

Navigating the online world can be intimidating, especially when it comes to starting a small business. Aside from the hundreds of details small businesses need to keep in mind, there arise two primary concerns. The first is how a small business can establish its brand. The second is how a small business can drive more traffic to its website and, consequently, generate more sales. 

A simple solution to these problems can be found in the world of affiliate programs. Affiliate programs allow small businesses to establish connections with affiliates who are providing merchants with a web platform. 

Below, we’ll explore what an affiliate program is and examine how they can be used to drive organic traffic to a small business’s website. 

The Benefits to an Affiliate Relationship

Aside from sales, there are a variety of benefits to affiliate programs. For starters, they allow companies to establish relationships and connections with other websites. Doing so allows small businesses to reach a variety of consumers they may have otherwise missed. Moreover, as consumers see more ads for a company, they become increasingly familiar with the brand and begin to trust that it is a reputable company. 

Over 80% of brands use affiliate marketing. This statistic not only reinforces the fact that multiple companies are involved with these programs, but it also shows how reputable and reliable this marketing strategy is. If that isn’t convincing enough, it is also important to note that “advertisers generate between 15% and 30% of all sales from affiliate programs” . At the very least, affiliate programs are sure to drive more traffic to a company site.

Affiliates & Merchants; their Relationship 

As stated above, there are two key players in an affiliate relationship. The first is the merchant, who is the person hoping to sell their product. The second is the affiliate, who is the person providing the web platform. Within an affiliate relationship, the affiliate is offering their website as an access point to the merchant’s site by posting ads and direct links to the merchants homepage or products. 

Once a consumer arrives at the merchants site via the affiliate ad, they have the opportunity to examine the merchant’s products and brand. Should this person purchase an item, the merchant then pays the affiliate a pre-established commission . 

The beauty of this arrangement is that each merchant is not committed to only one affiliate. In fact, a merchant could establish connections with various affiliates all at once, thus driving even more traffic to their site. Furthermore, all businesses have the opportunity to become either an affiliate or a merchant. 

If, for instance, a small candle business wishes to generate more sales, they may opt towards becoming a merchant. In doing so, the small business can guarantee that consumers will have direct access to their products. They also have the opportunity to negotiate commission rates with affiliates to ensure they are generating profits from within this affiliate relationship. 

On the other hand, say this same small candle business was looking for a way to establish connections with other companies and simultaneously earn profit. In this case, the business may decide to become an affiliate, wherein they would advertise other companies on their website, generate sales for them, and, as a result, earn a commission. 

Establishing an Affiliate / Merchant Relationship 

Establishing an affiliate / merchant relationship can seem daunting. Of all the hundreds of merchants and affiliates out there, how is one to navigate which companies to contact? This is where affiliate programs come into play. 

An affiliate program is, in essence, a platform that allows select merchants and affiliates to interact with one another. The affiliate program screens all businesses and websites so as to ensure that each brand is legitimate. These programs help businesses set up their affiliate sites, track ads and sales, determine commission rates, and navigate which affiliates or merchants seem most appealing to each respective brand. 

There are a variety of affiliate platforms online. Some of the top players include ShareASale, Awin, Rakuten, and CJ Affiliate. Each program offers a variety of online services and tools so as to ensure that each affiliate program and relationship is as strong as they can be. 

For a more comprehensive guide on which affiliate program may be the best fit for your small business, examine the “About” pages of each platform to develop a better understanding of each program. 

As a social impact initiative, Rem and Company also offers free consulting services and resources to small businesses and nonprofits impacted by COVID-19. Our pro-bono consulting teams provide small businesses with the opportunity to identify and prioritize issues facing their business, propose innovative strategies, and facilitate execution. If you are a small business or nonprofit in need of assistance, learn more about how we can help.