1.866.215.1314

info@allinclusivemarketing.com

Top
Creating Incremental Revenue Growth in Affiliate Programs

Creating Incremental Revenue Growth in Affiliate Programs


Something that often comes up during the onboarding stage of a new merchant is, ‘Can the affiliate program effectively drive incremental growth? If so, how do we do that and how is it measured?’. These are great questions! Incrementality within the affiliate space is 100% measurable and possible if you know how to do it. To start, let’s cover the basics:

 

What is Incremental Revenue?
It’s the revenue you cannot attribute to any other channel and that you wouldn’t have received if you hadn’t participated in a specific activity. Many advertisers consider it to be revenue that can be attributed to ‘new customer sales’ or to users that were not previously planning on making a purchase from a specific brand.

How Can We Drive Incremental Revenue Up Using the Affiliate Channel?
It comes down to tactics and visibility. Gone are the days of using mostly Coupon and Loyalty sites within the affiliate program publisher base. It’s been a common trend over the last 5+ years for advertisers to want to shift publisher focus to a Content majority publisher base in an effort to drive those new customer sales. The problem with both tactics is that they ignore every other publisher type in-between. A truly healthy publisher base will include a mix of well-converting site types such as:

  • Coupon & Loyalty sites for fast conversions.
  • Strong Content, Blog & Influencer sites for the long-tail traffic & brand introductions.
  • Review & Comparison sites for brand awareness & education.
  • News/Media sites for big exposure opportunities.
  • Sub-Affiliate Networks for a wider audience reach.
  • Niche sites for targeted audiences & higher conversions.
  • Technology partners for tools like cart-abandonment messages, emails, etc.

Having a diverse publisher base is the foundation of creating an incremental revenue-driving affiliate program. Once that is in place, it’s time to focus on optimization and incentivizing tactics. This includes personalization- everything from recruiting new publishers to content articles, offers & sales, text links, banner ads, educational content, placement campaigns, commission structures, tracking models (first click, last click, multi-touch), etc.

Affiliate programs that are agile and open to trying new things such as API or custom widget creations for publishers, adding data feeds, or creating white label landing page solutions can be especially effective in the B2B, Travel, and SaaS industries.

I should mention here about the importance of network selection for incremental growth. The network an affiliate program is set up on is a key factor in the possibility of effectively:

  • Recruiting the right publishers for a program.
  • Tracking specific actions, customer types, attribution methods, and multi-channel attribution paths.
  • Commissioning levels with diverse possibilities.
  • Reporting attributions and KPIs effectively.
  • Customizing offers, newsletters, promo codes, etc.

How Can We Calculate Incremental Revenue?
Everything you want to attribute to the affiliate channel and for program optimization efforts should be measurable.

Step 1: Decide how you want to measure ROAS/ROI.
Step 2: Measure & test within the affiliate program.

Creating Incremental Revenue Growth in Affiliate Programs

How to Determine ROI/ROAS:
ROI = (Revenue – Ad Spend)/Ad Spend
E.g. The ad spend for a promotion was $10 and it generated $20 in revenue. Minus the $10 spend from the $20 profit, then divide that amount by what you spent ($20-$10)/$10, this equals $1. So, your ROI would be 100% because you would earn $1 for every $1 spent.

ROAS = Revenue/Ad Spend
E.g. If the ad spend in the channel equals $20 for example, and the revenue generated equals $100, you need to divide the $100 income by the $20 spend, which gives you 5, or a ROAS of 5:1.

 

In the end, driving incremental revenue growth using the affiliate channel is possible, and can be very rewarding. However, keep in mind that brands who want to explore, test, and push forward their online marketing channels as a whole (not just Search or Email or Affiliate) will have the best results; as optimizing each digital marketing channel will only strengthen results over time.

If you have questions or would like help driving incremental revenue for your business, contact us today.


Client Experience Manager

Jules has been with AIM since 2012 and has specialized in Social Media and Affiliate Account Management, and now focuses on Onboarding New Clients. Jules’ previous experience has enhanced her ability to strategize and manage in-depth affiliate programs, often global-reaching, with ease.

12 Comments
  • Avatar
    Parbriz Bmw Seria 3 Touring F31 2013
    August 15, 2020 at 1:00 pm

    Greetings! This is my first visit to your blog!

    We are a team of volunteers and starting a new project in a
    community in the same niche. Your blog provided us
    valuable information to work on. You have done a marvellous job! https://vanzari-parbrize.ro/parbrize/parbrize.php

  • Avatar
    www.growproslawncare.com
    August 16, 2020 at 1:48 am

    hello there and thank you for your info – I’ve certainly picked up something new from right here.
    I did however expertise several technical points using
    this site, since I experienced to reload the
    web site lots of times previous to I could get
    it to load correctly. I had been wondering if your web hosting is OK?
    Not that I’m complaining, but sluggish loading instances times will
    often affect your placement in google and can damage your quality
    score if ads and marketing with Adwords. Well I’m adding this RSS to my e-mail and could look
    out for much more of your respective intriguing content.
    Ensure that you update this again soon.

  • Avatar
    Lunete auto volkswagen bora
    August 17, 2020 at 2:39 am

    You actually make it seem so easy with your presentation but I find this matter to be actually something which I think I
    would never understand. It seems too complex and extremely broad for me.
    I’m looking forward for your next post, I will try to get the hang of it! https://vanzari-parbrize.ro/lunete/lunete.php

  • Avatar
    Parbrize auto MAZDA 929 II Coupe HB 1981
    August 18, 2020 at 11:10 pm

    This is a topic which is near to my heart…
    Best wishes! Exactly where are your contact details
    though? https://vanzari-parbrize.ro/parbrize/parbrize-mazda.html

    • Avatar
      Ashley Klotz
      August 18, 2020 at 11:12 pm

      Great to hear! You can contact us here for more information.

  • Avatar
    5850ffbb7ffa
    August 29, 2020 at 11:01 pm

    I was very happy to uncover this site. I need to to thank you for your time due to this
    fantastic read!! I definitely appreciated every part of it and I have you bookmarked to look at new stuff on your web site.

    • Avatar
      Ashley Klotz
      August 31, 2020 at 4:19 pm

      Thank you for taking the time to read our blog. We appreciate the kind words and are happy to help!

  • Avatar
    Parbriz MERCEDES E CLASS Coupe C207 2020
    August 30, 2020 at 2:52 am

    Do you mind if I quote a couple of your posts as long as I provide credit and sources back to
    your site? My blog site is in the exact same niche as yours
    and my visitors would genuinely benefit from
    a lot of the information you present here. Please let me know if this ok with
    you. Many thanks! https://vanzari-parbrize.ro/parbrize/parbrize-mercedes.html

    • Avatar
      Ashley Klotz
      August 31, 2020 at 4:19 pm

      Hi! As long as you link back to our blog for proper credit, it’s not a problem. Glad you enjoy our content!

  • Avatar
    Read Full Article
    August 31, 2020 at 9:55 am

    I have fun with, cause I discovered just what I was looking for.
    You’ve ended my four day long hunt! God Bless you man. Have a great day.
    Bye

  • Avatar
    Margarito Gianni
    September 2, 2020 at 6:32 pm

    Hey, great artice about monitising your website. Nothing is really free thought right?

    • Avatar
      Ashley Klotz
      September 2, 2020 at 7:03 pm

      You could say that cause even if something doesn’t cost money, it still costs time. What are you referring to specifically with this article?