My experience with affiliate programs
The idea of affiliate programs always gave me mixed feelings but I’ve seen how they can be helpful if done correctly. I wanted to share some insights about affiliate marketing and how it can help you if you are in a small business or considering the idea. I have been considering working with an affiliate to reach a wider audience for my Startup & Business Blueprint Course for Creative Muslimahs so the idea of this post came to mind.
Affiliate marketing or programs can look different depending on the terms but essentially, the idea is to offer exposure of your product or service through another vendor / customer / business by offering a small percentage of any sales the “affiliate” makes. Sometimes businesses give their own marketing materials, graphics, banners, etc. to the affiliate to use in their advertising, and other times, the affiliate can simply share their unboxing experience or personal use of the item along with a discount code for anyone wishes to purchase. The affiliate can earn anywhere between 10-20% of the sale earnings depending on the terms while marketing a product for their audience and building their own skills with reviewing and sharing quality products.
For small businesses, this can seem like an attractive option to spread the word about your business to a larger audience; however, it can be a bit tricky without a thoughtful approach.
Here are some tips if you are considering affiliate programs:
Make sure your product / services are aligned with the affiliates’ overall purpose and values.
How? Take a closer look at their social pages, website, posts, and stories. Ask them why they want to work with your brand? Do you see an alignment with your product and offer? Is there an intersection between your business purpose / values and what you see as their purpose? Is your product price in line with the affordability your affiliates’ following would be accustomed to (not a huge factor but important to consider)? Is the affiliate within the shipping zone that you ship to? Sometimes it can be easy to see an alignment because that is what we want to see even if it really isn’t there.
Take time to assess your overall margins for your product, after accounting for affiliate sale earnings.
How? Determine how much you will earn from sales, after the affiliate earnings are paid out. Is your product priced appropriately for you to make a reasonable profit?
Create clear terms and guidelines if you agree on working with an affiliate.
How? What percentage of each sale will go to the affiliate? For how long with the affiliate program last? One month? Two Months? Longer? When will you as the business owner transfer any accumulated affiliate sale earnings to the respective affiliate? Will it be monthly or bi-weekly? Will you e-transfer or send through PayPal? What discount code can the affiliate share with their audience? Can the audience use the code for any products on your shop or is it specific to a certain featured product? Having a clear understanding between both parties will ensure a smooth and beneficial relationship inshaAllah.
Affiliate marketing is something I have tried in my small business and although I saw its benefits, I also learned through my mistakes as well, (hence, this post lol). When I was selling my first batch of planners in 2017, I worked with an affiliate who had a large(er) Muslimah following on Instagram and I was hopeful that my product would be appreciated by her audience, but the sales were not nearly enough to make it a beneficial relationship long-term. I learned quickly that I had assumed my product would benefit followers who were mostly connected with the affiliate through their love of a specific cuisine and just because they were mostly Muslim women did not automatically mean my planner would be the right fit for them. Since then, I have been very selective about who I build an affiliate relationship with.
I’ve always found 10% to be a healthy start for affiliate earnings although some companies go up to 15% or 20% if their profit margin is high enough. This would be something to assess in question #2.
When it comes to graphics, some companies offer a nice selection of their own affiliate links, web banners, and promo graphics for affiliates to use. But, this isn’t necessary if you are just starting out. Many affiliates may just use the IG story tools, blog posts, and their own marketing strategies to share about your product along with the code that you provide for their customers to use at checkout. If you choose to expand your affiliate program, you may want to think of a nice package of graphics and a fancy spreadsheet to keep track of affiliate and earnings, but these tips are for the one-off affiliate you may work with starting out.
Have you used affiliate programs in your business? Do you love it, find it to be more work than you want to do lol? Let me know your experience and any other thoughts you have on this.
Till next time,
