Affiliate Marketing Software 2021: Comprehensive Guide

Not only Consumer brands, but also B2B companies leverage affiliates. B2B affiliate marketing helps increase lead generation, as long as your brand and your affiliates are aligned.

Affiliate Marketing gives confidence to the brand about ROI as the payment happens only after meeting a specific deliverable. While marketing budgets may change or face a reduction, the budget cap rarely exists for Affiliate Marketing because of the certainty of the outcome.

On top of the revenue or traffic benefits, the brands get the benefit of free brand exposure and targeted clicks, increased brand loyalty and retention too.

There is no other new customer acquisition strategy or marketing opportunity like it today!

The best performing affiliate programs are usually those who have an already established presence in several marketing channels with an engaged audience and a demonstrated conversation rate.

Agencies (also known as OPM) that can help manage the affiliates are another component that can make working with Affiliates easier, especially when the brand teams have limited bandwidth, expertise, existing affiliate relationships, so on. Agencies can help fill these gaps and drive much faster results.

In summary, Affiliate Marketing is entirely trackable, measurable, and transparent. Brands can now see the entire consumer journey, analyze it to decide where to invest more.

Affiliate Marketing Forums

Several forums focus on Affiliate marketing:

• Afflift

• STM Forum

• WarriorForum

• DigitalPoint Forums.

• WickedFire

• AffiliateFix

These forums are excellent sources of insights on different aspects of Affiliate Marketing.

Affiliate Marketing Software covers

• Affiliate Tracking

• Commission Management; Multi-tier commissions

• Multi-Level Marketing

• Fraud detection

• Banner Management

• Tax compliance management

• Social Media Promotion

• Analytics

• Transfer of funds from the brand to the affiliate, service provider, so on.

• Measurement (such as traffic tracking, leads, conversions)

Which are the industries that benefit Affiliate Marketing Software?

Almost all industries, from online gaming to property management, use Affiliate Marketing!

Affiliate marketing suits SaaS companies perfectly for several reasons, including the fact that the affiliates like recurring commissions, B2B level deals.

Per a study of affiliate marketing trends by Forrester Consulting, more than 80% of the brands use affiliate programs as of 2016.

While searching for the Affiliate Marketing Software, you need to upfront factor in

• Whether the management is done in house or using an agency

• Whether you want to have the full power of an Affiliate Marketing Platform or want a software that gives you more control. (The former is also the more expensive of the two).

• Ability to customize selection, recruitment, and registration of affiliates, including access control

• Information sharing portal

• Security and Fraud detection – not just flagging suspicious activity but also being able to take action

• Compliance (to regulations such as GDPR) requirements

• Need for simultaneous campaigns with different goals/segments, so on.

• Multi-tier marketing - affiliates recruiting other affiliates

• Multi-currency support

Creatives are among the most critical elements of affiliate marketing, so the platform must facilitate the addition, editing, and management of all the creatives needed.

It is essential to evaluate whether the particular affiliate marketing software has any vertical, geo, or another kind of a focus that makes it more suitable for your needs.

Finally, evaluate whether the benefits of AI in the selected software provide excellent ROI.

Challenges in Deploying an Affiliate Marketing Software Solution

Affiliate Managers need to ensure their mobile site tracks through their affiliate network, given the prominence of mobile today.

Taking full advantage of the data in the Affiliate program as well as with the Affiliates is not easy. Optimizing an on-going campaign requires that brands and advertisers share the collected, anonymous data with their marketing partners. Brands also use data to understand conversion costs, channel and partner category performance and efficiency, profitability across promotions, products, so on.

Tuning the attribution model is a tricky proposition, primarily when you operate more than one more of marketing or more than one type of affiliate. The attribution speed bump is one of the most critical challenges to resolve alongside click fraud, brand integrity, so on.

Getting the right balance between the publishers is non-trivial too.

Affiliate marketing can't deliver full benefits when sales and marketing channels are operating in silos.

Top-paying affiliates may require your site to have a certain amount of traffic each month or be choosy about content.

While creating your own affiliate program has benefits, such as reduced costs (of not having to pay the network), 1-1 relationship with the affiliates, and complete control of the program, it is a very highly resource-intensive and skill demanding work that you may not have the wherewithal to take on. Should you choose to go with an affiliate network, your costs will go up to the tune of 30% of the commissions paid to the affiliates.

While the software does address some of the challenges, some are intrinsic to the organizational structure, capability, so on.

Advances in Affiliate Marketing

Content and Creatives will remain an essential part of affiliate marketing.

AI Chatbots are taking root in Affiliate marketing. Recently, affiliate platform WebGains tied up with IBM Watson to create affiliate marketing’s first chatbot that can assist affiliate marketers in monitoring their performance and also help them communicate seamlessly with hundreds of publishers.

Today, savvier marketers are taking ownership of affiliate marketing and cutting out the middleman (aka the network), so they can develop better working relationships with affiliates. More so, brands using affiliate marketing strategies are focusing on collaboration.

With an increasing variance in customer journeys and with affiliate marketing contributing to only about 16% of the orders, tracking and attribution overhead is one of the biggest concerns

Affiliate Marketing and AI

In a large-sized Affiliate Marketing program, you would have thousands of data points to track and measure. AI embedded in the software can simplify the picture for you and scale optimization seamlessly.

AI and machine learning models will become an integral part of affiliate marketing, particularly in targeting a specific audience to cater to a particular niche.

AI-based recommendation engines can match brands and publishers that could conceivably work well together.

Nowadays, machine learning (ML) is increasingly a core part of lead generation platforms. And, in the case of Affiliate Marketing, it can help prevent and manage fraud.

AI chatbots are already in play in Affiliate Marketing.

ROI for Affiliate Marketing

Affiliate marketing is responsible for 16 percent of all online orders -- only 4 percent short of the performance of paid search ads.

Email campaigns were the undisputed king of digital marketing, but affiliate marketing stats show that the tables are turning. AM generates at least as much as email marketing, contributing to about 15% of the total revenue made through digital marketing efforts. (2018)

Affiliate marketing drove a 14X return for every $1 in marketing spend, according to a digital ad spend study by PricewaterhouseCoopers (PwC) and the IAB.

According to Conversant, affiliate referrals lead to purchases that have a 21% higher average order value. Additionally, customers acquired via affiliates generate an average of 58% more revenue than non-referred customers.

Here is an example of the ROI difference Google and Affiliate Marketing.