Opinions expressed by Entrepreneur contributors are their own.
We’ve all been there. You invest hours into crafting your brand, diligently expanding your audience, yet your revenue isn’t reflecting the time and effort you’ve put into your platform. All major brands utilize partner marketing, which is significant in growing brands and gaining revenues.
Partner and affiliate marketing play a crucial role in brand growth by leveraging the influence and reach of trusted partners. Companies can tap into new audiences by collaborating with them, increasing brand awareness and driving customer acquisition. This strategic approach allows brands to benefit from the credibility and expertise of their partners, resulting in expanded market reach and ultimately higher revenues.
Below are seven things to remember while working with marketing partners for your company.
1. Redefining high-earning potential
The commonly held belief that fashion and beauty are the most lucrative sectors in affiliate marketing is becoming obsolete. While these areas maintain a significant market share, the high competition they attract can make differentiation challenging.
Special events are also worth considering. During Black Friday 2022, for instance, event tickets, various online services and PC and mobile games claimed the top three positions based on our data. These niche sectors have vast potential for affiliates willing to explore them.
2. Fostering niche communities for greater profit
Traditionally, the recipe for maximum income in affiliate marketing revolved around maintaining a wide audience with high engagement. The landscape has evolved today, with the biggest profit potential now lying within fast-growing niche sectors.
Growth of partner sales in niche segments worldwide in 2022 demonstrates this shift, with niches like Console and PC Games seeing a 35% growth, Mobile Services and IT services growing by 95%, and even Movies & Music growing by 33%, according to ConvertSocial data.
Such trends indicate you can unlock significantly greater profits by building a loyal, engaged community in a specific niche.
3. Engagement is the new currency
Engagement has emerged as the new currency in the digital space, outweighing the importance of audience size. Our report shows that even creators with smaller audiences can earn significant sums, provided they maintain high engagement levels. For instance, one of our client’s Telegram channels, with around 200,000 users focused on gadgets, earns $2,000 monthly.
In contrast, another fashion-focused channel with only 8,200 subscribers made a whopping $6,400 in the same period. This underscores that an actively engaged audience, regardless of its size, is the cornerstone of a successful affiliate marketing strategy.
These statistics demonstrate that the affiliate marketing landscape is undergoing a transformative shift, opening up new avenues for profit and engagement. As we step into this new era, it’s essential to adapt our strategies to these changing dynamics. After all, success in affiliate marketing is no longer just about casting the widest net — it’s about casting the right one.
4. Monetizing blogs — Quality over quantity
While monetizing a blog can seem daunting, it’s far from impossible. The key lies in focusing on creating and delivering real, valuable content that goes beyond mere advertising. This approach builds a loyal readership and makes your blog more appealing to advertisers looking for high-quality, engaging platforms to showcase their products or services. Rather than churning out countless low-value posts, invest time and effort into producing fewer but high-quality, insightful articles that resonate with your audience.
5. Fair revenue share — the new norm
In the early stages of content creation as a recognized profession, creators often found themselves at the short end of the stick when it came to revenue generation. The platforms hosting the content usually claimed the lion’s share of profits, leaving creators with a meager sum for their efforts. This imbalance in revenue distribution made it incredibly challenging for creators to generate a significant income, often stifling their creative potential and enthusiasm.
Today, major content hosting platforms have introduced improved revenue-sharing models. These new agreements often involve a higher percentage of ad revenue allocated to creators, more monetization opportunities, and even bonuses based on engagement or view counts.
Such changes have helped boost creators’ income and created a more appealing industry for content creators. By recognizing and rewarding quality content creation, platforms invest in a future where creators can thrive, producing richer and more diverse content. This progressive move has thus set the stage for a new era of content creation, characterized by fairer revenue distribution and a greater focus on quality.
6. Data diving for sales success
The key to future sales success lies within the depths of audience and demographic data. By identifying your audience’s preferences, behaviors and habits, you can tailor your content and marketing strategy to better align with their interests, consequently boosting your sales. Engagement data is your key to sales success.
7. Branding relationships are more than money
There’s more to a brand relationship than just monetary compensation. Influencers can leverage these partnerships to garner additional coverage and audience reach. Plus, a host of intangible perks and networking opportunities are only available to creators with robust relationships with these brands.
Brands are also recognizing the value of investing in top creators. For instance, GoPro hosts a large-scale creators summit with all expenses paid and makeup brand Tarte sent a brigade of their creators to the Turks and Caicos for an “influencer retreat.” This recent collaboration with brands and their creators garnered significant attention, demonstrating how strategic brand relationships can yield benefits beyond financial gains.
A shift is taking place in the partner marketing space. New, more effective methods replace old strategies prioritizing quality content, audience engagement and a deeper understanding of data. It’s time to adapt and tap into the rich potential of this new era. To build a successful brand means to build a mutually beneficial alliance that can amplify your reach, enhance your reputation, and generate greater opportunities in the future.