Last Updated on by Dan S
Originally Published September 30, 2019.
Are you looking for a surefire way to boost your sales and reach new customers? Look no further than setting up an affiliate program! In this blog post, we’ll take you through the steps to create an affiliate program that really works.
First, we’ll explain the benefits of setting up an affiliate program, including increased exposure and brand recognition. Next, we’ll guide you through the process of setting up your program, from choosing an affiliate platform to setting commission rates. We’ll also provide tips on how to recruit and motivate affiliates to ensure your program is a success.
We’ll also share best practices for managing your affiliate program, such as tracking sales and monitoring affiliate activity. Plus, we’ll provide examples of successful Shopify stores that have implemented affiliate programs to drive their sales.
Whether you’re a seasoned Shopify merchant or just starting out, this post will provide valuable insights on how to setup an affiliate program that works for your business. So what are you waiting for? Let’s get started!
What is an affiliate program?
If you’re a Shopify merchant looking to boost your sales and reach new customers, you may have heard about affiliate programs. But what exactly is an affiliate program, and how does it work?
In simple terms, an affiliate program is a marketing strategy that rewards affiliates for promoting your products or services to their own audience. Affiliates are individuals or businesses that partner with you to promote your products, and in return, they receive a commission for any sales they generate.
How does affiliate marketing work?
When you set up an affiliate program, you provide your affiliates with a unique tracking link or code that they can share with their audience. When a customer clicks on the link or uses the code to make a purchase on your site, the affiliate earns a commission on that sale.
Affiliate programs are a win-win for both you and your affiliates. You get increased exposure for your products, and your affiliates earn a commission for promoting your products to their audience. It’s a great way to reach new customers and increase your sales without spending a lot of money on advertising.
But setting up an affiliate program that works takes some planning and strategy. In the next section, we’ll take a closer look at how to set up an affiliate program that’s right for your Shopify store.
How can I setup an affiliate marketing program for Shopify?
Setting up an affiliate marketing program for your Shopify store can be a great way to increase your sales and reach new customers. Below are the steps to set up an effective in-house affiliate program.
1. Choose an affiliate platform
The first step is to choose an affiliate platform that integrates with Shopify. There are many options available, including Refersion, Affiliatly, and Goaffpro. Research and compare the features and pricing of each platform to choose the one that’s right for your business.
2. Set commission rates
Determine the commission rates that you’ll offer to your affiliates. A typically common rate is around 10-20% of the sale price, but it can vary depending on your profit margins and the value of the products you’re selling. Anything under 10% in commission these days is just too low to really have an impact. We recommend 20-30% and make it an LTV play for customer acquisition. LTV is “Lifetime Value” so whilst you may not clear a profit on the first sale from the customer, subsequent sales will.
3. Create promotional materials
Create promotional materials such as banners, social media images, and email templates that your affiliates can use to promote your products. Make sure they are high-quality and clearly convey the benefits of your products.
4. Recruit affiliates
Reach out to potential affiliates who are a good fit for your brand and products. Look for influencers, bloggers, and content creators who have a following that aligns with your target audience. You can also create a sign-up page on your website to attract interested affiliates.
5. Track sales and manage payouts
Use your chosen affiliate platform to track sales and manage affiliate payouts. Make sure to provide clear guidelines for how and when affiliates will receive their commissions.
6. Motivate and incentivize affiliates
To keep your affiliates motivated, provide ongoing support and incentives. Offer bonuses for hitting sales goals or offer a higher commission rate for top-performing affiliates.
Leveraging external affiliate networks
Affiliate networks such as AWIN and Webgains are third-party platforms that connect merchants with affiliates. These networks have a pool of affiliates that have already signed up and been approved by the network, making it easier for merchants to recruit and manage affiliates.
When you sign up for an affiliate network, you gain access to a large pool of potential affiliates who are interested in promoting your products. You can search for affiliates based on their niche, audience, and performance metrics, making it easier to find affiliates who are a good fit for your brand and products.
Affiliate networks also provide tools and resources to help you manage your affiliate program. They typically offer tracking and reporting tools that allow you to monitor sales and performance metrics for your affiliates. They may also provide promotional tools such as banners and text links that affiliates can use to promote your products.
Another benefit of using an affiliate network is that they handle the payout process for you. This means that you don’t need to worry about managing payouts for individual affiliates, which can be time-consuming and complex.
Overall, affiliate networks can be a valuable resource for Shopify merchants looking to set up an affiliate program. They make it easier to recruit and manage affiliates, provide useful tools and resources, and simplify the payout process. If you’re looking to expand your affiliate program and reach a larger pool of potential affiliates, consider signing up for an affiliate network such as Awin or Webgains.
