Affiliate marketing is where brands with shared values and a similar customer base come together and share each other’s contact details on their pages. In some cases, they will agree a percentage of any sale that relates from brand A’s customer purchasing from brand B and vice versa. In other cases, the agreement may be about shared promotion of each other’s goods and services.
There are lots of upsides for businesses that have marketing materials that are performing well and who have a lot of active followers. Not only is this a relatively cost effective way to gain sales, but also to gain new followers.
Affiliate marketing is most popular amongst thought leaders, influencers and small businesses because it allows them to get their messages seen by followers of businesses whose products or services don’t actually compete, but are aligned with theirs.
For example, a restaurant may create content that includes recipes so that customers can make popular dishes at home.
- One of their suppliers may also have a website where they create content about their produce, where and how it is grown etc.
- Both sites can set up an affiliate agreement where the restaurateur points people to the supplier where they can purchase key ingredients and the supplier can point people towards the restaurant where they can make a booking to eat dishes potentially using these ingredients.
- Automation takes care of the detail, with codes tracking the leads and the actions taken as a result of the leads.