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Affiliate marketing: What is it and what its benefits?

Digital Ethos


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December 20, 2021 | 4 min read

Affiliate marketing is a low-risk form of advertisement that companies and businesses use to promote their products or services

It is a completely performance-based process that all comes down to the affiliate’s promotion efforts. Affiliate product or service promotions may include mentions on social media, reviews, blogs, vlogs, and podcasts, but the affiliate only makes a commission when a purchase is made through their personal link or recommendation.

According to Statista, in 2020 the United Kingdom invested £627m in affiliate marketing, up from £569m the previous year. Smartphone spending accounted for almost 40% of overall spending.

With such a drastic increase in just one year, it’s no surprise that more companies are taking an interest in affiliate marketing and its benefits. To see how affiliate marketing could benefit your business, read on.

High ROI

When running a campaign, selecting the right target audience is vital. This is because there are so many things that your business needs to consider about the person who will be interested in your products or services. Do you know the average age of your audience? Do you know their interests and income?

One of the main reasons affiliate marketing is so simple is because the affiliate you’re likely to choose already has the most perfectly tailored audience, ready to influence. By funneling your marketing through an affiliate who has direct connections with your ideal audience, you’re able to reach a highly cultivated group of people who are likely to provide conversions.

Flexible strategy

You can give affiliate marketing a go even if you don’t want to splash the cash. You can start with very little and scale your budget as the strategy proves its worth.

Affiliate marketing offers great flexibility in terms of price and affiliate selection. There are countless affiliates in all industry sectors which means that you won’t be disappointed. Plus, depending on your affiliation, creativity has no bounds, especially if you find someone with a passion and a great following for what you do.

Start up costs are low

With affiliate programs, you don’t have to have an advertising team or need to buy ad space. That's because your professional affiliates will generate the marketing ideas, build content and do the advertising for you.

The only initial effort will be choosing the affiliates you want your brand to collaborate with. Once you have decided upon the right person or persons, your affiliates will deal with the ad visuals and decide on the most effective ways of getting your products or services under the nose of the business’ target audience.

Low-risk form of marketing

As affiliate marketing is a low-cost advertising method, it means it really is a low-risk way to promote your brand. Due to the way affiliate marketing works, it’s perfect for low or tight business budgets because the only payment that will be made is when your affiliate generates a conversion.

The average commission for an affiliate is between 5-30%. The amount of commission you’re happy to part with will be a deciding factor of the affiliate you choose at the selecting stage.

Gets your brand in front of your target audience

To ensure your affiliate is perfect for your business, do your research if you want it to be a success. Hand-selecting affiliates means you can use your best judgement on who has the most targeted audience that’s most likely to resonate with your brand.

By choosing the right affiliate, their promotions of your products and services will feel less like a hard-sell to their audience, which means they’re more likely to show interest.

Contact Digital Ethos

At Digital Ethos, we’re just as committed to reaching your company goals as you are. Every campaign we develop together is focused on transformational growth, and we're continuously searching for innovative ways to out-perform your current campaigns. Want to get started? Contact our expert team today!

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