×
September 1, 2018

Affiliate Marketing For Ecommerce


For quite a while now I have been wanting to write this blog. The whole aim is to try and help a few of you better understand the ins and outs (of which there are many) of Affiliate Marketing and how it can work for you. This blog has been written specifically thinking about Australian eCommerce companies. If you have any questions reach out to me directly, details here!

Good morning campers! I’ll cut to the chase…   What is Affiliate Marketing? Affiliate Marketing is not a new channel, but it is often a seriously misunderstood one. Essentially Affiliate Marketing is the process of building relationships with 3rd parties in exchange for either a fixed fee or a percentage of the sales they refer. I’ve heard it called “no win no fee” advertising because if no one buys, you don’t pay! Sounds too good to be true? Well, it’s not.   How It Works For this, I’m going to invent an eCommerce company, let’s call them Spartacus Clothing (yes, I have a dog called Spartacus). Spartacus Clothing is a generic men’s clothing retailer based in Sydney but covering both Australia and NZ. Let’s say this brand has been running for 6 months and using other channels effectively, but now wants to expand and so is looking into Affiliate Marketing. Spartacus Clothing would have to decide on one big question: “Do we want to do this in-house or use an agency?” Both are valid options and both can be rewarding but be prepared for a long learning curve if you bring it in-house. To run it in-house you will need to be able to dedicate a lot of time to the mundane part of affiliate marketing which is building the network of affiliates in the first place. This means hitting the phone and email to all the sites and players in your sector that you think will be interested. For Spartacus Clothing this would mean coupon code sites, price comparison sites, loyalty sites, influencers across all social channels, and email marketing list owners. When after all that has been done Spartacus Clothing would then have a closed network of affiliates that will drive traffic in exchange for a percentage of any sales. Option 2 is to go with an advertising agency (shameless self-promotion 😉) that will be able to navigate the murky waters of Affiliate Marketing on your behalf. If in this example Spartacus Clothing decided to contract Direct Clicks to run the advertising for them we would then use existing relationships with sites and influencers to rapidly build the traffic and sales from the site.

What It Costs Cost is the key issue with Affiliate Marketing. Again, there are two key options here, you can either pay a percentage or a fixed fee to your affiliates. As Spartacus Clothing has lots of product lines and most orders are for multiple products it makes sense to offer the affiliates a percentage of the sales they drive. Our recommendation is always to look at the current CPA from other channels, to look at that the current true ROAS and calculate what you are comfortable in giving away per sale. A word of warning though: set it too low and no affiliate will be interested! If Spartacus Clothing only sold 1 item, let’s say an expensive leather jacket, we might advise they set a fixed fee. This would be appealing to the affiliates if they could see exactly how much they would make per sale. It also makes internally tracking all sales easier.   Maintenance of the Campaigns Once Spartacus Clothing was up and running on its affiliate campaign the next steps are straightforward:

  • Continue to grow the network and find new affiliates.
  • Reward the affiliates who drive good sales with increased percentages in exchange for preferential positioning on their site.
  • Make sure any new offers, campaigns, or sales are communicated to the whole network.

  Pain Points Affiliate Marketing is a very powerful channel for driving sales and revenue with a positive ROI but it does have its drawbacks. The key problem is that you are essentially relying on other people to make your sales for you! This means managing relationships and egos for an unlimited number of partner sites, and following up on all those email chains and communicating all the new sales to the network. But, even with all that it’s still “no win no fee advertising!” so what have you got to lose?   Summary Affiliate marketing is a very powerful channel with unlimited scope and truly global reach. It can drive sales and revenue for any eCommerce business and if it doesn’t there is no cost. There is a lot of work, however, so if you are going to run it either work with an experienced agency or be prepared for the long road ahead. It is the genuine opinion of at least this advertiser that any eCommerce business who is not currently running an Affiliate Marketing campaign should be.

Gary Devine

Gary Devine

Head of Search

I’ve worked in Advertising & Digital since I graduated from university in 2010. I spent 2 and half years working for Google in the UK where I fell in love with digital and creative work. I now run a great team here in Sydney doing great work.

See All Posts

Contact Us

Hours

Mon-Thur: 9am-5pm  
Fri: 9am-4pm






Google Rating
4.9
Michele Miller
Michele Miller
05:52 25 Oct 17
We asked Direct Clicks to build a website for Robokids, we wanted to ensure they understood our brand and market. Highly recommend Direct Clicks, the service and communication are fabulous. Graham was just terrific.
Christopher Cassidy
Christopher Cassidy
08:53 11 Aug 17
Graham did an excellent job bringing the vision of my website to life. He explained things well, was easily contactable and very responsive. Highly recommended! Thanks again
Amir Reyad
Amir Reyad
02:44 25 Sep 17
Gilard is my campaign manager, he has done a remarkable job for my antenna business. At first I was hesitant but I now say I have full trust is these guys. My business has never been healthier. They have really proved them selves. I referred a friend which manages a solar business and within weeks he’s advised me that their doing a great job! Thanks Gilad and Ben for your hard work. I’m glad for you guys to be part of our business
Brad Lawson
Brad Lawson
03:10 13 Sep 17
Solid company with great staff, always very responsive. Anything we do with Direct Clicks is thoroughly explained and we're always kept in the loop. It's been nearly 2 years and we haven't looked back since going with Direct Clicks for our online marketing.
Juliana Lalli
Juliana Lalli
13:07 10 Aug 17
Professional and service driven. We changed our minds so many times and the team were very accommodating and patient. From pre sales to completion, they were fantastic. Highly recommend Direct Clicks and will be certainly using them in the future.
Katryna Tancred
Katryna Tancred
04:08 25 May 18
We were hesitant to change from managing our own ads to paying a fee but we couldn't be happier with switching to Direct Clicks. Our viewers are more engaged and we're converting more leads. They spoke our language and made sure we understood the options we had. The after sale service cannot be faulted. Highly recommended
Mike Thomas
Mike Thomas
02:29 02 Jul 18
I can thoroughly recommend Direct Clicks. They are very knowledgeable and easy to work with. Gary really knows his stuff and it is a pleasure to work with him. We also worked with Ben and Amir and together they were a great team. Mike Thomas
Unscripted Signs Sales
Unscripted Signs Sales
09:16 09 Aug 18
Great company and great staff who delivered excellent results! We will continue to work with them....
Keith Betty
Keith Betty
23:25 13 May 18
We engaged Direct Clicks to re-design and upgrade our existing website - which involved layout, structure, underlying tech, transfer of existing domains and ongoing hosting. We found both the sales as well as the delivery processes to be '5 star' and would recommend them without hesitation.
Saul Gerber
Saul Gerber
03:36 31 Jan 18
I had a very successful experience with this company. Gilad Shabab was my contact and he was extremely helpful. My psychology practice built up well and is now self sustaining. I would not hesitate to recommend to friends. Thank you Direct Clicks
Levi de Bilde
Levi de Bilde
01:12 04 Dec 18
Long time customer of +4 years and still going. Direct Clicks offer great support, advice and a seamless service. Thank you !!
Elaine Huang
Elaine Huang
00:31 12 Dec 18
Outstanding customer service experience working with Amir at Direct Clicks
KEYless Entry Systems
KEYless Entry Systems
23:50 28 Jan 19
After trying numerous agencies ( Sponsored links and Reach Local), Direct Clicks were recommended to me. The difference was amazing. I can actually talk to someone and the support I have received from both the Adwords and SEO teams has been first-class. Highly recommend.
Live2ride Team
Live2ride Team
02:31 05 Feb 19
We are extremely satisfied with the results Graham and the team at DirectClicks delivered for our website. Migrating a website from a previous provider is not always an easy task, but Graham was able to guide us step by step, explaining our options in detail, as well as giving us an easy to follow tutorial on how to use WordPress. I would highly recommend DirectClicks to anyone seeking assistance in creating a new website. Great company, excellent service and support!
Sandra Checch
Sandra Checch
22:37 14 Apr 19
Great team to work with esp Helen. Always friendly and helpful
Ben Hindle
Ben Hindle
03:43 04 Apr 19
Just recently started doing business with DirectClicks and have been impressed with the service, knowledge and attention to detail of Gary.
Brett Ketelaar
Brett Ketelaar
23:48 13 Mar 19
Highly recommend Direct Clicks. Great web design and fresh ideas
Alen Barsamian
Alen Barsamian
08:24 27 Apr 19
Easy to deal with and very knowledgeable, have seen positive results and more clients since signing up with them, Thank you team!
Sophie Farrar
Sophie Farrar
01:00 30 Apr 19
We have worked with Direct clicks for a while now and I am always impressed with the wonderful service from Gary Devine. Highly recommend.
Olga M
Olga M
00:41 14 May 19
Professional and quick response. Gary, my campaign manager, has added value to my business with his suggestions and monthly reports.
Graham Peters
Graham Peters
03:44 12 Jun 19
There are many companies around that offer similar services. What I like about Direct Clicks is that they really understand the important roll their work plays in the success of the businesses they serve. Additionally, and importantly, they take responsibility for their work and the associated outcomes.
Khal
Khal
06:22 27 Jul 19
Amir has been such a great help! What an amazing team! Been with them for years and have only had gains and lots of insight into business marketing! Thanks Amir and Ben you guys are life savers!
Albert Dorostkar
Albert Dorostkar
03:13 05 Aug 19
i"m very happy with the level of service i received from Eva Li and the team at Direct clicks.Highly recommend the team from Direct Clicks. They have always been fast and efficient with their service. Thanks Eva Li
See All Reviews Write a review
Facebook Rating
4.9
DC Review
Scroll Up