Monetization is one of the first challenges facing a content site. Affiliate marketing programs represents a compelling solution. We’ll discuss why.
Do Affiliate Marketing Programs Impact a Site’s Value?
There are many factors that impact what a buyer is willing to pay for a content site. Revenue, however, remains one of the most important. While there are some buyers that are willing to take the plunge on potentially risky or volatile online businesses, most want some assurance that they’ll be able to recoup their investment post-purchase.
If you ever plan to sell your site, monetization has to be part of your overall content strategy. And you cannot rely solely on Google AdSense. In addition to not paying particularly well, advertisements can potentially reduce your site’s performance and alienate its audience. Affiliate marketing represents a far better option.
What are Affiliate Marketing Programs?
Affiliate marketing programs are a form of advertising, albeit one that’s far less intrusive. How it works is simple. First, find a product or service to promote via sponsored content such as a video or a blog post. Next, include the affiliate link as a call to action, and you’ll then earn a commission with every conversion.
Most of the time, this takes the form of a small payment for each sale, though some affiliate marketing programs also pay dividends for traffic, mailing list subscriptions, and other metrics.
How Do Affiliate Marketing Programs Work?
Marketing expert Neil Patel describes affiliate marketing programs as being akin to working as a commission-only sales representative. The main difference is that salespeople need to actively pursue leads and perform outreach. A successful affiliate marketing post, meanwhile, effectively generates passive income once it’s been published.
Getting started with affiliate marketing programs is simple as well. First, find an affiliate marketing programs partner. This could be anything from a merchant to a software developer to a large business. Prioritize brands and products that align with your niche and core audience — if, for example, your content caters primarily to people who love the outdoors, you likely won’t see much of a return for sponsored content about video game peripherals.
In addition to approaching affiliate partners directly, you may consider leveraging an affiliate network to find relevant brands. Note also that as your content site grows and you continue to make a name for yourself in your niche, partners may directly approach you rather than requiring that you seek them out.
Once you’ve found an affiliate marketing programs partner, all that’s left is to sign up for their program and start creating content. Make sure you follow the program’s branding guidelines and include specialized links whenever you promote the content. Transparency is crucial here — establish upfront which of your posts are sponsored content and indicate that you may receive a commission on them.
Failure to disclose when a post is sponsored could see you run afoul of regulatory agencies. Under the endorsement guidelines established by the Federal Trade Commission, for instance, you are required to disclose any and all compensation you’ve received from an affiliate partner. Alongside compensation for sales, this includes any products or services you received either for free or on a trial basis.
Affiliate marketing content could include, but is not limited to:
- Product comparisons or reviews. Self-explanatory. Caution is advised here, as your audience may frown on paid reviews.
- Niche content. How a particular product might help your audience solve a common problem, for instance.
- Direct partnership offers. Seen commonly on YouTube. Your audience can choose to visit the partner site, usually with a discount code, though the offer is not the core focus.
The most important advice we’ll give is to carefully evaluate each and every affiliate marketing partner before you start working with them. Ensure that they have a positive reputation within your niche, with products and services known for their quality. The reputational damage incurred by promoting a controversial brand or a low-quality product is not worth the revenue that partnership brings in.
Benefits of Affiliate Marketing Programs
Aside from directly amplifying the value of your content site through increased revenue, the partnerships created through affiliate marketing programs also make your business more attractive to prospective buyers. The more established and well-known affiliate partners you work with, the more valuable affiliate marketing becomes. This traces back to reducing risk — with multiple partnerships, your business doesn’t lose an entire revenue stream even if one partnership falls through.
Affiliate marketing programs can also have a positive impact on your site’s traffic. Someone who reads through a sponsored post is likely doing so with purchase intent. In addition to purchasing your affiliate’s product, they may end up being a qualified lead for your business as well, provided you sell your own products or services.
What truly makes affiliate marketing programs beneficial is the fact that it costs next to nothing, and sponsored content doesn’t require any more effort to create than standard content.
Affiliate Marketing Programs Alongside Other Valuation Metrics
We’ve already touched on the fact that an affiliate marketing program’s value lies not just with the revenue it brings in, but the partnerships it cultivates. Beyond this, valuing a content site that leverages affiliate marketing involves looking at a few factors. These include:
- Overall revenue. Self-explanatory.
- Risk factors. These could include a recent controversy or legal issues.
- Reputation. How your audience feels about your site.
- Age. Well-established businesses almost always sell for more.
- Search Engine Optimization (SEO). An affiliate marketing program is meaningless without the traffic to drive conversions. It’s imperative that you regularly publish content that ranks high on the search engine results page (SERP).
- Content schedule. How frequently you publish content and how well that content typically performs.
- Marketing. Includes advertising, social presence, etc.
Conclusion
Ultimately, if leveraged properly, affiliate marketing programs will have a net positive impact on the value of your content site. Choose the correct partners and products, operate with transparency, and maintain a regular content cadence, and you may be surprised at the results.
About the Author
“Christopher Moore is the Chief Marketing Officer at Quiet Light, which specializes in helping clients sell their internet-based businesses. Additionally, he founded Gadabout Media LLC to inspire, educate, and unite others by creating visually stunning content for clients.”
