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As a small business owner, fetching a larger audience and increasing your profits are likely top priorities. One effective way to achieve these goals is by starting an affiliate program and partnering with content creators in your niche.
As you begin your search for partners, you've probably come across a lot of bark on influencers and affiliate marketers. But what's the difference between these two content celebrities?
While influencers and affiliate marketers wag their tails differently, both can be wonderful aids when it comes to getting your products in front of new customers. The key is to choose the better marketer for your business.
In this post, we’ll take a close look at influencer and affiliate marketing styles. We'll go over the pros and cons of each – helping you decide whose marketing method is going to bring more tail-waggin' sales to your site.
An Overview of Influencer Marketing
Over the past few years, influencer marketing has exploded in popularity and become one of the most effective forms of online advertising. With a market value of over $13 billion, it's no wonder why so many businesses are jumping on the influencer train.
Influencers are typically be found on popular social media platforms, such as Instagram, TikTok, and YouTube. Many of them have built a substantial following and high engagement rates, making them highly desirable for brands looking to expand their reach.
In this type of marketing, the influencer is normally paid per campaign. They may also receive free products, discounts, and commissions on referrals.
Interestingly, a recent study found that 37% of consumers trust social media influencers more than they trust brands themselves. This means leveraging the influencer's following can be a powerful way to build trust with potential customers and promote your products with very little work on your end.
Pros of working with influencers:
- You can partner with individuals who are active on your preferred social media channels.
- They can help you reach a large audience, boosting brand awareness.
- You can leverage their influence to quickly build trust with customers.
Cons of working with influencers:
- If you run a small business, you may be unable to provide adequate compensation for popular influencers.
- You might have little control over the promotional content for your product, as influencers tend to create their own videos and images.
Once your business starts to grow, then you can partner with influencers who have larger audiences.
An Overview of Affiliate Marketing
If you’re thinking of starting an affiliate program, then you likely already know how affiliate marketing works. But here's a quick run down on the “everyone wins” process…
As a business owner, you ask content creators to recommend your products on their websites. Then, for every sale they make using their unique affiliate link, you reward them with a small but generous commission.
Affiliate marketers are usually bloggers or online publishers who monetize their content with product recommendations.
However, you’ll also find affiliate marketers on social media channels. In fact, many content creators are active on more than one platform.
This means they can often help promote your products in different ways. For instance, they might write a review on their blog, publish photos of your product on Instagram, or create a demo video for YouTube.
This flexibility means they can reach your target audience through multiple channels.
Pros of working with affiliate marketers:
- You only pay for successful sales! Plus, you can also set up different commission rates based on your budget and your affiliates’ performance.
- Many affiliate marketers are constantly searching for new programs to join, so you may not have to actively seek them out. However, you'll likely need to create an application form.
- You can create marketing material for affiliates to share on their websites and social media channels.
Cons of working with affiliate marketers:
- Some affiliate marketers may become unmotivated and stop promoting your products if they don’t make any sales.
- You’ll need to carefully vet applicants to make sure that they are legitimate and that their values align with yours. Otherwise, they might harm your brand reputation.
You'll be excited to know there are loads of affiliate marketers in various industries just waiting to promote your products. Fashion is the most popular niche, followed by sports, health and beauty, and travel.
So if you're in any of these industries, it's time to get those partnerships going!
Influencer vs Affiliate Marketer: Which Is Better for Your Affiliate Program?
Even though you now know a little more about influencers and affiliate marketers, deciding which one is best for your business can still be a challenge.
So let's take a closer look at your business and consider factors that are specific to you, such as your product, target audience, budget, and marketing goals.
When deciding whether to work with influencers or affiliate marketers, one crucial factor to consider is your product or service. Some products are better suited for influencer marketing, while others may perform better with affiliate marketing.
If your product is visually appealing and requires demonstration or explanation, then influencer marketing may be the way to go.
Influencers can showcase your product in a creative and engaging way, often demonstrating how it works to their followers via tutorial videos.
For example, if you’re selling makeup or skincare products, partnering with beauty influencers could be a powerful way to show your products in action.
However, don't underestimate the power of affiliate marketers when it comes to showcasing visually appealing products. They take a different approach by emphasizing the benefits and how the product can solve a problem for their audience.
They use their expertise to educate and inform their readers, as well as offer unique insights to help customers make informed decisions about their purchases by producing informative blog posts and product roundups.
Your Target Audience
Your target audience is another critical consideration when deciding between influencer and affiliate marketing. Different audience demographics will respond better to certain types of marketing.
Influencer marketing tends to work best for businesses targeting a younger demographic, particularly those who spend a lot of time online and on social media.
For example, if you're in the gaming industry, partnering with a popular gaming influencer on YouTube or Twitch could be an effective way to promote your game.
These influencers have a strong connection with their followers and can create engaging, informative, and often entertaining content that resonates with your target audience.
On the flip side, if your business is targeting an older demographic or a more dialed-down niche market, affiliate marketing may be the better option. Affiliate marketers often have a more targeted audience themselves, and can create content that speaks directly to that audience.
For example, if you're selling a high-end golf club, partnering with a golf blogger who has a following of passionate golfers could be a great way to reach your target market.
Sticking to a budget is a major priority for all business owners. However, when it comes to compensating influencers vs affiliate marketers, there's a significant difference in cost.
Influencer marketing tends to be more expensive since you're paying for the influencer's time, effort, and social media reach.
Depending on the influencer's level of fame, you could be paying anywhere from a few hundred to tens of thousands of dollars for a single sponsored post or campaign.
Alternatively, affiliate marketing can be more affordable since you're only paying a commission on the sales generated by the affiliate. This means you only pay when you make a sale, which can be a more cost-effective option in the long run.
Your unique goals will also play a major role when you're deciding between influencers vs affiliate marketers. That's because each group uses different methods of promotion.
If your main goal is to increase brand awareness and reach new audiences, then influencers may be a better fit. Influencers have built-in audiences that trust and follow their recommendations, making them an effective way to share your brand with new viewers.
On the other hand, if your goal is to drive direct sales and generate revenue, affiliate marketing might be the better choice. Since affiliate marketers earn a commission on each sale they drive, they have a stronger incentive to promote your product and drive traffic to your website.
This can result in more immediate and measurable results compared to influencer marketing, including an effortless boost in your search engine optimization (SEO).
Both influencers and affiliate marketers have their unique ways of building a connection with their audience and getting a response.
Influencers often have a highly engaged audience. As a result, when an influencer promotes your product or service, their audience is more likely to engage with the content, share it with their friends, and increase purchases for your business.
In contrast, affiliate marketers may not have the same level of engagement as influencers, they can still be effective at driving sales. They have built their following by producing high-quality content that resonates with a specific niche.
While their audience size may be smaller, they often have a more intimate relationship with their followers, who view them as a trustworthy source of information.
Affiliate marketers can leverage this relationship to promote your product or service in a way that feels natural and authentic, resulting in higher engagement rates.
Influencers and affiliate marketers can help you build brand awareness and increase your revenue. However, not all candidates are the right fit for your affiliate program.
Overall, the decision between influencer and affiliate marketing depends on a multitude of factors. By carefully considering your product, target audience, budget, goals, and engagement, you can make an informed decision that maximizes your return on investment (ROI) and drives the growth of your business.
Do you have any questions about working with influencers vs affiliate marketers? Let us know in the comments section below!