#89 Why I don't do Affiliate Marketing
Today's episode is all about a topic that seems to be everywhere at the moment - affiliate marketing. This is a really important topic for small business owners - you need to be aware of both the risks and rewards of affiliate marketing, and what you need to consider before agreeing to participate in it, or use it to promote your business.
First up - what is it? Affiliate marketing, also known as influence marketing, is when you agree to be an affiliate for someone’s service or product and you promote it, in return for a reward. I define the ways it can occur and why it’s done.
Working out whether you want to do affiliate marketing needs to come back to your why in your business. If you’re comfortable that they’re aligned then go you! There is no right or wrong here.
I share the reasons why I don’t participate in affiliate marking, and how my business values have informed this decision.
Importantly, if you do decide to proceed with affiliate marketing, you need to make sure that expectations and payment terms are crystal clear. If you’re entering into this kind of arrangement in the hope of expanding your business and network, you need to be aware that you risk souring business relationships if arrangements are not clear.
I support my clients to grow in a long-term, positive and sustainable way in their businesses and knowing what affiliate marking is all about before you dive in is incredibly important. This podcast will help you work out the questions you need to ask and insights on why I choose not to participate in it.
TOPICS DISCUSSED AND WHERE TO FIND THEM:
[00:38]: In today’s episode I talk about affiliate marking (or influencer marketing), which is a term I am hearing a lot about at the moment.
[1:30]: What is affiliate marketing? It’s when you agree to be an affiliate for someone’s product or service and you promote it, and in return, you receive a reward.
[2:25]: Ad-hoc affiliate marking is common, where course producers or creators reach out to their networks with little thought. The problem here is that there is inadequate documentation.
[3:48]: Affiliate marking when done well, can work well. However, it’s important to think about whether you should do it and why you should do it.
[4:10]: Get clear on your why and how your values inform this why. I share how asking this question helps inform my decision-making when I am approached by affiliate marketers.
[5:50]: For my business, I often feel that affiliate marking is a conflict of interest. Whose interests does the affiliate partner have at heart - their own or mine? This is often why I question it.
[7:25]: I don’t ever want to be in a position where someone is questioning my motivation or my intention, because it’s not consistent with my why in my business.
[7:50]: I share the one time I considered affiliate marking, and why it ended up not feeling right for me.
[8:32]: I make recommendations without commissions because that is the way that it feels aligned for me and is consistent with my values. It lights me up when I make the right connection.
[10:15]: My decisions around this will not be the same for everyone.
[10:56]: When you’re faced with a question about affiliate marketing, come back to your why in business. If you’re comfortable that they’re aligned then go you! There is no right or wrong here.
[11:16]: However it can be difficult if agreements are not in writing. There is such a thing as an affiliate agreement. You need to make sure that expectations and payment terms are crystal clear.
[12:10]: What are the terms and how will they be paid? If you’re going into this kind of arrangement in the hope of expanding your business and network, you need to be aware that you risk souring business relationships if arrangements are not clear.
[12:59]: If you’re going to do affiliate marketing, make sure you do it properly because the costs and damage can far outweigh any potential benefit.
[13:38]: I want to support my clients to grow in a long-term, positive and sustainable way in their businesses and knowing what affiliate marking is all about and knowing what you’re doing if you’re going to dive in is incredibly important.
LINKS:
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