When you are in the business of selling — whether that’s selling online or offline, whether that’s selling products or services — the success of your business is fundamentally determined by two primary factors. First, how well are you able to attract new customers to buy from you on a regular basis? Second, how much are each of these customers worth to you over the lifetime of your relationship with them?
A number that is commonly thrown around is that it costs anywhere from five to seven times more to acquire a new customer than it is to retain an existing customer. As soon as someone has purchased one or more of your products or services, there’s a good chance that they could buy from you again. And hopefully, they’ll continue to buy from you for a very long time to come. The big challenge, then, is attracting new customers in as cost-effective a basis as possible.
You could run a blanket advertising campaign to build brand awareness, but it is difficult to determine your exact return on investment (ROI) with that kind of approach. You could work on promoting your products or services with strategic partners, but that can occupy a lot of your time, energy and effort. Affiliate marketing is actually one of the best ways to attract new customers and get in front of new audiences, because the affiliates can expose you to new markets and they’re motivated to find you customers that actually convert.
Not all affiliate campaigns are made alike, of course, but you can always work with campaign managers to optimize your offer to attract the top affiliates. This is indeed a great advantage to working with a world-class international affiliate network like WOW Trk, because the campaign managers and affiliate managers bring a wealth of varied experience on what campaigns work better and why. You also gain immediate access to an existing group of top-performing affiliates. And remember that with WOW Trk, there are no setup fees and no monthly fees; you only pay on performance with no long term contracts.
That’s the real affiliate marketing impact that you can enjoy when you are able to run a positive affiliate campaign for your company. The objective with your campaign shouldn’t be about being a fly-by-night operation or any sort of get-rich-quick scheme. Instead, the goal should be to acquire new customers who will continue to buy from you again and again. It’s not about how much you earn in a single transaction; it’s about the lifetime value of that customer.
For some industries and verticals, a powerful strategy is to offer a commission that is actually higher than how much the customer might pay in that first transaction. This is particularly useful in verticals where retention rates are very high and customers are far more inclined to sign up for longer subscriptions. That presents an ongoing, steady revenue stream for you with no additional effort. Affiliates are keen to attract converting customers and that’s good news for you as the advertiser.
With a reliable and growing revenue stream from new customers, your business is then injected with new capital that you can then invest further to realize the dream potential that you’ve had for your company all along.