Hey everyone, it’s Jessica with Oberlo. Today we’ll talk about what affiliate marketingis, and how you can use it to grow your dropshippingbusiness. Plus, we’ll share 3 awesome tools that youcan use to set up your own affiliate program. Let’s dive right in. What Exactly is Affiliate Marketing?“Affiliate marketing is the process of earninga commission by promoting other people’sproducts. “You find a product you like, promote it,and earn a piece of the profit for each saleyou make. ”Dropshippers can take advantage of this marketingtactic by creating their own affiliate marketingprograms. To do this, you ask affiliates to promoteyour product in exchange for a commissionon the sales they make. To see this in action, let’s take a lookat how MVMT uses an affiliate program to promotetheir watches and sunglasses. They have an affiliate program page on theirwebsite, detailing the key information affiliatesneed to know. They show the commission affiliates can expectto earn on each sale they make for the watchbrand — in this case, 10% of the sale. And, they tell you that the referral periodis 15 days. This means that after a customer clicks anaffiliate’s link, they need to buy within15 days for the affiliate to collect their10% commission. Also, MVMT clearly details the money affiliatescan expect to earn promoting their products. This can help entice affiliates to get involved. We can tell from this information that ifan MVMT affiliate were to sell one producta day, they could make $405 per month. But, if they sell 100 products per day, theycan make a whopping $40,500 each month. With all this in mind, let’s talk about. . . How to set up an affiliate marketing programfor your dropshipping business. First things first…You need an app to help you create and manageyour affiliate program. Let’s run through 3 great options. First up:Option 1: RefersionThis Shopify app allows you to build a customaffiliate program, register affiliates ina few simple steps, and easily review affiliateperformance. And, you can set up automatic payments throughPayPal. Each of your affiliates has access to theirown unique dashboard, where they can downloadaffiliate links and banners to add to theirwebsites. There’s also a handy email channel you canuse to communicate with your affiliates. In addition, Refersion makes it easy to findnew affiliates. It enables you to set up campaigns to turnnew customers into affiliates. And, the app lists your affiliate programin the Refersion market directory. Refersion is free for 14 days, so give ita try to explore its features. Option 2: FriendBuyThis affiliate marketing tool helped popularizethe ‘Get $15’ section that you may haveseen on ecommerce sites. It’s used by established ecommerce brandslike Warby Parker, Birchbox, and the DollarShave Club. FriendBuy has all the features you need toset up an affiliate program, but it is moreexpensive than Refersion. FriendBuy’s price tag may be fairly steepif you’re just getting started. Option 3: ShareASaleThis tool is for more developed dropshippingstores. You need to pay a few hundred dollars to accessthe ShareASale network. On top of that, you’ll also need to paya 20% transactional fee, and at least $25each month. But, unlike many other affiliate networks,ShareASale’s affiliates are all pre-screened. That’s why ShareASale is a great way tofind high-performance affiliates who can drivesales for your business. Okay, so you’ve chosen an affiliate marketingapp. Next, you need to…Set the parameters of your affiliate program. First up?Decide how much commision you’re willingto offer. How much you offer is up to you. A higher rate will obviously attract moreaffiliates. But it’ll also eat into your profit margins. Still, making less profit on that first saleisn’t necessarily a bad thing. Why?Because affiliate marketing isn’t just aboutmaking sales. It’s also a great way to hook in new customers. And this is important. Repeat customers spend 67% more than new customers!And what’s more, a 5% increase in customerretention can increase company profits by95%. So, if you can turn those new customers intorepeat customers, consider giving your affiliatesthe lion’s share of that first sale. Plenty of businesses actually lose money inthe short term by paying affiliates a highcommission rate. They do this because they know that in thelong run, they can turn a profit resellingto those same customers. So, start by working out your current profitmargin. To help, there’s a link in the descriptionto Shopify’s Profit Margin Calculator. Research how much commission your competitorspay their affiliates — most businesses clearlystate their affiliate commission rates ontheir website. With this information, you can then set morecompetitive rates, or add bonuses and incentives. Now, it’s time to…Find affiliates to promote your products. If you use a service like Refersion, or ShareASale,your affiliate program will be available toaffiliates in their network. But, you can also grow your affiliate networkyourself. The easiest way to get started is to…Get your customers involved. To do this, encourage customers to refer afriend to your store for a cash incentive. You can also promote your affiliate programon your website, on social media, and in youremail marketing campaigns. Also, each time you make a sale, promote thedetails of your affiliate program in yourpurchase receipt email. Remember, existing customers are already familiarwith your brand. And after they’ve had a positive experiencewith your business, it’s likely that they’llbe happy to tell their friends and familyabout it. To sweeten the deal further, provide themwith a discount code to share. Next…Reach out to influencers in your niche. It can be tough to find partners who havean existing online audience, and are interestedin what you have to sell. But — just like when trying to find newcustomers — the more niche your productis, the easier it is to cut through the noise,and connect with affiliate partners. Another benefit of niche marketing is thatinfluencers in an industry tend to know eachother. So, once you’ve developed a relationshipwith one influencer, it’s often easy toexpand your network partnerships. To reach out to influencers, browse popularInstagram hashtags in your niche. Then, identify accounts with at least a fewthousand followers and high engagement. These are the influencers who are most likelyto benefit from becoming an affiliate. Then, check to see if they’re an affiliatefor other brands already. Why?Because if an influencer repeatedly promotesthe same product, that’s a good sign thatthey’re doing well with affiliate marketing— and so, might be interested in your products. Often, influencers will have an email addressin their bio, or on their website, specificallyfor business enquiries. So reach out to them personally. In summary, affiliate marketing is an incredibleopportunity for dropshipping stores. So choose an affiliate platform, create youroffer, and start partnering with affiliatesto grow your business!What do you think–would you try affiliatemarketing?Why or why not?Let me know in the comments below, and I’llreply with my thoughts. Thanks for watching, and if you’d like tosee more videos like this, be sure to hitthe subscribe button, and turn on the notificationbell. And until next time, learn often, market betterand sell more.