There is nothing more persuasive than a strong word-of-mouth recommendation while shopping. Leveraging this to the advantage of a DTC brand is possible through a Shopify affiliate program.
Major brands make up to 25% of sales through affiliate marketing. With the digital era in the boom, affiliate marketing on Shopify can help small businesses and giant retailers alike in growing their sales and customer base.
In this blog, we have discussed the significance of having a Shopify affiliate marketing program for your Direct-to-Consumer (D2C) brand and how to start affiliate marketing with no money on Shopify.
What Is Affiliate Marketing On Shopify?
Affiliate marketing on Shopify is a form of digital marketing where you approach affiliates or influencers to promote your products. When friends and followers of these Shopify affiliate partners purchase from your store through their affiliate link, they will receive a commission.
This is a straightforward marketing where business owners get sales and new customers, while the affiliates get commission for their successful referrals. Shopify affiliate marketing provides a win-win scenario for both parties involved.
This affiliate commission often includes cash rewards, gift cards, discounts, or coupons. The terms of the affiliate marketing on Shopify, commission rates of the affiliate program, and mode of payment will be pre-discussed and agreed upon by the store owners and Shopify affiliate partners.
Why D2C Business Needs Shopify Affiliate Marketing?
Is affiliate marketing worth it for Shopify businesses? The answer is “Absolutely Yes”, and here is why:
The D2C business needs Shopify affiliate marketing to advocate their uniqueness and authenticity amid fierce competition. Data states that over 90% of consumers trust an influencer's opinions to make their purchase decision.
The following are the benefits of using affiliate marketing on Shopify for a DTC business:
Achieve Higher Reach: D2C stores have the potential to grow their wings across the globe if the right marketing strategies back them. Similar to 81% of brands, Shopify businesses can achieve this by having an efficient Shopify affiliate marketing campaign.
Recruit Shopify affiliate partners and influencers with a wide reach among people around the globe for your Shopify affiliate marketing program. This will lead to more people knowing about your brand when promoted by these Shopify affiliate partners.
Increase ROI: Talking about traditional marketing in his book “Zero to One”, PayPal founder Peter Thiel said it "was too ineffective to justify the cost." However, using affiliate marketing on Shopify can reduce redundant costs and increase the Return on Investment. Brands that use affiliate marketing get an average ROI of $15 for every dollar spent, which equates to a 1400% return.
While performing affiliate marketing, you pay your Shopify affiliate marketers only for the successful sales they bring. This will make sure your marketing investment is spent in the right way.
Access Target Audience: With the right choice of Shopify affiliate partners who share the same value or interest with your business, you can access to your target audience more accurately.
Gymshark affiliate program built a community of loyal customers who will be interested in their fitness wear. They made a million-dollar company using the power of their brand advocates. They ran an invitation-only program which enabled them to reach the target audience easily.
Build Customer Trust: People consider reviews and feedback from others before they buy something online. 92% of consumers now read at least one online company review before purchasing. With Shopify affiliate marketing, you can encourage more people to share positive reviews about your DTC store.
Therefore, you can project the same trust and loyalty to your DTC brand by partnering with affiliates and influencers with high authenticity.
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- How to Add Reviews to Shopify Stores: Detailed Guidance and Useful Apps
- Social Proof for Shopify Stores: Best Practices & Real-world Examples
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How To Start Affiliate Marketing With No Money: 4-Step Guide For D2C Businesses
This guide provides a step-by-step approach to launching a Shopify affiliate marketing program for D2C businesses without any upfront costs.
Step 1: Create an Affiliate Program for the DTC Shopify Store
Creating a Shopify affiliate program requires a couple of prerequisites.
- Set a definite goal - A goal is mandatory to know which direction your Shopify affiliate program will take and what destination you are aiming for. For example: the objective of the program can be more sales, increasing traffic, new signups, etc.
- Fix affiliate commission rate - This is the most important step that will determine your profit rate. Generally, the commission rates for affiliate marketing on Shopify are set between 5% to 30%.
- Decide the products to promote - Choose the right products to include in your Shopify affiliate program based on factors like demand, novelty, season, etc. This will ensure the success of your program.
- Other Terms and Conditions - Other important pre-determined terms like the expiry of your affiliate program in Shopify, legal guidelines in your region, payment mode and duration, etc. Concise planning and documentation before starting your affiliate marketing on Shopify will ensure smooth execution.
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Step 2: Recruit Affiliates and Influencers in Your Niche
Recruiting the correct affiliates and influencers from your niche for your affiliate marketing on Shopify will increase your chances for success.
If you don’t have much money for recruitment, here is how to start affiliate marketing with no money:
1. Choose the right performers in your niche
Conduct your research to identify the best affiliates in the niche of your DTC business to represent your Shopify affiliate marketing. Don't just go with the ones with the highest followers because beside the affiliate commission, you may need to pay them an extra fee to promote your products.
Micro-influencers may bring many more benefits to your circumstance. Research shows that micro-influencers, particularly nano-influencers with fewer than 5,000 followers, boast the highest engagement rates, averaging 2.53%.
💡 You may also like: Choose the Right Influencers: A Simple Guide for Small Ecommerce Businesses
2. Produce quality content
While you can help the affiliates by providing them with marketing materials, only the organic User-generated content (UGC) they provide will reach the audience better. Thus, encourage your affiliates to create their own unique content, such as unboxings, reviews, and product tests. This organic content has higher credibility and can engage their audience more effectively, driving better results for your affiliate program
3. Build a landing page
A well-crafted landing page can reach and attract more affiliates and influencers, making it easier for them to understand and join your program. This page should clearly outline the benefits of joining, provide easy-to-follow sign-up instructions, and highlight any support or resources you offer. It must also be visually appealing and straightforward, with a clear call to action to maximize conversions.
Take Nanit's affiliate landing page as an example. The affiliate landing page shares the brand values and missions by incorporating brief descriptions and impressive images related to the product’s use. This section is to attract influencers and affiliates who share the same values, leading to more successful partnerships.
Nanit also introduces its affiliate program with member benefits and application process. The benefits, along with well-explained instructions, can attract affiliates and convince them to take action: click on the Apply button.
To build a captivating landing page for your Shopfiy affiliate program, you can use Shopify apps and themes. These design tools often come with predefined sections and templates that let you customize any way you want to match your brand identity.
For example, Foxify - Smart Page Builder equips you to build a professional and high-converting affiliate landing page quickly and easily. With its user-friendly visual editor similar to Canva, you can freely drag and drop every element everywhere. It also lets you build and design directly in the preview mode.
In addition, Foxify offers various ready-to-use templates made for conversion. You can edit them anyway for your brand. Foxify templates save your time and effort, allowing you to design and publish stunning affiliate landing pages in just minutes.
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4. Promote your Shopify affiliate program strategically
To attract affiliates, promote your Shopify affiliate program across various platforms. Here’s how you can make the most of your promotion efforts:
- Use social media channels: Adopt social media platforms like Instagram, Facebook, and LinkedIn to showcase your program with engaging content, visuals, and success stories.
- Join industry forums: Participate in industry-specific forums like Reddit, Quora, and Shopify community to introduce your affiliate program to those in need.
- Employ affiliate networks: List your Shopify affiliate program on affiliate networks or directories like ShareASale, CJ Affiliate, and Refersion. These platforms already have a pool of potential affiliates looking for new opportunities.
- Use email marketing: Tap into your existing email list to promote your affiliate program to loyal customers, newsletter subscribers, or influencers you’ve previously worked with.
5. Agreement with terms
Establishing clear terms and conditions is a critical step when recruiting affiliates for your Shopify affiliate program. A well-structured agreement not only protects both parties but also sets the foundation for a long-term and successful partnership. Here's how to ensure your terms are solid and mutually beneficial:
- Payment cycles and commission structure: Clearly outline how and when affiliates will be paid and payment methods. This transparency helps maintain trust and encourages affiliates to stay motivated.
- Conflict resolution procedures: Disputes may arise over things like missed payments, discrepancies in tracking, or disagreements about promotions. Having a structured procedure in place will help resolve any conflicts efficiently and maintain a positive working relationship.
- Affiliate responsibilities: Outline the specific responsibilities of affiliates, such as creating content, promoting products, and complying with your brand guidelines. This ensures both parties are aligned on what is expected from the affiliate.
- Compliance with legal guidelines: Ensure your agreement includes any legal requirements, such as FTC disclosures for affiliate links, GDPR compliance for handling customer data, and regional regulations that may impact the promotion of your products.
- Termination clauses: Include a termination clause in the agreement outlining the conditions under which the partnership can be ended, such as poor performance, breach of terms, or inactivity. This protects your business while also giving affiliates clarity on their standing.
Step 3: Track the Performance of Your Shopify Affiliate Program
Tracking the performance of the affiliate program not only lets you know how well your program is doing but also helps to identify areas of improvement.
First of all, define the metrics that can determine the performance and outcome of the Shopify affiliate program.
Some of the commonly used Key Performance Metrics (KPIs) in affiliate marketing on Shopify are:
- Click-Through Rate (CTR)
- Conversion Rate (CR)
- Average Order Value (AOV)
- Affiliate Commission
- Affiliate Sales
- Affiliate Payout
- Lifetime Value (LTV) of Referred Customers
- Traffic Quality
- Earnings Per Click (EPC)
You can easily track these metrics by affiliate management tools and analytics platforms. If you don’t know what to use, the section below will help you choose one.
In addition to these metrics, you can also engage with your affiliates and influencers and collect feedback from your customers. With their help, you can alter your affiliate marketing on Shopify strategies. Insights provided by Shopify affiliate partners can be more valuable in optimizing your Shopify affiliate program. Here is how to connect with affiliates to collect feedback:
- Regular check-ins: Schedule monthly or quarterly check-ins with affiliates via email or calls. Use this time to discuss their progress, offer feedback, and ask how you can better support them.
- Feedback surveys: Send out periodic surveys to gather feedback on your program’s usability, affiliate tools, commission structure, and communication. This allows affiliates to share their thoughts openly.
- Offer marketing resources: Provide your affiliates with the resources they need to market your products effectively, such as banners, logos, product images, and sample copy. Make it easy for them to promote your store without having to create content from scratch.
- Incentivize feedback: Encourage affiliates to share feedback by offering rewards for valuable suggestions, such as bonus commissions or access to exclusive promotions.
Step 4: Pay Commission to Your Affiliates
Paying commissions to your affiliates is a crucial step to maintaining trust and relationships with your Shopify affiliate marketer.
Some strategies to maintain an affiliate payment:
- Commission calculation and allocation should be precise.
- Keep a record of commission, payment balance, payment history, etc., to access whenever necessary.
- Ensure all your transactions are transparent, abiding by all rules.
- Offer multiple payment modes to increase the interest of the affiliates.
- Maintain a schedule to send out payments to your affiliates to avoid delay.
Shopify affiliate marketing will reach a full circle only when payments are made perfectly. However, ensure the legitimacy of the sale before making the payment to avoid any fraudulent activities.
Constantly be in contact with your Shopify affiliates to keep up to date on all financial transactions. Notify them in the form of email or SMS regarding payment transfer. Enquire and update once they receive their payment. An honest approach toward payment will increase the authenticity of your Shopify affiliate marketing.
Affiliate Program Management Tools in Shopify
Seeing all the tasks involved in handling Shopify affiliate marketing can be a daunting task. However, you don't have to take the responsibility of handling all this. This can be delegated to an app for Shopify affiliate marketing.
With an app, affiliate marketing on Shopify can be automated, saving hours. The precision and efficiency of an app will also help reduce errors.
Some features to consider while choosing a Shopify affiliate marketing app:
Ease of use - The Shopify affiliate app must be seamless to use, even for people not well-versed in technology. So, the app should be easy to set up and use.
- Customizable affiliate program - You should be able to design the program for affiliate marketing on Shopify based on your goals and objectives. This includes selecting products, setting sign-up forms, discounts, etc.
- Different affiliate commission rates - There are a variety of Shopify affiliate commission models that can effectively increase profits. So, you should be able to choose from different commission types for your Shopify affiliate marketing program like simple, tiered, recurring, etc.
- Multiple affiliate payment methods - To attract customers to join the program and promote it with motivation, multiple payment methods will help. Thus, Shopify affiliate apps will also offer easy ways to make these payments.
- Effortless affiliate management - Apps will provide centralized management of Shopify affiliate marketing program. You can seamlessly create, manage, update, archive, and even track everything within a single app.
- Easy monitoring and tracking - Tracking is an important part of managing and refining Shopify affiliate marketing. An app with all its technical expertise will do it accurately and quickly.
- Other add-ons - Some affiliate marketing apps offer add-ons that enable integration with third-party apps for additional automation. This will provide a total package ensuring the further success of affiliate marketing on Shopify for the DTC owner.
Recommended Apps and Gifts
From the above criteria, here are some recommended Shopify affiliate apps for you:
1. UpPromote Affiliate Marketing: UpPromote is a user-friendly Shopify affiliate app that offers customizable affiliate programs, multiple commission structures, and various payment methods. It provides a centralized dashboard for easy affiliate management, tracking, and analytics, along with integration options for added automation.
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2. AfterShip Referral & Affiliate: AfterShip combines referral and affiliate marketing tools. It offers a simple setup, customization for branded programs, flexible commission models, multiple payment options, and robust analytics. This Shopify affiliate marketing app also easily integrates with other Shopify apps for enhanced functionality, like customer engagement and shipping notifications.
3. RecomSale: Affiliate Marketing: This Shopify affiliate marketing app focuses on driving sales through affiliates and influencers. It features easy program customization, flexible commissions, various payment methods, and comprehensive tracking. RecomSale also integrates with third-party platforms for additional features like email marketing.
Building and Managing an Shopify Affiliate Community for DTC
Building and managing an Shopify affiliate community will benefit the DTC brand in Shopify. Forming a community for your brand will help in more than one way:
- Acting as cheerleaders in supporting hard work.
- Helping in R&D by sharing their expectations.
- Providing feedback for constant improvement.
- Promoting through word-of-mouth marketing.
Adopting Shopify affiliate marketing can help you easily build a brand community for your DTC store. This will help you build an authentic brand name, widen your reach, and bring sales and conversions.
Conclusion
Shopify affiliate marketing offers multiple benefits for your DTC store apart from maximizing your sales and revenue. If you plan a very effective strategy, then you can easily bring in new customers and retain existing customers.
This blog equips you with all the knowledge you need to understand and start your DTC brand's affiliate marketing on Shopify.
Already use Shopify? Upgrade to Shopify Plus and explore great feature for D2C business, just like yours.
FAQ
Is affiliate marketing worth it?
Yes, Shopify affiliate marketing is profitable as you will pay affiliates only for the sales they bring. That means you can start a Shopify affiliate marketing without any cost. This marketing strategy can also bring higher ROI than other marketing strategies - $15 for every dollar spent, which equates to a 1400% return.
How to promote a Shopify affiliate program?
You can promote your Shopify affiliate programs by building a landing page or leveraging social channels, email, and newsletters, or paid Ads.
