Referral Marketing is a tool designed and used to entice existing customers to present a product or service that they are using for their family, friends and acquaintances in order to attract them to become new customers.
Affiliate and referral systems are currently some of the most popular and effective methods to promote products and services, especially in the online environment, and especially in an era when social media is everywhere and people are becoming more focused on online purchases.
If you are a partner of a company that provides a product or provides a service and attracts new customers for that company, you receive cash bonuses or certain benefits, such as discounts, loyalty points, percentage of sales made based on your recommendations, and others.
Increasing company sales based on your recommendations and promoted referral links will also lead to an increase in the bonuses you receive. This is a great tool for everyone - both for the company and for partners.
Thus, the more new partners you bring to the company to promote your products and services, the higher the profit and bonus received by you as a partner.
According to statistics, in the United States alone, 100,000 buyers get into referral programs every week. Product marketing can be very easily adapted to current trends, and a company can prepare for explosive growth with an affiliate and referral program. Thus, 3 levels of membership can be used:
1. Marketing recommendations
or acquiring new customers through verbal referrals (on social media: mentions in stories, tags in posts, mentions in video or live broadcasts, blog mentions, and others). The company collects a commission on the sale or offers bonus points for the next purchases received on the recommendation of a partner.
For example: Elena buys a dress from brand X. Her friend Anna, a famous fashion blogger, sees the dress and says: "The dress looks great. Where did you buy it?" Elena copies the link to the online store page X from her account and sends it to Anna. When Anna follows the link and buys something, Elena receives a commission for the sale.
2. Affiliate Marketing
it is a strategy whereby external websites generate traffic to a website or online store, and an affiliate is rewarded for every buyer and / or sale generated from that traffic.
For example: Anna likes product Y from brand X recommended by Elena and joins Elena's affiliate program. Thus, Anna places a banner for this product on her blog. When her followers access this online store link, blogger Anna gets a commission for the clicks they make. Elena also gets her commission for referring Anna to the affiliate program. Simple, effective and very convenient.
3. Multilevel network marketing , in which affiliates profit from recruiting new affiliates and selling through their referral links.
For example: Elena invited Anna to the affiliate program of the X brand, and now Anna is also promoting this brand and trying to attract new partners. Now Anna gives her friend Yulia a link to a product in the X brand's online store. Yulia buys this product by following this link sent by Anna. After that, Julia also transfers her link to the store to her group of friends. When placing an order using the link provided by Julia, Anna receives a commission for both Julia's orders and orders placed by Julia's contacts. And the chain continues.
Network marketing with unlimited partners - you can attract as many partners as you want, the number is unlimited
Customizable bonus programs for referrals - the type and size of bonuses are determined and installed by each company and private partners, the options are endless
Ability to create text, graphic and advertising banners for partner sites - you can post information about the recommended product and company on your own website or on social media pages
Widget mode for embedding a store on other websites - you can embed an ad store on your own site
Ability to create multiple promotions - any company and partner can create and promote various recurring or unique promotions
Cash bonuses from the company recommended by the affiliate program (Percentage of sales, fixed amount per sale / client) money will be transferred directly to your accounts
Discounts and benefits from the company (discounts on products, loyalty points, gifts or product testing opportunities, PR packages, etc.)
Personal promotion in parallel with brand promotion - association with a recognizable brand helps to increase the popularity of a personal name
Providing an additional source of income b>, which can be obtained after a few minutes of online activity and using social networks
Contributing to brand growth will help you strengthen your own image and become a recognized brand partner.
Partnering with a strong successful brand can help you build your own business and your own successful brand in the future.
An opportunity to gain valuable experience in affiliate marketing, useful experience for future cooperation or train future partners
Unlimited period of activity