Does It Make Sense For Your Online Retailer To Start An Affiliate Program?

One of the best ways to build wealth over time is by investing your money in businesses. When done right, choosing to carve out a career as an …

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One of the best ways to build wealth over time is by investing your money in businesses. When done right, choosing to carve out a career as an investor or investing spare cash to get the maximum return can have great returns. Of course, the critical factor for any investor is identifying and taking advantage of the right opportunities.

One of the best performing sectors in recent years is online retail. This industry generated almost $3.46tn dollars globally in 2019 – a 17.9% growth over the previous year. With the COVID-19 pandemic giving the online retail sector an additional boost as more people now shop online from home, it is certainly worth thinking about investing money in an online retail business.

As an investor, you will naturally be keen to find ways for any online retailer you put money into to grow. This will see you get a better return on your investment and make more money. One area worth investing resources in is affiliate programs. But what exactly are they?

What is an affiliate program?

In simple terms, an affiliate program sees the online retail business you invest in partner with third parties in order to promote it. A dedicated affiliate program allows a business to find, monitor and reward third parties for marketing their brand and helping it to grow. This type of program is now seen across the business world, from online retail to online casinos. If you do choose to invest money in setting up a program like this, just make sure you do it in a fair and transparent way.

According to Simon Rose, founder and Chief Editor of “For an affiliates company, it is essential to have absolute trust in the operator because we need to know that our partners can be trusted and will treat us fairly.” If you bear these sentiments in mind when the business you invest in sets up their own program, you will not go far wrong.

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While thinking about the people their business may partner with and how any program may operate is key, the main concern for any investor is always about potential returns. Whether it is maximizing profits on an investment in gold or backing an e-commerce business, this is true. But what benefits do affiliate programs bring to the table?

Greater market exposure in new demographics  

Although online retail is a great place to invest money (the sector is projected to generate $6.54tn by 2022, according to Statista), it is also very competitive. Being heard above all the other businesses selling goods online takes hard work but affiliate programs can make this a lot easier. Partnering with influential third parties who can expose the business you invest in to a wider global audience is very useful. This can help the e-commerce business you back financially pick up more customers, more sales and a greater market share in places you wouldn’t otherwise penetrate.

Superb for building brand awareness

As well as helping businesses gain new customers in new regions, affiliate programs are excellent for building a strong brand awareness globally. When the business you invest in will be battling it out against industry giants such as Amazon, Alibaba or Next, this is vital. Partnering with an affiliate who can constantly get your brand in front of more people is ideal for helping online retailers compete against the big guns. Running a program that puts your brand front and center on a consistent basis will help the retailer you invest in grow, and ensure that you get a better return on your investment.

Marketing boost with little extra work

Although investing in an affiliate program will take some time and money, the boost it gives to a company’s overall marketing plan is certainly worthwhile. When the program is good to go and has the right affiliate partners onboard, it will give you lots of extra marketing without in-house staff having to do it personally. This not only gives these staff more time to focus on other key tasks but means the business you invest in gets lots of additional exposure without any direct effort.

Online retail and affiliate programs 

If you are looking at sectors to invest money in, online retail is a great option. While there are some interesting alternative investment strategies you could use instead, this industry truly is on the up. This is great news for any investor who is looking to get the best return possible on their money. If you do put some cash into an e-commerce business, though, it is also worth investing some of it in an affiliate program to help your venture succeed.


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