![a person typing something on the computer](https://www.slyce360.com/wp-content/uploads/2024/05/Blog-21_Hero-Image_573355904-300x134.png)
Affiliate Marketing – The Power of Payments
Stop getting burned by rogue affiliates. Learn the metrics that catch bad actors before they tank your compliance ratios.
Affiliate marketing is one of the most powerful, and sometimes, most misunderstood marketing strategies. With close to $14-Billion in worldwide spending in 2023 on Affiliate Marketing, and 60% of marketers planning to increase their Affiliate Marketing budget over the next year. Clearly, businesses are seeing the benefits from Affiliate Marketing. But like anything, Merchants should know what they’re implementing.
Affiliate marketing is a flavor of performance marketing, where Merchants partner up with publishers, influencers, call centers, or third parties—also known as affiliates. Every time that an affiliate brings business to the Merchant, they are rewarded with some form of payout. The conversion and commission are usually agreed upon by both the Merchant and affiliate before engaging together.
Common ways that affiliates promote products/services can include:
Merchants are always looking for an edge; something that can help increase both revenue and reach for their business(es). Affiliate marketing is just that—a method of scaling sales, leads, call volume, and website traffic. For Merchants large and small, from Fortune 500 to startup, Affiliate marketing matters because of the following:
Hold your horses before pulling the trigger on an affiliate. There are a couple of key bottlenecks that can hurt the performance of an affiliate marketing strategy. Let’s dig into a couple tips and tricks for massively improving your revenue potential.
First, assume that your affiliates don’t know anything about your product/service. Providing quality marketing material that converts is up to you. That means that you will need to supply good visuals, copy, landing pages, scripts, etc. to perform. A big snag that Merchants may not realize is that if your affiliate can’t make the sale, they will leave and find a new Merchant partner—so make it as easy as possible for them!
Secondly, fraud is the biggest issue when working with affiliates. Just because you’re getting traffic and sales sent your way, it doesn’t mean that all of those payments aren’t from spam traffic, stolen cards, or fraudulent offerings. Fraud can be especially painful for Merchants with a high AOV and/or with a large share of revenue being paid to affiliates. Why? Because processing poor quality payments risks increasing the Merchant’s level of chargebacks and fraud—which for Merchants, can eventually mean falling out of compliance and losing their Processor.
Many Merchants and sponsoring FIs can’t meld their CRM data with chargeback and fraud data for a complete affiliate risk profile. And even if they can, Merchants have to constantly review reports to find the needle in the haystack. But the minute that they stop reviewing reports – BAM! – that Merchant is exposed to a potential rogue affiliate.
Slyce360 can automate screening and monitoring affiliates.
Interested in learning more? Contact your Payment Service Provider today and see what Slyce360 can do for your affiliate marketing strategy.
Stop getting burned by rogue affiliates. Learn the metrics that catch bad actors before they tank your compliance ratios.
Affiliate marketing has the potential to make a lot of money. But using the wrong affiliate can expose you and your Merchants to increased risk. Read for a breakdown of the impacts and pitfalls.
First-party fraud is one of the most contested topics with Merchants. That’s because Card Brands are starting to make huge new updates in answer to ‘what is fraud?’ Let’s break down how Visa is tackling friendly fraud in 2024.
Seize the opportunity in the CNP RP space