Affiliate Marketing is an effective and popular method to generate additional income. Some companies may even have more than 500 affiliates who perform promotions in various ways such as blogs, social media or otherwise. Managing all affiliates therefore requires a lot of time and work, There however are strong platforms available to track and manage your affiliates. In this blog we will take a closer look at “why is affiliate tracking software so important”.
- Affiliate Tracking Software Definition
- Adding new affiliates
- Performance affiliates
- Accounting activities
Affiliate Tracking Software Definition
There comes a moment once you get started with affiliate marketing that you agree to collaborate with the first affiliates who will promote your product. Creating a unique referral URL and monitoring their performance is an important part of managing and improving the effectiveness of your affiliate marketing strategy. An affiliate tracking software tool is basically a platform that allows you to manage all your affiliates in one system. Information that is managed and displayed for example are the number of clicks or conversions that the affiliate has generated. But payments and invoices can also be performed via the platform.
Create, track and reward your affiliates with ease in one solution.
What is affiliate tracking software not?
Affiliate tracking software is not an affiliate network where you as a company can directly start collaborations with an affiliate. Or where affiliates can approach your company through the affiliate network for promotion. In addition, the main goal of affiliate tracking software is not to share promotional material such as banners or videos. The main target of affiliate tracking software is therefore focused on performance (KPIs) and accounting. It may however be that affiliate tracking platforms do offer options or extensions for promotion or affiliate networks.
Adding new affiliates
It will regularly happen that you start a new collaboration with an affiliate. It is important that contact and payment details are saved for payments to the affiliate (if commission has been earned). A unique referral link thereby must be created that recognizes the specific affiliate in case of a sale. Affiliate tracking software ensures that all the contact information is stored, the unique affiliate link is automatically created and displayed at the affiliate. A “Quick sign-up” link allows you to easily share it with affiliates to ensure they can easily sign up.
It is of course very important to be able to monitor the performance, especially if you work with multiple affiliates. important KPIs are:
- Number of clicks
- Number of conversions
- Total turnover
- Earned commission
Gaining insight in the number of clicks in relation to the conversion allows you to easily calculate the effectiveness of the affiliate. This information shows whether the affiliate is increasing sales month over month. Affiliate tracking software provides all information centrally via a dashboard for you to easily review the performance of your complete affiliate team, but also for specific affiliates.
With this data you have the option to for example reward well-performing affiliates. It on the other hand shows which affiliates’ performances are below expectations. It is important to start the conversation with affiliates where the performance is lacking, to review what you can do to generate the conversions and increase traction in the market again.
Once the affiliate starts generating a lot of conversions, he will also earn commission. This means that the affiliate must be paid on a regular basis. The payment term can be on a weekly, monthly or quarterly period depending on the agreements. As your affiliate marketing activities grow, the number of manual payments to the affiliates will also grow which is a time consuming activity. Fortunately, there are affiliate tracking software platforms that generate a SEPA bulk payment file, this file can be uploaded in your bank and paid as a single transaction. This method allows you to pay for example 30 or more affiliates at once through a single transaction. The bulk SEPA files can be automatically generated by the platform periodically.
A credit invoice has to be created once the payment is done, this usually is a time consuming activity as this has to be done for each individual affiliate. Some affiliate tracking platforms automatically create a credit note after a payment, which can be automatically sent to the affiliate via email. The payment and processing thereby is fully automated.
A time saving of 6 hours per month, that is what Sir Filiate achieves for Woosa.
An affiliate tracking platform is a must have when you want to get started with affiliate marketing. The platforms have been developed to increase efficiency as much as possible. Leaving you time to focus on, for example, the affiliate marketing strategy or new collaborations with affiliates. The main points are:
- Create a new affiliate in 1 minute
- Clear affiliate performance insights
- SEPA bulk payment file for easy payment
- Automatic credit invoices