Why Your Affiliate Program Isn't Working

Affiliate marketing is becoming increasingly popular among brands looking to incentivize influencers by paying commissions for sales. It's a simple strategy that works by giving influencers a unique link they can post for their followers to use. Once a follower uses the link and makes a purchase, the influencer receives a percentage of the purchase price for their efforts.

Seems like a reasonable marketing strategy, right? However, once you dive a little deeper into the strategy, it turns out there are several reasons it might not be right for your brand.

1. Brand Awareness and the Meta Algorithm

Let's start with brand awareness and the Meta algorithm. Did you know that the Meta algorithm throttles posts made with external links? The reason is simple: the algorithm is designed to keep users on the platform for as long as possible so they can be served ads from paying advertisers. An external link takes the user away from Meta, meaning they never see those ads. Recent data shows that over 97% of widely viewed Facebook posts do not include external links. Organic, engaging content is what the algorithm favors and will present to more viewers.

By asking your influencers to post a link to your products, you're actually working against the main reason you use them in the first place: brand awareness.

2. How Consumers Really Shop

eCommerce's role in the marketplace has exploded in the past decade, and COVID only added fuel to the fire. Now we need to look at how customers consume content and make purchase decisions based on social media.

Most brands' products are available at multiple retailers at varying prices. When a customer sees something of interest on social media, they're usually not jumping directly to the brand's website to look at the product. Brands control what reviews are allowed on their sites, and consumers know it. Trust in product reviews comes from retailer sites and other platforms like Reddit.

Consumers will see the product, Google it, check out some reviews or videos, and then find it for the best price. All of this leads them not to use the affiliate link—and thus your influencer doesn't get paid for their promotion.

3. What About Your Retailers?

An argument can be made that you're not supporting your retailers by having an army of affiliates driving traffic to your site for direct-to-consumer sales. This might not be the case for all brands, but it should be taken into account when deciding on the type of program you're looking to build.

Is There a Place for Affiliate Marketing?

That's up to each brand, but we believe there are better ways of maximizing the efforts and efficiency of an influencer team. Brands need to develop a tiered structure for their influencer program. Some influencers excel in certain areas more than others and should be rewarded accordingly.

The Pro Program Alternative

A pro program model actually works extremely well if organized and executed correctly. It offers benefits that you don't get from an affiliate program:

• More loyal influencers who are invested because they trust the products, not just looking to make a quick dollar
• Cost effectiveness through offering discounts that often still have profit margin built in
• Engaged members who are more willing to be part of your marketing efforts and perform tasks you ask of them
• Better ROI metrics based on eyeballs and engagements, which is more accurate than links that may or may not generate sales
• Flexibility to implement a tier system with members being compensated through payment, free product, or discounts

Working with a platform like AmbassadorTrack allows brands to take full control of their program and go far beyond just "click here to buy my stuff." It integrates onboarding, communication, shopping cart integration, user-generated content, social analytics, media valuation, and program consulting into one easy-to-use platform. You'll know exactly how your influencers are promoting your brand and how successful their posts are at conveying your message.

The Bottom Line

We get it—affiliate marketing is a low-risk option, the "easy button" if you will. But if it isn't generating sales, then it's a waste. We work with clients to build a structured team that has clear expectations and deliverables. If they still want to use affiliate marketing, that's fine, but we suggest they use it only for new, up-and-coming influencers who aren't yet proven.

The reason most companies move away from a pro program isn't because it doesn't work—it's because they can't manage it effectively. Notice we said "can't" and not "don't." With a platform like AmbassadorTrack, the brand is in full control and can create a highly effective team with the data to back it up.