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Affiliates drive bigger sales

Posted by Michael Bloch in web marketing (Saturday January 27, 2007 )

A new report released by a major marketing firm states that traffic driven by affiliates tends to convert better and generate higher value sales.

The Affiliate Consumer Insights survey by Peformics involved the participation of over 60 merchants representing over 50% of total sales volume in the Internet Retailer Top 500.

The survey found that online shoppers referred from affiliate sites had higher household incomes; 47.2% had an income of $75,000 or higher compared with approximately 40% of the average Online shopper.

The second quarter of 2006 showed an average spend of $112 by shoppers referred by affiliates, whereas the general sales average was $105. Preliminary data for the third quarter also indicates an upward trend of larger average order size.

Conversion rates of affiliate directed traffic for the second quarter of 2006 were 3.2%, which was nearly 50% higher than for many other forms of marketing.

Read the full Affiliate Consumer Insights survey report (PDF)

These figures don’t really surprise me as many productive, experienced affiliates don’t just use banners; they do a great job in pre-selling; grooming a browser into a potential buyer before the person even hits the merchant’s site. This is often done via a review or an informative article relating to an issue the product or service addresses where the merchant’s goods are mentioned.

In cases where only banners, buttons and links are used by an affiliate; then it’s the reputation of the referring affiliate that helps groom the person.

By the time the shopper has landed on the merchant’s site, often the person’s mind is already half made up to purchase. If the merchant has done a half-decent job of carrying on the good vibe the affiliate has created; conversions skyrocket.

Moral of the story for merchants – look after your productive affiliates and ensure that your landing pages are such that the efforts of your affiliates aren’t wasted.


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