Is affiliate marketing a good option to promote your b2b products or services? In this article we explore how to effectively use affiliate marketing for b2b.
Affiliate marketing can be a great way to drive awareness and sales for B2B companies. In fact, B2B companies run some of the most successful affiliate programs.
In this article, we’ll look at some hurdles B2B marketers face. Also, we discuss how it differs from B2C affiliate marketing, and we have some tips on how to run successful affiliate marketing for B2B.
Traditional marketing channels vs affiliate marketing for b2b
There are a few key challenges that B2B marketers face that can make it difficult to drive results through traditional marketing channels.
Longer sales cycle b2b vs b2c
Studies show that the average B2B sales cycle is nearly twice as long as the average B2C sales cycle. It clocks in at around 22 weeks. In comparison, the average B2C sales cycle is just 12 weeks.
This extended timeline can make it difficult to generate quick results. For example, if you’re running a Linkedin ad campaign, you might not see results for months. By that point, your budget for the campaign would have long been exhausted. Affiliate marketing for b2b can help you shorten the sales cycle, by partnering with respected industry experts.
High customer acquisition costs
B2B companies also have higher customer acquisition costs than B2C companies. A study by Forrester found that the average customer acquisition cost for a B2B company is $1,128. For B2C companies, it’s just $143.
This difference is due in part to the longer sales cycles we mentioned earlier, it takes more time and effort to land a B2B deal than it does to sell to a consumer. So companies have to invest more in their marketing and sales efforts. This makes affiliate marketing for b2b interesting. Partners can help cut the sales cycle and increase your reach.
Multiple decision-makers
The decision-makers in a B2B purchase are often a team of people, rather than an individual. The average B2B purchasing team has 5.4 decision-makers, shows data from Forrester.
Dealing with multiple decision-makers can be difficult. For one, each person will have their own set of needs and wants. So, you’ll need to tailor your marketing and sales approach to fit each individual. Additionally, you’ll need to ensure that everyone is on the same page throughout the decision-making process. Otherwise, you run the risk of losing the deal entirely.
High ticket prices
The price point for B2B products is often much higher than the price point for B2C products. Data collected by PwC shows that the average price of a B2B product is $5,000. For B2C products, it’s just $100.
This means that each sale carries more weight. So if you’re not careful, a few lost sales can quickly eat into your profits. A higher ticket price also means customers will be more hesitant to make a purchase. They’ll want to be sure that they’re getting their money’s worth.
Complex products
B2B products and services are often complex. This can make it difficult to explain their value in a short amount of time. B2B marketers, therefore, need to first find ways to educate their target audience. Skipping this step can lead to confusion and ultimately lost sales.
Smaller target market
B2B companies often have a smaller target market than B2C companies. Studies by Forrester and Demandbase show that the average B2B company has a target market of just 1,000 to 5,000 companies. In comparison, the average B2C company has a target market of millions of consumers.
This smaller target market can make it difficult to reach your ideal customer. Traditional marketing channels, such as advertising, tend to have a very broad reach. So you might end up wasting a lot of time and money marketing to people who will never buy from you.
Affiliate marketing for b2b – How does it work?
B2B affiliate marketing is a type of performance-based marketing in which a business rewards an affiliate for each new customer that they bring in. Affiliates are typically website owners or bloggers who have an audience relevant to your business. For example, if you sell software to small businesses, you might partner with an affiliate who runs a blog for small business owners.
When you partner with an affiliate, they promote your product or service on their site. If their audience is interested in what you’re selling, they’ll click on the affiliate link that takes them to your website.
Here are a few examples of how B2B companies are using affiliate marketing:
Generate leads through affiliates
Lead generation is one of the most common uses for b2b affiliate marketing. Generating leads can be a challenge, especially for small businesses with a limited marketing budget. Affiliate marketing for b2b can be an effective way to reach new leads without breaking the bank.
By partnering with affiliates who have an audience relevant to your business, you can generate leads that are more likely to convert. Leads generated through affiliate marketing are more likely to convert than leads generated through other methods. B2b Affiliate marketing can drive customer reach and education from external partners. This helps you to create a trusted brand and generate customers.
Drive traffic to your website with affiliate marketing for b2b
In today’s digital world, website traffic is essential for businesses of all sizes. B2B brands especially need to make sure their website is visible to their target audience. So if you’re not driving traffic to your website, you’re missing out on a huge opportunity.
B2b Affiliate marketing can be an effective way to drive traffic to your website. When an affiliate promotes your product or service on their site, they drive their audience to your website. This can help increase brand awareness and get more people. The quality of the traffic is also high, as it’s coming from people who are already interested in what you have to offer.
Boost your brand awareness through affiliate
Strong brand awareness is a critical part of any marketing strategy. It can help you stand out from the competition. Being well known in the marketplace is also key to attracting new customers and growing your business.
Affiliate marketing can be an effective way to boost brand awareness. By partnering with affiliates who have a relevant audience, you can get your brand in front of a new audience and increase awareness of your products or services. If you partner with the right affiliates, you can also improve your brand image and reputation. Learn more about creating brand awareness through affiliates.
10 Tips On How to run a affiliate marketing for b2b
To run a successful B2B affiliate program, there are a few things you should keep in mind.
1. Define your goals and objectives
Before you launch an affiliate program, think about what you want to achieve with it. Without a solid vision for your program, you’ll end up chasing your tail. It will also be more difficult to measure success and ROI.
So take time to identify what you want the program to target. Do you want to generate leads? Drive traffic to your website? Boost brand awareness? Once you have a clear idea of your goals, you can start to put together a plan for how to achieve them.
2. Find the right affiliate partners for B2B
Affiliates are vital to the success of your program. They are the ones who will be promoting your products or services to their audiences. So it’s important to take the time to find partners who are a good fit for your business. successfull affiliate marketing for b2b stands or falls with the quality of your partners and their audience.
Here are some things to look for when finding affiliate partners:
A relevant audience
Look for affiliates whose audience matches your target customer. Otherwise, they’ll struggle to promote your products or services effectively. Any leads you get are likely to be of poor quality and won’t convert.
Partnering with the right affiliate doesn’t just benefit your business – it’s good for the affiliate too. They are more likely to be successful in promoting your products, which will earn them more commission and keep them happy.
A good reputation
Your affiliate’s reputation becomes your reputation. So, pick wisely. Also, when your affiliates have great reputations, their audience will be more likely to trust them – and by extension, your brand.
To vet an affiliate’s reputation, look for social proof like testimonials and reviews. You can also check their social media presence and see what people are saying about them.
A proven track record
The best way to gauge an affiliate’s effectiveness is by looking at their past results. If they have a proven track record of success in promoting similar products or services, they’re more likely to be successful in promoting yours.
You can ask for case studies or testimonials from past clients. Check out their social footprint as well. How many followers do they have? What kind of engagement are they getting?
Once affiliates are on board, make sure to support them. Provide them with regular updates on your products or services, creative assets, and any offers or promotions you’re running. The more information they have, the better they’ll be able to promote your business. More tips on affiliate recruitment in our article how to get affiliates for your affiliate program.
3. Create an attractive commission structure
Your commission structure has two main goals. The first is to help you achieve your business goal through affiliate marketing for B2B. The second is to attract high-quality affiliates. To achieve the first goal, make sure your commissions are in line with your objectives. For example, if you’re looking to generate leads, focus on giving affiliates a commission for every lead they generate. If you’re looking for brand awareness, you might give a lower commission but base it on traffic numbers.
To attract high-quality affiliates, make sure your commissions are competitive. So, research your industry to see what other businesses are offering. If you can’t offer similar rates, try to sweeten the deal with other perks. For example, you could offer exclusive access to products or services or early access to new product launches. You could even consider giving bonuses to affiliates who perform well. These can either be one-time payments or ongoing commissions.
Another key factor to consider is the lifetime value of a customer. If customers acquired through your affiliate program have a high lifetime value, consider offering a higher commission percentage or a lower payout threshold. That’s because it will take longer for affiliates to generate enough leads to reach the payout threshold.
4. Set clear program terms and conditions
When you launch your b2b affiliate program, be sure to set clear terms and conditions. This will help to protect both your business and your affiliates.
Some things to include in your terms and conditions are:
- A description of the program
- Eligibility requirements
- Commission structure
- Payment schedule
- Advertising guidelines
Remember to review your terms and conditions regularly. As your business grows, you may need to make changes to them. For example, you might need to adjust your commission structure if you’re not meeting your business goals.
Find a template for creating affiliate program terms and conditions here.
6. Monitor the program closely
Successful affiliate programs don’t run on auto-pilot. They require constant support and management to ensure that both you and your affiliates are happy and that the program is achieving its objectives.
So once your program is up and running, it’s important to keep an eye on how it’s performing. Consider using software rather than manual processes to track key data points. This will save you time and make it easier to spot trends to jump on or potential red flags
Some things to track include:
- Applications and approvals – Keep track of who’s interested in joining your program and who you’ve approved. This will help you to keep tabs on the size and quality of your affiliates.
- Leads and sales – This data will help you to track the success of your program and identify any areas that need improvement.
- Click-through rates and conversion rates – Use this data to see which affiliates are performing well and which ones might need more support.
- Refunds and chargebacks – Tracking how many refunds and chargebacks you have will help you to spot any potential fraudulent activity. The quicker you can catch this, the better.
Conclusion on affiliate marketing for b2b
A well-run affiliate program can be a great way to generate leads and sales for your B2B business. But it’s important to remember that it takes time, effort, and constant monitoring to make it successful. Affiliate marketing for b2b is a great option to explore, is you want to increase your sales and only pay for results.
Read more in our guide on running an SaaS in-house affiliate program.