Instagram is one of the most popular social media platforms in the world. Having more than 1 billion users worldwide, this photo-sharing platform has enough to showcase your personal life to commercial products to this vast audience.
This popularity has opened the door to run affiliating marketing programs where the brand and the influencers can work together. Instagram insists on the power of word-of-mouth digital marketing, and once this concept is implemented thoroughly, consumers are more likely to buy the featured products.
Running an affiliate program on Instagram is a smart move to tap the one billion-plus audience base. Instagram has huge potential to enhance the brand value and necessary aspects of the business. This is why it is crucial to think seriously about running an affiliate marketing program on Instagram.
Why choose Instagram for affiliate marketing?
Instagram has more than 1 billion users spread worldwide. This huge user base can be channelized towards your brand which drives more sales. It also allows the user to share short videos known as Reels, IGTV videos to showcase the personality/product before the audience. Having said that, a good quality video plays a vital role to attract an audience. Make use of the Instagram video editor that allows you to create and edit videos flawlessly, and you can easily influence people with your creativity and quality.
Due to the popularity, affiliates prefer to work together with the brand, which delivers tremendous results to the business. There are mainly four players in Instagram affiliating marketing. This includes the brand, affiliate network, affiliate marketer or influencer, and finally, the customer.
Most of the time, it is seen that affiliate marketing appears in the form of certain discount codes. In such cases, the influencer shares the code, especially with his followers, where they can use that to avail discounts while making their purchase from the brand.
Influencers generally use unique and easily traceable links mainly provided by an affiliate network. Since these links can be tracked easily, it will be great to know how many clicks and sales are made using such links.
For sure, affiliate links can be inserted anywhere on Instagram, especially those that allow hyperlinks. Influencers use Instagram stories, IGTV descriptions, Instagram’s link in bio to lure their followers into the affiliation program.
When a sale is made using the affiliate link, the affiliate earns the commission that was set before. This rate depends on the influencer, the brand, and the number of followers. The commission usually stays between10% to 20% of the product price.
Affiliate links can be easily shared on various platforms like Facebook, YouTube video descriptions, popular short video brand TikTok, Twitter, and on the influencer’s website. The fact is that the affiliate link can be there where there is the web.
Step by step guide to set up an affiliate program on Instagram
If you are trying to explore Instagram affiliate marketing, then you must know how to create an affiliate program account. Here are the steps to follow.
Step-1: Choose the perfect affiliate network
If you are thoroughly looking for an affiliate marketer to partner with for the first time, it would be best to follow the affiliate network rather than any random search. This is because affiliate networks provide services and several benefits, including tracking technology, reporting tools, payment processing, and exposure to a base of influencers who have already used the affiliate links on their platforms.
Tracking the affiliate link is extremely important because no one can confirm how many clicks are made and how many people visited through the link to the website. Furthermore, regarding sales, affiliate networks also assist in figuring out the amount of commission an influencer deserves after all the clicks and purchases. Therefore, it also emphasizes the commission structure of the affiliate program.
If there is a pay-per-click format, you will earn a small amount from each click done by the visitors towards the website. Cost per acquisition is only possible when the actual purchase is made using the affiliate link.
If you are new in this business, then the cost-per-click option is probably not suitable for you and your business. Rather, you should go for the cost per acquisition model, which reduces the risk because it is based on the actual sales performance and can easily motivate the influencers to focus on the sales rather than the traffic.
After the mode of the commission, this is time to compose the commission rate. It means, as a brand, you have to remunerate an influencer for every sale they drive at. There are many ways to establish the commission rate. Some of them are given below.
(1). Analyzing the profit margins
In this way, the commission payments spontaneously come out of the profit made in the purchase. So, it is crucial to know how much profit you are willing to trade for all the higher sales volume.
(2). Competitor analysis
This analysis lets you know how much commission amounts your competitors get paid. It also lets you know about the industry standard.
(3). Ask your affiliate network
Affiliate networks have plenty of experience, and they can guide you on which type of commission setup is best according to your need.
Once the commission rate has been decided, time to set up your payment terms. Generally, it comes with 60 to 90 days to allow for the returns or exchanges, but it completely depends on the sales cycle.
Step-3: Search for the influencers to partner with on Instagram
You can find several ways to find the influencer affiliates who can be your partner on Instagram.
Since it entirely depends on the Instagram marketing goals, you probably want to strategically pick the influencers to get the most from your affiliate campaigns. While doing this, you should keep in mind that popular and quality influencers can yield the best result compared to affiliates with fewer followers. So, always go for quality rather than quantity for this cause.
Several affiliates post the link, but they fail to drive the sales most of the time. This is because they are not so popular, or they have a lack of quality to motivate people. Therefore, while searching for the affiliate, make sure that that has a flawless track record on affiliate marketing.
While setting up the influencer affiliates with your program, make sure that you send over some brand guidelines and resources that are helpful for affiliate content creation.
Step-4: Do The Analysis
Once the affiliate program is properly set up and running, it is crucial to keep track of which is working for your brand. Suppose you are associated with any affiliate network. In that case, they must have detailed reports regarding how many affiliate links have been generated for the brand and how many clicks they have already driven.
They should also emphasize the total sales value. There should be clear data regarding how many of your affiliate marketing sales are completed. In this way, it will be easy to calculate the total payment amount you deserve. In this segment, if you notice a high return rate, this is probably a sign that the influencer affiliates are misrepresenting the product for which you have hired them. It sometimes harms your brand reputation and causes unnecessary admin costs.
READ ALSO: 20 Quick Business Ideas You Can Start With
Advantages of working with influencers for Instagram affiliate marketing.
There are several benefits of working with influencers. Some of them are given below.
1. Enhances engagement with the brand
When the influencer posts any product picture on Instagram, he generally tags the brand and shares the link of the specific product of your website. It means when people browse and read the comments, your brand will be visible in the eyes of the viewers, and most of them will be rightly convinced to purchase that specific product.
Moreover, once they click on the tag, they will be redirected to the Instagram page. If they find that interesting, they don’t hesitate to share that link on their account, and in this way, the popularity and the number of viewers increase.
2. Drives more sales and generates revenue
Marketers term word-of-mouth marketing technique incredibly effective compared to other forms of marketing. Instagram affiliate programs are meant to propel this cause and help to increase the conversion rate. This is why working with an Instagram influencer is the best way to boost sales.
3. Helps to maintain a better relationship with the influencers
When influencers work with a brand, they are directly involved with the process. If the brand gets an appropriate response from the influencer, it may increase the contract period. So, in this way, the relationship between the brand and the influencer improves.
Over to you
Instagram affiliate marketing is the best way to boost your sales and brand value. Additionally, it will let your brand keep its foot strongly in the chaos of the digital world.