What part of online sales can affiliates generate?
Every year the affiliate marketing channel slice of total marketing spends continues to expand and in 2010 it drove more than £4.6 billion in ecommerce. Econsultancy estimates that the channel is driving 8% of all online sales.
But as a merchant what percentage of your online sales can you expect affiliates to refer?
Naturally the percentage is tied to the size of the business at the point of starting the affiliate programme. If the business already is experiencing a good flow of internet sales prior to start the affiliate channel, then a 10-15% affiliate growth can be expected.
The niche in which the business operates is also crucial. Generally, the rule is that if the business is small in a fairly packed market segment, then you can expect affiliates to generate about 40% growth. In contrast, if the brand is well known with a solid online presence and a good flow of ecommerce sales, then it's harder for affiliate to take a bigger share of all online sales.
It's very difficult to predict the exact percentage you can expect affiliates to drive for your programme, but we have found 13-16% of our merchants sales are driven by affiliates, which is a realistic amount through the channel.