How Do CBD Affiliate Campaigns Work?
A CBD affiliate marketing campaign works in much the same way as any other, so long as all parties are completely aware of any rules and regulations in their area.
This involves four intertwined parties:
Merchant – This is the brand that develops the product, and may begin the process to help promote their products.
Network – At Webgains, we are an affiliate network and we work with brands and publishers to find partners.
Publisher – The publisher is the ‘affiliate’ who promotes and markets the merchant and their products.
Consumer – These are the people that buy the CBD products through the links that the publisher has created.
Each chain along this link is as important as the next, this means that when a consumer buys a product, the reward travels back up the chain again as a share of the revenue created.
This happens when a consumer clicks on a special link, known as a referral link, which will then send them to the website to purchase the product.
If the consumer decides to buy the product, the affiliate, the network and the merchant earn their share of the revenue created by the sale.
How Do Affiliates Promote CBD Merchants?
Most CBD affiliates run their websites and will often feature products on blogs, videos and reviews – think of how a social media influencer might review a product in a YouTube video, the method here is the same, although the monetary sums involved are likely to be very different.
CBD affiliates may reach out to their audience in the following ways:
– Social Media.
– Digital ads – this is often a challenge when it comes to platforms like Facebook and Google.
– Pay-per-click advertising.
– Podcasts.
– Apps.
– Email marketing.
As we’ve mentioned, once a product is sold, the revenue is shared between the first three parties in the chain, although the figures involved will vary depending on the network and the merchant.
What Are the Pros & Cons Of Affiliate Marketing?
Although many brands haven’t utilised affiliate marketing as much as other techniques, we’re seeing a change in the way brands market themselves these days, and affiliate programmes are playing a crucial role in the way businesses are generating revenue.
After all, the CBD brand, customers and affiliates all benefit when a programme is carried out with careful consideration.
However, there are several things you must bear in mind when you decide this is the right route for your business.
Pros of Affiliate Marketing
– CBD products by their very nature lend themselves to bright green and natural creatives and branding, which helps them to stand out and draw attention.
– If your affiliates truly love the brand and the products, this passion comes across when they’re promoting them.
– There’s a wide range of products in the CBD arena, from skin care products, vaping liquids, oils, food supplements and much more, which creates plenty of growth opportunities for you and the affiliate too.
– Working closely with your affiliates to create long-term relationships, means you can create a consistent brand awareness to benefit both parties.
Cons of Affiliate Marketing
– Both parties must be completely clear on the agreements between them with each new programme.
– Although the laws around CBD products have largely been relaxed in most areas of the world, and most customers now understand the benefits, it’s important to ensure everyone remains abreast of any changes that may come into force.
– Some ad platforms, such as Facebook and Google have been known to ban CBD ads, so a careful and considered approach is vital here.
– Education is crucial, which is why it can take some programmes a little longer to build momentum, particularly among new customer bases.
How Can A Merchant Benefit From a CBD Affiliate Program?
According to the latest statistics, worldwide affiliate marketing spend is expected to be $13 billion in 2022.
This serves to show that their businesses are clearly placing more and more emphasis on affiliate marketing as an effective avenue to increasing sales.
But how exactly can starting a CBD affiliate marketing programme really benefit your business?
Low Start Up Cost
Unlike other forms of marketing, affiliate programmes don’t require you to hire and manage an entire team in-house.
Instead, you’ll rely on the network to find the affiliates and the affiliates to create the content that should ultimately result in more sales. Other than working closely with the network to find the right affiliates, there’s not much required for you to do at the very outset.
Once you’re happy with the affiliate marketers, you can allow them to get on with what they do best for the most part, which is marketing your business and its products.
Low Ongoing Overheads
Because most of the heavy-lifting from a marketing perspective is done by your affiliates, they’ll also be bearing much of the cost and effort associated with this, and you’ll only pay them the agreed commission once products sell.
This model keeps your ongoing overheads down and ensures that managing your cash flow is much easier, unlike other forms of advertising such as PPC for example.
Low Risk
The low costs involved in CBD affiliate marketing mean that the risk to your business is minimal, and this also creates the ideal marketing platform for businesses on a tight budget.
Relevant Traffic Source
Since all the marketing streams created by the affiliate are designed to convert, it means that any traffic generated to your website is likely to be targeted with the intention to make a purchase.
Adaptable
The great thing about working with an affiliate network, like ourselves, is the ability to increase, or decrease the size and scale of your programme.
This adaptability is ideal for smaller businesses looking to understand the opportunities in their markets, or even larger multinational companies looking for another revenue stream.
High Returns
Even with the right campaigns and a strong management, you don’t guarantee success in affiliate marketing – much in the same way as any other marketing platform.
However, affiliate marketing has proven time and time again to achieve much higher returns than investments in other forms of online marketing.
According to Affiliate, 84% of businesses utilising affiliate marketing state that it achieves the strongest return on investment for them.
One of the main reasons for this is because your target market will be hearing directly about your CBD products from influential sources that they’re already interested in.
Starting A CBD Affiliate Program: What Do You Need to Consider?
Now you’ve decided to pursue a CBD affiliate program, there are a few things you first need to consider.
Rates of Commission
The first step is to understand your commissions and margins. After all, this will not only determine what percentage you’ll be giving out to your publisher. You’ll also need to consider what commission your network will be taking too.
Networks can vary dramatically from this perspective, so it’s important to do your research to understand what your margins will look like once a product sells.
Research Your Networks
One of the most vital ingredients towards a successful CBD campaign is a quality network.
It’s important to take your time to research the network that can offer you the best possible opportunity for success, and with whom you can build a relationship built on mutual trust and reliability.
It’s also a good idea to get an understanding of the kind of support your network will be able to offer you.
For example, at Webgains, we have dedicated teams with vast knowledge of the CBD sector, and a range of free learning materials to help you hone your skills and knowledge, wherever you are in your journey.
Cookie Duration
Cookie duration is the length of time you’ll be offering the opportunity to receive a commission for a referral, if a customer doesn’t purchase immediately.
This could be, for instance, 120 days, or even as little as 10-15 days. Work with your network to decide on the best approach for this.
Getting Started with Your CBD Affiliate Campaign
CBD affiliate programs are a great opportunity for your business to unlock new business opportunities and earn a high-margin return on your investment at the same time.
The CBD market is growing exponentially right now, with no signs of slowing down, so now is a fantastic time to get started on your affiliate marketing journey.
At Webgains, we have significant knowledge and expertise in the CBD market, so if you’d like more information or advice, one of our knowledgeable team members will be happy to help.
Why not get in touch with us today?