Because of its recurring subscription fee model, your membership website can provide a consistent flow of income – as long as you can reliably make conversions and grow memberships.
That’s far easier said than done, though.
A membership business needs adequate time and resources to attract members and convince them to stay.
But what if you could harness trusted voices to do that for you?
A membership site affiliate program lets you do just that. It’s an ideal way to promote and accelerate your site’s growth, thanks to the power of content creators’ recommendations.
In this article, we cover the following;
- The basics of membership affiliate marketing and how it can speed your site’s growth
- Benefits of affiliate marketing for membership websites
- How to tell whether an affiliate marketing program will work for your membership site
- Best practices for membership affiliate marketing
What is affiliate marketing for membership sites?
Affiliate marketing is a type of partner program where you form partnerships with content creators.
This digital marketing strategy allows you to recruit bloggers, website owners, social media creators, and other creators to promote your membership site on their own platforms.
These content creators, known as affiliates, place text links (affiliate links) on their channels that send people to your website or landing page.
When someone sees your brand or product on an affiliate’s site, clicks on the affiliate link, and becomes your paying subscriber, that affiliate earns a commission – usually a small percentage of the sale.
In turn, you gain access to a larger audience, generate more leads, gain new customers (subscribers), and grow your revenue.
Benefits of affiliate marketing for membership sites
Affiliate marketing is becoming an increasingly popular way for many online businesses, like membership sites, to promote and expand their digital marketing.
Below are the many benefits of affiliate marketing for membership websites:
- Builds brand awareness among a targeted audience: Affiliates already have an established audience base, which makes them an excellent source to build brand awareness. They can share your membership site’s offerings to a new and larger audience that closely matches your own.
- Creates authentic promotion of your membership site: Membership affiliate marketing gives people a look into the best parts of your membership experience. What makes this promotion particularly effective is the fact that it comes from the perspective of your existing members.
- Harnesses audience trust: Each affiliate’s audience is made up of people who already trust and value the affiliate’s recommendations. Thanks to this earned trust, an affiliate’s promotion is much more likely to result in a purchase.
- It’s cost-effective compared to other forms of marketing: Recruiting affiliates is less expensive than using other paid marketing techniques, particularly PPC (pay-per-click or search engine ads). It also costs less than hiring a marketing agency to run your marketing campaigns.
- Affiliates are a low-risk investment: Another reason membership affiliate programs are ideal for your business is you only pay affiliates a commission after they’ve already helped you secure a sale. There’s no money spent upfront when you recruit affiliates, which makes it a low-risk marketing technique.
- Easy to track affiliate sales and ROI: Tracking the performance of ad campaigns is never a walk in the park. But tracking affiliate sales isn’t daunting at all, thanks to the affiliate links that make it easier to track your ROI.
- Increases your website traffic, leads, and sales: As affiliates recommend your membership site to their audiences, you will naturally generate more traffic and leads to your website. And since an affiliate’s recommendation is also a form of social proof, these leads are more likely to convert and result in increased membership sales.
Before you start: Is an affiliate program right for your membership site?
To start a successful affiliate program, you first need to ensure your membership site meets the following requirements:
- Has a healthy base of members who love your site: To get value from your membership site affiliate program, it’s important to have a passionate base of members who really love your site. How can you tell? Look at your member retention rates to see how long your existing members are sticking with your site.
- Confirm that some members create content and share an audience with yours: At least some of your members need to be content creators and, most importantly, have audiences similar to your business.
- Know your profit margins: Your membership site has to be willing and able to pay commissions – in cash – on every affiliate-driven sale. You have to be aware of your profit margins to determine if you can still earn enough after paying an affiliate’s commission. In most cases, an affiliate program works best when your profit margin is high (which is usually the case for most membership subscription businesses).
Membership affiliate marketing best practices
Create the best affiliate program for your membership site using the following steps:
Set goals for your affiliate program
Any effective marketing strategy will need clearly defined goals so you can gauge performance. Your membership affiliate program is no different – it’s important to set specific and measurable goals bound by a given timeframe.
For instance, how much revenue do you want to generate per quarter or year? Or what’s your ideal conversion rate for membership sales within a specific timeframe?
Use affiliate marketing software to set up your program
Affiliate software makes it easy to track all the traffic and sales that come from your program. By using a single platform, you’ll immediately know which affiliates are responsible for which new members, and which affiliates are performing best in your program.
Plus, affiliate marketing software automatically pays out any commissions, which is crucial to keeping your affiliates happy.
Affiliate software is also far better for membership sites than relying on a third-party affiliate network.
- You retain the freedom to handpick affiliates from your own member base
- You don’t have to pay extra fees to use an affiliate network (Networks typically charge a finders’ fee, on top of the commission you pay affiliates.)
- You have full control of all your affiliate program data, and all other aspects of running your program, so you can customize your program as you see fit.
Looking for the right affiliate program software for your membership site? Learn how Referral Rock affiliate software can help you accelerate your membership growth.
Reach out to existing site members and recruit them as affiliates
Why is it best for membership sites to take this approach, instead of opening an application to the public? The reason is obvious.
Existing members already know the benefits of your subscription or membership; therefore, they can authentically communicate these benefits to their audiences.
There are two ways you can select affiliates from your member base.
First, you can handpick content creators who’ve been members for the longest period. This should be based on the level of trust they’ve built with their audiences, not the number of followers they have.
Alternatively, you can open an affiliate application to all members, then screen and approve the best ones as your affiliates. Again, this should be based on their content creation skills and connection with their audiences, rather than their follower numbers.
These affiliates will be happy to promote your affiliate program with their audience, since you’re rewarding their efforts with an affiliate commission.
Personally reach out to each potential affiliate, thank them for their loyalty, and invite them to become an affiliate.
Set the right commissions
The type of affiliate commission that’s most attractive is cash-based. The commission can be a flat rate fee or a percentage of each membership fee, and is typically paid only after a subscription is purchased.
It’s best if your commission payout is more attractive than other competing membership sites. But keep in mind, when deciding on your commission structure, it’s also important to account for your pricing, member acquisition costs, retention rates, and average customer lifetime value.
Create an affiliate marketing agreement
An affiliate marketing agreement defines the working relationship between your membership site and the affiliate. It contains all the essential details of your program, protects your brand in case any affiliate engages in unethical activities, and puts everything in writing for both parties to review and sign.
For example, an affiliate marketing agreement typically includes:
- What affiliates can and cannot do to promote your membership business
- How commissions are earned
- The responsibilities of each party
- Any other terms or expectations of the affiliate relationship
Here’s everything you need to know about creating an affiliate marketing agreement.
Communicate regularly with affiliates
You need to regularly interact with your affiliate partners and give them updated assets and marketing materials, so they can better promote your membership site. The best approach is to train them on how best to promote your membership, and then give them space to share their personal member experiences with their audiences.
Keep affiliates informed of any updates with your membership site and affiliate program. And make sure they know how to reach your affiliate manager with any concerns, whether that’s through email, direct messaging, or an online feedback platform.
Keep affiliates motivated with program variety
It’s important to keep your affiliates motivated. Consider increasing commissions as affiliates make more sales, or awarding special incentives to the top-performing affiliates for the month or year.
You could also run contests to encourage affiliates to bring in the most new memberships in a given timeframe, or temporarily increase commission rates during limited periods throughout the year.
Even simple gestures, like sending congratulatory and appreciation messages whenever they secure a new subscription, can also help keep your affiliates motivated.
Keep track of affiliate sales
Using affiliate software will automatically track all the steps in your program.
It gives you full control over all program data and the ability to monitor your total affiliate sales. This is important to know whether your membership affiliate program is meeting your program goals, or needs to be further improved.
As you’ve seen, membership affiliate marketing is a great addition to your overall membership site marketing strategy. Aside from increasing your audience reach, an affiliate program brings several benefits for your membership site, including increased conversions and long-term relationships with your existing members.
If you’re ready to start your membership affiliate program, consider using our affiliate marketing software that can be easily customized to meet your specific site needs.