Old vs. New Affiliate Sales Models
Affiliate sales isn’t going anywhere, but the model of how business is done most efficiently is. There’s no reason for retailers or publishers or influencers of any level to deal with third and sometimes even fourth party affiliate groups that take their share of the pie. What is the third or fourth party affiliate group exactly doing?
In most cases they are facilitating an simple way for the retailer and influencer to connect. Retailers and brands don’t have to seek out the influencer because the influencer comes to them via the third party group. The plus for the influencer is there is limited learning involved. If the influencer has zero experience with accounting, analytics and the like, they do not have to handle any of it. The influencer simply hyperlinks a product, a follower or fan purchases the product and boom, the influencer is issued their sales commission.
But is it the commission they deserve? Usually not. The retailer has allotted a certain percentage of the item to go to the affiliate model — but they do not usually take these third and fourth party groups into account. This means that small percentage intended for a theoretical affiliate is now divvied up between the influencer and the affiliate group. The influencer, the power behind the sale and why the consumer purchased the item, gets a mere sliver of what the retailer is issuing as commission as a whole. Remember 74% of consumers “trust social networks” to make a buying decision. In the social media age, influencers of every level from micro to A-list celebrity are the force behind exposure for products and the turnkey to shift a browser into a buyer.
Blockchain has the power to disrupt this outdated and unfair affiliate sales model. Total transparency is the name of the game and with smart contracts, retailers and influencers can clearly see the purchases that come through from social sharing. Retailers still get the ease of social sharing doing the work for them and influencers are now able to follow a purchase, for the first time revealing their true ROI with an innovative, efficient affiliate sales model.
What is mCart?
mCart protocol is a decentralized marketplace/influencer marketing attribution platform that addresses the needs of shoppers, influencers, and marketers by leveraging blockchain. Using smart contracts, marketers, influencers and shoppers will be able to transparently and verifiably collaborate while giving each participant the right financial incentives to participate in the ecosystem.
Copyright Mavatar 2018
