Affiliate Marketing Overview
Affiliate marketing is emerging as a lucrative business opportunity for many up-and-coming entrepreneurs. The market reached $6.9B in the US, $12B worldwide, increasing by 10% per year. A large percentage of these profits go to fashion and retail. About 50% of affiliate marketers earn $20k per year. On the brand side, 80% use affiliate marketing in some way, and 15–30% of company profits come from affiliate marketers. (source)
Covid-19 provided a boost to this industry, but affiliate marketing is still struggling to find a solid footing in the world. It is loosely regulated and crippled by inefficiencies. Affiliates often go unpaid by brands or affiliate networks for various reasons. Sometimes it can be difficult to gauge who successfully closed the sale or who directed traffic where. Other times, the brand or network may not like the ad, even if it worked, and refuse to support it by paying. Or they simply don't have the funds come payday.
Brands face different risks. “Click fraud” is when scammers use bots to click affiliate links for several reasons. Affiliates get more money if they get more clicks. Competitors may also click marketing links because each click costs the company a small amount of money. A large number of clicks without any sales can drain ad revenue without a return on investment.
It is important to note that the blockchain community is in full support of affiliate marketing. This is how an open, free market should function. Anyone should be able to hop on their computer and start marketing their favorite products to their favorite community, large or small. Affiliate marketing decentralizes marketing efforts and profits. Unfortunately, as e-commerce began to take off in the last decade, only large companies with large capital have been able to participate.
And then, as usual, the blockchain put big tools in the little guy’s hands.
The eNFT Solves Major Affiliate Marketing Inefficiencies
The biggest problem affiliates face is payment. The eNFT solves all of these problems with ease and simplicity. The best part is that these functions are automated and transparent.
For Affiliate Marketers:
- Inaccurate payment: It is difficult to measure which affiliate brought in how much traffic. A customer may not end up clicking the affiliate link. They may see the product and search for it later. If the affiliate has a code, the customer might not use it. eNFTs have an affiliate commission built-in. When an affiliate sees a product with an eNFT attached, they can list that product in their own store. If someone buys it from their store, payment is sent to the affiliate immediately.
- Monthly/threshold payments: Most brands and affiliate networks pay affiliates at monthly intervals, and only release payment if the affiliate makes a certain amount of money. But as stated above, eNFTs pay the affiliate immediately. There is no need to wait until the end of the month and there is no threshold to meet.
- Lack of funds: Some brands run out of money when it comes time to pay their affiliates. They use their revenue too quickly and can’t pay at the end of the month. The eNFT sends the commission from the customer’s money directly to the affiliate. There is no opportunity for the company to use it before it reaches the affiliate.
- Creative differences: if a brand or affiliate network gets upset at an affiliate marketer, they may have a clause in their contract that allows them to refuse payment. There are no contracts with eNFTs. When an affiliate makes a sale, that commission is theirs and there’s nothing anyone can do about it.
For Brands:
- Click fraud: A brand that sells products listed as eNFTs has nothing to worry about from click bots. When an eNFT sells, the affiliate collects their commission. That is the only time that money leaves the brand’s pocket. In fact, it never even left their pocket because it didn’t get that far. The commission percentage is determined by the brand. By raising that percentage, affiliates will have more incentive to sell the product. This means that brands can decide how much they want to spend to acquire new customers with razor-precision.
- Affiliate contracts: By inserting a commission directly into the eNFT, there is no need to negotiate with affiliates. If an affiliate wants to sell a product, they can just do it. No questions asked. No lengthy negotiations.
- The Global eNFT Database: Each eNFT in the SHOPX network will be listed in a global repository for everyone to see. Any affiliate, anywhere in the world can search through the entire catalog to find the products that suit their tastes and meet their desired earning potential. This is where a high built-in commission will shine. Increased commission puts the product in the affiliate’s sights.
In SHOPX, there is a home for the average person to make their own, personal online storefront and sell eNFTs from the biggest brands. Or even small, boutique brands selling unique or eco-friendly items. Choosing singular eNFTs instead of working for a company will allow marketers to customize their approach. Soon, thousands, perhaps hundreds of thousands of individual marketers will provide brands with a powerful affiliate network to plug into.
The world is filled with hungry, innovative entrepreneurs who are searching for the tools to succeed. Many of these individuals have turned to affiliate marketing to make money on the side. Or, if they’re really successful, they can make a living from it. But it’s a difficult industry to enter, and it’s even more difficult to make a profit. Until the proper platforms and standards are set in place, affiliate marketing will not grow into the powerful force it is meant to be.
