Is Magento 2 referral necessary for e-commerce stores?

Smart entrepreneurs running a thriving business know there’s always more they can do to make that business grow. Affiliate Program is one of the best ways of marketing, where you refer online products to someone. When the person buys the product on your recommendation, then the merchant pays a commission to you for generating traffic and sales prompted by your referrals. 

According to estimates worldwide, the affiliate marketing industry was worth US$18 billion by the end of 2019. And if you have an affiliate to promote your products over the Internet then you can easily reach lots of customers. In affiliate extension, you will get a commission which will be based on your performance such as the number of sales, number of clicks, registrations...

What is the best Magento 2 “refer a friend”?

Referral marketing is a strategy to encourage passionate customers and advocates to directly refer their network to your business. It can be called word-of-mouth marketing because, well, it rewards existing customers for sending new customers to shop with your brand.

These rewards usually come by way of referral incentives, such as major discounts, free cash, or access to an app or program that would otherwise be paid. While there is an upfront cost to the business to cover the cost of the reward, it significantly increases long-term revenue by making loyal customers out of your existing customer base.

Why do you need Magento 2 Affiliate for your e-commerce store?

With so many advantages of Affiliate Marketing, the launch of the Magento 2 affiliate extension has yielded amazing results for e-commerce stores.

With Magento 2's Affiliate extension, shop owners and admins make it easy to create unlimited affiliate programs without any specific restrictions. Every campaign you have created is attributed to a specific Affiliate Group, and the exact duration is set according to your marketing campaign.

Multi-level affiliate marketing

Multi-level Affiliate Marketing allows you to add an infinite number of levels and then set different commission rates for all levels of the affiliate network.

You will be able to make more money through the affiliates earn if the affiliate network is large. Hence, Multi-Level Affiliate Marketing definitely works as a powerful reward system that drives the network. It means you'll have skilled sales reps to bring in more sales and generate revenue for your business.

Pay per scale

The administrator and the affiliate actually control the "Pay per sale" system through the value of the commission plus the type of commission policy from the first order, next to the future orders.

Affiliate groups are needed

You should build infinite affiliate groups consisting of affiliate members by using the Magento 2 configuration to initiate systematic sorting through which you can manage membership and loyalty easily. 

Report link

With the help of Magento 2 report link, you as a shop owner can get all the detailed reports related to affiliate activities. It will help you to have a clear idea of the following information

Affiliate program transactions such as commission status based on cancellation, completion or commission on hold.

New affiliates are created with their details such as status, name, email and registration time.

List of top affiliates who receive high commissions with their details such as email, name, number of orders, value of sale, status and commission.

Time-saving on marketing

Marketing is one of the most important aspects of your business, yet it can be a lengthy process. If you don’t have an extensive team to manage this for you, it can take you away from the process of business development and more. Putting marketing in the hands of affiliates frees up some of your time, allowing you to focus on other things.

Create valuable partnerships

As you work with affiliates, you are expanding your connection. This allows you to easily reach potential customers and build relationships with influencers. If you give them some time to build trust, they'll pay back ten times more by being exposed to your product and brand.

The above points are simple, easy to understand, and the best reasons why you’ll want to go into affiliate marketing.

What is the best referral program for Magento Extensions?

Just having Affiliate Marketing can bring you good income if you have what it takes to reach the level of intelligence in online business. Doing business online is not a new thing these days. Affiliate marketing is one of the most effective ways to do business, where you can build your own empire. Here is a list based on the experience required to get started.

1. Amazon Associates

Amazon currently is a trusted eCommerce source. Using their affiliate program, you can take advantage of their reach all over the world. You can earn up to 10% (I think 1% now!) of every customer you refer.

2. ClickBank

ClickBank is an affiliate network catered which allows you to work with suppliers directly offering more than 6 million digital products.

3. Flexoffers

Flexoffers allows you to sell over 12,000 products in 25 different categories. You also earn money by referring other affiliate marketers to their program. They are in travel and entertainment to business and education.

4. Commission Junction

CJ provides an excellent experience for people involved in affiliate marketing.

5. ShareASale

ShareASale has nearly 4,000 different companies to choose from. The platform offers products across several different categories.

6. Rakuten

Voted the No. 1 affiliate network for 8 years, their user-friendly platform and outstanding performance and features make them a fantastic affiliate program for beginners.

7. Shopify

A website-building platform that over 600,000 websites online use. You can start earning extra cash by referring to people interested in eCommerce to Shopify.

8. Buzzsprout

Buzzsprout provides all the tools you need to host, promote, and track your podcast.

In their affiliate program, both you and the person you refer get a $20 Amazon gift card.

9. Specific Brands You Know and Trust

Don’t ignore brands you personally use and/or even marketing tools you are utilizing to run your present business. Check out to see which ones have affiliate programs and which ones you can join.

The best tools are available for affiliate marketing

Expanding the revenue of an affiliate marketing website

Here are the top recommended tools you should use to expand your affiliate website to the point that you can support your affiliate business yourself:

Ahrefs -

Recommended from a variety of experts for backlink analysis for your own website, as well as to discover the most successful content-based link building opportunities on competitor sites.

SEMRush

The tool of choice for on-page SEO, as well as competitive analysis to identify new content opportunities.

WPEngine

 Recommended for website storage, security, browser caching, and website backups.

Grammarly

Bad grammar hurts your legitimacy as an expert and can be the difference between your readers deciding to buy the product you endorse or following a recommendation of a person. Other affiliate sites. Grammarly is your average spell checker on steroids.

Sumo

 Because most website visitors will not be willing to make a purchase from you the first time they visit your website. Sumo simplifies the process of collecting email addresses of your website visitors so you can sell them over time.

Shortcodes Ultimate

 This is an essential tool to improve the design and readability of your blog content (without the need to work with developers).

TinyPNG - website speed plays an important role in search rankings. One of the easiest ways to improve website speed is through image compression. TinyPNG is our essential tool to reduce the size of your images without losing image quality.

Common mistakes in affiliate programs

No matter what product or service you are selling, starting an eCommerce Affiliate program will help you increase your revenue and expand your market share easily. Affiliate programs allow you to find a potential sales group who has a long term partnership with you based on a beneficial relationship. However, to achieve these you need to be careful not to make unfortunate mistakes and all efforts will become ineffective.

Insufficient payment of commissions

In the competitive market, many businesses take advantage of the Affiliate program to attract customers and increase sales. As a result, you run the risk of falling behind, and the reward offered to the Affiliate plays an important role in making your product popular. Therefore, you should not pay non-competitive or high enough commissions. This will make your project out of favor and less attractive to affiliates.

No marketing material provided

Most affiliates will not voluntarily build an image and promote your products. As a result, your work will include referral links, banner ads, marketing graphics, and affiliate extensions available to them. Plus, you can directly monitor their effectiveness and make rapid changes to get the best results.

Ignore your affiliates

The conversation will be more beneficial than you think. This makes affiliates know about your product and campaign as well as you can hear what your audience is visually evaluating the products they want and need. Why do you try talking more with your Affiliates now?

Not Providing High-Quality Regular Content

A common mistake that you often make is forgetting to deliver high-quality, regular content. Your goal is to find potential customers through affiliates and convert them into existing customers of the store, but you need to prove your product convincing them. So content is an important factor for successful marketing

 Regardless of your website - reviews, product comparisons, different use cases - every piece of content contributes to your online sales, directly or indirectly.

A common mistake link units make is publishing insignificant or actionable content. So whenever you need content that is useful to your users.

Picking The Wrong Product To Promote

The countless products you own can be advertised with affiliate marketing campaigns. This will help you expand your market and reach potential customers easily so you should choose these products wisely.

When an affiliate product and niche is right for your campaign, it will motivate you and inspire you to create more marketing around it. You may even be drawn to and ultimately bring more authenticity to what you do.

How to set up a referral program for online store with Magento

With just a few clicks, you can install the Magento 2 affiliate extension for your eCommerce website with ease. You can fulfill any rule or condition to encourage and develop your Affiliate system.

1. Set the commission, payout, and discount requirement for your affiliate system

This is considered one of the prerequisites before you launch an affiliate program on your Magento e-commerce site. After it's done, you can place it in the Links extension on your website. To be more specific, in the Magento Affiliate module, you can choose a percentage commission or a specific amount. Moreover, by using this extension, you can pay different commissions or discounts based on the level of the affiliates.

2. Refer a friend

When you want customers to be your affiliates, you can apply "Refer a friend" on your e-commerce site. It can be done easily by allowing them to share links through their social channels like Facebook, Twitter and email …

3. Account management

After setting up the affiliate system, you need to manage to track and rate it. With the affiliate extension, you can manage your affiliates easily and automatically update information.

Now you have seen how to set up an affiliate program for your store using Magento. Get started right away with your first affiliate system.

Conclude:

A Magento 2 referral can be a very effective, low-risk investment to help expand your marketing efforts beyond the traditional bandwidth of a small business. So affiliate marketing is almost always worth the investment and can take your online store to the next level.