Recent international economic struggles are causing both novice and experienced affiliates to question the viability of affiliate marketing in providing them with worthwhile returns on their investments. As many of affiliate marketing’s most lucrative industries are hit hard by worldwide financial hardship, the notion of “easy money” no longer applies. The recent downturn, however, does not mean an end to affiliate marketing. To the contrary, as businesses struggle to find advertising options with low overhead and risk, affiliate marketing will be taken more seriously and utilized more often. For affiliates, this shift represents better offers to promote with real discounts to entice customers. Many businesses will be willing to share a greater portion of their profits, and to take a hit in margin to increase sales numbers.

In the past, the merchandising industry has represented some of the most successful offers for affiliates to promote. This success is due to the fact that merchandise frequently represents an impulse buy, an item that a consumer wants, but does not necessarily need. These purchases are easy for consumers to make on a whim when the offer is low-cost and low-risk, but in a slow economy potential customers tend to tighten up on items that are more for their amusement than a necessity for their well-being. The merchandising industry is not going away, however. It has just been forced to change its nature to accommodate a new customer base eager to buy items at a deep discount. Consumers are quickly becoming savvy shoppers, forcing retailers to offer competitive pricing to attain decent conversion rates on their advertising campaigns. Merchants should take note that few offers will succeed in the current environment without taking the hyper-aware shopper into consideration. Impulse buying is being replaced with a “shop around” attitude that will not allow advertisers to offer items comparable in features and quality at a higher mark up than what their competitors are offering. Only merchants who present a truly unique, niche product or service will be able to maintain high profit margins.

In addition to deeply discounted merchandise, affiliates would be wise to promote offers that are “need based” or services that help consumers to thrive in an economy that is faltering. Merchants who will maintain the highest margins are those who offer items that are of necessity, no matter what state the economy is in. Services like financial assistance, discount gas cards and coupon clubs are more likely to be attractive to consumers when times are tough. In contrast, unless they are deeply discounted, luxury offers like travel, accessories and high priced items tend to slow in a struggling economy.

Whether acting as a merchant or affiliate, there are three simple tips to follow to be successful in the current economic crisis. The first is that if you are offering a non-essential product or services, the offer you are promoting must be competitive and deeply discounted. This should be reflected clearly on the promotional material to entice the customer. The second tip is to promote more offers that are based on products and services that are a “need based”, being a necessity to all consumers in any economic situation. That last tip is to promote more offers that actually take advantage of a struggling economy by providing consumers with financial relief. With these simply guidelines, affiliates and merchants can ensure that their offers continue to perform and their success continues to flourish in the years to come.

About the Author:

Jesse Hoffmann has worked in Affiliate Marketing since 2002. As one of the first employees of AffiliateTraction, a leading affiliate program promotion and management firm, he has been exposed to the ongoing metamorphosis of the industry and its constantly evolving promotional strategies. He now works with AffiliateTraction as a specialist in copy writing and creative design. Hoffmann’s unique introduction to the industry has allowed him to analyze affiliate marketing from all angles, providing a thorough overview that enables him to share simple, “plain-English” tips for success with both merchants and affiliates.

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