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Affiliate programs and arbitrage: how to protect yourself?

branddi ·

Affiliate programs and arbitrage: how to protect yourself?

With the growth of online sales, many brands use affiliate marketing as an effective strategy to promote their products. It can negatively impact the performance of your branding campaigns. commissioned.

Affiliates promote the brand's products or services in exchange for commissions for each sale or action generated (such as registrations, downloads or qualified clicks).

Companies have increasingly explored this approach to increase visibility, reach new audiences and drive sales. Currently, 81% of brands use affiliate programs to boost brand awareness and sales.

The success of the practice is consistent with the numerous benefits offered. If your brand operates in e-commerce and is looking to expand, this may be the time to take a chance on an Affiliate Program.

Expansion of reach and visibility

One ​​of the biggest benefits of the affiliate program is the ability to reach new audiences. Affiliates are usually influencers, bloggers, experts or even companies that have a segmented audience. affiliates is based on performance.

This means that companies only pay for successful actions, such as effective sales. This model reduces financial risk and optimizes ROI (return on investment), as costs are directly linked to results.

Freedom to choose representatives

In affiliate marketing, you have total control over the program, defining all guidelines and permissions, in addition to selecting the affiliates that best fit the desired profile.

The selection criteria are within your reach, allowing different ways to filter the candidates and choose the ideal affiliates to represent your brand.

This way, you can evaluate the candidates' affinity with the product or service to be sold, the channels in which they operate and select those that are in tune with your positioning in the market.

Affiliate arbitrage can manifest itself in different ways, depending on the guidelines established by your company regarding the use of links and paid campaigns. Here are two scenarios that help you better understand this practice.

Without the use of ads

Companies that digitize resale contracts often prohibit the use of affiliate links in sponsored ads, such as Google Ads.

In this context, if the affiliate promotes campaigns using the brand's institutional keywords, he will be directly violating a contractual rule, damaging the company's marketing strategy. company.

With the use of advertisements

Some brands allow and even encourage the use of paid campaigns by their affiliates to promote products and services.

However, these actions must follow specific parameters, avoiding the use of the brand's own institutional terms.

The idea is for affiliates to use alternative and creative, without competing directly with the company's official presence in sponsored campaigns.

The affiliate should not compete for space with the original campaigns.

If a customer, attracted by the company's branding, makes a purchase through the affiliate link, the affiliate will end up receiving an undue commission, since attracting the customer was the result of the brand's advertising action.

Furthermore, when the affiliate uses an aggressive approach when acquiring institutional terms in advertisements, he It can significantly increase the company's cost per click (CPC). id="">Only through the regulation of affiliates and partners practicing brand bidding is it possible to have a clear view of the frequency of these occurrences.

To this end, Branddi offers continuous monitoring and analysis of the results of sponsored campaigns. This means that our unique technology captures a wide range of data, which is carefully analyzed by our Brand Strategy team.

Based on this analysis, we provide personalized action plans for your team, and, after aligning with your company, we reach out to unfair competitors, partners and affiliates, offering accurate and targeted communications for each situation.

By providing separate evidence of affiliates engaging in questionable practices, we are able to help our clients identify more clearly when customers are being diverted.

In this way, we have already achieved surprising results for our customers, such as:

Protect your brand from losing valuable clicks and paying undue commissions to affiliates! Talk to our experts and discover how we can shield your brand effectively.

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