The affiliate marketing industry is rapidly expanding. In the US, spending on affiliate marketing reached $5.4 billion in 2017 and is expected to grow to $15.7 billion by 2023, although the COVID-19 pandemic might affect this prediction. Merchants and marketers alike have recognized the potential of affiliate marketing.
However, as the market grows, so does the competition. Setting up an affiliate program is easy, but motivating your partners to increase sales is challenging. Bonuses, especially those offered for a limited time, can give you a competitive edge.
In this article, we’ll explore the importance of affiliate bonuses and their benefits for both affiliates and merchants, different types of bonuses, qualifications, and why they are essential components of successful affiliate marketing programs.
What Is an Affiliate Bonus?
An affiliate bonus is a reward given to affiliate marketers who promote a company’s products or services. It’s like a pat on the back for their hard work.
Imagine you’re a salesperson, and every time you make a sale, you get a little bonus – that’s what an affiliate bonus is like.
Companies want more people to buy their products, so they partner with websites and reviewers (affiliates) to spread the word. When someone makes a purchase because of an affiliate’s recommendation, the affiliate gets a bonus commission, a small percentage of the sale.
Unlike regular commissions, which are a percentage of sales, bonuses are like extra prizes for doing a great job. Bonuses encourage affiliates to work harder and promote the company’s products better. This boosts sales and helps both the company and the affiliates earn more money.
Supercharge your affiliate program with UpPromote’s exciting bonus feature, inspiring affiliates to excel and achieve outstanding results with the top-recommended Shopify affiliate management software!
Why Is Affiliate Bonus Necessary?
Affiliate bonuses are like the icing on the cake for affiliates – they provide that extra incentive and motivation to promote a company’s products or services.
Think about the last time you unexpectedly found a $5 bill in your pocket. It felt pretty good, didn’t it? Offering bonuses in an affiliate program is similar.
Here’s why bonuses are beneficial:
New Incentive for Affiliates
Just like finding extra money, bonuses provide an additional incentive for affiliates to work harder and achieve their affiliate sales targets. For instance, if an affiliate needs just one more conversion to qualify for a bonus, they’ll likely put in the effort to reach that goal.
More Flexible Commission Structure
Bonuses offer flexibility in your commission structure. Instead of starting with high commission rates that might strain your budget, you can set a reasonable rate and use bonuses to attract top and loyal affiliates. This way, you can avoid the need to lower commissions later on.
Stay Competitive
Offering bonuses helps you stay competitive in the market. Affiliates are attracted to programs that offer extra perks like bonuses, making your program stand out from the competition.
Plus, you can adjust your bonus exclusive offers to match or beat your competitors’ rates without significantly increasing costs.
Boost Conversions
Bonus commissions can boost sales during specific bonus periods, such as product launches or slow sales seasons. For example, a travel company could use bonuses to motivate affiliates during the off-season, resulting in more bookings and referrals.
Bonus can be useful in various scenarios, including:
- New product launches
- Seasonal or holiday sales
- Slow sales time periods
- End of fiscal quarters or years
That’s why bonuses provide an exciting incentive for affiliates, offer flexibility in commission structures, help you stay competitive, and can boost conversions during specific periods.
With UpPromote, you can set up bonuses for affiliates with ease.
To create a bonus using UpPromote, you must first have a Shopify account. Then, just follow the steps we outline below.
1.Go to Motivation > Bonuses and click on the “Create bonus” button.
2.On the Create new bonus page, fill out the required field
- Input a title/name for the Bonus rule.
- Select the Program(s) to apply the rule to.
- Choose the Target type (Number of referrals, Total sales, or Total commission) and input the Target bonus amounts.
3.Choose the Bonus rule type:
One-time bonuses: Affiliates receive the bonus once upon reaching the target.
Recurring bonuses: Affiliates receive bonuses periodically (Monthly, Quarterly, Yearly).
For One-time bonuses:
- Check the option to include past sales if desired.
For Recurring bonuses:
- Select the First payment date and subsequent payment dates will follow accordingly.
4.Choose the Bonus type (Fixed amount or Percentage) and input the Bonus amount.
5.Check the side notes and examples to ensure the setup aligns with your program.
6.Click “Create bonus” to finish setting up the Bonus rule.
Benefits of Affiliate Bonuses
Let’s see the power of affiliate bonuses for both merchants and affiliates.
For affiliates
Bonuses aren’t magic pills for selling everything under the sun. But they can tip the scales for those on the fence, nudging them to take the plunge with affiliate links.
Here’s why bonuses are so effective:
Adding Value: A well-crafted bonus adds extra value to the offer, giving potential buyers a compelling reason to make the purchase through an affiliate link.
Addressing Objections: Some buyers may have concerns or objections about the product. A bonus can help alleviate these doubts, making the data-driven decisions easier.
Boost Earning Potential: By surpassing sales or referral business goals, affiliates can earn more money beyond their standard commissions.
Extra Motivation: Bonuses provide added incentive for affiliates to actively promote the merchant’s offerings, leading to increased sales and commissions.
Enhanced Affiliate Experience: Bonuses make the affiliate journey more fulfilling and exciting, offering rewards for their efforts and achievements.
Creating Urgency: Fear of missing out (FOMO) is a real thing. Limited-time bonuses create a sense of urgency, motivating people to act quickly before they miss out on a great deal.
Don’t underestimate the power of a well-designed bonus. It can be the secret weapon that sets your affiliate apart and drives success in your affiliate marketing efforts.
For merchants
As mentioned above, affiliate bonuses can be incredibly beneficial for merchants in several ways.
Let’s break it into more outstanding pros of it here:
Bonuses motivate affiliates to work harder, resulting in more sales. They make affiliates proactive and enthusiastic about promoting products, leading to increased conversions.
The rewards speed up marketing goals by motivating affiliates to reach targets faster. Whether it’s hitting sales milestones, generating leads, or boosting website traffic, the promise of a bonus encourages focused efforts.
High-performing affiliates are drawn to programs with competitive bonus structures. They see bonuses as opportunities to maximize earnings and showcase their skills.
Affiliate bonuses are essential for improving performance and ensuring program success. They encourage hard work, goal achievement, and attract talented individuals to the affiliate marketing community.
4 Types of Affiliate Bonuses
Affiliate bonuses can be different, but all aim to motivate and reward affiliates for promoting a merchant’s products. Let’s look at four common types: bonuses based on sales, tiered bonuses, bonuses for performance, and contests and giveaways.
Sales-based bonuses
Sales-based bonuses are rewards given to affiliates based on the number of sales they generate. It’s like a “thank you” for bringing in customers who make purchases.
For example, if an affiliate promotes a product and someone buys it because of their recommendation, the affiliate earns a bonus.
Tiered bonuses
Affiliates receive various bonus offers based on reaching different goals. For instance, they might get higher bonus commissions when they hit higher target goals.
For example, reaching 5 conversions could earn them a 5% bonus, while reaching 10 conversions could mean a 10% bonus.
Performance-based bonuses
Performance-based bonuses reward affiliates for achieving certain predefined objectives beyond sales, such as generating leads, driving website traffic, or increasing brand awareness. These bonuses focus on specific actions or outcomes that contribute to the merchant’s overall goals.
Contests and giveaways
Contests and giveaways add an element of excitement and competition to affiliate programs. Affiliates compete with each other to achieve certain sales goals or milestones within a specified timeframe, with prizes awarded to the winners. Giveaways, on the other hand, involve randomly selecting affiliates to receive rewards.
How to Qualify Affiliate Bonus?
Qualifying for affiliate bonuses typically involves meeting certain criteria or objectives set by the merchant.
While specific requirements may vary depending on the affiliate program, there are some common steps affiliates can take to qualify for bonuses:
One of the most common factors is achieving minimum sales or referral thresholds. This ensures that affiliates are actively driving business and bringing in revenue for the company.
Another factor is promoting specific products or services. Merchants may offer bonuses for affiliates who excel at promoting certain offerings that are particularly important to the company’s goals or strategy.
Maintaining high conversion rates is also crucial. It shows that affiliates are not just driving traffic to the website, but they’re also effectively persuading visitors to make a purchase or take another desired action.
In addition to these factors, merchants may also consider the quality of traffic generated by affiliates. This includes factors such as the relevance of the audience and the engagement level of the visitors.
Overall, qualifying for an affiliate bonus is about more than just hitting sales targets—it’s about actively contributing to the company’s success and demonstrating a commitment to driving results.
Wrapping up
Bonuses are a powerful tool in your toolkit.
As long as you provide valuable rewards and highlight their benefits, you’ll likely helps your affiliates convert many unsure prospects into enthusiastic customers.
Hopefully, our guidance aims to demonstrate how simple it is to enhance your affiliate earnings with bonuses.
Bonuses are included in UpPromote’s Pro Plan. You can upgrade your current plan or start a free 14-day trial to access this feature.
Refer to our support documentation for detailed instructions on setting up bonus commissions.
