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Local Affiliate Marketing

Pros And Cons Of Local Affiliate Marketing 2024 For Marketers

Are you looking for a way to generate revenue? If yes, then local affiliate marketing can be an effective strategy for you. In this type of marketing, you collaborate with local businesses to promote products or ...

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Local Affiliate Marketing

Are you looking for a way to generate revenue? If yes, then local affiliate marketing can be an effective strategy for you. In this type of marketing, you collaborate with local businesses to promote products or services.

It can support you in reaching a broad audience and increasing your sales. However, like any other marketing strategy, it also has its pros and cons.

In this blog post, we will provide detailed information about what affiliate marketing for local is, how it works, its advantages and disadvantages, and some tips to help you get started with it. So, let’s dive in!

Local Affiliate Marketing: What Does It Mean?

Let’s break down each phrase to understand easily!

Local: This refers to a specific geographical area, such as a neighborhood, city, or state. In the context of local affiliate marketing, it means focusing on promoting products and services of businesses within this specific area.

Affiliate Marketing: A performance-based marketing strategy where an affiliate earns a commission for promoting a business’s products or services.

Entries Participating in This Process: The local business (the merchant), the affiliate marketer(you), and the customer.

Tasks for the affiliate marketer

The first step is researching and selecting the right local businesses to partner with. Once you’ve identified potential partners, you’ll need to negotiate a deal on a commission or flat per-lead basis.

The next is to promote the local business’s products or services. It involves attracting local traffic to their website or physical location. And you have to track referrals and sales to determine the effectiveness of your marketing efforts.

Finally, nurture relationships with your audience! The aim is to encourage them to purchase from your partner. Maintaining a positive relationship with potential customers is key to building trust and increasing sales.

Benefits of Local Affiliate Marketing 

As marketers, what benefits can you gain by joining affiliate marketing for local?

Affiliate marketers are the thing that local businesses need

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Let’s talk about the overview of the company with the marketing!

Did you know that 27% of small businesses confessed they need more time or budget to market themselves online? Moreover, according to Bright Local, 32% of small businesses gave a thumbs up to Internet marketing, calling it “very effective.”

But wait, there’s a plot twist! 20% of them don’t invest in digital marketing due to cost or time concerns. It’s like wanting to go to the gym but not wanting to sweat!

Plus, 30% of small businesses admitted that keeping up with technology is their biggest marketing challenge. And the fact that only 72% of local companies use email marketing. The biggest reason is “too complicated”.

→ So, see the number, and we can judge that small businesses aren’t oblivious! The fact that they know that their customers are increasingly moving online. The problem is that they often need more expertise, the time, or, sometimes, the budgets to hire dedicated marketers.

It’s like the company knows the destination but does not know how to get there.

And this is where you come in, like a superhero ready to save the day! You can be the bridge that connects these local businesses to the digital world, helping them navigate the complexities of online marketing. So, put on your cape and get ready to fly!

Local SEO is more Straightforward 

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Imagine you are an affiliate support small business battling against industry giants for top spots in search engine results. Consider these mind-blowing statistics by LocaliQ:

  • 80% of local customer searches lead to a conversion: When people search for businesses near them on their phones, they’re highly likely to take action, like visiting the store or making a purchase. Affiliates can take advantage of this conversion!
  • Around 46% of Google searches are region-specific: People are increasingly searching for businesses/ services in their immediate area, making local SEO more relevant than ever for marketers.

In a survey by BrightLocal, SEO ranked as the most effective source of customers for local businesses! That’s a testament to local SEO’s power in attracting new audiences and growing your business.

So, why is local SEO easier than general SEO?

Smaller pond, bigger fish! Local SEO focuses on the specific geographic area, reducing the number of competitors you’re up against.

PPC Campaign is Effective

Local Pay-Per-Click (PPC) campaigns are highly effective in advertising, and there are several reasons for this.

Firstly, relevance plays a significant role in successful PPC marketing. This crucial relevancy element is practically guaranteed when marketers connect local audiences with PPC ads.

Secondly, many local keywords are packed with high action intent, leading to near-immediate conversions. For instance, if someone searches “hamburger near me” or “plumbers in my area,” they immediately need a hamburger or a plumber.

Thirdly, local audiences are inherently more valuable, meaning they can convert online at the business location. Customers appreciate having these options.

Fourthly, as local PPC campaigns have the purpose of attracting potential customers in a specific geographical location, the competition for keywords is less than in global ad campaigns. This means affiliates can pay less and rank more often for ad placements.

When affiliates combine these many benefits, you get an ad campaign that has more relevance, costs less, performs better, and faces fewer competitors! Spending less and getting more is something that any business can get behind, right?

Opportunities to upsell relevant products/ services 

If you are a local affiliate, you will deeply understand the local market and customer needs! So, it’s easy to identify relevant upsell opportunities that seamlessly complement the customer’s initial purchase.

Plus, your established reputation as a trusted community advisor fosters customer receptivity to upsell suggestions.

Tailoring upsell recommendations to each customer’s specific circumstances further enhances the likelihood of success. This personalized approach demonstrates the affiliate’s genuine interest in the customer’s well-being, making the upsell more valuable and appealing.

Trust Factor 

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Local consumers are like loyal fans at a hometown football game. They love to cheer for their local businesses over the big, impersonal corporations.

According to BrightLocal’s Local Consumer Review Survey, 82% of consumers read reviews online for local companies. They check the report card before deciding which business gets the gold star.

As an affiliate marketer, you’re like the cool kid in school who can make any local business the star of the show. Their success becomes your success. It’s a win-win, or should we say a “win-win-more” situation!

Drawbacks of Local Affiliate Marketing 

Affiliate marketing for local, where the stakes are high & the rewards can be even higher. But beware, it’s not all sunshine and rainbows. Here are some of the challenges you might face:

  • Restricted Scope: The reach is limited.
  • Heightened Rivalry: The competition has increased.
  • Risk of Replacement: Being easily replaced.
  • Reliance on Local Economy: Depends on the local economy.

Let’s break it down!

Restricted Scope

Local affiliates can sometimes feel like you’re shouting into a well and waiting for the echo. All you need is high conversion rates, but with the internet improvement, restricting your business to local only is a waste!

Heightened Rivalry

Imagine you’ve established a thriving business through your local marketing efforts. However, a new competitor could emerge and steal your customers at any moment, leading to decreased traffic and sales. While competition isn’t always harmful, less competition is undoubtedly better in this scenario.

Risk of Replacement

Local businesses are often within the same niche and highly replaceable by other counterparts.  One minute you’re in. The next, you’re out.

Reliance on Local Economy

The prosperity of this marketing strategy is directly proportional to the economic health of the locality in which it operates.

Local affiliate marketing can be highly profitable in a thriving local economy where individuals have a high purchasing power.

This is because consumers in such economies can spend on products and services. Therefore, it increases the chances of affiliates earning commissions from their promotional efforts.

Conversely, in a weak local economy where individuals have lower disposable income, the effectiveness of local affiliate marketing can be significantly reduced. People tend to prioritize essential expenses, and the conversion rate will not be higher than the thriving local economy!

How to Become a Local Affiliate? 

Once you understand the pros and cons of affiliate marketing for local, do you still want to become a local affiliate? Refer to these steps below!

Understand Your Local Market

It is the foundation of your local affiliate journey. Conduct market research to understand your local audience’s preferences, needs, and buying behavior.

To do that, use surveys, interviews, or even casual conversations to gather insights. Another way is to use tools like Google Trends and social media platforms to conduct polls or ask questions to gather insights.

The more you know about your local market, the better you can tailor your strategies to them.

Choose a Relevant Niche

Your niche should be something that your local audience is interested in. For example, if you live in a coastal area, you might choose a niche like “beach essentials” or “seafood recipes.”

Consider using keyword research tools such as Google Keyword Planner. It can give you ideas for potential niches.

Find Local Affiliate Programs

Reach out to local businesses and see if they offer affiliate programs. You can also look for national or international programs from networks like CJ Affiliate or ShareASale.

Create Localized Content

Your content should speak to your local audience. So, why don’t you use local language, slang, or colloquialisms? Reference to local events, places, or cultures is also a good idea!

Some of the most common ways are through blog posts, social media updates, videos, or podcasts. It will help your audience feel more connected to you and the products you’re promoting.

Promote in Local Platforms

In this step, you should spend time exploring online platforms where your local audience hangs out. Social media websites such as Facebook and Twitter are some of the best local product promotion platforms.

You can browse for groups that are closely related to the niche where your product lands. These groups are the most effective ways to increase the product’s reach in terms of organic audience.

Build Local Partnerships

You must also collaborate with local influencers, bloggers, or other businesses. As you know, partnerships can lead to more opportunities like joint events, giveaways, or product collaborations.

Use Local SEO

Optimizing your content for local search terms is essential. It means using keywords that your local audience might use when searching for the products/ services you’re promoting. SEO makes your posts/ websites rank higher in Google Search and increases the conversion rates!

Best Examples of Local Affiliate Marketing 

Zomato

Zomato’s marketing strategy combines SEO, social media, push notifications, paid advertising, email, and affiliate marketing.

The world’s largest restaurant listings website, with an Alexa rank of 541 and a $1B valuation, is Zomato.

By selling advertising to local restaurants, Zomato offers a unique service for restaurant owners to track and receive calls through a dedicated Zomato number.

This system is a perfect example of the local affiliate model with an added touch of local advertising.

Cars.Com

Cars.com is your one-stop shop for all things related to cars. With detailed specs, pictures, and reviews for hundreds of vehicles across dozens of brands, customers can easily find the suitable car for their needs.

When you click on a car’s availability near customers, there is a simple form where they can enter your email, name, and phone number. From there, Cars.com sends the information to a local dealer, who will contact the customer shortly.

Cars.com earns its revenue through the sale of leads to local businesses. It was valued at $2.5 to $3 billion in 2014, with an annual income of approximately $500 million.

Conclusion 

Are you looking for a way to improve your life through marketing? Local marketing is a great way to do just that. By analyzing the advantages and disadvantages of various niches, you can make informed decisions about which ones to pursue.

Focus on your local community, but keep in mind the global market as well. So, in the journey of local affiliate marketing, remember to be local, think global, and laugh all the way to the bank!

Ellie Tran, a seasoned SEO content writer with three years of experience in the eCommerce world. Being a part of the UpPromote team, Ellie wants to assist Shopify merchants in achieving success through useful content & actionable insights. Ellie's commitment to learning never stops; she's always eager to gain more knowledge about SEO and content marketing to create valuable content for users. When she's not working on content, Ellie enjoys baking and exploring new places.