Our biggest BFCM promotion: buy 1 year get 6 more months free. Install to see more details! 🎊
What is Commission-Based Influencer Marketing for your Shopify store?
Read Time 7 mins |
Written by: Attribuly
Introduction to Commission-Based Influencer Marketing
Commission-based influencer marketing has emerged as a powerful strategy in the digital age, allowing businesses to leverage the reach and influence of social media influencers to drive sales and increase brand awareness. In this blog post, we will explore what commission-based influencer marketing is, its applications for Shopify store owners, and how to effectively manage it.
Definition of commission-based influencer marketing
Commission-based influencer marketing is a strategy where influencers are compensated based on the sales they generate for a business. Unlike traditional influencer marketing, where influencers are paid a flat fee for promoting products or services, commission-based influencer marketing aligns the interests of both the business and the influencer. Influencers receive a percentage of the sales they drive, providing them with an incentive to actively promote the products or services.
The importance of influencers in promoting products and driving sales cannot be overstated. With their large following and engaged audience, influencers have become trusted voices in their respective niches. Their recommendations hold significant weight among their followers, who often look up to them for guidance on purchasing decisions. By partnering with influencers through commission-based arrangements, businesses can tap into this trust and credibility to boost their sales.
History and rise of commission-based influencer marketing
Commission-based influencer marketing has gained popularity with the rise of social media platforms and the increasing influence of influencers. In recent years, social media platforms such as Instagram, YouTube, TikTok, and Facebook have become breeding grounds for influential individuals who have amassed large followings. These influencers have built personal brands around specific topics or interests, making them valuable assets for businesses looking to reach niche audiences.
As social media usage skyrocketed globally, so did the impact of these influencers on consumer behavior. People began turning to influencers for product recommendations instead of relying solely on traditional advertising channels. Recognizing this shift in consumer behavior, businesses started collaborating with influencers to promote their products or services. The introduction of commission-based influencer marketing further solidified the relationship between businesses and influencers, allowing for a more mutually beneficial partnership.
Key Features of Commission-Based Influencer Marketing
Commission-based influencer marketing offers several key features that make it an effective strategy for Shopify store owners and marketers. By understanding and utilizing these features, businesses can maximize the benefits of working with influencers to drive sales and increase brand awareness.
One of the primary features of commission-based influencer marketing is the ability to pay influencers based on the sales they generate. Unlike traditional influencer collaborations where influencers are paid a flat fee, commission-based marketing allows businesses to compensate influencers directly for their impact on sales. This creates a mutually beneficial relationship where influencers have a vested interest in promoting the products or services effectively, as their earnings are directly tied to their performance.
In order to track and monitor influencer performance and sales accurately, businesses need robust tracking systems in place. These systems allow them to measure the effectiveness of each influencer's efforts and determine their contribution to overall sales. Tracking tools provide valuable insights into which influencers are driving the most traffic and conversions, allowing businesses to optimize their campaigns accordingly.
Attribuly generates single profile for every influencer, and centralize the collaboration, creatives management, tracking in one place.
When engaging in commission-based influencer marketing, it is crucial to negotiate commission rates and terms with influencers upfront. This ensures that both parties have a clear understanding of expectations and compensation structures. Negotiating commission rates can be based on various factors such as an influencer's reach, engagement rate, or niche expertise. By establishing fair and transparent agreements, businesses can foster long-term relationships with influencers while maintaining profitability.
To facilitate seamless transactions between influencers and customers, providing unique discount codes or affiliate links is another key feature of commission-based influencer marketing. These codes or links enable businesses to track purchases made through an influencer's promotion accurately. Additionally, they incentivize customers by offering exclusive discounts or incentives tied to the influencer's content. This not only encourages customers to make a purchase but also strengthens the relationship between the customer, influencer, and brand.
As commission-based influencer marketing continues to evolve, there are several future trends that businesses should be aware of. One trend is the integration of influencer marketing platforms with Shopify. This integration would streamline the process of finding and collaborating with influencers, as well as tracking their performance directly within the Shopify platform.
Another future trend is the increased use of micro-influencers for niche markets. Micro-influencers, who have smaller but highly engaged followings, can be particularly effective in reaching specific target audiences. Their authenticity and relatability make them powerful advocates for niche products or services.
Furthermore, data analytics will play a crucial role in measuring the effectiveness of commission-based influencer marketing campaigns. Businesses can leverage analytics tools to track key metrics such as conversion rates, click-through rates, and return on investment. These insights will enable businesses to refine their strategies and allocate resources more effectively.
Lastly, the development of influencer marketing automation tools is expected to simplify campaign management and optimization processes. These tools will streamline tasks such as influencer discovery, contract management, and performance tracking.
How to Track influencers' conversions in Attribuly
Step 1: Create a campaign profile
If you want to track every campaign's conversion, then you may create a unique profile for every campaign. To create a profile, you may
Use the default tracking link domain to custom your own domain;
Your landing page URL ;
The Influencer's name;
The platform your influencer will promote on, such as Youtube or TikTok.
The campaign name
Spend of this campaign
Input a discount code, so visitors can use this code for a discount. After creating, you will get an invitation link for influencer. The influencer can get the tracking link and upload creatives to you via Attribuly directly. You can also copy a tracking short link without an invitation.
Step 2: Paste the link in influencer's content
The influencer can get its tracking link in the influencer portal, and paste into the content.
Step 3: Analyze the performance.
Attribuly tracks the end-to-end customer journey from clicks to conversion, across all the marketing channels.
Change attribution window
By default, the attribution window for all the channels are 180 days, including influencer marketing. But you can simply change to other attribution window in Settings, such as 30 days.
Can 1 order attribute to multiple influencers?
In the current attribution logic for influencers, each influencer receives full credit. For instance, if a customer clicks on two influencer campaigns and makes a purchase worth $100, Attribuly will allocate a $100 contribution to each influencer on the influencer attribution page.