The global fintech sector is finding the affiliate program more valuable than the traditional marketing campaign. The low-cost, efficient affiliate program has proved that it is one of the best ways to reach out to a broad consumer base. This audience was inaccessible earlier and, now the outreach will help expand businesses significantly.
The number of affiliate marketing service providers has grown significantly over the last few years. The growing demand of various industries to diversify into affiliate marketing into their business development strategies has led to the current surge. The global affiliate marketing sector was estimated to be over $12 billion. The most significant number of affiliate marketing providers were from the USA and Europe.
Though both referral marketing and affiliate marketing programs look similar in their approach, the main difference is the target audience. The former target their existing customer base for referring new customers in place of commissions and bonuses, whereas the latter targets a new set of customers.
How can Affiliate Marketing be Beneficial for Fintech Businesses?
With many fintech service providers already in the market, today catering to different products, the competition for new entrants is pretty high and competitive. The online digital space is growing and evolving continuously, making efficient marketing campaigns imperative to the success of any fintech business.
In the last few years, both the fintech sector and affiliate marketing have become visible as a new platform for doing business. However, being relatively new, they managed to achieve synergy and look to complement each other.
Today, every fintech service provider is operating in a competitive niche using affiliate marketing to promote itself. For example, currency trading brokers actively use affiliate marketing to promote their services to customers across the world.
Many financial service providers have also started using affiliate marketing instead of traditional marketing. They have realized that acquiring new customers at a lower cost can yield more significant revenue and greater profit margins. The cost of acquisition is lower as one can tap into various channels of marketing their products.
The Future of Affiliate Marketing
The popularity of affiliates as a cost-efficient marketing tool brings into question whether a business will continue hiring traditional marketing teams or even having in-house staff in the future. There is no definitive answer though the trend points out more of outsourcing to experts who can have a better strike rate with the target audience and at a lower cost.
Even though affiliate marketing programs are still relatively young and are likely to develop and evolve, the outlook is positive. We all know how the world is becoming increasingly digitized, especially amidst the global pandemic outbreak.
And just as everyone was jumping onto the Pay Per Call Google campaigns to create effective ad campaigns that delivery leads right from search results, we will now we see the same thing being done for businesses connecting with customers on a fintech and crypto level soon enough.
With more people now shopping online from their homes’ comforts, which includes anything from banking transactions to buying a mouse, we just going to see more activity and advancements in this space. With almost all products that a consumer needs today are available online, the demand for fintech solutions is not coming down in the near future at least.
The last time bitcoin value skyrocketed, and people became aware of what a cryptocurrency is all about. Everyone was scrambling to get a share but did not know where to get it from. Cryptocurrency is different from standard retail products and has far-reaching implications for affiliate marketing and the tech industry as a whole.
Some of the trends that Cryptocurrency has in the future, given other markets in a similar position.
- Cryptocurrency is in a market that is unregulated and therefore faces its challenges in advertising. Though it has been there for more than a decade, it is only recently that it is being given a relook. Earlier, Facebook and google banned cryptocurrency advertising, though they have reversed the decision now. Affiliate marketing promises a new route of advertising for Cryptocurrency.
- Binance is a trading platform for Cryptocurrency since 2017 only. Still, they have become the most powerful trading platform today. This is because they pay 20%+ commission for lifetime trading of each new customer referred. A few affiliates have become millionaires from this program, as reported from unconfirmed sources. Other popular affiliate programs such as Coinbase, channel, Coin Payments, Purse, and Ledger Wallet, etc., for the cryptocurrency segment only are also doing pretty well.
- It is seen that first movers and risk-takers win in the long run. Bitcoin came in 2008 but exploded only after a decade giving exponential returns. The takeaway from this is that start-ups become unicorns; in the long run, a case in point is the growth of companies like Apple, Airbnb, and Postmates. Though Cryptocurrency is highly volatile, it has a chance to give good returns.
- People only associate Cryptocurrency with Bitcoin though it is interesting to know that there is more than 1600 cryptocurrency in trade today. This strengthens the notion that branding is important for gaining traction, and Cryptocurrency is no different. With so many products in the crypto platform today, there is a huge potential for affiliate marketing to penetrate this segment.
- Cryptocurrency has the advantage of offering a decentralized structure. However, it has specific challenges, such as transparency issues as transactions are encrypted. But since everybody knows that the system is the same for all, it becomes easier to conduct business. Marketers look for trust in any business transactions, and Cryptocurrency must eradicate trust issues. It also means that there will be increased opportunities to create automated marketing channels such as Google and Facebook. This will also allow companies to manage more partners with less effort and lower cost.
- Cryptocurrency processing fees are high today, with various platforms and networks processing payments and managing several currencies and conversions. In the future, brands can pay publishers in digital change, thus allowing instant payouts and eliminating the 1-2% processing cost. This would increase pay-outs and generate more activity in the industry.
Affiliate programs for both fintech and Cryptocurrency are an excellent marketing niche to be — no matter if you are on the publisher or merchant side. It is also increasing daily with many lucrative affiliate commissions and offers than ever before.
And even more importantly, many fintech and crypto affiliate programs offer lifetime or recurring commissions for new acquisitions, thus allowing one to have a good source of passive income. Having only started to scratch the surface of what’s possible when combining the power of affiliate marketing and the fintech industry together, there is simply no better time to get started.
If you enjoyed this article, also be sure to check out my latest write ups on how to use a SERP checker tool to increase your site rankings and traffic, and also using coloring to bring peace and mindfulness throughout the day.
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