In almost every industry, referrals are the gold standard of customer acquisition. Research has repeatedly shown that referred leads close faster, buy more, and stay longer — all with significantly less effort and at a much lower CPA than non-referred prospects. A University of Pennsylvania study[1] found that referred customers are more loyal and profitable — by a 16% margin — than their non-referred counterparts.

Before starting Ambassador in 2009, I founded a company in the affiliate marketing space. I quickly discovered companies were generating millions and millions of dollars through their affiliate channels. It was eye-opening, and since then, I've known that affiliate marketing is a must-have for every business.

My first taste of an affiliate marketing program came with law school and online poker. While not the most common cocktail when it comes to word-of-mouth marketing strategies, I saw the network effect firsthand. I was referring friends to play poker online and making a small amount in affiliate fees. As I continued to share my affiliate links, that small amount doubled, tripled, and eventually grew to be enough to pay off my law school loans, shift my career path, and kick off my journey as an ...

When it comes to building out successful affiliate marketing programs, one of the trickiest elements is finding the right affiliates who value your product as much as you do. Sure, you can sign up for an affiliate marketing network and almost instantly gain access to hundreds or thousands of affiliates. Once you upload content and assets, all you have to do is wait to see the results (which will likely be a marginal lift in traffic). It’s fast, easy, and fairly predictable.

You may have heard the term “relationship marketing” being tossed around recently. Relationship marketing refers to everything you do to develop strong, lifelong relationships with your customers. From influencer programs to referral campaigns to affiliate marketing, relationship marketing builds brand awareness and positions your brand as your customers best option. The most important part of relationship marketing is facilitating two-way conversations with your customers.

If you follow marketing thought leaders or read best practice blogs, you’ve seen the evolving roster of trending ways to spread the word about your business. Beneath every trendy marketing buzzword lies a metric milestone that your company wants to surpass or a barrier that you need to break. But somewhere between the viral headlines and virtual tips, successful companies are digging deep to engage customers and drive revenue.

For companies looking to harness the power of word-of-mouth to expand their audience, prospects, and fans, affiliate programs may be the answer. Here are a few common questions we hear from clients looking to develop an affiliate marketing strategy: