By Melody McKinnon
Affiliate marketing success relies on making sales, which requires a fluid strategy that changes based on consumer behaviour. At no time is it more important to review and adjust your strategy than during tough economic times.
To make sales and increase conversions during a sluggish economy with high inflation, it’s important to revisit your ideal customer persona. Put yourself in the shoes of your target market.
- How is the economy impacting their lives?
- What problems do they have right now?
- How are they coping & compensating?
- What’s so important to them that they’ll still spend money on it?
- What do they love that could be less expensive without giving it up entirely?
- What will make them click the ‘buy’ button if they’re on the fence?
Read How to Find Info for Your Online Customer Profile (Avatar/Persona) for further guidance.
Once you have a clear image of your target market, you can select better affiliate programs to promote to them.
Affiliate Programs for Tough Times
The following types of affiliate programs are proven winners during tough times, based on my past online experience during economic downturns.
I’ve included some great examples of products & services that sell better during recessions. Click the links to join any of the partner programs that interest you. Not only do they convert, but many programs in these categories also have great commission rates so you can earn even more.
When you understand the mindset of budget-conscious consumers and what drives them, you’ll find many other affiliate programs with the same potential. Choose those that are most suited to your ideal target market and you’ll be able to stabilize your bottom line throughout any recession, while continuing to serve bargain hunters in between.
[DISCLOSURE: We may receive compensation for links to products on this website.]
1. ‘Buy Local’ Trends
Statistics show shoppers have become aware of the importance of supporting local businesses, and they know how important it is for the economy. Even during tough times, shoppers are willing to spend a little more to buy from local retailers. They also trust local businesses more.
Virtually every product category has local options with affiliate programs. When you promote local companies, whether it’s a hyperlocal community or just in the same country, make sure you mention it!
2. Discounts
It will come as no surprise that discounts are important across the board, be it necessity or luxury. Many consumers are more conscious of their spending but won’t necessarily give up on extras entirely. For example, they’ll continue to travel but will look for deals to make it more economical. That’s making discount travel sites like CheapOAir especially popular.
Retailers will use many promotional tactics to help convert shoppers:
- Standard percent off: 63%
- Buy more, save more: 36%
- Product bundling: 36%
- Gift with purchase: 31%
- Friends/family: 21%
- Bonus rewards for purchasing: 11%
Promote merchants who regularly supply coupons and discounts. Most affiliate networks have a coupon section that makes it easy for you to find them.
Check out these Digital Discounts That Do Double Duty to Maximize Online Sales.
3. Points & Cash-Back Programs
Loyalty points aren’t only for offline purchases and not all programs work that way. Some will allow you to earn points for performing tasks, like MyPoints. Others offer cash-back on purchases made through their partners and bonuses for referrals, such as Rakuten. It’s a broad type of affiliate program that will fit well in many different niches.
Insider Tip: You’ll often earn more from points & cash-back programs if you join them and then use their ‘refer a friend’ link, as opposed to joining their affiliate program.
4. Buy Direct
One of the ways some businesses offer lower prices is by selling direct-to-consumer (DTC) online, such as some eyeglass companies. Their affiliate programs can be twice as profitable because the price is lower online than it is offline.
5. Necessities
Choose a few programs that convert even when consumers are only buying necessities. Consumables like batteries or printer ink are common examples. Try to find products that aren’t too easy to pick up offline or are considerably cheaper online. It’s a great time to offer generic products or other options that promise more bang for the buck.
6. DIY Affiliate Programs
Do-it-yourself resources and products are popular when people are trying to save money. Consider products and services like car repair, haircuts, gym equipment, food preservation, and homebrew.
7. Employment & Career Affiliate Programs
Career & employment services are sure to convert as jobs become more scarce, from niche recruiters to résumés. Focus on the most effective, affordable and proven services that are sure to help your customer persona.
When it comes to their career, job-seekers and budding entrepreneurs often want to improve their skillset. Online courses are less expensive and more convenient than going back to school, but they can greatly improve the odds of getting a job (or contract, if they’re starting a side gig). We use and promote Udemy courses quite often. They offer tremendous value with free and low-cost courses that often include a certificate of completion.
8. Financial Advice & Assistance
Advice and guidance related to finance, investing, money management and credit repair are in demand during tough economic times. However, you must be extremely careful when selecting companies to work with. Do thorough research to vet each company and only share the most ethical among them. Present them honestly and disclose any affiliations.
9. Business-to-Business Affiliate Programs
If you serve a business-to-business (B2B) audience, you can help them streamline operations for savings or help them find more economical ways to accomplish the same thing.
For example, a universal B2B expense is digital marketing. Marketing should never be drastically cut during a recession but it does have to be more focused on value and ROI, with less spent on testing and gambles. Marketing tools have to be highly functional and versatile, allowing businesses to use one tool to replace many. For example, one of our top choices for email marketing is OptinMonster because it helps to grow your email list, improve website conversions, and reduce cart abandonment, while integrating with most ecommerce platforms and other email marketing services.
Additionally, small businesses are often struggling most and can really use your help to maximize ROI and remain profitable. Offer them products and services with the most value and they’ll purchase. Keep in mind that they probably don’t have expertise in every aspect of digital business and can’t always afford a professional consult. While you’re showing them the value of the product or service, clearly explain how it will help them.
10. Recession-Proof Categories
Some ecommerce categories experience strong sales no matter what economic condition we’re in. For example, pet care is a sector that continues to grow no matter how much pet parents are struggling. Natural pet care has been a winning category for me. Can you think of any recession-proof products or services for your target market?
How have you adjusted your affiliate marketing strategy for cash-strapped consumers? Please share your experience or questions in the comments below.
Author Bio:
Melody McKinnon is a Canadian digital entrepreneur with 25 years of experience in a wide range of online business models, backed by a formal business education and enhanced by training and mentorship. She owns CA Digital Media Group and is the author of 7 Recession Proof Online Businesses to Start From Home. Melody covers online business and digital marketing on CanadiansInternet.com.
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A previous version of this article was published by Melody McKinnon on Online Business Canada. Republishing permitted as is, with byline, author bio, and this notation (including links). Image provided by Deposit Photos for editorial use only.
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DISCLOSURE: We may receive compensation for links to products on this website. As an Amazon Associate, we earn from qualifying purchases. Our content is provided for informational purposes only and does not guarantee results.
