Affiliate marketing, although prevalent in modern Internet culture, actually predates the Internet. Moreover, business practices based on affiliate marketing have not changed much in all these years, and are still enforcing the fundamental principles. And with that, the opportunity for growth has not stagnated either, especially when it comes to a potentially untapped market in Asia.
What is affiliate marketing?
Paying commissions to partners who may include social media influencers and websites in general on a cost-per-action basis is beneficial for both parties. Not only does it offer an extra method for those partners to make some additional money off their audience, the advertisers themselves get more traffic and potential buyers in return, thereby allowing for a win-win situation.
Why Asia?
Affiliate marketing is and already has been an established business model in the Western world, primarily in the United States and Europe. However, Asia, on the other hand, is still in its early stages. Not only is it still a growing practice, it has its own unique rules and customer behavior which are significantly different from the western variant. However, this does not mean the Asian market should be ruled out as a possible frontier for affiliate marketing.
The common pitfalls
Only a few brands and affiliate marketing agencies have been successful in establishing themselves in the Asian market. This is mostly attributed to the lack of knowledge about how the system works and what it brings to the table. However, attempts at assimilating this system into the Asian market through education has been met positively.
Successful instances of local social platforms, websites, and banks working with these international brands have not only shown great potential for further growth but have already boosted online revenue for that particular brand. This serves as evidence that the largely untapped Asian market is not only effectively going to boost revenue but is also going to welcome the platform with a bit of perseverance from the brands.
Before jumping in, it is necessary for the brand to assess its capabilities. The brand needs to question:
- Is their brand popular and would be accepted in that region?
- Will you be making enough sales to justify the push for affiliate marketing in that region?
- And most importantly, can you afford the considerably long-term investment associated with the venture.
It is important to understand that the Asian market operates much differently than the one the brand is used to, and this is especially important in the case of Asian e-commerce. Prior failures from brands have shown how important it is to study and research about the market, its population, and its operation before ‘jumping in’.
Snatching the opportunity
Although the risk associated with this business model is small, it is important to remember that since it is cost-per-action, an unsuccessful attempt at integrating into the Asian market, will cost the brand huge losses in potential revenue, only because of poor research and hasty decisions. However, if given the right amount of time and effort invested in coordinating a well-organized affiliate market, assimilation will ensure success as has been seen before in other Asian regions, for example in China, Hong Kong, Japan, and Korea.
