Since CBD marketing is limited in the digital ad space, considering an affiliate or sponsorship program can be a great addition to your marketing strategy. Affiliate marketing can provide additional exposure to your brand, creating more lead conversion opportunities.
What is Affiliate Marketing?
Affiliate marketing is a form of performance-based marketing where your company rewards affiliates for each customer brought on by that affiliate’s own marketing efforts. Most CBD companies have an affiliate program, providing a way to market their products with no up-front costs. Affiliate marketing usually pays a certain percentage as a commission.
What is Sponsorship Marketing?
Sponsorship marketing is a form of simple marketing outreach where the company pays a certain amount to another organization or influencer to sponsor your CBD products. This does require up-front costs but can have similar effects as affiliate marketing.
How Do I Target Affiliates or Potential Sponsors?
Think about your target demographics– are your CBD products formulated for athletes, seniors, or any other segment? Identifying your target market can help you understand what influencers can boost your sales. Take the time to identify individuals that share relevant interests with your target market that also has a substantial amount of followers. If there’s a company or event that you think would be a great fit for sponsorship, always reach out and inquire about their sponsorship pricing.
What Are the Parameters I Need to Create for Affiliate Programming?
If you decide to offer an affiliate program for your CBD company, these are the following parameters you’ll need to decide:
- Commission rate: This is typically 15% to 30% from other CBD companies. Make sure the commission rate draws in potential affiliates but is still realistic for your startup.
- Products offered: Some products may have a smaller profit margin and might not be ideal for affiliate marketing. You can decide to offer all of your products or a select few.
- Pay period: How often you’ll be paying your affiliates– some CBD companies pay out weekly, while some payout monthly.
- Cookie duration: Cookie duration refers to the amount of time a customer can make a purchase and still be associated with that referring affiliate. After your designated cookie duration has passed, that customer’s purchases will no longer be associated with the referring affiliate. You can set the cookie duration from 1 to 365 days. Most CBD companies have a 30 to 90-day cookie duration.
- Unique coupon code: It is up to you if you’d like to give your affiliate a unique coupon code that they can give to customers. This coupon code can be standardized at a certain percentage or be performance-based.
- Custom link and direct link tracking: These are other options that you can provide for your affiliates that track customer conversions from custom links or direct links from affiliate social media profiles, blogs, and more.
Learn More About Affiliate and Sponsorship Marketing
Hemp Depot is honored to share all of our leading marketing tips for starting your own CBD company! Affiliate and sponsorship marketing are great ways to get more exposure for your products and brand. Finding the right affiliates and providing a motivational affiliate program can provide numerous benefits. For more information regarding affiliate and sponsorship marketing, please contact us!