Lots of people try to succeed at affiliate marketing every year.
There is a well-known statistic that says that 95% of affiliate marketers will fail. This means that there is only 5% of people who set out on their affiliate marketing journey who actually find success.
A number of factors are involved in this high failure rate however one thing that sticks out time and time again is a lack of tracking.
It is all well and good having affiliate links and a great looking website with professional ads but how do you know if it’s working?
In this guide, we are going to show your why dynamic tracking is vital if you want to find success as an affiliate marketer as well as the 3 things you should be monitoring to measure your achievements (and possible failures).
Why is tracking important?
It is unlikely that you are going to start an affiliate marketing campaign and sit and watch the money roll in. OK, it isn’t totally inconceivable that you might strike lucky but the reality is that tracking your campaign is important.
Every successful affiliate marketing will tell you that tracking your activity is paramount to finding out what works and what doesn’t. We are going to have a look below at what things you should track but overall you need to keep on top of your campaign.
If something works really well then you need to see why it works really well. If something doesn’t work like you wanted it to then you need to know this too.
To put it simply, tracking is important for measuring your affiliate marketing KPI and ensuring that you are on the right path.
What is dynamic tracking?
Dynamic tracking is just a way in which you can measure your performance as an affiliate.
Through dynamic tracking you can find out a lot of valuable information and data about your links and ads. So, if you want to find out how many clicks you have received on an affiliate link then you can do that. Similarly, if you want to find out how many people purchased a product through your affiliate link you can see that as well.
Dynamic tracking is a way in which to track results, track affiliate sales and ensure that your campaign has a groundwork for success.
Measuring affiliate marketing
You can track a lot of different things with dynamic tracking however we are going to show you 3 of the most important that you should pay close attention to.
This is one of the mains things that is used to track your success. After all, as an affiliate marketer you are aiming to make sales, right? A conversion doesn’t necessarily have to be a sale – it could be simply getting someone to sign up to your email list or filling out a form – however in most cases it means parting with money.
With dynamic tracking, you can see how many sales you have made compared to how many people clicked on your link. Many marketers overestimate how good their conversion rate has to be. If 5 people out of the 100 who have clicked on your link go on and make a purchase then your conversion rate is 5%.
It sounds pretty low but that is until you realise that the average conversion rate is just over 2%.
In terms of affiliate marketing costs, your ROI or return on investment is generally seen as one of the biggest things to track.
This is how many dollars you have made compared to how many dollars you have spent.
If you have invested $1000 in your affiliate marketing campaign and a year later you have only made $500 then that isn’t a great return on investment, is it? You’d probably want to look at why you have made a loss. With dynamic tracking, you can easily see how much money you have spent and made to find out if your business is profitable and worth pursuing although be careful not to focus too much on the short term.
Finally, we have fraud.
$7.4 billion is lost to fraudulent activity within affiliate marketing. If you have affiliates selling your products then this is a vital statistic to look out for. This can also comprise of things such as the refund rate and if it is particularly high from one affiliate then you need to be looking into why. Are their advertising methods misleading? Are they generating fake orders?
With dynamic tracking, all of this can be discovered. It isn’t just the $7.4 billion figure that stands out because 80% of desktop ad impressions in Japan were discovered to be fraudulent and the number in the USA was high too.
Read more about what the affiliate marketing fraud is and how big of a problem is it.
Track results for maximum success
Your affiliate marketing campaign might succeed without proper tracking but it is unlikely.
All of the best affiliate marketers track their performance and the performance and activity of their affiliates if they have products to sell themselves. Tracking is very easy to set up and once you do you will have an absolute wealth of information that you can use to find out what is working for you, what isn’t and what things you should be paying more attention to.
There are a lot of other metrics you can use to look at your affiliate marketing campaign. We just mentioned 3 in this short guide however other things such as bounce rate – when a visitor opens 1 page on your site and doesn’t open anymore – and other vanity metrics such as impressions, clicks and social shares are all important to know as well.
Affiliate marketing is one of those things that can be confusing but more data is better when it comes to running a successful campaign. If you want to be part of the 5% of affiliate marketers who make money then tracking is a vital part of this journey.