With more than 2.3B monthly active users, Instagram is a hotspot for branded content.
And while one-off influencer marketing campaigns can be great for major launches, an always-on marketing solution is a good use of budget too.
Enter: Instagram affiliate marketing — the ultimate hack for cost-effective, continuous leads.
In this guide, we’re sharing what affiliate marketing is, why it works, and everything you need to know to make it a part of your strategy.
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What is Affiliate Marketing on Instagram?
Instagram affiliate marketing is a revenue-sharing process where influencers earn a commission from the clicks or sales they generate for a brand on Instagram.
Influencers share a unique discount code with their audience or add a one-of-a-kind, trackable link to their Stories or the link in their bio.
Using affiliate links makes it easy for your customers to buy directly from creators and for you to see the results of your influencer marketing campaigns.
FYI: Later and Mavely have collaborated to make it easy for you to make trackable affiliate links, fully integrated with top affiliate platforms, that help your influencer marketing campaigns drive real ROI.
Book a demo to see how it works.
Why Should You Use Instagram Affiliate Marketing?
When it comes to Instagram affiliate marketing, the results speak for themselves. These are our top three reasons for getting started:
#1: Boost Brand Awareness
The math is simple: Niche experts casually promoting your brand over time = the perfect way to spread the word and build trust with your target audience.
Working with affiliate influencers is a great way to connect with new audiences and earn their trust in your brand – making them more likely to make a sale.
#2: Enhance Social Proof
According to data from Statista, nearly 70% of online shoppers read between one and six reviews before making a purchase.
Couple that with the fact that 49% of consumers depend on influencer recommendations, building a rapport with an influencer’s audience is a no-brainer.
#3: See Real ROI
Using affiliate links makes it easy to track the ROI of your influencer marketing program.
We know that Instagram and influencer marketing help to drive your brand and growth, but when you have a solid affiliate program in your place, you can prove that your efforts are leading to real profit.
This has some big benefits, like higher budget approvals, trust from your exec team, and maybe even a promotion for the person managing the program. (That’s right, we mean you.)
How to Launch an Instagram Affiliate Marketing Program
Ready to launch your Instagram affiliate marketing program? Here are seven simple steps:
#1: Determine Your Goals
Before you kick off your affiliate marketing program on Instagram, it’s essential to define your SMART goals and metrics.
What’s your ideal conversion rate for affiliate link clicks that lead to a sale?
How many clicks (or sales) do you want affiliates to bring in per month, quarter, and year?
Which audience are you targeting?
This will help guide the kind of Instagram influencers you work with, what products you want to promote and help you drive your strategy forward.
#2: Scope the Competition
When it comes to creating a fruitful Instagram affiliate marketing program, don’t be afraid to take a peek in your own backyard for inspiration.
Making note of structure, pricing, and influencer partners, analyze the strengths and weaknesses of competitors’ affiliate programs in your industry.
What are they doing well? What can you do better?
#3: Choose Your Affiliate Network
While you can create your own affiliate program from scratch, affiliate networks are the best option for first-time programs.
Platforms like Rakuten, Pepperjam, and PartnerStack provide features like tracking technology, reporting tools, and payment processing.
Select the platform that best aligns with your goals, then choose your commission model. The two most popular are:
Pay per click: The influencer earns a small amount for every click they drive to your website
Cost per acquisition: The influencer only earns when an actual sale is made
#4: Set Your Commission Rates
Once your Instagram affiliate marketing program is officially underway, it’s time to map out how much you’ll pay an influencer for each sale (or click) they drive.
There are a lot of different ways you can do this. Here are a few ideas:
Analyze your profit margins: Commission payments ultimately come out of your profit margin, so understanding how much profit you are willing to trade for a higher volume of sales is essential
Check your competitor notes: How much commission do your competitors pay out? What is the industry standard?
Ask your affiliate network: Affiliate networks have tons of experience and are likely to provide you with a wealth of information
To get the best results, pay creators a base rate and a commission - it might be more expensive, but it will solidify you as a client that creators want to work with.
#5: Create a Compelling Affiliate Program
You can’t reap the benefits of an Instagram affiliate marketing program if no one actually wants to participate in it.
The best way to incentivize? A tiered program with the option to unlock extra rewards.
Think: a higher commission rate for a higher volume of sales, or a one-off bonus payment for certain sales.
#6: Find Influencers with Later Influence
Depending on your Instagram marketing goals, you may want to strategically hand-pick influencers to get the most from your affiliate campaigns.
With Later's influencer marketing services, real humans (not robots) will help find top creators that match your brand.
Plus, you can easily manage multiple campaigns all in one spot. Schedule a call today to learn more.
#7: Analyze & Adjust
Once your affiliate program is up and running, it’s important to keep track of what’s working and what’s not, and adjust.
Are influencers properly representing your products and brand? What is your return rate? Which influencers are generating the most sales?
Dig into the detailed reporting provided by your affiliate network to reveal how many affiliate links have been generated for your brand, the number of clicks driven, and the total sales value.
NOTE: We recommend tracking and analyzing your affiliate marketing data on a monthly basis to keep a pulse on your program.
The Best Instagram Affiliate Marketing Programs
If you’re interested in working with affiliates, on Instagram and beyond, consider these nine platforms.
Rakuten: Global reach, premium partnerships, and serious analytics make Rakuten a go-to for brands wanting impact.
Impact: Tailor-made for scaling up with automation and a focus on finding your perfect partners, from influencers to big brands.
Commission Junction (CJ): Classic yet cutting-edge! CJ delivers insights on affiliate performance so you can level up your campaigns.
Partnerize: Enterprise-ready with AI-powered tools to supercharge partnerships. Think big-brand meets next-gen tech.
Ascend: Streamlined connections with niche influencers and affiliates, making it easy to grow your brand's reach.
AWIN: A global powerhouse with reach in over 180 countries. AWIN is all about growth, data, and going global.
ShareASale: Easy for beginners and experts alike. ShareASale’s tools bring affiliates and e-commerce brands together. (ShareASale is a part of AWIN, as well.)
AvantLink: Perfect for niche markets! AvantLink delivers transparency and insights for serious affiliate pros.
BrandVerity: Brand protection made easy. Spot and stop any brand misuse, keeping your partnerships on the up and up.
Each brings its unique edge, whether you’re scaling big, going niche, or protecting your brand.
Start Scaling Affiliate Marketing on Instagram
And there you have it — everything you need to know to create a standout Instagram affiliate marketing program.
While you could build the program yourself, you can get ahead of the competition by using Later's Mavely integration.
Here's why marketers love working with Later for affiliate marketing:
Generate Custom Affiliate Links in Seconds: Create unique tracking links for each influencer and watch sales and engagement data roll in automatically.
Access Real-Time Performance Insights: Track live campaign metrics including clicks, conversions, and commissions. Make data-driven decisions to optimize your campaigns.
Automate Commission Payouts: Let Mavely handle influencer payments automatically. No more spreadsheets or manual processing is required.
Keep Your Existing Networks: Already using Rakuten, Impact, or CJ? Perfect. Mavely supports all major networks.
Connect with Major Retailers: Access 1,200+ brands including Walmart and Target. Send your audience where they're already shopping and boost conversion rates.
Book a demo today to get started.
