5 Reasons FinTech Brands Should Have an Affiliate Program
Financial Technology (FinTech) brands are all about delivering efficient, digital solutions. So why should their marketing strategy be any different? Investing in marketing channels that reflect those same efficiency objectives in an effort to acquire high-value customers and meet performance goals is simply smart business.
And an expertly-managed affiliate program can deliver just that for FinTech brands.
Because affiliate marketing is a pay-for-performance (CPA) model, FinTech brands are able to set up commission structures that support their unique goals and key performance indicators (KPIs).
Curious how the affiliate channel can benefit your FinTech brand? Here are five reasons why some FinTech companies are turning toward this lucrative solution:
1. Cost-Effective Customer Acquisition
No matter what kind of FinTech company you are (personal finance, real estate, investing, insurance, etc.), all FinTech brands need to find a way to drive in new customers. Finding and developing key performance partnerships through an affiliate marketing program is one of the best and quickest ways for FinTech brands to acquire new customers.
What’s more is that different types of affiliate partners can help you gain and retain these high-value customers.
Although there are many affiliate partnerships that FinTech brands have found lucrative, four notable ones include: comparison or review sites, traditional and nontraditional content affiliates, coupon sites and loyalty sites.
Acquiring customers through an affiliate program tends to be more cost-effective than through other channels because payment is only provided when a desired action is delivered on.
2. Agile, Adaptable Strategies
As a brand, you are in the driver’s seat when determining what the most valuable conversion points are and how you want various partners to help you reach those objectives.
For example, you might decide to partner with one or two specific types of affiliates for your early-stage campaigns. Then, as your affiliate program matures and your goals evolve, you might decide to shift focus and test out partnerships with other affiliate types.
The key being that the affiliate model offers significant flexibility when it comes to campaigns, partnerships, compensation and approaches. This agility is one of the many aspects that makes affiliate marketing so attractive to many FinTech brands.
3. Program Performance that Reflects ROI Goals
The affiliate landscape is a cyclical process. After an action has been completed and the affiliate network or Software as a Service (SaaS) platform automatically pays out a commission to the affiliate, the brand can then evaluate the quality of the KPIs behind the action, and make adjustments and optimizations as needed.
An affiliate program should never be stagnant. Under the right management, affiliate marketing can elevate the performance of a brand’s goals and ensure that affiliates align with the brand’s incremental strategy.
4. Control of Different Partner Types
One benefit of the affiliate channel is that FinTech brands can work with a variety of partners who align with their brand and goals. This does not have to be an “open the floodgates” type of affiliate program. Brands have control over who they work with and the flexibility to decide how they want to work with them.
Having control over the types of partners allowed in their affiliate program is also an important component of alleviating concerns many FinTech companies have with regard to staying FTC compliant. When new rules and regulations come out, affiliate programs are able to pivot, shift and change around who the brand partners with and how they work with them, thus ensuring a safe, successful approach for FinTech brands to leverage affiliate marketing.
5. Content Regulation Ownership
When it comes to partnerships within an affiliate program, a FinTech brand is in the driver’s seat in terms of ensuring the information, messaging and creative that their affiliate partners are using to promote the brand is accurate and compliant—not just with their affiliate programs’ terms and conditions, but also with the FTC.
With that in mind, a significant element to ensuring any affiliate partner is adhering to your brand guidelines—as well as FTC regulatory compliance—is having experienced affiliate program managers overseeing your program. These affiliate marketing professionals should be well-versed in how to work through creative solutions to make sure your brand is supported, while also recognizing that partners need to have an authentic voice for their readers.
Getting Started with a FinTech Affiliate Marketing
When it comes to building, growing and refining an affiliate program for FinTech companies, there are unique questions that need to be asked and answered to ensure the program is set up properly, with the right partners and protocols.
Because staying compliant is a common concern for FinTech brands, an important question they need to ask is: what are the compliance considerations involved in each strategic marketing decision?
Within an affiliate program, there are several different options to choose from to ensure your affiliate partners are abiding the rules and regulations and that your brand is protected.
