Blockchain technology is the wave of the future, but it’s already twining its way into virtually every imaginable corner of business and marketing. It is an easy transition, because blockchain is faster and more efficient, which is great from a business point of view. Transactions are cheaper, which is especially critical for affiliate marketing.
Blockchain technology also offers key benefits for affiliate marketing. Here are just a few ways that blockchain technology is changing the face of affiliate marketing.
Blockchain Promises Ultimate Accessibility & Direct Connection
Blockchain is sometimes seen as disruptive or dangerous, but that may be because of misinformation and confusion about what blockchain represents and what it can do for businesses (and particularly for affiliate marketing). It does offer direct connection potential between publishers and advertisers, which could push out the networks, but some of that evolution in the affiliate marketing structure is already happening. Blockchain marketing is just making it easier and cheaper for advertisers/brands to connect directly with publishers, while also laying the groundwork for better conversion rates.
Cheaper = Lower Payments + Costs of Doing Business
The cost of doing business is cheaper, which means that the barrier to entry is lower and more (smaller) publishers and advertisers can also get in on the action. That’s good news for advertisers since there’s a larger pool of potential publishers to choose from. There’s also greater opportunity for diversifying the distribution of messaging via non-traditional relationships.
Loyalty & Flexibility
The reliability of the tracking system is of considerable concern in affiliate marketing since you must rely on the veracity of the tracked clicks and conversions as a basis for payment. Blockchain allows companies to create their own currencies, which would offer greater flexibility in payout options for companies like Rakuten.
Veracity & Transparency
Affiliate marketing can sometimes feel a bit convoluted, but blockchain technology can go a long way to make the whole process more transparent and trackable. It goes beyond trust or even an established relationship. Instead, there’s the potential for absolute privacy and encrypted transaction data. Industry standards will dictate which details of the transaction history and commissions will be accessible to which partners.
Framework for Payments That Works
The “smart contract” is a core feature of blockchain technology. It allows greater flexibility in the structure of payment to publishers by advertisers. This is what advertisers have been waiting for. It’s a way to determine the level of payment based on the quality of the lead.
So, there could be no set rate. It would be negotiated on an ongoing basis, with payment being processed immediately. With greater flexibility, advertisers could also offer other types of incentives. They could pay users to view ads or use other campaign strategies to deliver the results they want and need.
Safety & Security
Encrypted transactions just make for safer data transfer and transaction processing, but it’s also important to note that all participants are part of the same system. That goes even further to ensure absolute safety and security, but it also prevents fraud while allowing for fraud detection.
Blockchain technology supports higher valued transactions in affiliate marketing. Advertisers can structure their requirements to gain the results they need, and they can also pay for the level of return-on-investment that’s required for a sustainable relationship. As the connection between the publisher and advertiser deepens, Blockchain marketing shows signs of continuing to become an even larger part of affiliate marketing.
The Next Step?
Blockchain technology is changing affiliate marketing because it is the natural progression. It is cheaper, more secure, more efficient, and it allows for advertisers to achieve the level of granular targeting that they’ve been demanding.
Blockchain will continue to transform society. It is not something that will go away. That means that it is possible to grow and evolve a Blockchain Affiliate strategy that advanced, smart, and innovative. Blockchain allows you to tap into the power of technology in ways that you may not have wanted to imagine before.
The other reality is that we really have no idea where blockchain is going next. It is the perfect time to see and begin to watch for ways that blockchain can benefit you in your affiliate marketing efforts. You, too, can be a part of one of the fastest-growing areas of technological innovation.