One of the best methods for SaaS firms to get traction in the market, particularly in the early phases of growth, is to launch a crypto affiliate program. In the current era, where cryptocurrency, blockchain, and NFTs are all flourishing, this is especially true for firms in the cryptocurrency space and other blockchain-related services. But in today's congested market, how precisely can you create a profitable cryptocurrency affiliate program? With so many businesses out there attempting to replicate you, how can you differentiate yourself and compete?
The most crucial part of your affiliate program, aside from the more apparent ones like establishing specific objectives for your program, researching your competitors, and conducting a SWOT analysis of your business (strengths, weaknesses, opportunities, and threats), is identifying and luring the right crypto affiliates programs or publishers.
In order to assist you locate the perfect crypto affiliates program to target and tip the scales in your favor in the eyes of publishers searching for the ideal crypto affiliate program, I'll be sharing my knowledge as a publisher in this piece and offering three keys. However, you should first do some financial analysis to see if a crypto affiliate program makes sense. To learn how to accomplish it, continue reading.
Know your LTV and CAC
Assume you are responsible for expanding a relatively young cryptocurrency exchange's user base. Your potential users will have a wide range of alternatives if you're catering to a big market like the US. There will be hundreds of different cryptocurrency exchanges to compete with, even if you're catering to a smaller market like Australia or Canada.
Hence, at this point, keeping clients for as long as feasible and allocating resources effectively will be two crucial growth drivers. This is where your average customer lifetime value (LTV), average customer acquisition cost (CAC), and LTV to CAC ratio become crucial KPIs.
What is the Customer Lifetime Value (LTV), and what is it for?
A KPI called lifetime value (LTV) calculates the total revenue a client generates for your firm throughout the course of their business relationship. This measure is derived from three additional measures that are easily accessible in any business that has been operational for a few years or more.
The average net monthly revenue per customer (obtained by multiplying the average monthly revenue per customer by the gross margin percentage) is divided by the monthly churn rate to determine the lifetime value (LTV): The LTV, as its name suggests, quantifies the long-term value of each client to your company.
What is the Customer Acquisition Cost or CAC and what is it for?
Essentially, the CAC represents the amount of money required to acquire a new client. This corresponds to the average cost of sales and marketing per customer, which may be computed by dividing the entire amount of money you spend on marketing and sales by the total number of new clients, or: Monthly sales and marketing expenditure for new clients / Total number of new clients each month equals CAC.
The relationship between this parameter and the efficacy of your marketing is inverse. Your marketing efforts are less successful the bigger the quantity since acquiring each consumer is more expensive. Because you put it up from the beginning, you can decide how much each new client will cost you when setting up the commission structure for your crypto affiliate program. The following metric determines whether or not it makes sense to raise it up higher than your present CAC.
What is the LTV to CAC ratio and what is it for?
Last but not least, an important metric for assessing the effectiveness of your marketing initiatives is the LTV:CAC ratio. It establishes how much your sales and marketing expenditures are obtaining for the money. This is due to the fact that this ratio indicates the amount of net dollar value you receive for each dollar invested in bringing on a new client. The LTV:CAC ratio indicates where your business may make improvements and whether investing more in marketing initiatives like crypto affiliate marketing is a good idea.
What is a good LTV: CAC ratio to launch an affiliate program?
Generally, you would like the LTV:CAC ratio to be as high as feasible, is I correct? Not always. Depending on what stage of the business lifecycle your organization is in. In an established business, a high LTV:CAC ratio may greatly boost profitability. However, if you're trying to expand, a ratio this high indicates that you're underinvesting in marketing and missing out on potential growth prospects.
A cryptocurrency corporation in its expansion phase should aim for a ratio of about 3:1. If your statistics are lower, you should try to find strategies to improve client retention or reduce expenses. Starting an affiliate program in this situation is not the best option as you would probably have to pay publishers fewer commissions, which will make your program less appealing. Nonetheless, you have a chance to start a crypto affiliate program with lucrative incentives that will make crypto affiliate marketers scurry to sign up if your LTV:CAC ratio is 5:1 or above.
Here are three strategies to help your cryptocurrency affiliate program succeed once you've decided whether or not to set up your program and what resources you're prepared to commit to it. When you first start out with crypto affiliate marketing, you can feel a little disoriented. Top affiliate monitoring software is crucial because of this. To track commissions, conversions, and affiliate-related activities, choose a turnkey, all-in-one solution rather than many time-consuming solutions. For this, Tapfiliate is what we advise.
1. Target the right affiliates
Keep in mind that you want to use an affiliate program to reach your target audience by having a crypto affiliate marketer write material on your behalf. As a result, you will actually connect with your affiliate's audience. Because of this, it's critical to make sure your affiliate's audience is compatible with your intended audience before beginning any activity.
Statistics on cryptocurrency indicate that investors are becoming younger and younger each day. Between 2017 and 2020, the proportion of American investors between the ages of 18 and 34 who said they would buy bitcoin in the next five years rose from 32% to 55%. Geographically speaking, Nigeria has the highest percentage of individuals who own or use cryptocurrency because of the high prices and complexity of doing traditional cross-border transactions. The countries of Vietnam, the Philippines, Turkey, and Peru come after the African nation. All of this tells you that, in order to start a successful crypto affiliate network, you should focus on publications and producers whose viewers are mostly from those countries and/or fall into that age range.
2. Offer to pay upfront
Once you've located your possible affiliates, you must entice them with a compelling offer. One important finding is that most publishers have little interest in keeping a portion of the payments for the duration of the client relationship. Crypto exchanges make this kind of offer rather frequently. All they ask for is upfront payment. The issue with the first method is that, although it may provide a sizable income for the affiliate in the event that the user used the service frequently, it could also work the other way around. Affiliates won't fully understand the value of your affiliate program if you promise to compensate for future success rather than up front. However, you're providing publishers with more accurate information today, which will enable them to evaluate programs more precisely and ultimately make better judgments, by offering to pay them ahead.
3. Sponsor content regularly
Lastly, a third crucial realization that will enable you to win over publishers' and influencers' allegiance is to consistently support their material. This not only allows you a little more influence over the marketing material or content that is published to your affiliate's audience because you are the sponsor, but it also gives your affiliate a second source of income, which they will undoubtedly enjoy. If you're not sure what kind of material to sponsor, consider what has already proven successful. While some people in the field concentrate more on the technology underlying the currency, several have found success writing about the precise steps involved in purchasing bitcoins, such as Safemoon and Dogecoin. As usual, to make sure you receive the most for your money, try to work with websites whose readership is highly similar to yours.
Conclusion
Assessing the results of your present marketing initiatives and deciding whether you can afford to invest in the program are the first steps in managing a profitable cryptocurrency affiliate program. Once that's decided, along with your spending limit for the affiliate program, the key to success is identifying the right affiliates and providing them with an attractive offer under the correct circumstances. Publishers find it more appealing to pay upfront rather than after each transaction, even if it means passing up the opportunity to make a sizable profit on a handful of high-value leads. For the correct affiliate, this alone has the power to close deals. Additionally, by consistently sponsoring content, you not only boost the efficiency of your make money with affiliates' marketing campaigns but also win over additional affiliate network loyalty.
Frequently Asked Questions (FAQ)
Q1. What is an affiliate program in crypto?
Ans: An affiliate program in crypto is a marketing arrangement where individuals or businesses promote a crypto product or service and earn commissions for each customer they refer who completes a specific action, like signing up or making a purchase.
Q2. Which is the highest paying affiliate program?
Ans: The highest paying affiliate program in crypto can vary depending on factors like the product or service being promoted, the commission structure, and the volume of referrals. Some popular high-paying crypto affiliate programs include exchanges like Binance and Coinbase, as well as platforms like Bybit for trading.
Q3. Does Crypto.com have an affiliate program?
Ans: Yes, Crypto.com does have an affiliate program where affiliates can earn commissions by referring users who sign up, stake CRO tokens, and make qualifying trades.
Q4. How to become a bitcoin affiliate?
Ans: To become a bitcoin affiliate, you typically need to sign up for an affiliate program offered by a crypto-related platform or service. This often involves registering on their affiliate platform, obtaining a unique referral link, and then promoting the product or service to potential customers through various marketing channels.
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