E-commerce is growing around the globe. From India and Mexico to Poland and Nigeria, the internet is starting to play a larger role in retail. Savvy brands are taking advantage of this trend, expanding into new markets and introducing completely new customers to their products.
Taking any marketing channel abroad has its difficulties, but affiliate marketing is one of the most challenging. No single network or agency is best everywhere, so merchants either have to settle for subpar service from one provider or work with a confusing mosaic of local networks and agencies.
Compliance requirements make things even more difficult. There’s a whole subset of taxation and disclosure laws surrounding affiliate marketing that change from country to country, and even from state to state within individual countries.
Add to this the more prosaic challenges of establishing brand awareness and relationships in a foreign country, with potentially different languages, customs, and time zones. It’s no wonder that so many affiliate programs that attempt to expand globally hit so many speed bumps.
The solution to this problem is to employ a hub-and-spoke approach that allows your program to maintain a high standard while simultaneously working with best-in-class local partners who are industry leaders in their regions. Here’s how the hub-and-spoke approach works:
The merchant chooses one agency as their global point agency. They communicate goals and strategy to the point agency, which then selects the best local partners in each region to help accomplish these goals. These local networks and agencies will do the heavy lifting of running the program day-to-day in their areas. The point agency synchronizes strategy and reporting across all partners.
This solution allows merchants to protect their interests all across the globe while maintaining best-in-breed technology and service in every market.
Download our e-book for more information about successfully taking your affiliate program global.