As the world of affiliate marketing continues to grow, it was now Instagram’s turn to add their own twist to the story.
On June 8th 2021, Instagram and Facebook held their first-ever Creator Week, in which they announced more ways for personal brands and influencers to earn a living on social media.
One of these new ways was through the introduction of their own “native affiliate tool”, which they will be testing with a small group of US-based creators and businesses first (including Benefit, Kopari, MAC, Pat McGrath Labs and Sephora) before its global roll-out.
“The affiliate tool is going to allow you to discover new products that are available on checkout, and then share them with your followers and earn a commission for the purchase that you drive – all within Instagram. The brand will have full control on the commission rates they wish to offer on their products, and there will be a 0% revenue share until 2023” – Mark Zuckerbreg, Facebook CEO
However, many have noted that this tool could be risky for brands if they don’t have any direct control over which creators are able to endorse their products.
We await more information, but our assumption is that Instagram will have an approval process in place to allow brands to control which creators can endorse their products.
As we also await the results of the US testing period for this Instagram native affiliate tool, we will be keeping a close eye out for any additional information which may arise.
In the meantime, here are some of our thoughts.
What effect will this announcement have on the world of Affiliate Marketing?
This is not the first twist in the Affiliate Marketing story, and certainly will not be the last. This announcement from Instagram has simply provided brands and creators with another route into the world of Affiliate Marketing, and therefore will only have a positive effect.
Will this impact the affiliate networks?
The introduction of competitors will inevitably have an effect on the other networks, but this doesn’t have to be a negative. In my opinion, it is time for the networks to prove their value to the influencers. Many will already have goods relationships with their previous network, but could be tempted to change depending on the features they offer, how easy it is to use and the insights they provide.
Will it be worth it for those influencers already in the affiliate space?
This is entirely dependent on the features offered within Instagram in comparison to those already offered on current networks. I can see the tool being valuable in the short-term, due to the 0% revenue share until 2023, however we await more information on the additional costs and features before coming to a final answer for this question.