Affiliate programs can be a great way to market as a direct-to-consumer (DTC) or eCommerce brand. This is especially true when selling on TikTok Shop, where volume of content, algorithm-driven discovery, and authentic messaging can have an immense impact on sales.
But why an affiliate program, you might ask? Compared to other types of marketing, affiliate marketing typically offers lower upfront risks. It also helps brands gain access to new audiences, speeds up product validation, and is easily scalable.
If you’re hoping to start an affiliate program for your TikTok Shop brand, you’ve come to the right place. Read on to learn what you need to fuel your affiliate engine and ultimately succeed with this type of marketing.
Table of Contents
What is an Affiliate Engine?
An affiliate engine is a “fancy” term for the systematic process brands use to generate sales through affiliate creators. This system provides the framework for how a business brings in creators, how much commission or what types of bonuses they’ll provide, the specific angle or hook they’re aiming for, and how they’ll track content performance.
No two brands’ affiliate engines are exactly alike. For instance, some brands emphasize high commission and mass creator recruitment. Other brands might instead focus on recruiting fewer creators to have better control over the quality of content creators put out for their brand.
Why TikTok Shop Affiliates are Essential for DTC Brands
While many brands can benefit from running a TikTok Shop affiliate program, DTC brands in specific are a good fit for this growth strategy, and here’s why:
- Most DTC brands start out with little brand awareness. A strong affiliate program can help them earn instant credibility and recognition.
- New products are launched quickly by DTC brands. TikTok affiliates can help them quickly test demand and receive rapid feedback from consumers.
- DTC brands rely on performance marketing for rapid testing, predictable ad spend, and measurable results. Affiliate programs can act as a performance marketing tactic by offering a cost-effective, margin-flexible way to quickly test a product.
Setting Commission Benchmarks to Attract High-Performing Creators
When creating a TikTok Shop affiliate engine, setting commission benchmarks, or considering how much commission they’ll be paying out to affiliate creators, is crucial.
Commission rates can determine the types and number of creators you attract, the quality of affiliate content created, and the success of your affiliate program overall. Low commission rates can lead to ineffective results, while high commission rates can negatively impact your margin.
Here’s how to set the right commission benchmarks:
1. Consider the Typical Commission Rates
While you have the power to set your own commission rates, keep the following rates in mind when formulating your own:
| Product Price | Average Commission Rate |
|---|---|
| $10 to $30 | 15% to 30% |
| $30 to $100 | 10% to 20% |
| $100+ | 5% to 15% |
| Digital products / products with a high profit margin | 20% to 50%+ |
2. Consider Your Brand Awareness
The lesser known your brand is, the higher the commission rate(s) you may need to charge to make your affiliate program appealing to creators. TikTok Shops with strong brand awareness, on the other hand, can typically get away with lower commissions and still attract qualified creators.
3. Keep Your Profit Margins in Mind
While it’s important to consider what other commission rates brands are charging and how recognizable your brand is when determining your rates, your profit margins should still be taken into account. Be realistic with how much you can afford to pay content creators, while still ensuring a decent profit from each item you sell.
4. Contemplate Tiered Commission Rates
Not only might you offer different commission rates for different products, but you might even consider different rates for each creator. Tiered commission rates may be based on:
- Performance over time: Creators earn better commission rates the more products they help you sell. Motivates creators to continue putting out quality content
- Influencer level: Often based on a combination of their following size, their average engagement rate, and/or past TikTok Shop performance
- Both performance and influencer level: Start-out commission is initially determined based on influencer level and moves up as their performance improves
5. Adjust Commission Rates as Needed
The good news is, commission rates don’t have to be set in stone. Affiliate program not gaining enough traction from interested creators? Consider raising your rates. Worried you can’t afford to stick to your current commission rates? Try lowering your rates or opting for tiered commission.
How to Build a Simple Creator Playbook
A creator playbook is essentially a how-to guide or “rule book” explaining to creators what to do and what not to do as an affiliate for your brand.
Creator playbooks are often comprised of:
- How you want the product to be positioned (e.g., main benefit, what makes it different, how to use it)
- Types of content you prefer (e.g., product demonstration, day-in-my-life video, review, unboxing / first impression, ASMR style)
- Certain scripts or hooks you want the creator to use
- What to avoid saying (e.g., price, medical claims, overpromising/guaranteeing results, brand comparisons)
- The commission rates and how they work
Why a Creator Playbook Matters
A creator playbook might seem unnecessary to brands that have yet to work with TikTok affiliates. However, you’ll soon realize how critical it is to have specific guidelines for creators to follow.
Creator playbooks can improve quality control by guiding affiliates on using proven positioning and the right hooks to most effectively sell your products. It can also help clear up any misunderstandings about your brand or your products to ensure consumers don’t get misled.
Not to mention, having a clear yet straightforward creator playbook can eliminate much of the back-and-forth communication between a brand and multiple creators, which can be tedious as the brand’s affiliate program begins to scale.
Ensuring Long-Term Creator Retention
The goal isn’t for your TikTok Shop affiliate program to simply attract new creators but to also keep them wanting to continue creating content for your brand.
Creator retention can be encouraged by:
- Providing an easy-to-understand creator playbook
- Setting reasonable expectations for content creators
- Offering fair commission rates with consistent pay
- Avoiding sudden commission cuts
- Keeping communication open and professional
- Providing feedback as necessary
Long-term affiliate retention can also be encouraged with tiered commission rates, which motivate creators to continue producing quality content to gain further incentives.
How to Expand Your TikTok Shop Affiliate Program
With content volume playing an important role in feeding the TikTok algorithm, scaling your affiliate program over time is a wise idea. The more creators your program consists of, the more audience segments you can reach and the higher your brand’s odds of discovery will be.
From helping you set up your affiliate system to assisting you in recruiting content creators and optimizing your performance, Avenue Z can play a key role in the success of your DTC brand’s affiliate strategy.
Looking to start or grow your affiliate program on TikTok Shop? Reach out to Avenue Z for help on building your affiliate engine.
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