Affiliate marketing is proving too costly for independent brands
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The 10-year-old Tiny Tags brand, self-described as “fine, personalized jewelry for moms,” is currently questioning where to best invest its marketing dollars, founder and CEO Melissa Clayton told Glossy at eTail Boston last week. The self-funded brand does $7 million in annual revenue.
After hearing fellow founders share the success of their brands’ affiliate commerce programs — which, they said, were driving 15% of their sales and growing — Clayton signed on with ShareASale. She eventually traded it in for the Impact affiliate platform, which she deemed more robust and transparent. However, Impact charges $1,200 per month, and to make any headway with publishers and influencers, enlisting an agency at $3,000 per month has been required. On top of that, Tiny Tags is, of course, paying a commission on each affiliate sale.
“As a small business, we’re now questioning, 'Does this have the ROI we need?'” Clayton said, as reported in Glossy's Luxury Briefing. Influencers, compared to publishers, have returned better affiliate results as of late, she said.
Moving forward, Clayton will be weighing the brand’s marketing investments, honing in on the payoff.
As a mission-driven brand, Tiny Tags has avoided raising money, as “the mission would likely be the first thing to go, then it would be all about [reaching] mass audiences,” Clayton said, adding, “We want to stay true to the brand.”
Still, partnering with Target has made sense, she said.
“I was torn about [partnering with] Target, at first, because our website sells ‘fine, personalized jewelry,’ but our Target line is at a $25 price point,” she said. But offering accessibility reflected the brand’s mission, she said — which is, in part, to celebrate each woman’s journey of motherhood. And the collaboration has proven to be successful. Tiny Tags will be expanding the line from 475 to 875 Target stores next year and will be granted wall space at the retailer, next to the Little Words Project brand, later this month.
Clayton prides herself and her team on maintaining a direct relationship with the Tiny Tags community. They answer all DMs and, at times, Clayton takes orders from original customers via phone. “Our in-house customer service is so valuable,” she said. “We know the importance of every interaction; it’s not just about a transaction.”
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Circular Design Strategist for Experiential Marketing. The views and opinions expressed through my LinkedIn activity are my own and not those of any of my current, previous, or future employers or LinkedIn.
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