The Pros And Cons of Affiliate Programs For Gaming Startups

Gaming startups are in a strange position where they can harness emerging technology to create the most exciting new titles, and they also benefit from consumers having state-of-the-art mobile devices and consoles as well as high-speed internet connections.

The downside to this from a startup point of view is that they are entering a highly competitive market where it can be difficult to stand out to the people they are targeting. One way that many startups choose to reach their target audience is through affiliate programs.

The Pros of Affiliate Programs for Gaming Startups

Affiliate marketing programs see external sources share links to gaming sites, with a commission paid to those that send customers who translate to sales. As with any marketing technique, there will be pros and cons, and affiliate marketing is no different.

Niche-Based Targeting via Affiliates

Being able to market directly to a niche audience is a major benefit to gaming startups. For example, dedicated iGaming sites can give players more information on the latest games and betting techniques, then they can follow the link to specific sites when they want to see more about specific games or products.

Cost-Effective Model

Marketing can drain the funds of a startup, with many marketing channels carrying the risk that they won’t even convert to sales. Affiliate marketing costs are based on results, meaning that startups only have to pay based on the traffic generated and the sales it results in.

Scalable as the Startup Grows

Startups can choose to restrict how many affiliates they work with based on their limitations, but they also have the capacity to reach out to more as the company grows. This can help startups control manageable scalability on their own terms.

Helps Reach New Audiences

Affiliate programs can be an excellent way for startups to increase their reach by taking advantage of existing audiences. The best affiliates will already generate regular audiences that have an interest in the topics they post about. Startups can tap into this resource directly, and good content will help to reach consumers that might never have come across it otherwise.

Builds Trust

Offering a service or product online can be difficult with so many scammers trying to take advantage of consumers. Because of this, it can be difficult to attract new customers without first building some kind of trust.

Affiliate marketing is a great way to make use of the trust a site has already built among its followers, with posts acting as recommendations.

The Cons of Affiliate Programs for Gaming Startups

While there are many benefits to affiliate programs, it is still important to be aware of potential downsides to them.

Can Cause Dependency on Affiliates

Affiliate marketing is an excellent way to attract new customers, but startups should never neglect their own marketing channels. Reliance on external marketing can limit control, and using them to help build a brand with strong social platforms is advised.

Risk of Fraud

Affiliate marketing can be time-consuming, as startups will have to vet and monitor affiliates to ensure they are legitimate and the results they produce haven’t been doctored. Finding top affiliate sites demands a bit of research, and sites could influence their own statistics to make it look like they have a better reach than they do. It is also possible for sites to falsify results with fake clicks and impressions through to the startup.

The Costs of Monitoring Affiliate Performance

Tracking affiliate performance and ensuring results are legitimate can be costly. While affiliate marketing offers a lot of financial benefits over a lot of other kinds of marketing, there will still be costs attached to it.

Loss of Brand Control

Brand perception is incredibly important for startups, especially during their early stages. Putting blind trust in affiliates can be risky, as there is no telling how they might choose to represent the brand. There is also a risk that other issues, such as links to less reputable sites, could have a detrimental effect on the reputation of the brand or how it ranks on search engines.

Brand image during the early stages of a business could make or break a startup, and aligning it with sites that foster trust and have a good following will make a massive difference to the overall marketing campaign.