With an 8% increase in Brazil in 2023 and a projected revenue of R$ 224.7 billion by 2025, affiliate marketing has already established itself as a strategic piece in the digital economy. In practice, the model works as a decentralized sales network. Brands create their programs and establish partnerships with affiliates, i.e., individuals or legal entities that promote products and services in exchange for performance-based commissions. This means payment only occurs after conversion, whether it’s a click, lead, or sale.
According to Hugo Alvarenga, partner and co-CEO of A&EIGHT, an end-to-end digital solutions ecosystem for businesses, democratizing access to the affiliate market and demystifying its use among small businesses is the next step to accelerate digital transformation and make the business more inclusive and competitive. “For a long time, affiliate marketing was seen as a strategy restricted to large companies with robust digital operations. However, this scenario has changed irreversibly,” explains the executive.
“This performance-based model presents itself as one of the most accessible, scalable, and efficient solutions for brands of all sizes, especially for small and medium-sized businesses seeking predictability, return on investment, and sustainable growth,” emphasizes Alvarenga.
For him, in addition to its benefits for brands, it’s important to highlight that the model also has significant social impact since anyone with a phone and internet access can become an affiliate and generate income. The data supports this idea, as over 30 million people in Brazil are already registered on affiliate platforms, positioning the country as the second-largest market worldwide.
Check out five valuable tips below for those who want to explore this model strategically:
1. Start with niche influencers and micro-creatorsFor small and medium-sized businesses, partnerships with micro-influencers and specialized content creators often bring excellent cost-benefit. “They have high credibility within specific communities, as their audiences see them as ‘peers’ rather than distant celebrities. This perception strengthens trust in recommendations, a crucial factor in the decision-making funnel,” details Alvarenga.
2. Use reliable affiliate platformsAffiliate platforms act as intermediaries between brands and affiliates, offering technology, security, and an established base of influencers and content producers. These tools also provide resources for monitoring and analyzing results, allowing businesses of all sizes to enter this ecosystem simply and safely.
According to the expert, key benefits include the automation of payments and commissions and the ease of scaling campaigns with multiple affiliates. “Established platforms are ideal for brands to maintain control of their actions while expanding reach and engagement,” he clarifies.
3. Segment your campaigns from the start
Today’s available technology allows audience segmentation, channel testing, and real-time performance tracking. Alvarenga says the ideal approach is to leverage these resources to optimize campaigns, identify the most effective affiliates, and allocate budgets better. “Effective segmentation prevents budget waste. The highest-performing campaigns communicate the right message, on the right channel, to the right person,” he highlights.
4. Bet on transparency and relationships with affiliatesPartnerships with affiliates go beyond simple commissions. The executive explains that a lack of transparency can demotivate or even drive away the best producers, as success in affiliate marketing is directly linked to trust.
“Create clear rules, offer fair commissions, and maintain constant communication with your partners. This strengthens engagement and improves the overall performance of the network,” says the co-CEO, who adds, “Remember that a well-informed, motivated, and respected affiliate tends to act as a true brand ambassador.”
5. Look beyond conversion: visibility also mattersBeyond generating direct sales, affiliate marketing also contributes to brand recognition. According to a Mediakix study, 81% of companies investing in this strategy report expanding their customer base. The channel is thus also a powerful tool for attracting new audiences and increasing business reach.
“Not every action in the affiliate market needs to generate a direct sale to be considered valuable. Affiliate marketing also plays a role in the discovery phase of the customer journey,” concludes Alvarenga.
