What’s better than earning money while you sleep?
Money is something that everyone craves. In the competitive world today, earning money without having to work 10 hours a day seems impossible. But what if I told you that there is a way through which you can earn passive income opportunities with minimum effort? Say hello to Affiliate Marketing.
Affiliate marketing is a win-win situation for all the parties involved. Before moving forward to the details of affiliate marketing, let’s have a look at the facts and stats related to affiliate marketing.
- More than 80% of the brands have affiliate programs.
- More than 25% of the affiliate programs are in the fashion industry.
- More than 65% of traffic is generated through blogging.
- More than 65% of marketers use social media as a tool to communicate and connect with their clients.
- More than 35% of US merchants claimed that affiliate programs paved the way towards becoming the top customer acquisition channel.
- More than 15% of global eCommerce sales is linked to affiliate marketing sales.
Affiliate Marketing: A Guide
Affiliate marketing is one of the best ways through which you can make your business grow. This post about affiliate marketing will give you an insight into the following topics:
- What is affiliate marketing?
- How does affiliate marketing work?
- Examples of affiliate marketing
What Is Affiliate Marketing?
Affiliate marketing is a way of growing your business through the help of third parties. This is done through reward by performance i.e. the better you perform the bigger the reward. This whole process can be defined as a performance-based business setup that can help affiliates get income based on revenue sharing methods.
How Does Affiliate Marketing Work?
Affiliate marketing is a revenue-sharing business. The affiliates get a fixed part of revenue (commission) when they can reach a goal or get a certain action done to what they are selling. An example of affiliate marketing is qualified sales.
Affiliate marketing works by an affiliate choosing a product or service and then marketing it using whatever techniques and strategies you think can help you achieve the greatest sales/number of customers.
For instance, if you own a perfume company and you hire a person to be in a shopping plaza asking people to test the perfume testers. The person you hired is the promoter/affiliate of your product who will receive a certain percentage of money from the revenue made.
To conclude the answer, affiliate marketing is the process of selling products or services by affiliates in exchange for a commission by a company or an organization.
Successful affiliate marketing involves the following three parties:
- Advertisers – Companies, brands, for people who promote their products, content, or websites.
- Affiliates – The content creators who promote the advertiser’s products or services for commission.
- Consumer – Internet users that use websites and affiliated links.
Examples Of Affiliate Marketing
Following are the different brands that use affiliate marketing:
Amazon works with different affiliate websites and has a program named äfiliate program abound”. Websites such as Every Day Carry and Gear Patrol work under this program mainly because of the high commission, variety of products, and Jeff Bezos’ eCommerce.
For example, Gear Patrol, a men’s magazine having millions of visits from loyal followers has set affiliate links to certain products that direct the followers to Amazon. This increases Amazon’s reach and sales while Gear Patrol gets commission per customer.
Other examples of such affiliate marketing businesses are:
- The Home Depot and Consumer Search
- Unswitch and The Money Saving Expert
- Ebay and Glory Cycles
Different Affiliate Marketing Commissions
There are different kinds of affiliate programs that one can opt for. Keep reading to learn about them.
Cost Per Click (CPC)
In cost per click, every time a visitor clicks on an ad or a link, the affiliate earns money.
Cost Per Action (CPA)
In cost per action, the affiliate earns money when a user clicks on the ad and also performs a certain action on the advertiser’s blog or website.
Cost Per Mile (CPM)
In cost per mile, a fixed amount of money is paid to the affiliate once the ad or link reaches a specified pre-decided number of views or reaches.
Cost Per Sale (CPS)
In cost per sale, the affiliate earns money only when sales are generated for a product.
Affiliate Marketing Channels
The main aim of affiliates is to make sure that their audience is engaged with their content and is also responding and acting i.e making purchases. Let’s look at different affiliate marketing channels they can opt for:
Bloggers can help increase a seller’s purchases since they can optimize the content in a way that it ranks organically in the search engine question form. They do so by using a product and writing accurate reviews accordingly. They review the article to promote the brand while shifting the traffic back to the seller’s site.
An influence is followed by a lot of people. People actually look up to them for inspiration and recommendations. Their “following” is what gives them an edge because whatever product or service they review, their followers are likely to purchase it hence shifting the traffic to the seller’s site.
Influencers do so by different blogs, vlogs, or social media posts. If you are active on Instagram, you have most likely heard the term “giveaways”. This is another tactic that influencers use to generate sales and keep the audience engaged.
Email marketing is an important source of income in affiliate marketing. A lot of the affiliates have a list of emails of their known clients where the marketers promote and sell the products by providing honest reviews.
Another way of doing so is through email newsletters. This could be done by attaching product hyperlinks. However, the marketers earn money once the purchase is made.
Who does not like great deals that can save money? Well, coupon sites can help you as a customer to save money. These coupon sites are one of the best ways to promote affiliate links since they promote the product at slightly less prices.
Earning Your First Dollar With Affiliate Marketing: 5 tips to Get Started
Now that we know what affiliate marketing is, let’s now have a look at how you can get started.
Deciding A Platform
The best part of affiliate marketing is the freedom! You can choose any platform, where you feel comfortable, even Instagram would work! Here is a list of platform options you can choose from:
- Instagram: Create your own page, get followers, and start affiliate sales. However, it takes time to gain followers to start an affiliate marketing chain)
- Youtube: Build your audience by starting one or two channels and increase your affiliate sales. This is one of the most reliable platforms.
- A blog: This is one of the cheapest ways (would cost you a few dollars per month). Watch a few tutorials and get started!
Deciding Your Niche
There is a lot of competition out there, especially in the blogging field. Hence deciding a niche, sticking to it while being creative, and thinking out of the box is important.
For example, the topic of beauty has a lot to cover in itself. Rather than exploring the whole of it, stick to a single niche such as “skincare”. This will help you be precise and creative since you will have a boundary to work within.
Another thing to note is to choose something that you are interested in if you are going to be your own content creator. Once you set up your blog and gain popularity, you can start affiliate sales.
Who does not like a few extra dollars? Well, if you want to make a few extra dollars from affiliate marketing, make sure your content is more concentrated on quality and not quantity. Since content is your only communication with your clients, you need to construct your content in a way that is a mixture of both; knowledge and creativity.
The key to solid content is knowing your audience and catering to their needs. Here is a trick to make your content solid:
- Make it reader-centric
- Answer all the queries
- Make it engaging
Affiliate Site And Traffic
What’s a website without any traffic? Once you have created your affiliate website you need to bring traffic to it. Here is how to bring traffic:
- Paid traffic: sponsorship or ads.
- Search Engine Optimization: make sure your content has the necessary keyword to make it SE optimzed and rank higher in the search engine.
- Email List: This is one way to communicate with your customers. The better the communication, the better the sales.
Time Dedication And Setting Expectations
The truth is that you will not make a million dollars within weeks. Set realistic goals, and take time to reach those goals.
Time is surely the key to success. From most affiliate’s experience, it took them time to build their sites and then keep adding content while starting a new affiliate site. Hence, do not rush into the procedure. Invest your time: make quality content, engage with your customers, and put in your efforts to get the best returns.
Benefits Of Affiliate Marketing
Since we know that there are three parties involved in affiliate marketing, let’s have a look at individual benefits:
- Low cost: Advertisers pay only when the sale is made.
- Potential customers: Since affiliates have a strong loyal customer base, any customer that comes from the affiliate link is the advertiser’s potential customer.
- Increased visitors: Affiliate marketing improves SEO for an advertiser as it brings more visitors to their website. Likewise increasing the reach.
- Fixed cost: Both affiliate rewards and network fee are added to the product’s price since they are fixed.
- Little to no risk: There is no prior investment policy in affiliate marketing hence no chances of risk.
- No investment: Affiliate marketing does not require any investment costs.
- Earn while you sleep: Affiliate marketing promotes passive income. Once your website and blog is successfully made, they are visible all day so no further effort is needed.
- Reliability:Webmasters or bloggers recommend products or services that they have prior experience with. Hence you can tell if it is good or bad.
- Discount and vouchers: If an affiliate has a good relation with the advertiser, they are more likely to bring discount offers. Many affiliates have different vouchers or discount codes for certain products.
Affiliate marketing is becoming the modern way of earning money while staying at your home. I mean, who does not like a passive income source?
The world is evolving and so is the market. Likewise, affiliate marketing is becoming more recognizable in the business world in terms of better sales and revenue. The future of affiliate marketing is surely optimistic.
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