Affiliate marketing is one of the most popular ways people make money online and for some it can be a passive income once established. It is a strategy where an individual partners with a business (mainly an ecommerce sites ) in order to make a commission by referring readers or visitors to a business’s particular product or service. But that really is quite a simple explanation. To be really successful at making money with affiliate marketing there is a little more to it.
It is best process by which an affiliate earns a commission for marketing another person’s or company’s products. The affiliate simply searches for a product they enjoy, then promotes that product and earns a piece of the profit from each sale they make. The sales are tracked via affiliate links from one website to another.
How Does Affiliate Marketing Work?
Because affiliate marketing works by spreading the responsibilities of product marketing and creation across parties, it manages to leverage the abilities of a variety of individuals for a more effective marketing strategy while providing contributors with a share of the profit. To those on the outside, the inner workings of affiliate marketing can be mysterious and confusing. Some marketers even think it’s a channel that you can turn on and turn off like you can with paid search or paid social (spoiler: it’s not).The business model is quite simple and easy to understand:
- You, as the affiliate, promote another company’s products in your own marketing efforts to bring sales or leads for that company. It could be done through social media, a blog, email marketing, paid ads, or any other marketing channels you use.
- Once a customer clicks on your affiliate link, they are tracked using a special code so that you get credit if they end up making a purchase.
- If the customer does make a purchase, you’ll then receive a commission. This could be anywhere from 5% to 50%, in some cases 100% of the sale.
While affiliate partnerships are multifaceted, it’s a structure that’s built on transparency and real relationships, not one-off transactions.The overall goal of an affiliate program is to create a win-win framework for both brands and their affiliate partners – a structure that, when established properly and strategically managed, can make up a significant portion of a brand’s online revenue, with high ROAS and low.There are two ways to approach affiliate marketing: You can offer an affiliate program to others or you can sign up to be another business’s affiliate. As the business driving an affiliate program, you’ll pay your affiliates a commission fee for every lead or sale they drive to your website.
You can offer an affiliate program to others or you can sign up to be another business’s affiliate. As the business driving an affiliate program, you’ll pay your affiliates a commission fee for every lead or sale they drive to your website. Your main goal should be to find affiliates who’ll reach untapped markets. For example, a company with an e-zine may make a good affiliate because its subscribers are hungry for resources. So introducing your offer through a “trusted” company can grab the attention of prospects you might not have otherwise reached.There are typically four parties involved in affiliate marketing:
The affiliates – the promoters of the product
The product creators – the creators of the product
The networks – the networks managing the affiliates
The consumers – the end users of the product
Three main reward types
Here are the three main reward types that affiliate marketers use:
- Pay-per-click: the affiliate directs a visitor to the seller’s website. The seller pays the affiliate each time this happens, irrespective of whether a sale occurs.
- Pay-per-lead: the affiliate directs somebody to the seller’s website. This time, that person fills out a contact form. In other words, the seller now has their personal information. This person is now a ‘lead.’ Affiliates get money for each lead they generate. It is also possible that the lead filled in the form on the affiliate’s website
- Pay-per-sale: the seller pays a percentage of the sale price to the affiliate.
Affiliate marketing – revenue sharing
Promoters of affiliate marketing say that the system is based on revenue sharing. The term ‘pay per sale’ means the same as revenue sharing.If a seller has a product and wants more sales, they can offer promoters a financial incentive. An affiliate program, for example, has a financial incentive.
Writing about how to do something within your niche is a great way to link to new products. If you use a certain tool or instrument to accomplish a task within your niche, create an affiliate link to it!Another option would be writing about how to use a certain product in your niche. Going back to our photography niche example, you could write in-depth posts of how to use certain DSLR camera models, which lenses work best for nighttime photography, how to use a certain photo-editing program when editing wedding pictures, and so forth.Depending on your chosen niche, the options here could be truly endless
How Does Affiliate Marketing Make You Money?
Now it’s time to learn how to make money with affiliate marketing. As a beginner, you may start out making a few dollars per month with affiliate marketing until you learn the ropes. As you learn what products and services your audience is most interested in, you can tweak your strategy to earn more.When you place an affiliate link on your site and someone clicks on it and completes a required action, usually a purchase, you’ll make money from that action.
Your earnings could be a percentage of the sale, a flat fee for generating a lead, or a large bonus for a subscription sign-up.Some programs, like Google AdSense, are Pay-Per-Click (PPC), meaning that it will pay you money for each advertisement or link click. Each affiliate program is different, but the advertiser will let you know the amount you can make from each lead, conversion, or sale when you sign up.
Here are Top 5 Affiliate Marketing Websites & Programs For 2019 That you can use in you blog and more money.
Clickbank is a well-known name in this space, and for good reason. Over their 20 years of existence, Clickbank has developed a reputation for relatively high commissions (up to 75 percent) and on-time payments. They claim to reach approximately 200 million customers.
Rakuten Linkshare is one of the oldest affiliate partner networks that is gaining popularity very fast. To wade off competition as well as making it user-friendly, the platform come with some distinctive features. One of these features includes rotating different banner ads for specific products, making it easier to administer and optimize in the long run. Instead of having to select the ad, you would want to run on your blog manually; that will let multiple versions of ads rotate with a small piece of code.
A major affiliate network, Shareasale has been around for 18 years and works with over 3,900 merchants across various product categories, giving you a lot of breadth in your options for what to feature on your site.
4. CJ AFFILIATE
CJ is a large affiliate network offer affiliate programs for a wide range of popular and well-established organizations. This program acts as the intermediary between the merchants who will provide the products to sell and the affiliates who will do the marketing. This program is very advantageous as it provides very many affiliate programs at the same place.
Amazon is the largest affiliate site that offers numerous advantages to sellers and affiliates alike. With more than one and a half million sellers, this is the perfect place for beginners to start affiliate marketing. This site is also an excellent option for advanced affiliate marketers who can create custom tools and websites that have APIs and as well as Amazon implementations. As a beginner, you will need some form of a platform where you can promote your products. The most common way of doing this is through your blog or website.
Affiliate marketing has consistently proven itself to be one of the most effective ways to earn money from a niche website. It doesn’t matter if you choose to work with an affiliate marketing network, or directly with the merchants themselves. Either way, you still have the chance to earn great commissions while recommending products or services.
If you know any other option of Affiliate Marketing option let me know in the comment section. I’ll add it to the list and credit you by putting your name under it.