Affiliate marketing is becoming one of the most popular tactics that people are applying today to generate revenue by driving sales. It is a mutually beneficial tactic for the brands and the marketers as well. There is a new push to marketing tactics that are less traditional to have a better outcome.
A great percentage of the marketers and the brands agree that affiliate marketing is a very powerful tool that can be used today. This statistic might continue to grow every year and 2018 is no exception. In countries such as the United States, the growth of affiliate marketing is quite steady.
What it is
Affiliate marketing is a system that is effective and many people are benefiting from it. However, the idea is still new to some people and in case you are wondering what it is, we will explain.
This is a process by which affiliates earn commissions through marketing products from a company or from another person. It may sound quite complex, but it is straightforward, so to speak. An affiliate searches for a given product that they also enjoy on a personal level and then promotes it to inform others about its existence. As they do this, they will receive a portion of the profit following any sales that result from such promotions.
You can refer visitors to world class e-commerce companies and earn a commission while you are at it.
How it works
Affiliate marketing usually works by spreading the responsibilities of marketing products as well as the creation of products across different parties. It is, therefore, able to leverage different abilities to different kinds of individuals in a very effective strategy in marketing. It also provides all the contributors a fair share of any profits that are realized. In order for affiliate marketing to work, there are three parties that should be there.
- Product creators and the seller
- Advertiser or an affiliate
- The final consumer
The three parties have to delve into a relationship that is quite complex to make everything a success.
The product creators and the seller
The seller could be a large enterprise or even an entrepreneur. This is a retailer, a product creator, a merchant, or a vendor that has a certain product. This product is an object. It is not necessary for the seller to be involved actively in the marketing process. However, they can also be the advertisers and then benefit from the affiliate marketing shared revenue.
The publisher or the affiliate
This one can also be called the publisher and it is a company or an individual that actually markets the product in the most appealing manner to consumers. The affiliate, therefore, will promote the said product and then convince consumers that it is beneficial and valuable and so they should purchase. If a consumer makes the purchase, the affiliate ends up getting a part of the revenue that is generated from the sale.
In most cases, the affiliates will have an audience that is very specific where they can market their products and in most cases, they have to adhere to the interests of the audience. It is this that creates a niche that is well defined or even a personal brand that the affiliate can use to attract customers who may act on such a promotion.
Consumers drive affiliate marketing. The products are shared with the consumers on websites, blogs, and even on social media platforms. When the consumer makes a purchase, the affiliate and the seller then share the profits realized. In some cases, the affiliate may disclose that they will get a commission once the sale is made. In other cases, the consumer may not even be aware of the infrastructure that lies behind the purchase.
Regardless of whether the consumer knows the affiliate plan or not, they will rarely pay extra for the product. This is because the share of the affiliate is often included in the price set. The sellers make the purchase and then receive his product in the normal way without feeling any effect of the pricing system.
How they get paid
This is an inexpensive way in which one can make money without really hassling for it. It is a great chance for anyone who wants that extra income online. You may wonder how exactly the affiliate will receive their pay once the product is linked to the consumer. It is quite complicated.
This is because it is not always a requirement for a consumer to make a purchase for the affiliate to receive their commission. It all depends on the program that is being applied and the contribution of the affiliate is usually measured in different ways. There are different ways that can be applied and they include:
- Per sale
This can be said to be the marketing structure that is most common. Here, the seller pays an affiliate a given percentage of the product sale price once the purchase has been made due to the strategies applied by the affiliate. This means that the affiliate has to have someone invest before any compensation is given.
- Per lead
This is yet another system that can be applied. In this case, the affiliate will be paid based on how many leads are converted. It is up to the affiliate to persuade the consumer to go to the seller’s website and complete tasks and action, such as filling forms or signing for product entries and so on.
- Per click
This is a program that lays focus on encouraging the consumers to actually visit the seller’s website from the links given by the affiliate. This only means that the affiliate needs to actually engage the consumers so that they move from their site to the seller’s site. The affiliate is then paid when the web traffic increases.
Why you should try affiliate marketing
There are several reasons as to why you should strongly consider affiliate marketing. This includes:
- Making a passive income after you invest some time in a certain campaign
- You do not need to deal with customer support
- You get to work in the comfort of your home
- It is cost effective since you do not need any hefty fees to start
- It is flexible and very convenient since you freelance
- The rewards are performance-based
The things you should be aware of about affiliate marketing this year.
Category: affiliate marketing
Keywords: affiliate marketing, affiliate marketing explained, generate affiliate income
Tags: affiliate marketing, online marketing cash, becoming a fulltime affiliate