Affiliate marketing is a type of performance marketing. When an affiliate promotes on behalf of the company, the company rewards the affiliate for bringing traffic or sales. The affiliate is simply an intermediary that connects the company and the customer. Affiliates utilize websites, blogs, YouTube channels, social media to share links to promote the product/service for the affiliate payment.
For example, a blogger can review a laptop and include an affiliate link to an online store allowing the writer to earn a commission, when the reader visits the online store and buys the laptop. In short, this is simple: offer, refer, and earn.
Affiliate marketing is a simple process that includes a few key players: 1) the merchant or company that sells a product or service, 2) the affiliate who promotes the product, 3) the customer who buys the product through the affiliate’s link, and 4) an affiliate network in some cases that connects the merchant and affiliates and keeps track of the sales and payments.
In general, this is how it works: the affiliate signs up for the company’s affiliate marketing program, and after the affiliate’s application is approved and welcome email is sent, the affiliate receives a cookie (or tracking) link which is a unique URL for the affiliate. The affiliate will use that cookie link in any promotional material that the affiliate puts out there (website, YouTube video, social media post, etc.). The cookie link automatically gives the customer a cookie so that when they navigate to the merchant’s website and purchase the product, the affiliate marketing program records that sale and pays the affiliate a commission.
Most of the time, tracking technology is based on cookies. Cookies are able to document the time and date of when a customer clicks the cookie link. If there are multiple affiliates marketing the products online using affiliate marketing programs with discount and coupon codes, the affiliate marketing program knows which cookie link generated the sale. If a sale takes place, the program registers the sale to the affiliate who generated the sale and the affiliate will get paid a commission.
Commission rates depend on the affiliate program. There are variations in rates from one affiliate marketing program to another and from product-to-product, and the pay can be as little as a few percent, or 50%+ of the sale price.
Affiliate Marketing Essentials
The first step to become an affiliate marketing is establishing a niche. A niche is a specific topic of interest such as health, technology, fashion, or travel. A niche gives you an easier opportunity to attract like-minded individuals. For example, a person with a focus on fitness could recommend gym equipment, workout programs, or even the latest nutrition supplements.
Next, you will choose an affiliate program. Many companies have affiliate programs, including Amazon Associates, ClickBank, Impact, and ShareASale, as well as companies that run their own programs. Beginners tend to lean on popular platforms because it provides the widest variety of products.
Once you have become an affiliate you will need to create a source of links to share to the public. This could be in the form of a blog, YouTube channel, TikTok account, or even an e-mail newsletter. Choosing a medium for media is dependent on what will be most effective for the affiliate and their audience. For example, if you are great at video production you may find YouTube more effective as your platform than writing articles.
The biggest part of affiliate marketing is content creation. Affiliates must create content that readers will find valuable such that they will visit, trust, and act upon the various recommendations made by the affiliate. This digital content can consist of product reviews, tutorials, product comparisons, or general informative articles. The purpose of the content is to not only suggest product(s), but create genuine value for the audience.
The next factor is driving traffic. Even with excellent content, an affiliate will only gain commissions for referring sales if they can drive traffic to their site. A lot of affiliate traffic can come from search engine results, social media, paid advertising, and/or email marketing efforts. Affiliates can utilize search engine optimization (SEO) through blogging, and other means, in hopes of appearing higher on platforms like Google. Furthermore, if they are posting regularly on their social media platforms, an affiliate can gather a following from social sharing.
Lastly, an affiliate must focus on consumers trust. When consumers see an honest, trustworthy person in the affiliate, the consumer is more likely to click to purchase via the affiliate. If an affiliate suggests poor-quality products, or make exaggerated claims on the featured product, they may experience short gains for sales, but each transaction would dilute their trust. Successful affiliates build long-term relationships with their audience through transparency and a good rapport by only suggesting products they truly endorse.
Benefits of Affiliate Marketing
There are many advantages to affiliate marketing. Affiliate marketing involves low to no setup costs since affiliates don’t have to create goods or maintain any inventory. It can be done anywhere, as long as there is an internet connection. Income potential is unrealized since affiliate marketers can market limitless products and earn income from multiple sources. There is also passive income potential since affiliate content can be mined for sales over and over again.
Affiliate Marketing as a Challenge
On the downside for affiliate marketing, there are some challenges. The competition in cost-effective niches can be daunting so standing out may prove difficult for even the most hard-working startups. There is also no guarantee of any sort of income or how long it may take to see any significant earnings, if ever. Affiliates are further dependent on the policies and procedures of whatever company or network they go through, and these are all subject to change in terms of commissions, or in the very worst case, to have their program canceled altogether. The skies aren’t necessarily the limit when it comes to building audiences, contrary to what some business models might suggest. Building an audience takes time, as well as consistency, patience and effective marketing.
Conclusion
Affiliate marketing is a great way to make money online through the promotion of products and earning commissions. Affiliate marketing is simple: connect customers to companies and get paid for successful sales, which could be a great way to make money on the side. To be successful, aspiring affiliates must first pick a niche, then join affiliate programs, build a platform, publish content, drive traffic, and continue to build trust with their audience. There are disadvantages to affiliate marketing, including competition and the fact that is dependent on other companies, but for many people, the upsides make affiliate marketing a good choice.
