Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.
For you to perform well as an affiliate marketer, you need to understand the basics of marketing.
This involves knowing how to make people buy your affiliate products.
How Affiliate Marketing Works?
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 people for a more effective marketing strategy while providing contributors with a share of the profit.
To make this work, three different parties must be involved:
- Seller and product creators.
- The affiliate or advertiser.
- The consumer.
Let’s dig deep into the relationship these three parties share that makes affiliate marketing a huge success.
1. Seller and product creators
The seller, whether a solo entrepreneur or large enterprise, is a vendor, merchant, product creator, or retailer with a product to market.
The product can be a physical object, like household goods, or a service, like makeup tutorials.
Also known as the brand, the seller does not need to be actively involved in the marketing, but they may also be the advertiser and profit from the revenue sharing associated with affiliate marketing.
2. The affiliate or publisher
Also known as a publisher, the affiliate can be either an individual or a company that markets the seller’s product in an appealing and persuasive way to potential consumers.
The most persuasive way to market a product to a customer is by discussing the benefits of the product instead of just focusing on the features.
In other words, the affiliate promotes the product to persuade consumers that it is valuable or beneficial to them and convince them to purchase the product.
If the consumer does end up buying the product, the affiliate receives a portion of the revenue made.
There’s a specific audience that the affiliate markets the products or services to.
Since it’s a focused niche or personal brand, it makes it easy for the affiliate to attract consumers who will be most likely to act on the promotion.
3. The consumer
Whether the consumer knows it or not, they (and their purchases) are the drivers of affiliate marketing.
Affiliates share these products with them on social media, blogs, and websites. This won’t be a hassle if you have some ninja strategies for marketing on social media.
When consumers buy the product, the seller and the affiliate share the profits.
Sometimes the affiliate will choose to be upfront with the consumer by disclosing that they are receiving commission for the sales they make.
Other times the consumer may be completely oblivious to the affiliate marketing infrastructure behind their purchase.
Either way, they will rarely pay more for the product purchased through affiliate marketing; the affiliate’s share of the profit is included in the retail price.
The consumer will complete the purchase process and receive the product as normal, unaffected by the affiliate marketing system in which they are a significant part.
Affiliate marketing is a viable way to make money online no matter where you live in the world. We’ve seen cases, where people moved from the United States to Mexico or Canada and their affiliate marketing business, is still flourishing.
There are a couple of online platforms where you can make good money as an affiliate marketer. Some of them include but not limited to:
- CJ Affiliate
- JV Zoo
When you become part of these affiliate networks, you’ll be able to earn commissions up to 50% on each sale you make.
By selling in volumes you earn fat amounts that will be paid out to you periodically.
3 Kinds of Affiliate Marketing
There are basically 3 kinds of affiliate marketing.
The one you decide to fly with will be determined by the kind of market you are into and the confidence you have in your marketing ability.
- Pay Per Sale
This is the form of affiliate marketing where you can only get paid when you bring in a new customer that purchases a product or a service.
What that means is that you won’t be paid until the customer buys a product using your affiliate link.
This form of affiliate marketing seems to be the hardest but the most profitable for all parties involved.
To increase your chances of making more money through this form of affiliate marketing what you need to do is to master direct response marketing and email marketing.
Affiliate networks that offer pay per sale include but not limited to Warrior Plus, JVZoo, etc.
- Pay Per Lead
This is the form of affiliate marketing where an affiliate gets paid only when he helps the vendor to generate leads for their business.
The affiliate must persuade the consumer to visit the merchant’s website and complete the desired action — whether it’s filling out a contact form, signing up for a trial of a product, subscribing to a newsletter, or downloading software or files.
Organizations seeking affiliates in this field are mainly insurance companies, dentists, software companies, etc.
If you are considering starting a pay per lead affiliate marketing, you can start with Share-a-sale.
- Pay Per Click
In simple terms, you are paid to help direct massive traffic to the vendor’s site.
The merchant will give you an incentive for driving traffic to their page. This incentive can come in the form of a free trial of their product, free product or a cash reward.
When a company is a new product, new to the market or has an advertising network like Google AdSense for monetizing their site, they tend to use pay-per-click affiliate marketing to grow it.
Genuine pay per click affiliate networks are few and the pay very minute amount.
Why You Should Start an Affiliate Marketing Business
There are hundreds of benefits one can derive by starting an affiliate marketing business. Some of them include:
- Ability to earn passive income
- The opportunity to live anywhere in the world
- You don’t have to create a product of your own
- It is super easy to start even with zero capital
- There’s no limit to how much you can earn especially if you are working with many merchants
- You can work from home
- No need to work about customer support as an affiliate
- You can use any platform to drive the customer to your vendor
- You can easily be perceived as an authority once you start making a ton of sales for vendors
- Vendors will begin to give you free access to their tools just so you can promote them
How Do You Start an Affiliate Marketing Business Today?
To start an affiliate marketing business today, go on a platform like JVZoo or Warrior+ to register.
Go to PayPal or Payoneer to create an account. It’s through any of these platforms that the majority of these affiliate networks payout.
Get a reliable autoresponder and sign up with them.
Create your email sequences, sales copies, build your sales page and start growing your list.
Once a new product is launched, start promoting it.
To ensure that more people buy from your affiliate link, make sure you have a ton of bonuses to give out.
To help you get started, contact us today.