Affiliate Marketing is just like building partnerships. There are three stakeholders in the overall process, the company or person whose product is being promoted, the seller (You!) and the consumer. The deal is equally beneficial to all three stakeholders: the company gets exposure, the seller earns money and the consumer is referred to the product that he or she needs.
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Affiliate Marketing is one of the most lucrative Internet marketing opportunities. Besides, it is considered the most paid passive income technique by many veteran Internet entrepreneurs.
Why You Should Choose Affiliate Marketing
Affiliate Marketing started almost two decades ago in 1997 when Amazon launched its first affiliate program (which is still working). Currently, global Affiliate Marketing offers a lucrative $6.5 billion industry. This sum was calculated back in 2011 when it was predicted that the industry would add up to $4 billion in the pool of already burgeoning money.
Don’t you want to earn while someone else makes a purchase?
Does a little more profit hurt you? Affiliate Marketing is for you if you want to earn commission on product purchases. The internet has literally exploded with ways to earn money; Affiliate Marketing is definitely one of the highest paying platforms.
You must understand that Affiliate Marketing is not an easy job. No doubt hundreds of thousands of passive income seekers choose Affiliate Marketing because of the promising commissions and reliability of a steady income. Nevertheless, nearly half of them fail miserably.
Why Do People Fail in Affiliate Marketing?
They fail because they do not choose right strategy; they do not show perseverance and just dream of earning big profits overnight. We will not, however, let your Affiliate Marketing business suffer the same fate. Here are a few starting points; remember, at this stage, we are talking about keeping your feet firmly on the ground, we’ll talk about the money later in the chapter.
First of all, clear your mind; in Affiliate Marketing there is no instant success. This tree offers fruit to those who remain patient, have perseverance, are realistic, and dream big.
Affiliate Marketing is a not a haphazard approach; i.e. you just choose any products, put them on your blog, and start earning money. I mean seriously? Is it possible? Affiliate Marketing is a serious business; any field that gives you thousands of dollars as a steady income couldn’t be this non-serious and abrupt, could it? Successful and profitable Affiliate Marketing works on a properly planned strategy.
While doing Affiliate Marketing remember one Golden Rule ; do not let your words, ads, or actions, reveal that you are trying to promote or sell a product (of course we know that we are here to sell the product, but if this is blatantly thrown at the customer ’s face in any way, it can literally piss them off and beware, it does not take more than 3 seconds to leave your blog and never return!) For the sake of profit, don’t be too pushy, and never act like a salesman/saleswoman.
Three Important Parts of Affiliate Marketing
The Advertiser: The owner of the business, product or service that needs advertisements is The Advertiser. He/she is the one who wants to publicize something.
The Publisher: The Publisher is the owner of the blog or website on which ads of The Advertiser are placed. He rents his place to The Advertiser and gets the commission on the links that he sends to the product or website of The Advertiser.
The Consumer: The Consumer is the person who comes as a visitor to the website/blog of The Publisher, clicks on a link, and gets on the landing page of The Advertiser ’s product or service. Whether he or she decides to purchase the product or leave the Publisher ’s page without taking any action, depends on the consumer.
Thus the chain of affiliate marketing starts. In this overall process, you are The Publisher. Affiliate Marketing is all about selling the products of one party to another party, while the publisher plays the role of a third party.
Do you know that Affiliate Marketing is done in different ways?
Types of Affiliate Marketing
Affiliate marketing can cover anything from cost per action (CPA), commission based sales, cost per thousand (CPM), and cost per click (CPC). Essentially they mean the same thing (commission for selling someone else’s product) but the payment criteria differs.
CPA – You join a CPA site (Maxbounty or Peerfly are big ones) and get paid when you either get people to submit to an email list, download a toolbar, join a website, etc. The pay ranges from .50 – $99 per action completed. The free offers are usually the ones that convert and normally you will get .50 – $2 per conversion.
Commission – Most major retailers have affiliates (Bestbuy, Amazon, Walmart, Newegg, etc.) Some of them manage their own like Amazon while others work through networks like commission junction. When you make a sale you get paid a percentage of the cost. These offers are usually sale based and don’t convert quite as high as you will see on CPA. however, the payout is higher and you are backed by major companies and brands.
CPM – You get paid a set cost per 1,000 unique visitors who go to the page with your advertiser’s ad on it. No one needs to click the ad, merely seeing it gets you paid. The payout is usually < $1 per 1,000 and in most cases, you will find that your conversion rate is higher with the other methods. Only use this if you generate a lot of traffic that you feel won’t click on ads.
CPC – Get paid every time a user clicks an ad on your site and gets redirected to your advertiser’s site. The benefits are that they don’t need to make a sale, simply click an ad. The problem is people bid on the keywords and ad placement on your site and the cost per click can vary from .01 – $99 depending on how relevant your site is, how much traffic you get, the click-through rate, and if there is a lot of demand for ad space vs sellers of ad space (supply and demand). Most of the time you will see .01 – .75 per click. Google Adsense and Bidvertiser are big ones.
Affiliate Marketing is that the publisher must have the experience of using the product. You cannot falsely promote a product, as it can ruin your reputation as well as dry the pool of your profit.
Affiliate Marketing is all about earning the steady income, and this is only possible when the task is done with full dedication. Remember this is something quite serious: if it is done incorrectly, it can jeopardize your established reputation, but if it is done correctly, it is the best way to earn $1000+ every month, aren’t you interested in adding this amount to your income, every month? Comment below.