Did you know that digital marketers and retailers spent nearly $5 billion in 2016 on affiliate marketing alone? This number increased to almost $7 billion in 2020 and it’s expected to grow even more in the upcoming decade.
Are you wondering why affiliate marketing companies spend so much money every year? The answer is simple – because it works! Affiliate marketing programs can help businesses sell their products quicker and publishers get a commission from each sale.
Keep reading to learn more about affiliate marketing, how it works, and how you can become successful with it.
What Is Affiliate Marketing?
Affiliate marketing is the process of promoting the products and services of another business and getting a commission when a conversion is successful. For example, if you promote the products of another company, you are an affiliate of that business.
When you make a sale, the purchase is validated by the other company and you receive a commission for your effort. Amazon affiliate marketing is one of the most popular and profitable types of marketing available out there.
Types of Affiliate Marketing
As mentioned earlier, the affiliate marketer gets paid a sum of money after a successful conversion. This conversion can be split into multiple categories. Here are a few types of popular affiliate marketing conversions:
Pay Per Sale
This is mostly self-explanatory. If a client purchases a product from the business you’re affiliated with, you get a commission for this unique sale. This commission can range from 5% up to 70% in some cases. The sale has to be validated by the company you represent before they pay you.
Pay Per Click
This is also known as PPC advertising. You are getting paid for the simple process of redirecting the client from your website to another website you’re affiliated with. For example, you display an ad promoting frames for eyeglasses on your website.
If someone clicks on this ad and gets redirected to the manufacturer’s website (a business you’re affiliated with), you are paid for each click.
Pay Per Lead
This is similar to the “pay per sale” method explained above. You are paid if customers go to a website and complete a form. By completing this form, they express their interest in certain products and services. This qualifies them as “hot leads” and you’re getting paid a commission for each of those.
Affiliate Marketing Pros
There are numerous advantages to getting into affiliate marketing as soon as possible. Remember that this is a billion-dollar industry, so it’s worth taking a small share of it yourself. Here are the main advantages of this type of business.
Passive Source of Income
This is a passive stream of revenue because you’re not actively engaged with it all the time. You just set up the ads on your network or website and wait for clients to make a purchase or visit a website.
You still have to put some effort into promoting the products and services of the company you’re affiliated with. However, this usually doesn’t take a lot of time and you can still receive commissions long after you have set up the ads correctly.
No Experience Needed
The beauty of affiliate marketing is that almost anyone can get into it and become successful. You don’t need a master’s degree in business or economics. There are marketing schemes and networks where you can promote products and services as well as multiple free tutorials online.
Minimal Initial Costs
Another great advantage of affiliate marketing is that you don’t need a large budget to start. You might need to create a website, do a little bit of promotion, maybe collaborate with a professional designer to craft attractive ads for you.
But other than that, affiliate marketing requires little to no capital. You just have to pick the right products to promote and create a successful marketing strategy for them.
Affiliate Marketing Cons
No marketing scheme is perfect and affiliate marketing has a few small disadvantages. Here are a few of them.
Your Income Is Not Guaranteed
Although affiliate marketing can become a profitable source of income, you have to get the ball rolling first. Regardless of the products and services you promote, you need to make your audience click on that ad or buy. If you fail to do this, you don’t earn your commission.
You Might Need to Build an Audience First
If your website already has decent traffic, most of the work is done. You just have to pick the right niche, let your readers know you’re into affiliate marketing, and discreetly promote a few products and services.
However, if you don’t have an audience already, you have to build it. This can take weeks, months, or even more. Although the process takes time, you can begin placing affiliate links right away and earn a few commissions right from the start.
How to Get Started With Affiliate Marketing
If this type of marketing floats your boat, you should get into it as soon as possible. You should begin by picking your niche. This means choosing what products you want to promote. For example, you can go for pet products, call center services, LED lights, or even used cars.
Secondly, you should find a network or marketing platform. Many people have their own website where they promote the products and services of the business they’re affiliated with. You can also go with dedicated platforms or take advantage of the Amazon Affiliate Program.
Lastly, you need to come up with a few marketing strategies. If you already have a loyal audience, find ways to promote these products without sounding too pushy. You can promote these products on your website, blog, or other platforms
Experienced affiliate marketers also use social media to advertise their products. Facebook and Twitter are excellent examples in this case. If sending emails sounds better for you, it’s possible to create email marketing campaigns and get a commission each time a client clicks on an affiliate link.
Become an Affiliate Marketer Today!
Experts agree that affiliate marketing has a lot of potential in the upcoming years, so why shouldn’t you jump in and get your share of revenue?
Contact us today to get you started with affiliate marketing on the right foot. Our marketing specialists know how to help you build your network and succeed with affiliate marketing!