What is Affiliate marketing?
Affiliate marketing is a type of performance based marketing where the business rewards the affiliates for bringing business either through view or clicks or purchase by the effort made by the affiliates.
In a simple layman terms the affiliates show case the product of business which he is connected with and he get commission based on the agreement with the business. In this business model it is affiliates which have a greater role to play if he wants commission.
People involved in Affiliate Marketing
Affiliate marketer or a publisher who is an individual who will publish the advertisement on his web page blog and advertise the product for the business. His remuneration for advertising the product solely depends on the how he can push his webpage or blog further. How famous he is or what topics he blogs about and well-known his blog will determine how many people will visit his site. He gets commission for marketing the product if the person visiting his site either clicks or buys the product depending on the agreement between him and the business.
They are those people who market their product through Affiliate marketer. They prefer to market their product through affiliate market. This type of selling is most lucrative for business is because they only have to pay commission if and only if there is a conversion. The following conversion if take place the business have to pay commission.
- Pay Per Click (PPC)– In Pay per Click programs you get paid for all valid clicks that you generate regardless of leads/sales.
- Pay Per Lead (PPL) – In Pay Per Lead programs the advertiser pays you a commission (a fixed amount) for a qualified action which can be a short survey, free trial, install, sign up, online form submission etc. A perfect example of Pay per Lead programs would be dating websites which usually pays for a free trial.
- Pay Per Sale (PPS)– In Pay per Sale programs the advertiser pays you a percentage of all qualified sales. The most popular Pay per Sale affiliate program is Amazon Associates where you can earn up to 15% depending upon the category of products.
This are those set of people who when they perform any of the above mentioned steps would then enable the business to pay the affiliate marketer.
These customers can directly go to the business websites and buy whatever they want. But some times the said customers who frequently visit a particular blog and that particular blog are an affiliate marketer for a business which at that particular time is giving some form of discount. Now this discount or free trial will attract the customer to click/buy through the link provided on the affiliate marketer’s web page. The customer who might not be aware that there is a discount on a particular product is enticed to buy and complete the process.
An Affiliate network (commission junction) act as an intermediary between the affiliates and affiliate marketer. It allows website publisher to get access to affiliate program which are suitable for their websites and generate revenue for themselves. This will help in promoting the business of the merchant.
Why do brands like affiliate marketers?
Brand prefers affiliate marketing because:
- Based on the performance and push of the affiliate marketer that get converted in to sales that the brand has to pay to affiliate marketers. This process is performance driven if there are no sales there is no commission. Therefore cost of sales is greatly reduced.
- It has a much better ROI then Cost per Click (CPC) OR Cost per Impression.
- Brands get much higher coverage due to the efforts placed by affiliate marketers in promoting its site.
- More people get connected to the brand through affiliate marketing thereby creating more partners in the ecosystem. With more partners coming on board the brands gets more reorganization through affiliate marketers.
- It also helps create awareness of the products through the effort of the marketers getting wider reach.
10 Quick Tips About Affiliate Marketing for Beginners.
- Sell what you are knowledgeable about. If a person is an expert in mobile phones then it is advisable he should sell mobile phones. People will identify your expertise in that niche and will enable you to promote brands in the same niche.
- Start own website. You can purchase a domain and web space from godaddy.com and use word press to create your own website in relation with your niche.
- Research and Join Affiliate programs. Amazon, EBay and Flipkart are amongst the few who offer products for Affiliate Marketing in your niche. Study them very well before signing up. If a company is asking you to provide credit card it means you might be getting scammed. As this companies give commission on sale so they might ask you for your bank details or PayPal account number. Affiliate programs are usually free of charge.
- Marketing product on you website. You will need to add links of the affiliate within your content of website for people seeing you website can click at it. Example if you are writing about the latest Samsung Phones companies would give link of this product which you can include in your content.
- People are attracted to visual aids. Most website has visual sidebar. So companies naturally provide with images and clipping for you to add-on your website.
- Keep on updating your content. It’s your content which will interest people to come back and visit your website. As the traffic on your website increases viewers will have the opportunity to look at different products you are affiliated with thereby enabling them to buy through your site.
- Use analytical tools like Google on your website. It will give you and idea as to the demography of people visiting your site. This will enable you to choose the right products to be affiliated with to increase. Sale. Example if people visiting your site are young from age group of 18 to 30 and you are affiliated with products like home decor or redecorating kitchen. It will not fly. Change your affiliate to cater to the audience of your site.
- Promote your website constantly through different social media methods. It’s a simple calculation. If more people visits your site one day they will start buying from your site thereby giving you commission on sale.
- You can then create different sites with content for different audiences. Thereby you can be affiliated with different programs for different sites.
- In a nutshell WEBSITE+AFFILIATE PROGRAM+GREAT AND NEW CONTENT+NEW AUDIENCE=SALES = COMMISSION FOR YOU.