Affiliate marketing is a growing industry. According to statistics, affiliate marketing has a sparkling future in India. IAMAI (Internet and Mobile Association of India) has reported that the affiliate marketing industry in India would cross the $835 million mark by the year 2025.
Are you interested in becoming an affiliate marketer? Or have you been considering working with affiliates, to know more read this article.
What is Affiliate Marketing?
Affiliate marketing is an online sales tactic that lets a product owner increase sales by allowing others targeting the same audience “affiliates” to earn a commission by recommending the product to others.
Affiliate marketing is when you promote other companies’ products. When someone buys through your affiliate link, you get a commission.
Basically, an affiliate is a salesperson for the company. The affiliate makes the sale and in return, the company gives them rewards.
Affiliate marketing involves referring a product or service by sharing it on a blog, social media platform, or website. The affiliate earns a commission each time someone makes a purchase through the unique link associated with their recommendation. Here are some things you should know before joining the affiliate program.
(1) Advantages of affiliate marketing-
- Affiliate marketing is a low risk. Since there’s no cost to join affiliate programs, you can start making money with an established affiliate product or service without any investment.
- The main advantage of having an affiliate program is that it is entirely performance-based. Because affiliates are only paid a commission once the desired action has taken place.
- Affiliate marketing helps in building and expanding your business. It gives your brand a good online presence.
- By partnering with trusted bloggers and reputable websites, you can further the reputation of your brand and its products.
- Affiliate programs help you in increasing sales and traffic. It’s not only the affiliate links that get traffic to your website. With affiliate marketing, your website gets a lot of backlinks. This reflects positively on its SEO.
(2) Who is an affiliate marketer?
An affiliate marketer is an influencer who shares products and companies that they enjoy with their audience in exchange for a commission when someone buys.
Affiliate marketers do not work for one company. They are totally independent and can work for more than one company.
(3) How does affiliate marketing work?
The process of affiliate marketing involves 3 parties –
- Seller or merchant
- Affiliate or advertiser
- The customer.
Now you must be wondering what are the roles of these three parties. Here is an explanation of how this works.
The seller, merchant, or producer who has the product or services to sell. This merchant can be an individual or a company. The seller who is wanting to sell his product or services into a new market or he is wanting to target a new audience. He connects to influencers or you can say affiliates who will help him in advertising.
The affiliate can be either an individual or a company that markets the seller’s product in an appealing way to potential consumers. Affiliates often have a very specific audience to whom they market, generally adhering to that audience’s interests. This creates a defined niche or personal brand that helps the affiliate attract consumers who will be most likely to act on the promotion.
Whether the consumer knows it or not, they (and their purchases) are the drivers of affiliate marketing. Affiliates shares this product on their blogs, websites, or social media, and customers buy from them.
When consumers buy the product, the seller and the affiliate share the profits.
(4) How do affiliate marketers get paid?
If you want to earn money online affiliate marketing is the best and the safest option. But you want to know how an affiliate gets paid for his work?
There are different methods in which affiliates can get paid. customers do not always have to buy for affiliates to get paid. An affiliate gets paid according to the contract with the merchant.
Ways in which affiliate can get paid-
1. Pay Per Sale.
This the standard affiliate marketing method. In this program, the merchant pays the affiliate a percentage of the sale price of the product after the consumer purchases the product as a result of the affiliate’s marketing strategies. In other words, whenever affiliates sell a product he gets paid as per the decided commission rate.
2. Pay Per Lead.
This is a little complex method. Pay per lead affiliate program compensates the affiliate based on the conversion of leads. 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. Basically, here payment is made in relation to lead generation.
3.Pay Per Click.
Pay Per Click program focuses on incentivizing the affiliate to redirect consumers from their marketing platform to the merchant’s website. This means the affiliate must engage the consumer to the extent that they will move from the affiliate’s site to the merchant’s site. The affiliate is paid based on the increase in web traffic.
(5) How to get started with affiliate marketing?
There are few easy steps to follow and you can be an affiliate.
- Decide a platform. Focus on one or two platforms on which you want to work. Selecting one specific channel will help you focus more and this is one effective way to start affiliate marketing,
- Find a niche. You need to find a perfect targeted audience or a perfect industry you want to work in. this will help you in your affiliate marketing program. A specific niche can help you stay consistent.
- Find affiliate programs to join. This depends on your niche and level of expertise. You can decide as per your requirement whether you want high paying program or a high customer volume program.
- Create great content and attract your customer. If you want your affiliate site to succeed, you need to create high-quality content where your affiliate links fit naturally. Make smart strategies, add a call to actions, and create amazing content that helps you in selling your products.
- Try to convert your leads into sales. Develop more sales skills which can help you in connecting with customers. How to Succeed as an Affiliate Marketer
(6) How to Succeed as an Affiliate Marketer.
To become a successful affiliate marketer, you need to know a number of things that will not only boost your earnings but will make you stand out in the mind of your customers, and the merchant as well.
Here are some tips that you should keep in mind-
- Understand your audience.
- Choose the right products. The products or services which you are trying to sell should be according to your targeted audience.
- Be honest with customers. always give them the right information about the product.
- Communicate with your audience. Get in touch with your customers. It will create trust between your customer’s minds.
(7) Types of affiliate marketers.
An influencer is an individual who holds the power to impact the purchasing decisions of a large segment of the population. This person is in a great position to benefit from affiliate marketing. It is easy for influencers to use their social media in affiliate marketing.
With the ability to rank organically in search engine queries, bloggers excel at increasing a seller’s conversions. The blogger samples the product or service and then writes a comprehensive review that promotes the brand in a compelling way, driving traffic back to the seller’s site.
- Paid Search Focused Microsites.
They are distinct and separate from the organization’s main site. By offering more focused, relevant content to a specific audience, microsites lead to increased conversions due to their simple and straightforward call to action.
- E-Mail marketing.
E-mail marketing is still a viable source of affiliate marketing income. Some affiliates have email lists they can use to promote the seller’s products.
(8) What affiliate marketing strategy that you should use in 2020?
- Promote products from different merchants. If you only promote one merchant’s products, you are stuck with their commissions, their landing pages, and ultimately, their conversion rates. It is important to work with many different merchants in your niche and promote a wide range of products.
- Only Recommend products you are familiar with. Building trust with your audience is very important. The more helpful you are and the more you make quality recommendations, the more likely your web visitors will come back for your expertise.
- Track your results. Constantly track your conversions and leads. The more your conversion rate will be more you will earn. So, try to optimize your methods and try to increase your conversion rate.
- Know where your traffic is coming from. Use tools like google analytics to understand your traffic better. This analytics data is crucial to making informed decisions, increasing your conversion rates, and making more affiliate sales.
Affiliate marketing is, without a doubt, one of the easiest, home-based, online businesses to get started with. Earning money with affiliate marketing programs can be a rewarding way to add a new revenue stream without taking on too much risk. Now that you know how affiliate marketing works, Try your hands in affiliate marketing. Join some good affiliate program and start earning money.