Affiliate marketing is a technique of employing others to generate business for you, however, you must share a certain profit with them. It includes recruiting potential ‘affiliates’ for your business through commission, which encourages them to market your product through their website or online channel.
Let’s take a look at how you can benefit from affiliate marketing.
What is Affiliate Marketing?
As opined by Wikipedia,
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.
The rule of affiliate marketing is simple; it is the process of earning income or a certain percentage every time you promote someone else’s products or services that converts in a sale. If you generate a sale, you get paid. If you don't generate a sale, you do not get paid.
How does Affiliate marketing works?
Affiliate marketing depends on the interaction of the three parties
The advertiser is a party who creates an ad for affiliate marketing.
The publisher is a party who publishes the ads. The example of the publisher includes websites and portals.
The consumer is the party who consumes the ad. When a consumer buys a product or service, the advertiser earns the revenue and the publisher gets paid.
Affiliate Marketing Facts
- ShareASale holds 55.7% of the market share.
- Affiliate marketers prefer to promote 1–10 products.
- Fashion is the most popular affiliate marketing category.
- 81% of marketers and 84% of publishers leverage the power of affiliate marketing.
- More than 50% of affiliate-referred traffic comes from mobile devices.
- Groupon is one of the most successful companies built on affiliate commissions.
- Almost half of the affiliate marketers make less than $20,000 a year.
- Jason Stone made $7 million in affiliate marketing revenue in a single year.
How does affiliate marketing help SMBs?
Here are some of the major benefits of affiliate marketing for small and medium-sized businesses.
i. Grow your popularity
With growing competition, there is a rise in both advertisers and publishing platform. It’s easy to lose track of such a pell-mell. With the right affiliate marketing approach, you can increase your outreach.
ii. Handpick your partners
You can find thousands of affiliate channels or partners. As a retailer, you can pick who you choose to work with. It offers you the opportunity to assess their suitability and handpick those who can be the best ambassadors for your brand and products.
iii. Targeted traffic
Affiliate marketing channels are targeted towards finding the right kind of audience for your business. If you sell beauty products, you’ll place your ads on beauty products or cosmetics-related website where the audiences are more likely to buy beauty products.
iv. Pay for performance and sales
With affiliate marketing, you only pay when there is a sale. In its simplest form, with affiliate marketing, you only pay out when a sale is made, while also offering flexibility to pay publishers for influencing sales.
v. Low risk
Paying for performance rather than for clicks ensures affiliate marketing is a low-risk form of marketing. This helps to save your hard-earned money.
vi. Limited start-up costs
Starting an affiliate program requires minimal investment of time and finance.
vii. Brand awareness
Consumers would always talk about or refer to their favorite brands. Once they buy a product, consumers would always like to buy from retailers they are familiar with. Affiliate marketing allows small and large companies to grow their brand awareness by increasing exposure to new audiences who may not have previously heard of them.
viii. Increase SEO
Advertising your brand on different websites definitely helps to gain essential backlinks and score an SEO value.
ix. Detailed statistics and data
Working with a trusted affiliate network to manage your affiliate marketing allows you access to a detailed dashboard and sales reports. This helps to make informed decisions.
x. Time-saving on marketing
Putting marketing in the hands of affiliates frees up some of your time, allowing you to focus on other important business processes.
xi. Creates valuable partnerships
When you work with affiliates, you are broadening your connections. This allows you to reach out to industry leaders and build relationships with influencers. It has many long-term gains.
xii. A different income stream
With affiliate marketing, you can diversify your income stream. Never rely on one form of marketing. If anything happens to affect that revenue stream, your business could collapse within days.
xiii. Scale your business
If you are just starting up, or you are a small business thinking about expanding, affiliate marketing allows scaling your business at your speed and with minimum cost.
xiv. Consumers trust their brand ambassadors
As reported, 92% of consumers trust the recommendations of people, companies or influencers they know.
xv. Access to foreign markets
If your niche is a global audience, affiliate marketing is a cost-effective and efficient way to tap into the global marketplace.
xvi. Good return on investment
According to statistics provided by AM Navigator, US affiliate marketing spends is approximately $5 billion annually and worldwide over 80% of brands use affiliate marketing.
What are the steps in performing affiliate marketing?
Here are 5 steps to initiate affiliate marketing.
- Choose a Niche –The first step of your training for how to become an affiliate marketer involves finding out which affiliate products to sell.
- Research Programs –Find about the most selling programs in your niche. Popular programs have competition, while unique programs are riskier.
- Build Your Platform –It’s time to build your platform or the brand.
- Create and Publish Top-Notch Content – Content is everything. Build content that connects with the audience or solve their problems.
- Create Your Ad Account –After you’re done setting up your platform, the next step is to begin creating an ad account for the advertisers.
Do you need to build your own email marketing platform? Why?
Having one’s own email marketing platform definitely helps to capture the nice. Email marketing is one of the most effective modes of marketing, effective in terms of higher conversion and RoI.
An email marketing platform allows small businesses and entrepreneurs to create and send emails people love. And by sending emails people to love, they're empowered to connect with customers in ways that grow their business. This helps to expand the outreach of email marketing.
Which email marketing software will be helpful for email marketing for affiliate marketing?
In particular, when looking for the top affiliate email marketing programs around the web that will make you money, there are certain critical factors you should consider.
Consider opting for email marketing that offers:
- High commission rate
- High-converting offer
- Alignment with your current services
- Ability to customize your links
- Long cookie life
- Reliable tracking system
- Accurate reporting system
- Timely payments
- Documentation and promo tools
- Dedicated support
What are the best platforms for affiliate marketing?
Here are two of the most opted platforms for affiliate marketing.
ClickBank is an affiliate marketing program. It was founded in 1998 and is privately-held. The company has more than six-million clients worldwide which secured it in becoming the 87th largest Internet retailer in North America.
If you're the vendor, then you create your own product and set it up using Clickbank's system. They then list your product in their marketplace so that tens of thousands of affiliates can see you.
Qualaroo is a SaaS company that enables companies to gain valuable insights from their prospects and customers in real-time. Qualaroo's mission is to help companies understand why their customers and prospects make decisions.
Qualaroo's Affiliate Program Details:
Commission: $25 – $250 per sale
Cookie: 30 days