Affiliate Marketing Guide – (Updated Oct 2020)
When you start your own business, your main goal is to rake in sales. The numbers in your bottom line will determine how successful your business is. While converting your marketing campaigns into sales can take much effort, affiliate marketing can help close your deals even when you are sleeping.
Affiliate marketing is a marketing arrangement by which a retailer pays a person or an affiliate a commission for every sales or traffic generated from its referral. The affiliate marketer promotes the product or services to other people, which helps augment the retailer’s sales.
This type of marketing arrangement is becoming popular these days as it has become an effective way to drive sales. It can also generate significant online revenue without spending too much—even big names like Amazon practices affiliate marketing, which offers 1-10% product revenue rates.
Before you start making progress and making it big in this kind of marketing arrangement, you need to know the main character, which includes you.
- Seller – The seller or retailer owns and runs a company that offers any supply. Whether it be a physical product or a service, whatever you offer can become a good source for affiliate marketing.
- Marketer – Also known as the promoter, an affiliate marketer can be an individual, a group, or an agency that markets the seller’s product in an appealing way to potential consumers. The affiliate promotes the product or service to encourage customers to check on the offers and convince them to make a purchase. When a product is purchased, the affiliate earns a portion of the revenue.
- Consumer – The person who is the target of the affiliate. They often take the action whether to make a purchase or subscribe to an email list.
So, how does an affiliate marketer work?
To be paid, an affiliate marketer will depend on what kind of arrangement or program is applied. There is no fix or general rules for affiliate marketers, but here are some ways to earn an income while helping you target your sales.
1. Pay Per Sale
This setup works by paying the affiliate a percentage of the product’s sale price after the consumer purchases the product as a result of the affiliate’s marketing strategies. In other words, the affiliate must get the investor to invest in the development before they are compensated.
2. Pay Per Lead
This program is a bit more complicated as the supplier or seller pays an affiliate marketer for every converted lead. The marketer’s work includes encouraging prospects to go to the company website and complete whatever transaction he is tasked to do. These tasks may include subscribing to an email list, downloading a file, filling out a contact form, signing up for a free trial, and others.
3. Pay Per Click
This program’s arrangement is for the affiliate marketer to redirect prospects from his marketing channel to the supplier’s website. The marketer is being paid, depending on the increase in web traffic.
Here are all the possible marketing channels you can use to become a success in your promotional activities.
1. Email List
Email marketing is still one of the most effective ways of finding success in promoting your products. Affiliate marketers can also use this method to find prospects and leads that they can influence to purchase any of their offerings. An email list can be used for promotion and weekly or monthly newsletters that contain hyperlinks to the items they are promoting. When a customer clicks on the said link, they will earn a percentage of the sales.
2. Social Media Channels
A large number of users of various social media channels is an excellent opportunity for affiliate marketers. Most focuses on building thousands of audiences that can help promote their products. They can incorporate links on their posts on social media and encourage their audience to click on the link to make a purchase.
Many bloggers make additional income through affiliate marketing. They can somehow excel in increasing sales conversions. To do this, they can try the product and write comprehensive and compelling reviews that promote the product or the brand. This way, readers of the blog can check on the reviews and be driven back to the seller’s website.
The rise of social media has also paved the way for influencers to excel in affiliate marketing. Influencers are individuals who can affect the purchasing decision of a considerable number of persons or their followers. This impressive following and trusted image make it easier for them to recommend any product to their followers.
Affiliate marketing can become very beneficial for your offering and your company. Here are some benefits should you decide to include affiliate 4arketing in your strategies.
1. Widen Your Reach
If you have decided to partner with seasoned affiliate marketers, it can become beneficial on your part to widen your reach and tap a broader audience. Most affiliate marketers already have relevant websites to start with, and some have already established their names. They have already gathered followers that maybe you haven’t touch-based yet.
This tactic allows you to expand your market and further saturate your niche market. Doing this allows your brand to have a more substantial presence online.
2. Boost Your Reputation
When you partner with reputable websites, bloggers, and influencers, it can also help you develop your brand’s reputation. It also enables you to gain more quality followers that can be turned into your prospects.
As trusted influencers and bloggers promote your products, it also builds consumers’ confidence to trust what you have to offer. That way, it solidifies your position as a reputable brand in your niche industry. On this day, most consumers look for product recommendations first before making any purchase. When your product receives a promotion from trusted sources, it will affect your sales positively.
Perhaps one of the most significant benefits you can get by doing affiliate marketing is how cost-effective it is. Even if you are paying commission, you only pay up when a sales conversion occurs, which makes sure that the money you spent has already given you value. With other marketing tactics, you have to spend your budget without the assurance that you’ll get back the investment that you put in your marketing efforts.
Affiliate marketing also allows you to have a marketing team that does not have an overhead cost. That gives you more freedom with your marketing budget that you can use for other related promotional efforts.
Another thing that makes affiliate marketing cost-effective is because it is performance-based. You only pay a commission when a particular desired action happens, which means that you only get to spend your budget when a sale has been made, or a lead-generation has been fulfilled.
4. More Website Traffic
Affiliate marketing gives you the online presence and awareness that can help augment the number of website traffic you are looking for in your target. When you are working with influencers and bloggers, you increase your chances of having a large number of quality website visitors. Though most affiliate links will not directly affect your SEO rankings, it can give you a positive impact when the audience searches for your products on search engines.
Affiliate marketing may not be as popular as other marketing tactics like social media marketing or email marketing, yet it can become the new frontier of marketing that is just waiting to become well-known. It can be an advantageous and low-risk marketing method that can become key to your business’s success. While it can be quite overwhelming and confusing for some, affiliate marketing is easy, beginner-friendly, and always worth your investment.