Are you familiar with the term “Affiliate Marketing”?
If not, no problem. In this blog, you will get familiar with what is Affiliate Marketing and how to start Affiliate Marketing.
Before that, let’s get a rough idea of how affiliate marketing can change your life.
Wake up early like you have to do during your school time, get ready, drive through a network of cars, sit in front of the computer, check email, or do some other work until the clock strikes five.
Are you tired of following this routine?
Affiliate Marketing can bring a positive change to boring routines like this.
By the end of this blog, I will answer all your questions on how one can become an Affiliate Marketer.
- Affiliate Marketers create awareness about someone’s product and are paid based on their performance.
- Affiliate Marketers, product creators and the customer are the three parties involved in the marketing process.
- Pay per sale, lead or click are the three criteria to get paid for your performance.
What is Affiliate Marketing: An Overview
Affiliate Marketing is a type of marketing where a person (Affiliate) creates awareness and promotes someone else’s brand or product via sharing it on a blog, social media platforms or website. The marketer uses a unique affiliate link to track the sales or leads.
It follows the concept of the ‘pay-per-performance method’, which means the marketer gets commission whenever there is a sale through their affiliate link.
If done correctly, this performance-based marketing can help you make a good income.
How does affiliate marketing works
Now that you know what is affiliate marketing, you might be curious about how to get started with it.
But first, we need to understand how does affiliate marketing works.
Affiliate marketing involves three different parties before the sale takes place.
Let’s discuss the three parties involved in the process to understand better how Affiliate Marketing works and what Affiliates do:
1. Affiliate Marketer
Affiliate or publisher can be an individual or a company promoting a creator’s product to the potential customer.
But in reality what does an affiliate marketer do?
The affiliate marketer tries to showcase the product’s valuables and benefits and convinces the users to purchase it.
When the customer buys the product through the affiliate’s link, they get the commission.
2. Product Creator
The product creator can be an individual, small or large company who pays commission to the publisher for creating a sale for their product.
The publisher is not the manufacturer or owner of the product they are trying to sell. They simply find the product they find interesting, promote it, create a sale, and take a commission for it.
3. The Customer
The end-user or the vital aspect of the process of affiliate marketing, the customer who buys and uses the product or service. Customers are the drivers of affiliate marketing.
How to make money from Affiliate Marketing?
Affiliate Marketing follows the pay-per-performance method; there are various ways to add on to your income:
1. Pay Per Sale
Under this, the affiliate gets compensated once the customer purchases the product via his unique affiliate link.
To calculate pay per sale, divide your total costs by your total revenue from sales.
For example, if your total monthly costs sum to $100,000, and you drive $1,000,000 in monthly sales revenue, your cost per sale is 10 cents.
2. Pay Per Lead
Under this policy, the affiliate gets paid based on the conversion of leads.
The formula for calculation of Cost per lead = total cost of the campaign divided by the number of leads generated
For example, if you acquired 100 leads through a Google Ads campaign that cost $1000, the CPL for that campaign would be $10.
3. Pay Per Click
Under this policy, the affiliate gets paid based on the increase in web traffic. The publisher has to create such engagement that the customer visit owner’s website via their affiliate marketing strategy.
For example, Let’s say your ad gets two clicks, one costing $0.20 and one costing $0.40, and the total cost is $0.60. You would divide $0.60 (your total cost) by 2 (your total number of clicks) to get an average CPC of $0.30.
How to start affiliate marketing?
In simple words, Affiliate Marketing is a process of promoting other’s products via your blog, website or social media and getting compensated once the sale is made.
Here are few points to give you an idea of how you can start affiliate marketing:
1. Choose a affiliate marketing platform and decide a niche
The first step is to choose a platform to promote the product or service, i.e. blogs, Instagram, YouTube, Newsletter, or other social media channels.
Along with it, decide on a niche you will be covering. It can help you build an audience easily.
2. Build an audience
Once you have decided on your niche, determine the target audience by collecting insights from your traffic or interacting with customers.
A big, engaging and loyal target audience can be a great help in getting engagement for your website or blog too.
3. Sign up for an affiliate marketing platform
Here comes the critical step to become an Affiliate Marketer. Sign up for an affiliate marketing platform.
Amazon Associates, Flipkart Affiliate, Hubspot Affiliate Program and BigRock Affiliate are different Affiliate Marketing websites or programs you can get registered with.
There is no upfront cost required to sign up for the program. But if you outsource your content or run ads, it can increase your variable cost.
4. Choose a product to promote
Two things you should keep in mind while choosing the product to promote are:
First, always take a product that you are familiar with, which can be of some value to the customers.
Second, never try to sell the product directly. Recommend a product based on your experience, and you can share your experience using the product.
5. Promote your product
Once you have decided on the product, promote it as much as possible to see the best result.
Write blogs, make YouTube videos, put photos on Instagram, and create engaging content to get traffic and promote the product.
6. Track your progress
Always track your content to see how your content is performing, how many leads or sales it is making. It can help you in making decisions for future strategies.
Once the sale or desired action is completed, you will get your commission.
There are many ways for commission payouts; commission a weekly payout or monthly payout or whatever you had decided before.
Why Affiliate Marketing?
Here are the few points that can show how affiliate marketing is worth it:
1. Passive Income
It allows you to earn while you sleep. By creating a campaign, you will get continuous returns on the product for that particular campaign period.
It will be getting returns even when you’re not working or sleeping due to your marketing skills.
2. Work from home
If you don’t like going to the office, it provides you with the freedom of working from your home.
You have to create campaigns, which can be done from anywhere.
3. Performance-based Reward
One of the best things about working as an Affiliate Marketer is, it is a performance-based job.
You will get paid for all the efforts you have put in to create sales for the product.
You can start affiliate marketing at a meagre cost; no start-up fees or regular cash flow must finance the work.
Also, there are no fees for signing up for the affiliate program.
Conclusion: affiliate marketing for beginners
Affiliate Marketing can be an ideal job option for someone who wants to get paid based on their performance and wants to work from home.
Not only affiliate marketing but there are also other types of digital marketing you can explore and make an amazing career.
You can check out this link to explore more job options for you in 2021.
Frequently Asked Questions
Is Affiliate Marketing part of Digital Marketing?
Of course, Affiliate Marketing is a sub-component of Digital Marketing. It is one of the types of Digital Marketing.
What are the different ways of methods for payment in it?
Affiliates are paid based on their performance, pay per sale, pay per lead or pay per click.
What are the best affiliate programs to sign up with?
Amazon Associates, Flipkart Affiliate, Hubspot Affiliate Program, Affiliaxe, eBay Partner Network, DFO Global and BigRock Affiliate are some of the best affiliate programs to sign up for.
How to Start Affiliate Marketing?
It is appropriately explained in points under the same sub-heading in the blog above.