Affiliate marketing is one of the main ways to monetize any digital property, be it a website, an app, or your social networks.
It has become everyone’s dream to obtain that famous passive income. Yes it is possible, but it is not so easy, you are not going to start a digital project, and the following week you will start generating income.
Before that time comes there is a lot of hard work to do. But I assure you that it can be achieved.
Putting it in simple words, affiliate marketing consists of promoting a product of another person or company and earning a commission for each sale that is made thanks to your management.
It is beneficial for all parties involved in the equation because each of them gets a fair profit for their contribution to the sale, which is known as shared benefits.
It is the person or company that has created the product, has made the greatest investment in time and money to bring the product to market.
The producer, or advertiser as it is also known, gets a great benefit when creating an affiliate program because in this way they can delegate the marketing effort to their affiliates, and optimize their advertising budget.
This affiliate marketing practice is carried out by small and medium-sized entrepreneurs, such as Network Business School that promotes its affiliate program to sell online courses.
Affiliate marketing is also practiced by leading companies in their sector such as: Amazon, Microsoft and Apple.
The affiliate is the person who does not have any product to sell but has influence over a network of people, either because he is an influencer or an expert on a specific topic. He is ultimately the one in charge of marketing, and if a sale is completed thanks to his management, he earns a percentage of said sale.
The affiliate uses their channels of influence, and their marketing skills, to recommend and promote the product. You can do it through a blog where you make product reviews and recommendations, also using your social networks (YouTube, Instagram, Facebook, Tik Tok, etc.), or even paying for advertising campaigns on platforms such as Google Ads and Facebook Ads.
As in the case of the producer, the affiliate can be a simple person who runs a blog and uses his personal social networks to promote affiliate products and earns a few hundred dollars a month in commissions, or a company that has an income of millions of dollars promoting affiliate products.
It is the end customer who buys the product. Before buying a product or service, normally people look for information about it, compare the possible options, and in this search, they end up reaching the affiliate channels.
The consumer may or may not be aware that he is taking part in an affiliate marketing system. It is up to the affiliate to communicate or not to the buyer that he is reviewing or recommending a product for whose sale he earns a commission.
In some countries, the United States, for example, there are legal regulations where it is required that in the reviews of an affiliate product, it is made explicit that a commission is earned for each sale coming from the affiliate link. (See Federal Trade Commission (FTC) Endorsement Guides).
Some producers may even cancel the affiliation when they detect that this regulation is being breached, for example in the case of the hosting provider iPage (of whose affiliate program we are members), and that makes it very clear that we must notify the consumer explicitly that we earn a commission for purchases from this affiliate link, which we just did 😉
The consumer is NOT harmed when buying from an affiliate link.
Many times people intentionally remove the affiliate id from the purchase page URL, because it bothers them that the affiliate earns a commission at their expense.
And really the commission that the affiliate earns is not paid by the consumer, but the producer and the affiliate divide the profits according to what has been agreed in the affiliate program, without increasing the cost paid by the end customer.
Market platforms are responsible for establishing links between producers and affiliates.
Some affiliate marketers prefer to deal directly with the producer, receive from him all advertising resources and training.
However, there are very successful platforms that relieve producers of the burden of having to issue payments, offer statistics, and provide sales guides and resources to their affiliates.
On these platforms, any producer can enter their product and request affiliates interested in promoting it. The platform is in charge of intermediating between these two actors.
Very few affiliate programs consider including the figure of the sub-affiliate, but those that do bring a greater benefit to their affiliates.
Each affiliate can attract other people to the affiliate program that they think can contribute to promoting the product, who will become their sub-affiliates.
The parent affiliate will earn a small percentage each time one of her sub-affiliates or child affiliates makes a sale.
The commission is only earned on the sales of direct sub-affiliates.
Let’s analyze a real case so that it is better understood. For example, the Networth Business School affiliate marketing program includes the sub-affiliate figure.
They have a Virtual Campus where they sell several courses, and they also have an active offer, which consists of access to all the courses on the platform worth $ 450.
They pay each affiliate who makes a sale 50%, and also 10% for the sales made by their direct sub-affiliates.
So let’s analyze the case of Juan, who is an affiliate, and achieves that through his affiliate link a sale is completed, he would earn a 50% commission that would be $ 225.
Juan also has a sub-affiliate: Laura, who knows a little more about marketing and achieves 4 sales. Laura would earn her commission of $ 900, and Juan would earn a commission of $ 180 from the sales generated by Laura.
In this case the income distribution would be like this:
Total Sales: $ 2250
Affiliate Juan: $ 225 + $ 180 = $ 405
Affiliate Laura: $ 900
NBS Producer: $ 945
In the event that Laura also had sub-affiliates, she would earn the commission for her sub-affiliates, and Juan would not earn anything.
In this way, the producer will never pay more than $ 60% commission for the sale of each product, which is comfortable for him, and will also increase his network of marketers to promote his product.
For an affiliate like Juan, it is very advantageous to have several sub-affiliates, the more the merrier! Everyone wins.
How does affiliate marketing work in practice?
Basically, it works like this: The producer or the affiliate platform provide their affiliates with banners and/or text links to the purchase page of their product. This link contains a unique identifier, called an affiliate ID.
The affiliate starts promoting the product through its channels and drives traffic from them to the product purchase page through their affiliate link.
The buyer clicks on the affiliate link and is directed to the producer’s sales page, or to the sales platform.
At this time the buyer may or may not complete the sale, sometimes they think better of it, and return in later days. Hence the importance of cookies, without which affiliate marketing would not be possible.
The buyer completes the sale. That sale is awarded to the affiliate and their commission is credited.
Let’s go aside to understand cookies a little better.
Cookies are a small piece of code that is inserted into the buyer’s browser when they click on our affiliate link.
This file remains saved in the user’s browser, and when in subsequent days, the buyer returns to the purchase page, the browser “remembers” that that buyer was referred by the affiliate, and in this way, the commission for the sale is credited to the affiliate, even if on that occasion you did not enter from the affiliate link.
Later we will see how long the cookie is stored, and how this affects affiliates.
Well, you already know the actors of an affiliate program. You understand what it is all about, and now you want to start making money with affiliate marketing. You can do it as an affiliate or as a producer. I will explain how to do it as an affiliate because it is the easiest way to start familiarizing yourself with the environment of affiliate marketing.
It’s easy to join an affiliate program, but don’t think that selling is a piece of cake. Let’s see everything you will need to do step by step.
If you already have a website or a blog, you already know what niche you are in, you would only have to go to the next step of looking for products related to your niche to start promoting.
But if you have no idea what a niche is, and you don’t have a website either, think about products that you are already a consumer, products that you consume frequently, or that you have bought online and have loved. Think of products that you would sincerely recommend to your loved ones.
For example, if you really like makeup, you can use your Instagram or Facebook doing makeup tutorials or create a YouTube channel, and then search for beauty product providers and affiliate with them.
They do not necessarily have to be physical products, in fact, info-products sell very well, for example, a makeup course, or a Pilates course that helped you get fit, or healthy eating, they are also viable products for you, because they are related all with the theme of beauty.
You have to be a connoisseur of the subject, and if you are an expert, all the better, because that way you can give credible and honest arguments.
Once the niche is chosen, if you do a quick search on Google, you will realize that there are already hundreds or thousands of people making reviews and recommendations of these products. Don’t be intimidated by that, you are authentic and you can do it differently.
You already have your niche clear, now you have to look for the product, and nothing better for it than affiliate platforms. Explore the platforms and look for products related to your niche.
Here we will make a parenthesis because it is not only looking for a product that seems good to promote, but you have to take into account some factors such as:
Good market conditions:
Select a product that has high demand, use tools such as Google’s own search engine, or the Google Ads Keyword Planner, to see if this product is searched by many people.
The conversion window, or cookie lifetime.
Some affiliate programs have a very short conversion window. What does this mean?
For example, Amazon Affiliates has a conversion window of only 24 hours, it means that if a person enters Amazon from your affiliate link, and makes a purchase of any product within 24 hours, you will earn a commission, but if you think better of it, that day does not buy and returns two days later, and you will not earn anything for said purchase.
There are affiliate programs that have a cookie duration of up to 1 year, these are ideal, but after 3 months we consider it to be a good conversion window.
The fee percent and the fee of the product.
Remember that creating an audience has a cost in time and money, therefore achieving a sale is not easy, so the idea is to choose products (always within your niche) that have high prices and that also pay good commissions.
For example, if you promote books that cost no more than $ 30, and the commission is 10%, you would be earning only $ 3. The only thing that would make up for the long hours spent reviewing that book is that it has a lot of demand and that many people buy from your link. That way if 100 people make a purchase, you would earn $ 300.
On the other hand, if you sell a course that costs $ 600 and they pay you a 50% commission, you would be earning the same $ 300 for a single sale.
Of course, it is easier to sell a $ 30 product than a $ 600 product, but if you target the right audience, who knows the value of a course, and how much they will benefit from it, then you can make several sales of that course without problems.
The minimum amount to charge, the payment methods, and the conversion approval period.
In some affiliate programs and affiliate platforms, there is a minimum value for you to withdraw your money. It can be $ 5, $ 50, $ 100, $ 200. This is good that you keep in mind because if you sell low-priced products, you will have to sell a lot to be able to withdraw your money.
You also have to know to check that the payment methods they offer work well in your country, they can be gateways such as Paypal, by checks or bank transfers.
The conversion approval period consists of the waiting time, between making a sale, and approval of the affiliate commission. This happens with products that have a money-back guarantee. For example, if a buyer buys a course, which has a 30-day money-back guarantee, the affiliate will not be approved for the commission for that sale until after those 30 days.
Banners and resources to promote offered by the producer
Some producers provide their affiliates with artillery of banners of different dimensions, even with very colorful animations and videos.
This is very important in order to convert. It is not the same to put an ugly banner on your blog than a flashy one. Or that you have to create the banner yourself.
Ok, this is where the effort part begins. Understand that you will earn a commission for results, that is the added value that the affiliate gives the producer. It is the person who achieves the sale or conversion. So you have to work hard to achieve those conversions. How?
Sell, not sell. Let me explain, you have to create content that helps your audience, that makes them fall in love, and then surreptitiously, you encourage them to buy. What types of content?
Tutorials where you use the product to solve a problem
Comparison between products
Posts type lists of the 10, 7, 5 best xxxxx for xxxxxxx.
The previous three but on video.
Place the banners and links in strategic places within your article.
Here it is good practice that the platform allows you to identify each banner that you place on your website so that with the statistics you can know which of the locations are more effective.
It is a matter of experimenting, but always try not to give the customer too many options, if you put many banners together of different products, you create confusion, they will leave your page and you will not achieve the conversion
Build loyalty to your audience, with e-mail marketing strategies.
E-mail marketing is a very effective way to get someone who has visited you once to return to your site if you offer content of interest to them through emails. Do not abuse the frequency of emails!
Use pay-per-click advertising platforms. Yes! Also at some point, you will have to invest in advertising if you want to increase your traffic. Google Ads and Facebook Ads are platforms that bring a lot of traffic to your website but be careful, you have to know how to segment the audience and have a system for capturing leads, or you will be wasting money.
How Much Money am I Able To Make From Affiliate Marketing?
The income from this practice is not constant, it depends on many factors, for example, seasonality, the same is not earned by selling a cooking course in March than in December. It’s best to look at your annual income, which can range from $ 5,000 to $ 1,000,000 or more.
It all depends on how good a seller you are and how many promotional channels you exploit.
What are the best affiliate platforms?
The best known are Clickbank, Shareasale, Hotmart, Commission Junction, Amazon Affiliate Program. You can see our recommendation of the 10 best affiliate marketing platforms here.
No. It is more of a Business Advisor job that charges only for commissions, without a fixed salary. In the case of programs that include sub-affiliates, it could be seen as pyramidal, but with the only observation that the breaking point is never reached because commissions are only obtained for the sales of direct sub-affiliates.
Originally published at https://exploremoney.net.