Is affiliate marketing good for small businesses?

If you're wondering if affiliate marketing is something you should be doing in your online store or blog, here's what you need to know about this exciting new trend. 

In short: Yes, but only if you are already selling products on sites like Amazon (or similar) because there will always be competition. If you want to sell other people's products, then you don't have any choice but to go with affiliate marketing as long as those products are sold through ClickBank or another reputable marketplace. The key word being "reputable".

There are many ways to do affiliate marketing, so I won't try to cover all of them in this article, but I'll give some examples of different types of programs and strategies that might work well for your business. For more information on each type, check out these resources:

1. Commission Junction - This site offers hundreds of thousands of products from over 100 publishers. You sign up and get access to their dashboard where you can list products you'd like to promote and track stats such as clickthroughs. They also offer additional services like tracking ad clicks, adding ads to your website, etc. There's no monthly fee required to participate.

2. ShareASale - Another big player in the space, they charge $99/month to run your own network of websites. You can choose which products to feature on your sites and decide when to display ads. A few of my favorite features include a reporting tool to see exactly how visitors interact with your content and statistics on your most popular product categories. Their service includes hosting, email support, domain registration, domain forwarding, etc.

3. Post Affiliate Pro - Similar to ShareASale, except instead of having to pay a recurring subscription fee every month, you pay by the sale. So if someone buys one item on your site, you get paid. It sounds complicated, but the site walks you through everything step-by-step to make selling easy.

4. Rakuten Ad Network - Instead of paying per purchase directly, Rakuten pays you a percentage based on the amount of traffic directed to your partner stores. Some partners may not require payment upfront, while others may require a minimum payout before you start making money.

5. JVZoo - Here you find a large selection of vendors who allow you to create a free account and upload listings for their products. Once approved, you can either link back to your site or add banners and text links to direct customers to their pages. In addition to listing products, you can earn commission off sales made using the JVZoo platform itself.

6. Ecomdashboard - An interesting alternative to traditional affiliate networks, ecomdashboard allows merchants to create accounts without needing to register anywhere else. All you need is a PayPal or Stripe account and you can begin building a portfolio of products immediately. When users buy items via your links, you receive a flat 5% commission regardless of whether the transaction was initiated from within your dashboard or elsewhere.

7. ClickBank - One of the oldest and largest affiliate networks around, ClickBank has been offering opportunities since 1997. And yes, you need to apply for membership first before you can even think about getting started. Then you'll need to build a profile and submit samples of your best works. After approval, you can list your products and generate a referral ID to share with interested parties.

8. ShareASale vs. ClickBank - These two platforms have slightly different approaches, but both provide a lot of flexibility for sellers. Both have built-in tools to help you analyze data and learn more about your audience. Plus, you can easily switch between them depending on your needs.

9. Google Ads - With this option, you can place advertisements on your website that show up above search engine results. However, you must first establish a relationship with a publisher, usually through a third party company called Mediavine. As soon as you do, you can select specific keywords related to your niche and bid on them.

10. Facebook Marketplace - Like Google Ads, you can advertise on Facebook to drive traffic to your page. Unlike Google, however, you aren’t limited to certain keywords. Also, unlike Google, you can target very specific audiences and demographics.

11. Shopify - Not really an affiliate program, but rather a shopping cart software package, Shopify lets you turn your existing storefront into a profitable business. While you can still take advantage of its functionality, you cannot simply list products on your site and expect people to come running to shop. Your goal is to convert visitors into buyers.

12. eBay Partner Program - This program requires more effort than the previous options, but it could prove to be extremely lucrative once implemented properly. You would need to invest time setting up your inventory and creating unique landing pages targeted towards individual products. Additionally, you would need to monitor feedback closely and respond quickly to any issues or complaints.

13. PayDotCom - This network is designed specifically for bloggers, so it doesn't have as many options available as some of the other ones listed above. Still, the idea behind it is great. Bloggers can post sponsored posts containing links to retailers' webpages and receive a portion of the proceeds whenever someone purchases through those links.

14. Amazon Associates - While this isn't strictly speaking an affiliate program, it's definitely worth mentioning. Through Amazon, you can set up a simple link pointing to your own webpage and collect commissions anytime someone makes a purchase through that link.

15. MyBlogSpark - This system gives you complete control over your blog and monetizes it in multiple ways, including advertising, affiliate partnerships, social media sharing, and more.

16. EzineArticles - Using this method, you can write articles promoting various companies or products and publish them on your own site or on external blogs. People searching for your topic will likely end up seeing your content and clicking on the links inside.

17. Amazon Product Review Pages - Although this approach seems counterintuitive, you can actually review products yourself and gain exposure by writing reviews. Of course, you can't just go ahead and start reviewing whatever comes across your desk, but it's certainly easier than starting entirely fresh.

18. YouTube Channel Marketing - This strategy involves posting videos on YouTube and encouraging viewers to subscribe to your channel. This is especially useful if you've got a niche community of followers already.

19. LinkShare - Although technically not an affiliate program, this platform helps you spread referrals throughout the internet. By signing up, you become part of a larger group of marketers. Each member contributes articles and tutorials and earns a portion of the profits whenever someone signs up through his or her links.

20. Social Bookmarking Sites - Many times, we recommend bookmarking our own posts because it provides extra visibility and exposure for readers. We don't recommend relying solely on that tactic though because sometimes you'll notice that your bookmarks appear less frequently than others'. That said, there are several social bookmarking sites that you can benefit greatly from, namely Reddit, Digg, StumbleUpon, Delicious, and Twitter.

21. ViralAdvertising - This technique relies heavily on viral growth. You basically tell your friends about your campaign, and they pass along the message to theirs. Word spreads until eventually everyone knows about it.

22. SEO - Search Engine Optimization is arguably the easiest form of digital promotion. Simply put, it consists of optimizing your website to rank higher in search engines like Bing, Yahoo!, and Google. To optimize your website successfully, you will need to understand keyword research, quality content, linking, and more.

23. Email Marketing - Sending emails regularly builds trust among potential clients. Most importantly, you can send promotional messages regarding deals and discounts. You can even encourage subscribers to visit your blog or follow you on social media.

24. Video Marketing - Videos tend to hold attention longer than text alone, which means you can keep viewers engaged for longer periods of time. You can embed video clips on your blog, add them to your social media profiles, and host live streams for events.

25. Podcasting - Podcasts are audio files that you record and distribute digitally. They typically consist of interviews, conversations, music, and educational material. In order to succeed, you'll need to produce high-quality shows and offer helpful advice to listeners.

26. Article Syndication - In this case, you hire writers to create original content for you. You can then syndicate that content to places like HubPages, Squidoo, and LiveJournal. Depending on the writer, he or she might ask for a cut of earnings from those outlets.

27. Content Promotion Services - Companies like Textbroker and RankHound specialize in helping entrepreneurs develop valuable content that attracts readers. They then help promote that content through blogging, guest posting, social networking, and more.

28. Press Release Writing - Press releases are powerful pieces of communication. Whether you're trying to attract investors, secure press coverage, or publicize a new product launch, a professionally written release can achieve impressive results.

Many people are familiar with affiliate links -- buttons in online ads or email newsletters that direct readers to products they might want to buy. These links often lead to Amazon or another major retailer's website where users click through to make purchases.

But what if these links led customers directly to websites owned by other companies instead? That's exactly what affiliate marketing does. Rather than directing consumers to a single merchant site, it directs them to multiple sites, including ones owned by third parties. This allows merchants to earn commissions on each sale without having their own inventory or customer support systems. It also gives those marketers a wider range of potential clients while reducing overhead expenses.

So why would a company choose this type of advertising over traditional methods like display ads or search engine optimization (SEO)? Here are some reasons.

Why small businesses should use affiliate marketing?

First off, there's no need to create expensive marketing campaigns or pay huge sums per month for ad space. You don't have to worry about whether or not someone will see your message because you're relying solely on word of mouth. And since the only cost involved here is time spent creating content and promoting the link, it makes sense for companies who lack resources but still want to offer high quality services to attract new customers.

Another benefit of using affiliate marketing is that you won't be competing against big brands. Instead, you'll be working alongside others selling similar items. Plus, you can work from home and maintain control over your schedule.

Finally, marketing your product via affiliate programs can generate more traffic and leads than any other form of promotion. In fact, many successful internet marketers started out as part of an affiliate network before branching into offline ventures. So even though you may not personally know all of your customers, the possibility exists that they've heard of your brand somewhere along the line. If so, chances are your affiliate promotions helped get that exposure.

With that said, let's explore the advantages of affiliate marketing for small businesses.

Why should a business use affiliate marketing?

It doesn't matter if your business has hundreds of thousands of dollars worth of revenue or tens of thousand of dollars, you could always stand to improve customer service, gain additional revenue streams, or expand your reach. There's never been a better time to try something new thanks to the rise of digital media, especially when it comes to growing a personal following.

You can do this by partnering with affiliates who already have established channels for reaching their target audience. For example, if you sell clothing, you can partner with retailers who sell shoes or accessories in addition to jeans. Or, if you sell health supplements, you can partner with fitness instructors who teach classes or nutritionists who counsel patients. The possibilities are endless!

Most importantly, affiliate marketing offers flexibility. By choosing which affiliates to promote, you can tailor your offerings based on niche interests, budget constraints, or specific needs. Plus, once you find the right partners, you can build relationships with them rather than simply rely on cold hard cash.

What is a small business affiliate?

A "small" business affiliate is one whose commission percentage ranges between 5% and 12%. As such, most businesses fall within this category because they usually operate under less than $100,000 in annual revenues. However, these figures vary depending on several factors, including market conditions and competition.

Small businesses typically opt for smaller percentages due to limited budgets and lack of experience. At the same time, larger businesses tend to charge higher rates because they can afford to invest more money upfront.

Why is affiliate marketing beneficial to entrepreneurs?

In short, affiliate marketing is great for small businesses because it provides a scalable system for increasing profits. When done correctly, it generates both immediate income and long term growth opportunities.

For instance, if you run a blog related to food photography, you might decide to start an affiliate campaign with a well known photographer. Your goal is to drive targeted visitors to his site, where he earns a commission from every sale. After a few months, you notice that your efforts have paid off, and you now receive regular payments based on referrals made by loyal followers.

This model works best for businesses with unique value propositions. For example, you wouldn't expect to see an ecommerce store selling dog leashes in the same vein as a fashion boutique, yet that's exactly what happens with ClickBank. On top of its impressive list of features, the platform also boasts more than 1 million active stores and millions of downloads of software created by independent developers.

One thing to keep in mind, however, is that affiliate marketing isn't suitable for everyone. While it can help grow a business quickly, it requires significant effort to implement successfully. If you aren't willing to put in the hours necessary to develop and manage a solid plan, then consider alternative options first.

How to use affiliate marketing for your business

The process of setting up an affiliate program involves three main steps: selecting products, building landing pages, and launching the campaign. Each step is explained below.

Selecting Products

When starting an affiliate program, it's important to select reputable products that have proven demand among buyers. Otherwise, you risk wasting valuable time and energy trying to convince prospective affiliates that your offering is worthy of their attention.

To identify reliable products, check out reviews of popular merchandise on review sites like Yelp or Google+. Look for information regarding pricing, shipping times, return policies, and overall satisfaction levels. Also look for testimonials, videos, and photos taken inside the actual retail locations. Finally, take note of reviews posted by existing affiliates.

Building Landing Pages

Once you've selected a handful of products to promote, you'll need to design landing pages to entice visitors. To do this effectively, you must ensure that the page contains compelling imagery and text that matches the theme of your affiliate program. Additionally, make sure that it includes calls-to-action relevant to the products' sales pitches.

Launch Campaigns

After designing a solid landing page, you can launch the affiliate campaign. Depending on the size of your team, you might delegate tasks to different members of your staff. Some jobs include writing articles, reviewing customer feedback, editing video clips, and managing social accounts.

If possible, assign separate roles to different employees whenever possible. Doing so ensures that the workload remains consistent throughout the entire campaign cycle.

Disadvantages of affiliate marketing and ways to overcome them

Although affiliate marketing represents a viable option for small businesses looking to scale operations without breaking bank, it certainly comes with risks. One of the biggest challenges facing business owners today is the proliferation of scams and fraudsters. Unfortunately, these individuals prey upon unsuspecting newcomers eager to learn about new industries.

Here are some key points to remember:

Be wary of shady offers promising unrealistic returns or quick riches. They usually come disguised as legitimate deals.

Never share sensitive financial information, such as credit card numbers or banking details, unless absolutely required.

Keep track of your earnings and losses regularly. If you lose money, cut ties immediately. Don't wait until things go sour to end your relationship.

Use caution when dealing with international affiliates. Although the vast majority of affiliates operating internationally abide by the standards outlined above, there are exceptions. Be careful when dealing with foreign entities, especially those located overseas. Keep in mind that laws governing the operation of U.S.-based enterprises differ greatly across countries.

Even though these issues apply primarily to large corporations, they serve as reminders that affiliate marketing shouldn't be considered anything close to a foolproof method for making money online. Always remain vigilant when conducting business online.

If you're interested in starting or increasing revenue from online advertising (or any other form of internet promotion), one option might be affiliate marketing. It's not as difficult as it sounds. In fact, many people are already using this method successfully without even knowing what they're doing!

One popular example of affiliate programs is ClickBank. With over 100 million dollars worth of products sold each month, ClickBank is quickly becoming a leader among its competitors. They offer thousands of different options to choose from, including digital goods like eBooks, software, webinars, videos, and more. The company also offers multiple ways to earn commissions on these items.

But there are lots of companies out there offering similar services. So if you want to know whether affiliate marketing is right for your small business, here's what you should consider before jumping into the fray.

How do I add affiliate marketing to my business?

You don't have to start with an existing product and sell it yourself--you can simply promote someone else's product instead. That person will either pay you a commission every time somebody buys their product through your link, or they'll give you access to their own customer base so you can market them directly.

With most affiliate programs, you won't get paid unless the consumer actually makes a purchase. Some programs pay only when customers make two purchases within 30 days. Others require three or four sales total during a 90 day period. You may also receive a percentage based on lifetime earnings after the first sale.

To find a suitable partner, look for sites where consumers go because they trust quality content rather than ads. Many of those websites rely heavily on advertising, but some provide free information and articles that appeal to readers. If you can help drive traffic to such places, you could earn money by promoting their offerings. This type of website would be perfect for affiliate marketing since they often feature links to products that users want to buy anyway.

How do businesses use affiliate marketing?

Even though individual consumers aren't buying directly from affiliates, marketers still love working with them. Why? Because they offer easy, cost effective means of reaching potential buyers who wouldn't otherwise respond to traditional methods. For instance, a retailer may post an ad in a local newspaper that encourages shoppers to check out their latest inventory while browsing. Instead of paying to run the ad itself, they sign up with an affiliate network like Commission Junction and then pay the network whenever their leads click on the advertisement and end up making a purchase.

The same thing happens when companies advertise via Google AdWords. When a user clicks on the search result, she goes straight to the advertiser's site. Rather than pay for each click, advertisers hire affiliates who work directly with Google to place relevant advertisements next to the keywords used in searches. Those affiliates then earn payment from the advertiser once a buyer takes action.

Another common scenario involves selling tickets to events. A concert promoter wants to reach new fans, so he hires an affiliate network to create a landing page for his event listing. Visitors see the page, click "Buy Tickets" and head off to the ticket seller. Again, the promoter pays nothing upfront, but earns money when people show up at the venue and buy tickets.

Where can I put affiliate marketing?

There are two main types of affiliate networks: direct and indirect. Direct networks connect publishers directly to merchants. These include sites like Amazon, eBay, and ClickBank. Indirect networks connect both publishers and retailers to affiliates who then act as middlemen between the parties. Popular examples of indirect networks include ShareASale, Refersion, and Post Affiliate Pro. All of these platforms allow affiliates to set up campaigns aimed at specific audiences and track performance metrics like conversion rates and ROI.

When choosing an affiliate platform, you'll probably notice that all of the major ones support PayPal payments. However, you shouldn't overlook smaller players in the industry. Some niche platforms charge less per transaction than larger networks, which gives you greater flexibility for creating profitable campaigns.

Doesn't everyone agree that affiliate marketing is bad?

Not necessarily. There are plenty of advantages to running an affiliate campaign. One big reason why so many people try to avoid it is because of the risk involved. Even if you succeed, you may never really see much return on investment. Another downside is that you spend money building relationships with partners who might not perform well later on down the road.

That said, you can take steps to mitigate these risks. First, focus on long term partnerships rather than quick wins. Also, keep detailed records of everything that occurs under your banner. Doing this will help you determine what works best for your situation and improve your chances of success overall.

Don't forget that you always have the ability to decline deals outright. Be sure to read terms very carefully before signing onto anything. And remember that you can easily opt out of any agreement you feel uncomfortable with.

What's the deal with having an LLC for an affiliate marketing business?

Some states prohibit certain types of businesses from operating entirely offline. As a result, they may limit your choices for legal incorporation. For instance, California requires businesses that involve real estate transactions to register as limited liability corporations.

However, state laws vary widely, so you should consult a lawyer to learn more about your particular jurisdiction. While some states have no restrictions whatsoever, others may restrict or regulate various aspects of your operation. If you plan to expand beyond the borders of your current home state, you might want to consider incorporating elsewhere.

In general, you can incorporate anywhere you'd like, provided that you meet all applicable requirements. Most importantly, you must file paperwork establishing your corporation's existence with your county clerk's office. Once you've done this, you can open bank accounts, establish credit cards, and apply for licenses and permits.

Do I need an attorney to handle my affiliate marketing needs?

It depends. Depending on your personal circumstances and goals, you may decide that hiring outside counsel isn't necessary. After all, you can typically find reputable attorneys online for reasonable fees. On the other hand, if you want to protect your rights legally, you should definitely talk things over with a professional.

While some lawyers specialize solely in corporate law, most practice across several fields. Before meeting with an attorney, ask questions about her areas of expertise. Then compare the answers against your own interests. Finally, discuss your budget limitations and expectations. Make sure that your chosen attorney understands what kind of case you're hoping to pursue and has experience handling similar issues in the past.

Once you understand what kind of advice you seek, you'll be able to better evaluate possible solutions. Do you need to prepare documents for court? Should you sue someone for breach of contract? Or maybe you need to negotiate a settlement with a former employee. Whatever your situation, you should always retain competent representation in order to achieve positive outcomes.

Finally, if you decide that you need to enlist the services of a lawyer, it doesn't hurt to shop around. Ask friends and colleagues about their experiences with various firms. Find out how satisfied clients were with their service and judge accordingly. Don't hesitate to contact a few different firms for initial consultations. You may discover that you prefer one firm over another--and perhaps even recommend it to others.