Affiliate marketing is a way for companies or individuals to make money by selling products without having to directly sell them themselves. When people buy from an affiliate’s site instead of yours, it's called "affiliating."
Since its introduction in the 1990s, affiliate marketing has grown into a multibillion-dollar industry. And today, more than 2 million websites use some form of affiliate marketing software to help bring in new customers. But what exactly does this mean? What are the different ways that you can become part of the affiliate ecosystem? Is anyone making any money on these sites? Let's take a look at how affiliate marketing works and where the biggest opportunities lie for those who want to join the game.
To understand affiliate marketing, we first have to talk about what it isn't. It isn't direct sales (although sometimes you might find someone trying to be sneaky like that). Instead, it involves multiple parties working together toward a common goal. The three players are the company being sold, the website hosting the sale (called the merchant), and the person actually buying goods online (the customer).
The relationship between all three is very important because if they don't work well together, then neither party will earn much revenue. So let's go over each player individually and see why their roles matter so much.
The Company Being Sold
Companies usually choose to partner up with other businesses for two reasons: 1) They want to reach as wide an audience as possible, which means partnering with as many merchants as possible. 2) They want to provide value to its customers through quality content and helpful guides. This helps build trust among potential buyers. If your business sells something that would benefit others, it makes sense to team up with a reputable brand that already has a reputation.
Merchants
When choosing a merchant, you should always consider the following questions when looking for a good match:
Is the product relevant to my target market? For example, is it useful for men age 18–34? Or women age 35+? You may also want to consider whether the price point aligns with your own profit margins.
Does the merchant offer high conversion rates? A low conversion rate means your traffic won't convert into a sale. Some merchants pay only 10% commission on successful purchases while others give away free samples and charge no upfront fees. These factors affect both your return on investment and your ability to generate leads, but you'll learn more about this later in the article.
Do I feel comfortable using the merchant's payment platform? Many services require users to create accounts before completing transactions. Others ask you to sign up for recurring payments after every purchase. Do not hesitate to contact the merchant ahead of time to ensure your security concerns are addressed.
Are the seller's terms clear? Look closely at the fine print to determine how long you will be paid commissions, how often you must promote the item, and how to track your earnings. Also, check out the refund policy and cancellation rules.
As mentioned previously, affiliate networks play a key role in bringing together sellers and purchasers. There are several major ones. Here are just a few:
Shopify - An ecommerce marketplace that allows you to set up stores and manage orders through its interface. You can upload pictures, videos, and text descriptions to help explain the items you're promoting. Most importantly, Shopify offers advanced analytics tools that allow you to monitor performance metrics such as order volume, average transaction size, and average basket values.
ShareASale - Another popular network that gives sellers access to thousands of prebuilt landing pages and templates. With ShareASale, you can even customize the design yourself. In addition to offering easy-to-use drag-and-drop builder tools, this program lets you add links to social media profiles and search engine optimization keywords.
CJ Affiliate - One of the largest affiliate platforms around, CJ provides everything you could possibly need to run an effective campaign. Its unique features include automatic ad scheduling, easy setup, and simple reporting.
eBay Partner Network Inc. - This large network was founded back in 1995 and now operates under a separate entity known as eBay Solutions Group. It boasts the highest number of active affiliates worldwide, with over 30,000 merchants participating in its system.
ConvertKit LLC - Known as the fastest growing email service provider, this platform focuses primarily on automating tasks associated with email marketing campaigns. For instance, it includes automated drip emails that follow up with subscribers based on user behavior patterns.
According to Statista, the global affiliate marketing industry reached $13 billion in 2018 alone! That's a huge increase from 2017 ($10.6B). As you can imagine, almost everyone uses affiliate marketing methods to boost their bottom lines. Not surprisingly, the majority of marketers prefer PPC advertising. However, there are plenty of other options available too. Below are just a handful of the most popular strategies used by top earners:
SEO / SEM : Search engines place heavy emphasis on the appearance of websites and the amount of relevant information contained within them. To optimize rankings, advertisers rely heavily on SEO techniques like keyword research and link building.
Social Media Marketing : Social media sites like Facebook, Instagram, Twitter, LinkedIn, Pinterest, etc., enable companies to interact directly with their followers. By creating engaging posts and sharing valuable content, brands hope to encourage interactions that lead to conversions.
Content Creation : Content creation refers to the act of producing original writing, video, podcasts, infographics, etc., designed to attract readers and viewers. According to HubSpot, 75 percent of internet users consume articles daily, meaning that publishing regularly can drive massive amounts of targeted traffic to your site.
Inbound Marketing : Referred to as "content marketing," this strategy involves distributing fresh, educational material aimed at attracting visitors rather than pushing products. For example, blog posts, white papers, and webinars provide detailed insights into topics that interest consumers.
Email Marketing : Email remains one of the most powerful forms of digital communication despite the rise of mobile devices. Companies still send millions of newsletters every day, hoping to keep readers engaged and interested enough to click through to a webpage or download an app.
These statistics show us that affiliate marketing is here to stay. More than ever before, savvy entrepreneurs are recognizing the benefits of tapping into this lucrative niche. While there are plenty of resources available to help you launch an affiliate campaign, it takes effort and knowledge to grow your business and maximize profits.
Affiliates have been around since the beginning of online businesses, but there's a lot more than just clickbank out there today. For example, if you're looking at an ecommerce business, it could be selling physical goods or digital content (like software). There are also different kinds of affiliates, like those who sell other people's products. Here is what each type of affiliate looks like and how they work.
The first question many of us ask when we start learning about affiliate marketing is whether we can display pictures of our own products on our site. The answer is yes, but only if your niche has lots of competition. If you want to promote something popular, then displaying product photos may not give you much traffic. However, if you're promoting something unique, then go ahead and show off your stuff!
If you're interested in displaying product images on your page, make sure you follow these steps:
- Create a list of keywords relevant to your niche. These should include both long tail as well as broad match terms.
- Use Google AdWords (or another pay per click advertising platform) to find suitable advertisers who will advertise on your niche keyword lists. This way, you'll automatically see which ads convert well so you don't waste time trying out new ones.
- Once you've found a few good advertisers, contact them directly through their websites' sales pages. You might even try contacting some big brands from the same industry too. They often have affiliate deals available to smaller companies like yours.
You can either offer commission based on volume or payment per conversion. Either way works fine. Just keep doing this until you find a reliable company you trust. It takes time, but once you've got yourself a steady stream of revenue coming in, things are going to run smoothly.
One of the biggest challenges faced by any affiliate marketer is getting access to quality products to promote. As mentioned above, if your niche doesn't have enough demand, it's probably better to focus on building up your own brand instead. But if you really want to leverage the power of affiliate marketing, you need a source of high-quality products.
Here are three ways you can acquire products for affiliate marketing:
1. Buy & Sell sites - if you have some spare cash lying around, buying and reselling products can help you build a portfolio of high-value items that you can later pass onto others. Sites such as Amazon Marketplace allow users to buy and sell all sorts of things, including books, electronics, fashion accessories, and anything else you can think of.
2. Commission Junction - CJ offers a marketplace where anyone can register and begin listing their wares. You can search for specific categories or browse everything listed under "Sellers." To avoid becoming overwhelmed, stick to a handful of categories that interest you. Then, set your price range and choose between fixed priced listings or auction style options. When someone purchases a product listed on your site, you receive a percentage of the sale amount.
3. ClickBank - ClickBank specializes in digital downloads, meaning you won't necessarily need to purchase a physical item before passing it along to customers. Instead, you simply upload an electronic file containing instructions on how to download or install the product. Some products require additional fees for installation.
Once you've acquired a number of high-quality products, you'll quickly learn which ones generate the highest commissions. And because you're already familiar with the product itself, it makes sense to place these into your own store rather than using third party stores. This gives you complete control over pricing, promotion, etc., while still keeping visitors safe and secure.
Also note that you can sign up for affiliate programs offered by various retailers, manufacturers, distributors, and wholesalers. In fact, a major benefit of being an affiliate is that you can easily create a custom landing page for your link, allowing potential buyers to navigate straight to your store without having to leave their current location. All you need to do is fill out a short application form and submit it for approval.
Just like with products, finding videos to promote can be pretty tricky. Fortunately, YouTube is full of great resources offering helpful tips and tricks for creating compelling videos. One easy solution would be to go old school and record a narrated promotional video explaining why consumers should pick your product over competitors'. Another option would be to write an article describing your benefits and publish it alongside a couple of screenshots of the actual product.
Another approach would be to take advantage of tools like Screenflow, Camtasia Studio, Zoom H4n, Adobe Premiere Pro CC, and Microsoft Movie Maker. With these applications, you can easily add graphics and animations to your videos. Not only does this look professional, but it helps attract viewers to your channel and increase conversions.
However, if none of these solutions appeal to you, there's always the tried and true method of filming a live demonstration. Simply explain exactly what the product does, how it functions, and how it compares to its competitors. Also consider adding testimonials from satisfied customers who bought your product after seeing your demo.
In addition to purchasing products for affiliate marketing purposes, you can sometimes obtain free samples. Many times, companies send out swag packs filled with goodies. Whether it's coffee makers, clothing, or makeup, you never know what you might find inside.
Of course, you'll need to put together a proper pitch letter detailing your relationship with the manufacturer as well as how their product will fit into your customer base. Most important of all, though, is making sure you actually deliver on your promise. After months of hard work and effort, it'd be terrible karma to break faith with a company after they gave you a chance to build your audience.
All of the information provided here was designed solely to provide general education and inspiration. We strongly encourage you to seek independent advice regarding any health condition or medical treatment.
Affiliate marketing is basically a way for businesses to sell their products or services by using other people's websites (affiliates), who earn commission if they refer new customers.
With all online business owners having a hard time making money these days, it makes sense why so many choose this form of advertising over traditional methods like paid ads. In fact, some say that affiliate marketing has been responsible for more than 50% of internet sales today. And since 2016 alone, there have been $10 billion dollars earned from affiliate commissions!
But not every affiliate program will be right for your business needs. So how should you pick which ones are worth investing into? There are three major types of affiliates out there, and each one has its own benefits and drawbacks.
If you're selling physical goods, then yes you absolutely can show pictures of them. This is called "product photography". It's also known as "banners", but banners typically only work well when placed on landing pages. However, product photographs are usually used at the end of the page after the customer has already clicked through to buy something. But keep in mind that you'll still need to make sure the image doesn't look too cheap. Otherwise, it could turn off potential buyers.
You can purchase stock photos from places such as Shutterstock and Fiverr. You may even find free images on sites like Pixabay. If you want to go the DIY route, check out our guide on finding high-quality images here.
Amazon does allow you to display images of products sold by others within your site, so long as they aren't directly competing against yours. As a result, you won't get any commission unless someone clicks through to buy the product. Of course, this means you don't get any traffic either, which isn't ideal.
To avoid this problem, make sure you always include links to those items. For example, instead of displaying a picture of the shoe itself, you link to the actual product listing where it lives on Amazon. Then, once someone clicks through, you get credit for referring visitors to Amazon.
This strategy works great because it gives you both exposure and revenue -- two things you definitely need if you want to succeed in affiliate marketing. The downside is that you need to constantly monitor what's being promoted on Amazon. That means you probably need to spend hours looking up keywords before promoting anything yourself.
The good news is that you can automate much of this process with tools such as Backlinko. If you'd rather focus on building relationships with influencers, try checking out our list of top 10 social media platforms.
As mentioned above, you can use Amazon product photos on your website as long as you're not actively trying to compete with them. They're allowed under certain conditions, so long as you give proper attribution. To learn exactly what you can and cannot do, read their full terms and conditions.
A few examples of acceptable uses are:
Display an Amazon photo next to text describing your service/product
Use an Amazon photo alongside a testimonial from a satisfied buyer
Use an Amazon photo as part of a blog post about another company's offering
Include a short snippet of video from an Amazon seller that showcases the item you're promoting
While you might think it would be easier to promote your brand if you were able to simply walk around town handing out flyers, this isn't necessarily true. Because of privacy concerns, companies tend to limit how far away you can stand from someone else's property. Plus, there's no guarantee that anyone will actually take notice of your pitch. After all, we live in a world where everyone's distracted by technology.
That said, there are ways to promote your business without drawing attention to yourself. One option is to create videos highlighting your offerings and upload them to YouTube or Vimeo. Another is to leverage social media to spread awareness about your business.
For example, you could put together a weekly Twitter poll asking viewers to share their favorite brands or products. Or maybe you could set up a Facebook group to discuss topics relevant to your field of expertise. Whatever method you decide to use, just make sure you stay consistent with posting content regularly.
Once again, automation comes in handy here. Tools like Buffer make it easy to schedule posts ahead of time, allowing you to focus on creating quality content instead of spending countless hours researching hashtags and writing tweets.
And while you're busy focusing on producing content, consider setting up Google Alerts to receive regular updates about trending topics related to your industry. These alerts are especially useful because they let you know what people are talking about without needing to search manually.
Finally, if you really want to ensure you never run into issues regarding copyright infringement, make sure you sign up for the Content ID tool offered by Adobe. With this software, you can easily identify copyrighted material posted elsewhere on the web. Once identified, you can request removal of the offending content.
So whether you're interested in becoming an affiliate marketer, or you're already doing it successfully, there are plenty of opportunities available to help you grow your business. Just remember to start small, stay focused, and treat it like any other job.
1) Affiliate Program
There are three primary ways to work as an affiliate marketer.
A network - An example would be Clickbank where you can sign up to promote specific items within a large group of similar merchants. In this case you only get paid when someone clicks through your link from your site and buys something from another merchant.
Direct selling – This means promoting individual products directly from the merchants themselves. You will usually have more control over what content appears on your page but it’s harder to track conversions unless you implement some kind of tracking system yourself.
Commission Junction – A third party service which handles all the technology around setting up and managing your account, allowing you to focus on creating great content rather than worrying about the technical stuff. Commission Junction also provides an easy-to-use interface so you don't need any expertise whatsoever.
The different kinds of affiliates typically fall into these categories depending upon whether they're working alone or part of a larger company. For instance, a freelance writer might choose to go direct because she wants greater flexibility.
You should take care not to confuse two very different things:
An affiliate program - The collection of links and banners provided to affiliates by a business who want them to help spread its brand awareness via social media etc.
A referral program - The concept whereby users or clients receive discounts or rewards based on
Just follow our battle-tested guidelines and rake in the profits.