In this article lets see what is Affiliate Marketing? How it works? & How to get started?, In the end of the article you will find some Top Affiliating Marketing sites to make money. So Read on and Start making money Right away!
Affiliate Marketing Meaning
- In simple terms it is a transaction on a commission basis.
- Affiliate marketing is an online marketing strategy where merchants pay affiliates to promote their products or services on their behalf. In return, affiliates receive commissions based on sales they generate.
What is Affiliate Marketing?
- Affiliate marketing is a form of marketing in which a company pays a commission to another company for referring customers to its own services. The referring company is typically rewarded with a commission for the customers it brings in.
- Affiliate Marketing is part of the performance marketing family, meaning the return on investment is guaranteed and also the advertiser is only paying for advertising that has succeeded.
Growth of Affiliate Marketing:
- Affiliate marketing has been around since the early days of the internet. In fact, it was one of the first ways to make money online.
- However, not all affiliate programs are legitimate. You need to do some research before signing up with any company.
- It is one of the oldest forms of internet marketing. In fact, it was first used by Amazon back in 1995. Today, there are more than 2 million active affiliate marketers worldwide.
How Does Affiliate Marketing Work?
Step 1. Customer visits publisher website
Step 2. Customer sees advertising banner/link and also clicks through via an affiliate tracking link. The customer will likely not realise they have used an affiliate link
Step 3.The click is tracked by the affiliate network and a cookie is placed on the customer’s device to identify them as being referred by an affiliate network
Step 4. The customer completes an online purchase
Step 5. The advertiser fires the Affiliate Network’s tracking tag which reports the sale to the affiliate network as there is a cookie present
Step 6. The Affiliate Network reports the sale to the advertiser and also they pay the agreed commission for that sale
Step 7. The Affiliate Network pays the commission to the publisher as a reward for generating the sale
Affiliate Marketing – Payment Metric:
CPA – Cost Per Action. Typically, an ‘Action’ is a sale of an online good or service, but it can also be a lead or registration, a call, a download or any other trackable action that is desired of the end customer. In recent years this has grown to even include offline sales provided they can be tracked back by a coupon or barcode.
There are two ways the CPA are set:
Flat rate: For every action a fixed fee is paid. This is typically used for registration type actions with no cost, such as a credit card sign-up or for a fixed price product like a mobile phone contract.
Revenue Share: The price of the item purchased is tracked and a percentage of that price is then paid to the affiliate. This is generally favoured by advertisers selling a range of tangible goods at varying prices, such as fashion retailers.
Publisher is also known as an ‘Affiliate’. Any Affiliates earn money when people buy products through links in emails or websites. The affiliate marketer earns a commission for each sale that results from the link.
Types of Affiliate Marketing:
There are four main types of affiliate marketing:
1. Paid advertising
In this type the advertiser pays the affiliate for every click or lead generated. This is the most common form of affiliate marketing. It is also common way for new affiliates to get started.
2. Free advertising
In this type of the affiliate promotes the advertiser’s product or service for free. This is a great way for established affiliates to generate a passive income.
3. Referral marketing
In this type of affiliate marketing, the affiliate earns a commission on the sale of products or services that they have referred to the advertiser. This is a great way for affiliates to earn a commission on the sales of products or services that they are already promoting.
4. Joint marketing
In this type the affiliate and advertiser work together to create a campaign that is designed to promote both the advertiser’s product or service and the affiliate’s own product
Advantages of Affiliate Marketing:
- The main advantage of affiliate marketing is that it can be done from the comfort of your own home.
- You don’t have to go out and find a product to promote, or spend time contacting people who have already bought the product.
- You can promote products that you believe
How Affiliate Marketing helps Businesses?
There are many benefits to affiliate marketing, including the following:
- Firstly it can help businesses reach a wider audience.
- It can help businesses build a more loyal customer base.
- It can help businesses improve their marketing efforts.
- Lastly it can help businesses reduce their costs associated
How to get started with Affiliate marketing?
- To start earning, simply signup as an affiliate and also create a website or blog.
- Once you have created a website or blog, you can add affiliate links to your posts.
- When someone clicks on the link that you sent them to buy the product from the affiliate program, you earn a commission.
- You can promote products from any company you want, and you don’t have to be an expert in the subject matter. All you need is a website and also a few links.
How much we can earn through Affiliate marketing?
- The commission may be a percentage of the sale or a fixed amount, depending on the affiliate program
- You can earn up to 70% commission by promoting affiliate offers.
Website For Affiliate Marketing
Here are some of the best Affiliate marketing websites to get started.
- Amazon Associates
- Flipkart Affiliate
- Reseller Club
- BigRock Affiliate
- Hostgator Affiliate
Affiliate Marketing Amazon
- It is the best affiliate marketing platform for beginners as you need not worry about reaching a certain amount of sales volume for earning a higher commission. It has a flat-rate commission structure.
- If you’re looking to make money through Amazon Associates, there are a few things you need to know. First, you need to be registered with Amazon Associates. Once you’re registered, you can start promoting products and also earn commissions on sales.
- Once you have an account, the next step is to find products to promote. There are a number of ways to do this. You can browse product categories, look for specific products, or use Amazon’s product search tool. Once you find a product you want to promote, you need to decide how you want to promote it.
- Signing Amount: Free
- Minimum Payment Threshold: INR 2500
Future of Affiliate Marketing
- Mobile Commerce is an unstoppable force
- 30% of traffic, 15% of orders from mobile devices (ShareASale)
- Expert estimate that sales generated through mobile purchases will top $100 billion by 2017
- Content marketing will continue to grow in affiliate marketing High-quality content is beneficial not only for the search engine rankings, but also with consumers (traffic, conversion rate).
- People spend more time and money engaging with luxury brands. Online Affiliate networks report strong growth in luxury niches.
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