The Affiliate Marketing space is a growing multi-billion-dollar industry that offers fantastic opportunities for entrepreneurs and content creators. It has emerged as a popular marketing strategy among e-commerce brands to promote their products or services. According to Moneyzine statistics, approximately 79% of online businesses leverage affiliate marketing. Most top affiliate programs are free to join, meaning the startup costs of affiliate marketing are minimal.
The beauty of affiliate marketing is that most entrepreneurs start it as a side hustle job and then expand their business gradually. However, the question that most people ask themselves before starting affiliate marketing is — How do I start affiliate marketing? To answer this, we have prepared a guide for beginners to help you kickstart your venture into the world of affiliate marketing
Understanding Affiliate Marketing: Full Beginner’s Overview
If you have landed on this page, it’s highly likely that you are finding new sources of income in the deep trenches of the Internet to make some extra cash. Fortunately, you’re in luck! Today, there are numerous opportunities to make money on the Internet, and the most effective and lucrative method is none other than affiliate marketing.
In case you’re unfamiliar with this term, it’s a form of internet marketing where you get paid every time you promote other people’s products or services. It benefits both the seller and promoter; thus, it could be a good income source for anyone who desires to work a little. Now you might ask: Why? So, before we choose the right affiliate programs for your niche, let’s start from the basics and define the basic concepts of how to earn money with affiliate marketing.
What Is Affiliate Marketing?
Affiliate marketing is a revenue-generating marketing strategy where the business partners with content producers, entrepreneurs, or social media influencers to sell their products or services in return for a share of profit through sales commission. Affiliates promote their product or service their audience would be interested in and get a commission from each sale they make. It’s a win-win situation – businesses expand their market reach, affiliates get paid, and customers find valuable products.
How Does Affiliate Marketing Work?
Affiliate marketing is a sales technique where one party is paid by another to sell a product or service. If you have ever clicked on the link by the podcaster or entrepreneur, or any social media influencer that promotes a specific product. In that case, you’ve probably been on the receiving end of affiliate marketing. The affiliate partners are tasked with recommending products and services to their audiences for qualifying to earn a commission whenever people make purchases based on their suggestions.
Once you sign up to become an affiliate, you are provided with a unique link through which your program manager can monitor the flow of customers. You receive a commission for every product the customer buys through your link. You can go directly to the merchant and look for the affiliate program or visit an affiliate network listing all affiliate programs. Here is the working mechanism of affiliate marketing:
- You show an ad or link on behalf of Store XYZ on your website, article, or social media channels
- Customer clicks on the ad or link
- Customer is sent to Store XYZ through a tracking link
- Customer makes a purchase on Store XYZ
- The affiliate network or company records the purchase and details of the transaction
- The customer is sent to Store XYZ through the tracking URL link
- The transaction is credited
- You get paid your commission
How To Choose The Right Affiliate Program For Your Niche?
Choosing the right design is often the most challenging aspect of affiliate marketing because you must consider factors like area of interest, demand, and profitability. Here are the things to take into consideration to help you find your ideal niche in affiliate marketing:
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Does the program have a good reputation in the market?
Of course, you wouldn’t want to get stuck with a company that hardly has a good reputation in the market. Perhaps one could avoid such a situation by carrying out extensive background research. Go to the source’s official website and search for its authenticity. If possible, look for online reviews on its past and present affiliates to draw a clearer picture
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Is the product/service related to your niche?
Yes, you can promote anything, but that is not what one should do. Relevancy is the key! For instance, if your blog is about graphic design, it will be relevant to recommend some graphic design tools. After all, there are more opportunities for making money when your target audience suddenly discovers they need more such products. Still, do not rule out learning and exploring new products that seem to fit your niche.
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Is the conversion rate of the program decent?
To be brutally honest, generating revenue is the only reason that motivates people to do affiliate marketing. Well, for better profit revenue, in addition to the commission rate, one must also consider the conversion rate. But why, though? Since affiliate marketing is based on the cost-per-sale (CPS) model, ensuring that the chosen program creates enough demand to generate sales and, consequently, profits is critical.
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Is the niche highly saturated?
If there is already too much competition in the product one wants to recommend, the prospects of returns could be low. You need to make use of competition metric tools to avoid entering a niche that is oversaturated and becoming just a tiny fraction of an extensive network. However, a more reasonable approach is to target less saturated categories with more potential for prospects, e.g., conversions.
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Is the program offering valuable tools and resources?
The best affiliate programs know that the promotion campaign should be as easy as possible for their affiliates. They do their best to create separate blogs and give banners, creatives, e-mail templates, testimonials, demographics, etc., to the affiliates. Such tools and learning resources may enable affiliates to improve their marketing campaign outcomes.
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Is there a way to track sales in the program?
When it comes to tracking systems, you will quickly realize that you’re dealing with a reputable affiliate program that is designed with affiliates in mind. Good tracking systems allow you to observe the detailed performance of your traffic channels, increases and decreases in sales, and reasons to tweak some of the aspects of your campaign. It is essential to know about the basic performance of your campaign so that you can focus on the right areas for a positive result.
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Is the cookie life good?
First of all, what even is cookie life? It is a duration within which the affiliate can claim their incentive from a referred customer. When the cookie life is 24 hours, and the referred customer buys something in the 25th hour, no commission is earned on the sale. Thus, even in a situation where you have introduced a customer to the service, you could lose potential sales. Of course, the longer the cookie life will be, the stronger your possession of the profit margin will be.
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Do you agree to the terms & conditions
Every program has policies, practices, and conditions that an affiliate is willing to abide by upon affiliation to the program. Not adhering to any of the key conditions could be detrimental. For instance, some programs can limit the numeric ratio of driving sales via specific traffic sources. However, relying solely on that prohibited channel while staying unaware of the restriction could only negatively affect your income.
Final Thoughts!
Now that you are aware of what affiliate marketing is, how it works, and how to choose the best one, it’s time to launch your affiliate marketing business! Choose an affiliate marketing niche tactic you want to use, and start producing audience-engaging content. And if you’re looking for a marketing solution that will not only help you tap into untouched markets but will also assist you in growing your affiliate business. Contact our SEO Consultants now!!!
