Ready to make money while you sleep. For 99% of people, affiliate marketing is how they get started.
The idea behind affiliate marketing is that you promote other people’s products, often through an affiliate network, earning a commission if people actually end up buying thanks to your marketing.
What is Affiliate Marketing?
It’s based on revenue sharing. If you have a product and want to sell more, you can offer promoters a financial incentive through an affiliate program. If you have no product and want to make money, then you can promote a product that you feel has value and earn an income from it as an affiliate marketer.
Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others, and earn a piece of the profit for each sale that you make.
4 Affiliate Marketing Parties
With affiliate marketing, there are 4 different parties that are involved: the merchant, the network, the publisher, and the customer.
Merchant
Sometimes also known as the creator, the seller, the brand, the retailer, or the vendor. This is the party that creates the product. It can be a big company, like Dyson, which produces vacuum cleaners.
Affiliate
This party is sometimes also known as the publisher. Affiliates can also range from single individuals to entire companies. An affiliate marketing business can produce a few hundred dollars in commissions each month or tens of millions of dollars.
It’s where marketing happens. An affiliate promotes one or multiple affiliate products and tries to attract and convince potential customers of the value of the merchant’s product so that they actually end up buying it.
Consumer
The customer or consumer makes the affiliate system go ’round. Without sales, there aren’t any commissions to hand out and no revenue to be shared.
An affiliate will try to market to the consumer on whatever channel they see fit, whether that’s a social network, digital billboards, or through a search engine using content marketing on a blog.
The consumer will not typically pay a higher price to the affiliate marketer, as the cost of the affiliate network is already included in the retail price.
Network
Only some consider the network part of the affiliate marketing equation. But, I believe that an affiliate marketing guide needs to include networks, because, in many cases, a network works as an intermediary between the affiliate and the merchant.
While you could technically promote an online course someone has created and just arrange a direct revenue share with them, letting a network such as ClickBank or Commission Junction handle the payment and product delivery puts a more serious note on your affiliate marketing.
Sometimes, affiliates have to go through an affiliate network to even be able to promote the product. For example, this happens if the merchant only manages their affiliate program on that network.
The affiliate network then also serves as a database of lots of products, out of which the affiliate marketer can choose which to promote.
Amazon Affiliate Network
In the case of promoting consumer products, like tools, books, toys, and household items, the biggest affiliate network, by far, is Amazon. Their Amazon Associates affiliate program lets you promote any item that is sold on their platform.
Anyone can sign up and then generate a custom affiliate link to Amazon products. If someone purchases through your link, you earn a small commission.
With the basic terms clarified, let’s get an overview of how you can best get started with building your affiliate marketing business.
How Does Affiliate Marketing Work?
Because affiliate marketing works by spreading the responsibilities of product marketing and creation across parties, it manages to leverage the abilities of a variety of individuals for a more effective marketing strategy while providing contributors with a share of the profit. To make this work, three different parties must be involved:
- Seller and product creators.
- The affiliate or advertiser.
- The consumer.
Let’s delve into the complex relationship these three parties share to ensure affiliate marketing is a success.
1. Seller and product creators.
The seller, whether a solo entrepreneur or large enterprise, is a vendor, merchant, product creator, or retailer with a product to market. The product can be a physical object, like household goods, or a service, like makeup tutorials.
Also known as the brand, the seller does not need to be actively involved in the marketing, but they may also be the advertiser and profit from the revenue sharing associated with affiliate marketing.
For example, the seller could be an ecommerce merchant that started a dropshipping business and wants to reach a new audience by paying affiliate websites to promote their products. Or the seller could be a SaaS company that leverages affiliates to help sell their marketing software.
2. The affiliate or publisher.
Also known as a publisher, the affiliate can be either an individual or a company that markets the seller’s product in an appealing way to potential consumers. In other words, the affiliate promotes the product to persuade consumers that it is valuable or beneficial to them and convince them to purchase the product. If the consumer does end up buying the product, the affiliate receives a portion of the revenue made.
Affiliates often have a very specific audience to whom they market, generally adhering to that audience’s interests. This creates a defined niche or personal brand that helps the affiliate attract consumers who will be most likely to act on the promotion.
3. The consumer.
Whether the consumer knows it or not, they (and their purchases) are the drivers of affiliate marketing. Affiliates share these products with them on social media, blogs, and websites.
When consumers buy the product, the seller and the affiliate share the profits. Sometimes the affiliate will choose to be upfront with the consumer by disclosing that they are receiving commission for the sales they make. Other times the consumer may be completely oblivious to the affiliate marketing infrastructure behind their purchase.
Either way, they will rarely pay more for the product purchased through affiliate marketing; the affiliate’s share of the profit is included in the retail price. The consumer will complete the purchase process and receive the product as normal, unaffected by the affiliate marketing system in which they are a significant part.
How Do Affiliate Marketers Get Paid?
A quick and inexpensive method of making money without the hassle of actually selling a product, affiliate marketing has an undeniable draw for those looking to increase their income online. But how does an affiliate get paid after linking the seller to the consumer? The answer can get complicated.
The consumer doesn’t always need to buy the product for the affiliate to get a kickback. Depending on the program, the affiliate’s contribution to the seller’s sales will be measured differently.
An affiliate may get paid in various ways:
1. Pay per sale.
This is the standard affiliate marketing structure. In this program, the merchant pays the affiliate a percentage of the sale price of the product after the consumer purchases the product as a result of the affiliate’s marketing strategies. In other words, the affiliate must actually get the investor to invest in the product before they are compensated.
2. Pay per lead.
A more complex system, pay per lead affiliate programs compensates the affiliate based on the conversion of leads. The affiliate must persuade the consumer to visit the merchant’s website and complete the desired action — whether it’s filling out a contact form, signing up for a trial of a product, subscribing to a newsletter, or downloading software or files.
3. Pay per click.
This program focuses on incentivizing the affiliate to redirect consumers from their marketing platform to the merchant’s website. This means the affiliate must engage the consumer to the extent that they will move from the affiliate’s site to the merchant’s site. The affiliate is paid based on the increase in web traffic.
Why Be an Affiliate Marketer?
What are the reasons to become an affiliate marketer?
1. Passive income.
While any “regular” job requires you to be at work to make money, affiliate marketing offers you the ability to make money while you sleep. By investing an initial amount of time into a campaign, you will see continuous returns on that time as consumers purchase the product over the following days and weeks. You receive money for your work long after you’ve finished it. Even when you’re not in front of your computer, your marketing skills will be earning you a steady flow of income.
2. No customer support.
Individual sellers and companies offering products or services have to deal with their consumers and ensure they are satisfied with what they have purchased.
Thanks to the affiliate marketing structure, you’ll never have to be concerned with customer support or customer satisfaction. The entire job of the affiliate marketer is to link the seller with the consumer. The seller deals with any consumer complaints after you receive your commission from the sale.
3. Work from home.
If you’re someone who hates going to the office, affiliate marketing is the perfect solution. You’ll be able to launch campaigns and receive revenue from the products that sellers create while working from the comfort of your own home. This is a job you can do without ever getting out of your pajamas.
4. Cost-effective.
Most businesses require startup fees as well as a cash flow to finance the products being sold. However, affiliate marketing can be done at a low cost, meaning you can get started quickly and without much hassle. There are no affiliate program fees to worry about and no need to create a product. Beginning this line of work is relatively straightforward.
5. Convenient and flexible.
Since you’re essentially becoming a freelancer, you get ultimate independence in setting your own goals, redirecting your path when you feel so inclined, choosing the products that interest you, and even determining your own hours. This convenience means you can diversify your portfolio if you like or focus solely on simple and straightforward campaigns. You’ll also be free from company restrictions and regulations as well as ill-performing teams.
6. Performance-Based rewards.
With other jobs, you could work an 80-hour week and still earn the same salary. Affiliate marketing is purely based on your performance. You’ll get from it what you put into it. Honing your reviewing skills and writing engaging campaigns will translate to direct improvements in your revenue. You’ll finally get paid for the outstanding work you do!
7. Do Not Underestimate the Power of SEO.
There’s a ton of organic traffic you can get from search engines if you do SEO properly. The days when Search Engine Optimization was about cheating Google are gone. Today, it is about making your website better for visitors. People naturally look for information online. That’s why you should learn the basics of on-page SEO, keyword research and link building to be the information source they find first. Who wouldn’t want to rank #1 for terms such as “best product” or “product review” in Google?
Common Types of Affiliate Marketing Channels
Most affiliates share common practices to ensure that their audience is engaged and receptive to purchasing promoted products. But not all affiliates advertise the products in the same way. In fact, there are several different marketing channels they may leverage.
1. Influencers.
An influencer is an individual who holds the power to impact the purchasing decisions of a large segment of the population. This person is in a great position to benefit from affiliate marketing. They already boast an impressive following, so it’s easy for them to direct consumers to the seller’s products through social media posts, blogs, and other interactions with their followers. The influencers then receive a share of the profits they helped to create.
2. Bloggers.
With the ability to rank organically in search engine queries, bloggers excel at increasing a seller’s conversions. The blogger samples the product or service and then writes a comprehensive review that promotes the brand in a compelling way, driving traffic back to the seller’s site.
The blogger is awarded for his or her influence spreading the word about the value of the product, helping to improve the seller’s sales.
3. Paid search focused microsites.
Developing and monetizing microsites can also garner a serious amount of sales. These sites are advertised within a partner site or on the sponsored listings of a search engine. They are distinct and separate from the organization’s main site. By offering more focused, relevant content to a specific audience, microsites lead to increased conversions due to their simple and straightforward call to action.
4. Email lists.
Despite its older origins, email marketing is still a viable source of affiliate marketing income. Some affiliates have email lists they can use to promote the seller’s products. Others may leverage email newsletters that include hyperlinks to products, earning a commission after the consumer purchases the product.
Another method is for the affiliate to build an email list over time. They use their various campaigns to collect emails, then send out emails regarding the products they are promoting.
5. Large media websites.
Designed to create a huge amount of traffic at all times, these sites focus on building an audience of millions. These websites promote products to their massive audience through the use of banners and contextual affiliate links. This method offers superior exposure and improves conversion rates, resulting in a top-notch revenue for both the seller and the affiliate.
7 Ways To Promote Your Affiliate Product
1. Write a Product Review Post
Product reviews are one of the best ways to get people to click your affiliate links.
According to a source, about 70% of consumers rely on reviews before making the purchase. And 72% will take action if it’s a positive review.
They’re even highly searched in the search engines. Particularly Google (obviously).
Seeing as how most of your potential affiliate product customers will come from organic search traffic, this is a big deal.
2. Write a Product Comparison Post
Another great, but hardly used, affiliate technique is the product comparison post.
It’s almost like the product review, but instead of reviewing just one, you review several. Also, don’t go all out or in-depth like you would with a normal product review post.
A very similar to the product roundup post, which we’ll get into in a minute. But with 2 differences:
- You’ll talk a lot more about the products. It’s more than a roundup and than a review.
- You’ll go more specific. Instead of “best marketing tools” you’ll go with “best email marketing tools”.
An example of this is Blogging Wizards’ post on the best social sharing plugins.
So when you’re creating your own product comparison post, look at it for inspiration.
3. Create a Recommended Resources Page
Perhaps the most underrated affiliate marketing tactic of them all, the “resources” page is one of the most visited pages on a lot of websites.
Why? Because people love using stuff the people they look up to use.
You may have seen them before.
A Resources page is where you talk about your favorite tools or the tools you use to achieve success.
For example, if you’re a blogger you would recommend resources like your web host, favorite WP themes, the plugins you use, and more.
4. Sprinkle Links Throughout Your Content
This is simple. And could get you a sale here and there. The link will still have to be relevant.
If you’re talking about anything related to the product you’re promoting, 90% of the time you’ll get to sneak your affiliate link in.
You can link to it when you mention the product itself, or even when you mention the product type.
Sometimes, you can even add a little note section where you recommend the product to the reader.
5. Create an Expert Roundup Post
Let’s call it the Affiliate’s Expert Roundup Post, or AERP for short.
Anyway, AERPs aren’t like regular expert roundups. They have one big difference…
Instead of asking the expert contributors for some sort of advice, you would ask them what their favorite tools are.
A great example is on Blogging Aid – 63 pro bloggers and marketers what email tools they’d use to grow their lists.
Pro Tip: Create a list of all the top tools with the most mentions and feature it at the top (before the actual expert contributions), like this:
This is where you can link to your affiliate links.
6. Create a Product Roundup Post
We talked about the comparisons a few minutes ago. We mentioned the 2 differences, which means roundups are broader (in terms of topics). And you don’t go all out or in-depth when talking about the products.
As an example, let’s go with Sue’s ultimate list of blogging tools.
She’s got nearly 100 tools in about a dozen categories.
Perfect example.
7. Product A vs Product Z
What about the regular comparison posts where you compare product A with product Z?
Sure. But today, you rarely see them.
The reason? No clue.
Perhaps it’s because there are too many popular products in every category. Or maybe consumers already know which product they want.
You know what I mean?
With that said, you can still compare A vs. Z and see some success. But you’ll have to feature the right products. Otherwise, it’ll just be a waste of time.
A great example of this would be BloggersIdeas’ OptinMonster vs. LeadPages post.
Jitendra, the owner, puts 2 of the best lead generation tools against each other.
You could even go bigger. Like what a Karol K did on CodeWP where she put 4 of the best lead generation tools against each other.
One thing I’d highly recommend, though, if you do create one of your own vs. a post, create a comparison table to go along with it.
CodeWP has one for theirs and it looks amazing. And I bet at least half of their visitors don’t even read the rest of the post.
Tips to Help You Become A Successful Affiliate Marketer
1. Develop a rapport.
When beginning your affiliate marketing career, you’ll want to cultivate an audience that has very specific interests. This allows you to tailor your affiliate campaigns to that niche, increasing the likelihood that you’ll convert. By establishing yourself as an expert in one area instead of promoting a large array of products, you’ll be able to market to the people most likely to buy the product.
2. Make it personal.
There is no shortage of products you’ll be able to promote. You’ll have the ability to pick and choose products that you personally believe in, so make sure that your campaigns center around truly valuable products that consumers will enjoy. You’ll achieve an impressive conversion rate while simultaneously establishing the reliability of your personal brand.
You’ll also want to get really good at email outreach to work with other bloggers and influencers. Use a tool like ContactOut or Voila Norbert to gather people’s contact information and send personalized emails to garner guest blogging and affiliate opportunities.
3. Start reviewing products and services.
Focus on reviewing products and services that fall within your niche. Then, leveraging the rapport you have created with your audience and your stance as an expert, tell your readers why they would benefit from purchasing the product or service you are promoting. Almost anything sold online can be reviewed if there is an affiliate program – you can review physical products, digital software, or even services booked online, like ride-sharing or travel resort booking. It is especially effective to compare this product to others in the same category. Most importantly, make sure you are generating detailed, articulate content to improve conversions.
4. Use several sources.
Instead of focusing on just an email campaign, also spend time making money with a blog, reaching out to your audience on social media, and even looking into cross-channel promotions.
Test a variety of marketing strategies to see which one your audience responds to the most. Make frequent use of this technique.
For more information, you can check out this article on how to start a successful blog this year.
5. Choose campaigns with care.
No matter how good your marketing skills are, you’ll make less money on a bad product than you will on a valuable one. Take the time to study the demand for a product before promoting it. Make sure to research the seller with care before teaming up. Your time is worth a lot, and you want to be sure you’re spending it on a product that is profitable and a seller you can believe in.
Wake up at an ungodly hour. Drive to the office through total gridlock, streets jammed with other half-asleep commuters. Slog through email after mind-numbing email until the sweet release at five o’clock.
Sound terrible?
What if, instead of dealing with the monotony and stupor of the rat race to earn a few bucks, you could make money at any time, from anywhere — even while you sleep?
That’s the concept behind affiliate marketing.
Affiliate marketing is a popular tactic to drive sales and generate significant online revenue. Extremely beneficial to both brands and affiliate marketers, the new push towards less traditional marketing tactics has paid off. In fact:
- 81% of brands and 84% of publishers leverage the power of affiliate marketing, a statistic that will continue to increase as affiliate marketing spending increases every year in the United States.
- There is a 10.1% increase in affiliate marketing spending in the United States each year, meaning that by 2020, that number will reach $6.8 billion.
- In 2018, content marketing costs were gauged to be 62% of traditional marketing schemes while simultaneously generating three times the leads of traditional methods. In fact, 16% of all orders made online can be attributed to the impact of affiliate marketing.
- As of March, 2017, Amazon’s affiliate structure changed, offering rates of 1-10% of product revenue for creators, providing the opportunity for affiliates to dramatically increase their passive income based on the vertical they’re selling on.
- The affiliate marketing of Jason Stone, otherwise known as Millionaire Mentor, was responsible for as much as $7 million in retailer sales just in the months of June and July in 2017.
6. Stay current with trends.
There is serious competition in the affiliate marketing sphere. You’ll want to make sure you stay on top of any new trends to ensure you remain competitive. Additionally, you’ll likely be able to benefit from at least a few of the new marketing techniques that are constantly being created. Be sure you’re keeping up to date on all these new strategies to guarantee that your conversion rates, and therefore revenue, will be as high as possible.
7. Only recommend products you are extremely familiar with.
Building trust with your audience is paramount in affiliate marketing, and the quickest way to lose trust is to recommend products either you haven’t used before or that aren’t a good fit for your audience. Also make sure you never tell anyone to directly buy a product, you are simply recommending the product. The more helpful you are and the more you make quality recommendations, the more likely your web visitors will come back for your expertise.
8. Promote products from many different merchants.
Don’t put all your eggs in one basket. If you only promote one merchant’s products, you are stuck with their commissions, their landing pages, and ultimately, their conversion rates. It is important to work with many different merchants in your niche and promote a wide range of products.
This affiliate marketing strategy will diversify the number of commissions you make and create a steady stream of revenue when building an affiliate website. Some examples of affiliate merchants include brands like BigCommerce, Bluehost, and SimplyBook.me.
9. Constantly test and optimize your conversion rates.
Let’s say you have a promotions page where you’re promoting a product via affiliate links. If you currently get 5,000 visits/month at a 2% conversion rate, you have 100 referrals. To get to 200 referrals, you can either focus on getting 5,000 more visitors or simply increasing the conversion rate to 4%.
Which sounds easier? Instead of spending months building Domain Authority with blogging and guest posts to get more organic traffic, you just have to increase the conversion rate by 2%. This can include landing page optimization, testing your calls-to-action, and having a conversion rate optimization strategy in place. By testing and optimizing your site, you’ll get far better results with much less effort.
10. Focus on your affiliate traffic sources.
It’s important to know where your traffic is coming from and the demographics of your audience. This will allow you to customize your messaging so that you can provide the best affiliate product recommendations. You shouldn’t just focus on the vertical you’re in, but on the traffic sources and audience that’s visiting your site. Traffic sources may include organic, paid, social media, referral, display, email, or direct traffic.
You can view traffic source data in Google Analytics to view things such as time on page, bounce rate, geo location, age, gender, time of day, devices (mobile vs. desktop), and more so that you can focus your effort on the highest converting traffic. This analytics data is crucial to making informed decisions, increasing your conversion rates, and making more affiliate sales.
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