{"id":903,"date":"2017-07-03T08:07:15","date_gmt":"2017-07-03T08:07:15","guid":{"rendered":"https:\/\/firstsiteguide.com\/affiliate-marketing\/"},"modified":"2023-10-04T06:54:30","modified_gmt":"2023-10-04T06:54:30","slug":"affiliate-marketing","status":"publish","type":"post","link":"https:\/\/firstsiteguide.com\/affiliate-marketing\/","title":{"rendered":"Affiliate Marketing: What is It and How Does It Work?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
As you might already know, the digital realm offers many opportunities for making money online<\/a>. One of the most attractive options is affiliate marketing. While creating passive income and making money while you sleep sounds captivating, there is a lot of groundwork involved before you can start making affiliate profits.<\/p>\n\n\n\n If you are interested in affiliate marketing, we are ready to provide you with the information that you need to get started. Here is a guide that will lead you through the process of affiliate marketing and show you how to use it to start making money as an online business<\/a>.<\/p>\n\n\n\n While it may sound like a relatively new form of marketing, affiliate marketing is as old as online selling<\/a> itself. If you participate, you receive a commission every time a person buys an online product based on your recommendation. <\/p>\n\n\n \u201cAffiliate marketing is the process of earning a commission by promoting other people\u2019s or company\u2019s products.\u201d<\/em><\/p>\n\n<\/div>\n\n\n The mechanics of this process are simple. It begins with finding an interesting product that you like, making an effort to promote it to other people, and, in the end, earning a piece of the profit (commission) from each successful sale. <\/p>\n\n\n\n As a general rule of thumb, there are three types of affiliate marketing programs that you can join: <\/p>\n\n\n Although they\u2019re relatively self-explanatory, let\u2019s briefly go over each of them. <\/p>\n\n\n\n Unattached affiliate marketing is a model where the affiliate has no connection whatsoever to the brand or the type of product that they\u2019re recommending. They have no expertise in the matter, no related skills, and no authority in the niche. <\/p>\n\n\n\n The affiliate doesn\u2019t even need to have a respectable online presence \u2013 you could simply invest in Google Ads and create a Pay-Per-Click (PPC) campaign (which we\u2019ll get into a bit later) to earn a profit from unattached affiliate marketing. <\/p>\n\n\n\n Related affiliate marketing is slightly more \u201cpersonal\u201d and requires a bit more effort. You\u2019ll need to have an established online presence and a specific niche, then promote products or services relevant to that niche. <\/p>\n\n\n\n Mind you, you don\u2019t have to have experience with that particular product\/service or even the brand, but you\u2019ll need to have some touchpoints. <\/p>\n\n\n\n For example, you could be a financial blogger who shares tips and tricks about budgeting and supercharging one\u2019s savings. You could join an affiliate program offered by a bank and promote credit cards (that you\u2019re not using) to your audiences, or simply place a banner ad by your blog post. You could also recommend a budgeting app that you\u2019ve never even heard of and make money through your affiliate links. <\/p>\n\n\n\n Finally, the most lucrative \u2013 and demanding \u2013 type of affiliate program is the involved one. You\u2019ll need to be a respected authority in your niche (at least among your audiences) and have a deeper connection with the brand that you\u2019re promoting. <\/p>\n\n\n\n You\u2019ll need to have a thorough understanding of the specific product\/service, which means that you\u2019ll need to have used it for a while. After familiarizing yourself with the brand\u2019s offer, you can share your experiences and explain to your audiences why investing in it is a good idea. Don\u2019t forget to add your affiliate link to earn a commission when you\u2019ve persuaded someone to make a purchase. <\/p>\n\n\n\n Keep in mind that you\u2019ll need to be careful here. The quality of the product\/service will impact your reputation. If you\u2019re promoting low-quality goods, your audience will think less of you, and you\u2019ll lose trust and authority, which will affect your future affiliate income. <\/p>\n\n\n\n The goal of affiliate marketing is the same as any type of marketing \u2013 to increase revenue. Brands can expand their reach to wider audiences through affiliate programs, spread word about their offers, generate leads and boost conversions. Through this, affiliates can earn a passive income without worrying about anything else but getting customers to a brand\u2019s desired landing page.<\/p>\n\n\n\n Let\u2019s take a look at some of the main benefits of affiliate programs for both brands and their affiliates. <\/p>\n\n\n\n Affiliate marketing spending is set to hit the $8.2 billion<\/a> mark in the US alone by 2022. Brands large and small are focusing more and more on this type of marketing, and they wouldn\u2019t do this unless it brought some valuable benefits. <\/p>\n\n\n\n Low costs\/low risk <\/strong>– conventional marketing efforts require a significant investment. Companies need to come up with the best strategies for success, buy ad space, develop comprehensive campaigns, and do a million little things to draw attention from consumers without any guarantees that these efforts will pay off. <\/p>\n\n\n\n With affiliate marketing, however, they don\u2019t have to worry about any of that. All they have to do is vet the affiliates and pay a small fee for their efforts. Since most affiliate marketing programs work based on the number of sales generated, brands only have to pay a commission for a successful sale. They won\u2019t lose any income if the marketing is ineffective. <\/p>\n\n\n\n Targeted traffic <\/strong>– most brands carefully assess every affiliate marketing candidate, examining their niche and analyzing their audiences. This gives them a deeper understanding of just how suitable a potential affiliate and their audiences are. The more relevant the affiliate is, the better it is for the brand, as they can provide highly targeted traffic that generates qualified leads and improves conversions. <\/p>\n\n\n\n High return on investment <\/strong>– with low cost, low risks, and targeted traffic, affiliate marketing presents brands with a high return on investment. <\/p>\n\n\n\n Affiliates held in high regard by their audiences have an incredible influence on them and shape their purchasing behaviors. Collaborating with such affiliates allows brands to enjoy a better reputation, which boosts their return on investment (ROI) and supercharges their profits. <\/p>\n\n\n\n Scalability <\/strong>– the most significant benefit of affiliate marketing for businesses is that it enables them to scale up or down with ease. Since the investment is minimal, any brand that wishes to expand its audiences can easily do so at a low cost. On the other hand, if the budget is getting tighter, scaling down is no problem. <\/p>\n\n\n\n It\u2019s not only businesses that enjoy the benefits of affiliate marketing \u2013 the affiliates do as well. Whether you\u2019re a nano influencer or an increasingly popular blogger, you can expect great things from your affiliate relationship with a brand. <\/p>\n\n\n\n Independence <\/strong>– the biggest draw of affiliate marketing is that it gives you complete independence \u2013 promote brands when you want to, let your affiliate links work for you while you\u2019re away, and set your own schedule. <\/p>\n\n\n\n Of course, if you\u2019re too nonchalant about affiliate marketing, you won\u2019t get as much from it as you\u2019d like. It\u2019s in your best interests to take the job a bit more seriously, but you don\u2019t have to unless you want to. <\/p>\n\n\n\n Simplicity<\/strong> – as long as you have an audience online (whether that\u2019s via a blog, your own site, social media channel, or anything in between), you can become an affiliate partner. You don\u2019t need any previous experience or special training. You won\u2019t have to come up with marketing strategies or devote yourself to performance analysis. Simply start promoting a brand and reap the rewards. <\/p>\n\n\n\n Lucrative opportunities <\/strong>– affiliate marketing is a multi-billion-dollar industry. Virtually every brand has an affiliate program, and joining is easier than ever. You don\u2019t have to promote low-quality products or advertise a brand that you dislike. Choose businesses, products, and services that you fully support, and be as nitpicky about your partners as you want to. <\/p>\n\n\n\n There are many lucrative opportunities in this field, so affiliate marketing can pay off for you as long as you believe that you can persuade your audiences to buy a product or service. <\/p>\n\n\n Most newcomers to the world of affiliate marketing see it as a simple two-sided relationship between the brand and the affiliate. However, the entire affiliate ecosystem is slightly more complicated than that, and to be successful, all of the parties involved in affiliate marketing have to actively connect and communicate. <\/p>\n\n\n\n The vital part of this connection are the relationships formed between the advertiser, the network that manages their campaign, the publisher, and the consumer.<\/p>\n\n\n\n Service\/product providers, merchants, retailers, brands, vendors, advertisers, call them what you will \u2013 they are the reason why you can easily make money online. An advertiser in affiliate marketing<\/a> can be any company that sells products (cosmetics, kitchen appliances, electronics, cloth, etc.) or services (software, cloud storage, video games, etc.). <\/p>\n\n\n\n They can be Fortune 500 companies renowned the world over, or they can be small entrepreneurs and solo retailers. Regardless of their size, they\u2019re the key to your success. <\/p>\n\n\n\n Although it may seem like partnering with more prominent advertisers would be the better option, that\u2019s not necessarily the case. As a general rule of thumb, you\u2019ll want to partner with brands whose products\/services you enjoy using. <\/p>\n\n\n\n The things that you promote on your site<\/a> or social media channels will have an impact on how your audiences perceive you. If you partner with a large brand whose products you simply don\u2019t enjoy, your audience will know, and you\u2019ll lose their trust. <\/p>\n\n\n\n Few brands will work directly with their affiliate marketers since it can take a lot of time and effort to vet every applicant. Instead, they\u2019ll hire an affiliate network \u2013 an intermediary that connects businesses with their potential affiliates. <\/p>\n\n\n\n Although it may seem like networks are just adding complexity to the whole process, they can prove to be very beneficial if you\u2019re trying to supercharge your income from affiliate marketing. They can connect you with dozens of unique brands and products, allowing you to choose those that are most suitable for your online persona. <\/p>\n\n\n\n Commonly, you\u2019ll have the option to browse through different product categories, then make your selection to start earning an income. <\/p>\n\n\n\n The most important aspect of working with an affiliate network instead of directly with a business is that you can ensure that everything is fair and above-board. You won\u2019t have to worry about the company \u201cforgetting\u201d to pay you or trying to scam you. The affiliate network handles all payments, so you can work with the comfort of knowing that your earnings are safe. <\/p>\n\n\n\n The last piece of the puzzle is the affiliate marketer (also referred to as the publisher) \u2013 an individual who promotes an advertiser\u2019s product or service. In exchange, the publisher earns a commission. Usually, there is a contract that binds a publisher and an advertiser. As part of this contract, the advertiser is the one who provides a publisher with text ads, links, and banners. The publisher then uses it on their website to promote the advertiser\u2019s products and services. <\/p>\n\n\n\n The publisher can be a solo player, like yourself, collaborating with networks or directly with brands, but they can also be an entire business \u2013 huge publishing sites that receive compensation from every link that they include in their posts. <\/p>\n\n\n\n The main job of the affiliate marketer\/publisher is to connect with their audiences and establish a strong, trustworthy relationship with them. They need to build authority within their niche, establish themselves as credible sources of information, and focus on creating a positive online image. After all, the better their reputation, the more successful they\u2019ll be in nudging their audiences to make a purchase from their affiliate links. <\/p>\n\n\n\n As an affiliate, you can choose to work with a single company and promote only their products, or as a better option, you can broaden your horizons and partner with as many brands and products as possible that fit your niche.<\/p>\n\n\n\n In the end, as the last involved party in affiliate marketing, we have the consumer. The consumer is the key to the entire affiliate marketing ecosystem. Without them, none of this would exist since there\u2019d be no sales to speak of, making affiliates redundant. <\/p>\n\n\n\n The consumer is a person who sees the ad on a publisher\u2019s website and takes action (clicks on it, submits info), which leads them to the advertiser\u2019s website to complete an action (make a purchase, subscribe to service). This is what marketers call a conversion.<\/p>\n\n\n\n Conversion tracking is one of the most important aspects of affiliate marketing. Knowing which ads your sales came from and what triggered your visitors to purchase a product means that you can grow your business.<\/p>\n\n\n\n As the affiliate, you\u2019d be in charge of reaching out to as many consumers as possible \u2013 the more people you reach, the higher your earnings. You can use any channel to market on \u2013 blogs, email, social media, you name it. <\/p>\n\n\n\n Keep in mind that consumers need to be aware of the affiliate relationships between you and the company you\u2019re promoting. You\u2019ve likely noticed the affiliate disclaimer<\/em> on many random sites you browse in your free time: \u201cThis article contains affiliate links. If you purchase items on this site, we may earn a small commission.\u201d <\/p>\n\n\n\n Whether the consumer purchases an item directly on the brand\u2019s site or through your affiliate link, their cost will be the same. It\u2019s the brand, not the consumer, that pays the affiliate marketer.<\/p>\n\n\n\n In affiliate marketing, you can promote any product or service. Experienced affiliate marketers say that they have achieved the best results by selling products that they are already familiar with. If you choose to promote a product or service that you have already used and it has helped you to solve a problem or achieve something, there is a higher chance that you will succeed in promoting it.<\/p>\n\n\n\n If you are confident in a product and you can stand behind your promotional activities, you have picked the right product. <\/p>\n\n\n\n If you are clueless and not sure how to find an affiliate product that you can promote, here is how to look for one:<\/p>\n\n\n If you have already created a blog, try to find products related to your niche. For instance, if you are writing about smartphones and computers, you can try to find an affiliate program for these goods. These products have a name in affiliate marketing \u2013 a niche affiliate product. If you are not sure where to start, you can also find niches using Google<\/a>.<\/p>\n\n\n\n As an affiliate marketer, one of the most important things to work on is your credibility as a product reviewer. That is why we recommend first to try using a product or service before writing a review and recommending it to other people. Until you develop your skills, you may want to try promoting recognizable brand products and work your way towards reviewing and recommending products from less popular brands.<\/p>\n\n\n\n Now that you have picked a product and your niche, you have to get to know the people behind it \u2013 your target audience. Finding your target audience is important. It will allow you to find out what potential consumers viewing your brand promotions need and want.<\/p>\n\n\n\n You can start figuring out who your target audience is by focusing on reading the reviews in your niche. You can also spend some time in online forums and read the comment section from blogs that cover your niche topics. If you have noticed some unanswered questions emerging over and over again, write them down. Your audience needs them answered, and you can do that for them. Alternatively, you can do an online search for the best niche blogs<\/a> and see how they are structured.<\/p>\n\n\n\n When you are scouring the web to meet your target audience, make sure to pay attention to the following:<\/p>\n\n\n Let\u2019s go through an example to make this clear. Let\u2019s say that your niche is Protein Power Bars. After reading only a few of the reviews online, we can gather many useful information crumbs. Your target audience is mostly made up of men in their 20s and 30s. Women are also interested in this product, but your target is predominantly men in their 20s and 30s.<\/p>\n\n\n\n Here are some of the concerns and questions that men have when buying a protein bar:<\/p>\n\n\n\n Knowing what is important to your target audience makes it much easier to discover what to write about and to keep your audience engaged.<\/p>\n\n\n\n Once you know which product you are going to promote and who your target audience is, you have to answer one more question. What are you trying to convey<\/a> about that service or product in particular? A website has to connect users more closely to the product that you are promoting. You\u2019ll need high-quality photos, reviews, tips and tricks, all that packed into an attractive design.<\/p>\n\n\n\n Fortunately, you don\u2019t need to have technical skills to create a blog or to build a website<\/a>. There are many online services<\/a> that can help you to have your site up and running in no time. You can also check out the most popular color palettes and designs in your niche when it comes to design. Always make sure to keep your target audience in mind.<\/p>\n\n\n\n A well-developed blog section on a website can certainly help your affiliate marketing career. You can write articles to answer your audience\u2019s questions and also include articles where you compare related products and services. If you give your audience value, they will continue returning to your website.<\/p>\n\n\n\n To reach more people from your target audience, you will need to learn some effective online marketing strategies. Here are some things that you can do that will help you to grow and earn more as an affiliate marketer:<\/p>\n\n\n <\/p>\n\n\n\n If you are interested in running your own affiliate program, check out this partner and affiliate software<\/a>.<\/p>\n\n\n\n There are two helpful ways to build up your success as an affiliate:<\/p>\n\n\n\n PPC<\/strong> – one of the traditional methods for promoting affiliate products is PPC. This consists of bidding on relevant keywords. To understand which keywords are related to the products that you are promoting, you will need to work on your AdWords<\/a> skills and perform proper keyword research<\/a>. The key is to identify the keywords that inspire conversions.<\/p>\n\n\n\n SEO<\/strong> – SEO is also a viable way to promote affiliate products. When you have a website established where you are promoting products or services, SEO is a smart move in the long run. It will improve your website visibility and help you to increase your website traffic.<\/p>\n\n\n As an affiliate marketer, you can choose many different channels to promote the brands and products that you support. You can leverage one or even use all of the following channels to boost your affiliate marketing income. <\/p>\n\n\n\n Email<\/a> is one of the oldest and most popular channels for affiliate marketing. You can easily set up an email list, reach out to your audience, and include affiliate links without much effort. However, you will want to avoid \u201ccold-calling\u201d, such as sending emails with your affiliate links to audiences who have no idea who you are. No one will click on a link in an email from a stranger. <\/p>\n\n\n\n Instead, reach out to those who are already subscribed to your newsletters or are otherwise accustomed to receiving emails from you. <\/p>\n\n\n\n Once you build a mailing list<\/a>, it\u2019s time to start sending those emails. Add your affiliate links to some of your promotional emails that also offer free training, tools, or exclusive tips to get the best results. <\/p>\n\n\n\n Social media might just be the most effective channel for affiliate marketing, especially if you fall into the \u201cinfluencer\u201d category and enjoy a significant following. <\/p>\n\n\n\n Today\u2019s consumers have immeasurable trust in influencers across all social media channels, relying on their input for many of their purchasing decisions. If you have loyal followers, chances are good that many of them will use your affiliate links to shop, so you stand to gain quite a lot from using social media. <\/p>\n\n\n\n However, you\u2019ll want to ensure that you partner with the right brands and that you only promote high-quality products\/services that you truly enjoy. If you get your followers to buy something that\u2019s not worth their money, they\u2019ll stop trusting your recommendations. <\/p>\n\n\n\n When most people hear \u201caffiliate marketing\u201d, they think of blogs. Virtually every blog that you visit will have affiliate links. Some links will be included in the post itself, others will appear as pop-ups, and others will be placed in banner ads. <\/p>\n\n\n\n Many companies prefer partnering with bloggers because of their ability to rank higher organically on search engines. A high ranking means better visibility and better lead generation. <\/p>\n\n\n\n Of course, to make money from affiliate marketing as a blogger, you\u2019ll first need to start a blog<\/a>, work on creating a following, and establish yourself as an authority in your niche. That\u2019s easier said than done, and it could be a while before affiliate income starts flowing in. Still, the more successful your blog is, the more money you\u2019ll receive from affiliate marketing, so your efforts could be worth it. <\/p>\n\n\n\nWhat is affiliate marketing?<\/strong><\/h2>\n\n\n\n
Affiliate marketing definition<\/strong><\/h3>\n\n\n\n
Unattached affiliate marketing <\/strong><\/h4>\n\n\n\n
Related affiliate marketing<\/strong> <\/h4>\n\n\n\n
Involved affiliate marketing <\/strong><\/h4>\n\n\n\n
The goal of affiliate marketing<\/strong> <\/h2>\n\n\n\n
What brands get from affiliate marketing<\/strong> <\/h3>\n\n\n\n
What individuals get from affiliate marketing<\/strong> <\/h3>\n\n\n\n
The pillars of affiliate marketing<\/h2>\n\n\n\n
Advertiser<\/strong><\/h3>\n\n\n\n
Networks that manage advertisers<\/strong><\/h3>\n\n\n\n
Publisher<\/strong><\/h3>\n\n\n\n
Consumer<\/strong><\/h3>\n\n\n\n
Finding the right product<\/strong><\/h2>\n\n\n\n
Finding the target audience<\/strong><\/h2>\n\n\n\n
Creating a website that unifies your audience and product<\/strong><\/h2>\n\n\n\n
Promotion and growth<\/strong><\/h2>\n\n\n\n
Other channels for affiliate marketing <\/strong><\/h3>\n\n\n\n
Email <\/strong><\/h4>\n\n\n\n
Social media (influencers)<\/strong><\/h4>\n\n\n\n
Blogs<\/strong><\/h4>\n\n\n\n
Review sites<\/strong><\/h4>\n\n\n\n