Take The Stress Out Of What Is Affiliate Marketing?
Affiliate marketing is an online sales method where a product owner increase sales by allowing other audience who are called – “affiliates”. They recommend the product to others for earning a commission. At the same time, it makes it possible for affiliates to earn money on product sales without creating their own products.
Here the customer purchasing rate of the product or service from an affiliate is same as buying directly from the product owner.
Through this method the owners of the products make less money per sale. Because they have to pay a percentage of the sale to the affiliate. But they are also able to reach potential customers where they probably wouldn’t reach by their own.
In simple sense, we see that the owner loses some money, but in deep sense, owner’s profit range is much higher than the affiliate. Because, affiliates earn commissions on a one-time purchase or recurring income through sales of subscriptions or membership programs where as the owner get potential targeted customers to sell more of his products.
04 Vital Parts Of Affiliate Marketing
However, Wikipedia talks about 4 different parties that are involved: the merchant, the network, the publisher and the customer. I’m describing it below for more clarification:
Advertiser is basically known as a Brand, Creator, Retailer, Seller, Vendor or Merchant. It is an organization or company that sells products or offers services. They partner with publishers to generate more sales and leads. Advertisers always prefer affiliates to market their products as they need to pay only for conversions through Clicks (PPC), Leads (PPL or PPA), Sales (PPS) etc.
An Affiliate Network. is called a hub which connects the Advertisers and Publishers. They have high tracking technology, reporting tools and payments management technology. Advertisers always choose an Affiliate Network(s) to manage their affiliate program. In the same way, publishers choose them to get the right products to promote. And in both sides, they give the payment security.
Affiliate Networks activity is like a middle man or more than that. I think in affiliate marketing their presence is essential. There are lot of affiliate networks in online. In my side, I recommend Commission Junction, ClickBank, ClickSure and JVZoo are the best affiliate network platform.
Publisher (Affiliate Marketer)
In online marketing business, publisher is known as an Affiliate, Associate or Partner. Publisher advertises the products and services of a business (advertiser) in exchange for a commission on all qualified clicks/ leads/sales. He/she promotes the advertiser by displaying ads which can be in the form of banner ads (most common), text links (most effective), search box etc. Whenever a qualified lead/sale is generated the advertiser pays the publisher a commission which is often a percentage of the sale amount or can be a fixed amount.
A publisher promotes one or multiple affiliate products. And tries to attract and convince potential customers by describing the value of the merchant’s product, so that finally they complete their purchase. A publisher or an affiliate can earn $1 to $1000K in a month as per his effective marketing strategy and now it is proved.
The Consumer (Customer)
The customer or consumer is the most important part of affiliate marketing. Because they make the affiliate system go round. And it is clear that without sales, there aren’t any commissions to hand out and no revenue to will be shared.
The affiliates always try to market to the consumer on whatever channel they think to fit for them. They use social networks, digital billboards or search engine optimization, content marketing on a blog to reach them to more customers and also to get more revenue.
From my side, I can say, if you want to earn money from online, the more common and slightly easier route is becoming an affiliate. You can check it from search engines like Google, Yahoo, Bing, how much an affiliate marketer can earn each month. Here I’m giving you four steps affiliate marketing formula that you can follow:
- Start a review site as per your niche
- Build an email list for email marketing
- Use live webinars to share info with your audience and make sales
- Grow your affiliate business with PPC, PPV advertising
Affiliate marketing is a good way to start your online career. If you feel its beauty one time, you’ll never give it up, I can give you this guarantee.
If this article helps you or now, please let me know in the comments.