The affiliate marketing online business model is one of the many business models that suit those who are looking into finding new income stream. Why so? Let me paint you a picture.
You wake up at what time? At an ungodly hour just to drive through heavy traffic or ride a packed train to beat rush hour. When you get to the office, you go through email after email until it’s time to head home again.
The same thing happens every single day. It’s not just boring, but it also keeps you in the same rat race every day. That’s just how a 9 to 5 jobs are. But with affiliate marketing online business model, you can earn money whenever and wherever you are – even as you sleep.
This is its beauty.
Did you know this is where most online entrepreneurs started? The idea of this business model is to advertise other people’s products through an affiliate program, and earn commission if someone purchases through your links.
Basically, the manufacturer or product owner shares their revenue with you in the affiliate marketing online business model.
If you have a product or service that you can sell, you can offer affiliate marketers an incentive through an affiliate network or program to get more sales. But if you don’t have a product or service, you can promote other’s products that you think you can earn from as an affiliate.
I think I have lightly touched this subject before, but we will talk about it a little bit more today. So let’s get right to it.
What Is Affiliate Marketing Online Business Model?
As mentioned earlier, this is a model wherein an affiliate earns for promoting other company’s products or service. The affiliate will need to look for a product that they can relate to, promote said product, and get a commission from every conversion.
How Does This Business Model Work?
Another thing that is amazing about affiliate marketing is that this model uses everyone’s talents. The responsibilities are divided from the production and creation, to marketing and selling the products. Thus, the participants’ capabilities are maximized which makes for an effective strategy in marketing the products.
As each one puts in more work, the sale is divided among the participants. Wait, who are the participants in the affiliate marketing online business model? Here they are:
1. Product owners and makers – the product owner or seller can be a single or large enterprise that has a product or products to sell. Said product can be tangible such as tools or goods, or a service such as training programs or software.
The product owner or merchant does not need to be actively promoting the product, but they can advertise and gain from that through affiliate marketing.
A product owner, for instance, can be a vendor who just started their own business. If they want to tap into new markets, they can have affiliate websites advertise their products.
2. The affiliate – just like the product owner, the affiliate can be a single person or a group or company that can promote the product to would-be customers. It is the affiliate’s job to convert the potential customers into buyers.
He or she will entice and convince the customers that they need to buy the product. If the visitor buys the product, the affiliate will get a commission from the sale.
The affiliates have their own target markets. This means that they usually have common interests with their audience. Moreover, since the affiliate knows what he or she is talking about, he will be more effective in clearly explaining the products… which will make the audience want to respond to the call to action.
3. The buyer – is the heart of the affiliate marketing online business model. The affiliates give exposure to products on their accounts and platforms.
Both the product owner and affiliate share the profit from a sale every time a buyer buys their product. The affiliate can disclose that he can earn from the buyer’s purchase. Sometimes, the buyer has no idea about all that.
But buyers don’t need to worry about a thing. They will not pay extra if they buy from affiliates since the commission is already included in the retail price.
It’s pretty much like ordering directly from a store wherein the order is sent to you after purchasing.
How Do I Get Paid?
This is not an easy question. Not all affiliates need to make a sale to get commission. They get a share from certain actions and all this depends on the program they joined in. Here are the ways you can get paid:
- Pay per sale – this is the most common program among the three in this affiliate marketing online business model. In this structure, the product owner will compensate the affiliate by paying him a share of the sale. This is to pay for the affiliate’s efforts in promoting the products. BUT, the buyer has to purchase the product through their link before they get paid.
- Pay per lead – this structure is more complicated compared to pay per sale. This program will pay their affiliates if a customer completes an action required by the program. For instance, it can be for subscribing to the website, trial sign up, filling up forms, or downloading a software. This requirement varies from program to program.
- Pay per click – in this program, the affiliate is paid every time a consumer visits the product owner’s site through the affiliate. What this means is that the affiliate should convince the customer to move from his site to the merchant’s. Thus, the affiliate gets paid when he has successfully driven traffic to the merchant’s site.
Why Should I Try the Affiliate Marketing Online Business Model?
There are tons of answers, but I will share just a few with you.
A 9 to 5 jobs will require you to be at the job to earn money. But with affiliate marketing, you can earn even when you are sleeping.
All your marketing efforts will be rewarded if you put in your time and commitment. After that, you can just let your strategy work for you to persuade customers to buy the product you are promoting.
You can work from home or anywhere you want, any time. You can set up your campaigns and get your commission from the comfort of your own home. Heck, you don’t even need to dress up to impress people. Even with your pajamas on, you can still hustle.
You don’t have to deal with irate customers and their complaints. No need to make sure that they are happy with their purchase either. In other words, you are not required to provide customer support.
All you need to do is link the customer to the merchant. After that, you can enjoy your commission while the merchant handles all the complaints if there’s one.
You are your own boss. You get to choose the products to promote, when to work, or decide on your goals. You can focus on one niche or diversify your campaigns. The possibilities are endless. In addition to that, the affiliate marketing online business model is free from company rules. You get to evade disappointing and slacking teammates as well.
Normal jobs will have the same salary no matter how many hours or how much effort you put into your work. But with this business model, you simply get what you give. The better you get at writing, reviewing, and engaging with potential clients, the more you succeed in your campaigns. This will mean more commissions for you in the long run.
Unlike other startup businesses, you don’t need to pay up for any registration fees to join. You can start with this model with less cash and hassle on your part. The best thing is that you don’t need to make your own product to sell.
How Can Wealthy Affiliate Help You?
Now that you have learned all there is to know about the affiliate marketing online business model, let us proceed to discussing a bit about Wealthy Affiliate.
Wealthy Affiliate is a training platform that has online courses for those who want to start affiliate marketing.
Sure, there are a lot of other training platforms, but what sets them apart from the others? I really think it is the community.
The platform has more than a million members, most of whom are actively helping out other members to get started on their affiliate marketing journey. Your questions will be answered no matter what time it is because there is always someone out there.
In addition to that, there are tools available to help you build and host your own website, register your domain, research for keywords, and more. There is so much to learn and discover from this platform if you’d only try. Interested to know more? You can click right here to know more about Wealthy Affiliate.
I highly recommend that you learn about this platform if you want to go for affiliate marketing online business model. Good luck!