Over the years, more and more people are looking for alternative ways to earn income.
Many would like to evade the 9-5 work schedule and opt for a job that gives them the liberty to be the master over their time.
Modern technology, the emergence of the internet and the extensive activity that is done over this virtual world makes this option possible.
Recently, affiliate marketing has grown in some popularity. That popularity led many to grow curious what this endeavor is all about and if this would be a good fit for them.
That is what we will discuss in this article. We will discuss what affiliate marketing is all about. Who can try it and how it works?
Table of Contents
What Is Affiliate Marketing?
Affiliate marketing is a marketing strategy where an affiliate gains income from advertising a product of another person or company.
An affiliate chooses a niche preferably that he is really interested in and finds products under that niche for him to promote. When a product he promotes sells, he earns part of its sale.
Sales are monitored through affiliate links from a website to another.
Affiliate marketing has become a well-liked online strategy to drive visitor traffic and attract them to buy an item.
It has become prevalent way to produce online revenue.
This strategy benefits both the seller and the affiliate marketer by becoming a valuable option aside from traditional marketing initiatives.
Actually, a report shows that the United States escalated its affiliate marketing spending to around 10%.
This means that by next year, 2020, their estimated spending will amount to $6.8 billion.
Also, Amazon has restructured its affiliate rates. It offers now 1-10% profit.
This allows affiliates to gain an increase in their income depending on the category of products they are selling.
Jason Stone, the “Millionaire Mentor” in affiliate marketing was even accountable for the $7 million sales in merely two months of the year 2017.
Who Can Try It?
If you hate waking up early in the morning, driving through heavy traffic and waiting on until five o’clock to dash out of work, then affiliate marketing is something you can try to escape that routine.
If you are a stay-at-home mom and want to earn some cash for yourself, this could be for you.
If you are a student and need some extra cash for expensive school, you could try this out.
And even if you are an in a 9-5 job and just need some extra cash to pay off some added bills, or just needs something to spend on the weekends, this could help you out.
Typically, anyone who needs extra cash and want to earn at their own pace and time, affiliate marketing is something you could try.
Instead of sticking it out with the dreariness of the rat race which only gives you a few bucks, why not try affiliate marketing and earn money any time and even anywhere?
You could head out on vacation and still keep the bucks coming in.
Affiliate marketing is designed for that.
How Does It Work?
Of course, online lessons are available to give you a clear picture of how this works. But we will provide you with the overall picture of how it works to make things easier for you.
Affiliate marketing involves 3 parties. This strategy works by having a party responsible for product creation, and another for product marketing. This division of responsibilities is aimed to leverage the abilities of each party.
The goal is for the division of responsibility is to result in producing the highest potential output each party can make and have a reasonable share in the profit.
This means that creators focus on producing products and affiliates do the marketing for them.
With this in mind, we have an idea of what the 3 parties are:
1. Product creators/sellers
2. Advertiser/affiliate marketer
And the third one is of course the one who purchases the products.
Let’s talk more about the relationship these three parties have with each other.
1. Product creators/sellers – this could either be a single person or a large company, also referred to as a vendor or merchant. The items they produce could either be a service like tutorials or physical objects like sporting equipment.
Since product creators/sellers produce the product, they could opt to not be active with selling. But if they prefer to do so, that will not be a problem.
This will mean then that the percentage that could potentially head to the marketer would also end up in their hands.
2. Advertiser/affiliate marketer – also referred to as a publisher. Like the product creators or sellers, this could also be just one single person or a company.
What they do is make a product appealing to potential customers and persuade them of the product’s value and benefits. Simply, they convince potential customers to purchase the seller’s product.
When the potential customer buys the item, the affiliate earns a part of the revenue gained.
In most cases, it is very effective if an affiliate has a specific target audience. This means commonly sticking to products and services of the interest to that audience.
An affiliate chooses a specific niche. This is a very helpful way of attracting an audience that is highly interested in that niche and will most likely purchase the product.
Generally, consumers drive affiliate marketing. Consumers can be found on blogs, websites and social media and so affiliates target these platforms.
When a consumer purchases a product, the remaining two parties which are the seller and affiliate share the sale.
In some cases, an affiliate lets a consumer know upfront that they will be receiving a part of the sale. Other times, consumers would have no idea who will benefit from the profit gained in their purchase.
Whatever the case, except in limited instances, consumers will not pay more if they purchase a product via affiliate marketing.
In the retail price itself, the affiliate’s share is already included.
A consumer will purchase a product without feeling the effect of the affiliate marketing system, even if they are a valuable part of the equation.
Benefits of Affiliate Marketing
For a significant attention to be drawn into affiliate marketing, it must then have some perks many individuals will want to avail of. Here is a list of some benefits one will have in affiliate marketing:
1. Passive income
Commonly, a job will require you to work to be able to make money. Affiliate marketing allows you to earn even while you are sleeping.
Through an investment of effort and time into a campaign, you will be able to enjoy a continuous income as long as consumers purchase the product through your campaign.
This could continue for days, weeks and even months, depending on the effectiveness of the campaign and the policy of the seller if there is any.
You will be able to enjoy an income long after you did your work, even while asleep or on vacation or doing anything else.
2. No need for customer support
Sellers and companies often have to handle complaints and ensure customer satisfaction.
With the structure of affiliate marketing, marketers would not need to be concerned with customer support or satisfaction.
An affiliate marketer’s job will solely be to connect the seller with the potential buyers.
It will be in the seller’s end to deal with complaints after you earn your share of the sale.
3. Work wherever you want
You will not need to go to the office. Affiliate marketing is designed in that way.
You can make and launch ads and thereafter receive revenue while working at home or on vacation.
No need to dress up for work. Earn while wearing your pajamas.
4. This is cost-effective
Traditional business structures would require a startup budget and some more money to finance operations. Affiliate marketing would not need that. It can be started at a low cost of investing in a computer and good internet connection, not much hassle.
5. Offers convenience
Affiliate marketing is a freelancing job. This means you have ultimate independence in goal setting, product selection and time management.
6. Rewards based on performance
Traditional jobs could require you to work more than the regular hours per week yet still give you the same salary. This structure is based purely on personal performance.
This means you will reap what you sow, you will earn what you deserve.
By practicing your writing and reviewing skills, this could convert to higher revenue.
Earn by advertising another person’s product without the hassle of waking up early, getting stuck in traffic and drearily waiting for 5 o’clock.
Work at your home in your pajamas. Earn extra income while you sleep or on a vacation trip.
Earn what you deserve. This is the concept affiliate marketing is offering to the public. If this sounds appealing to you, there’s no harm in giving it a try.
Who knows, this might be the best fit for the lifestyle you want to enjoy.
To start with affiliate marketing and to become a successful affiliate marketer, you need to have some knowledge and some tools. You can get both for at Wealthy Affiliate Community.
Click Here to Sign Up for Free with Wealthy Affiliate (no credit card required).