With the digital industry’s domination in full swing, affiliate marketing has been lauded as a simple, yet effective way to earn money from the comforts of home. With high passive income potential and a low barrier to entry, getting involved with this form of performance-based marketing can lead to considerable monetary benefits. This blog explains what affiliate marketing is, how affiliate marketers make money, and best practices for successful affiliate marketing.
Affiliate Marketing Explained
Affiliate marketing is a form of advertising where an individual promotes merchant products or services through an ad network and receives a percentage of commission from web traffic that leads to product sales or leads. Individuals involved in this type of marketing are referred to as affiliate marketers.
Many affiliate marketers already own a website or have the ability to create their own offers and landing pages. This typically includes bloggers and thought leaders, high-profile workshop and event hosts, authors and comparison/review critics. The common thread between successful affiliate marketers is that they have developed a niche audience. These individuals know their audience’s wants, needs, and interests, and use affiliate marketing to promote the right products at the right time to generate sizeable profits.
How Affiliate Marketers Make Money
The most common way affiliate marketers make money is through product or service sales. However, some marketers generate income on a pay-per-click or pay-per-lead basis. The goal is simple: Send qualified web traffic to selected products and services that will convert.
To begin the advertising process, affiliate marketers determine the offer or product they would like to promote. They can select from a library of offers through affiliate networks or create their own promotions. Once selected, they submit the offers to an ad network for distribution. The goal of the affiliate marketer is to properly manage the costs of running ads through these networks while driving qualified leads to the chosen products and offers to maximize ROI.
Affiliate Marketing Best Practices
Are you interested in affiliate marketing? Below are a handful of best practices to get started and begin earning money as an affiliate marketer:
- Do your research. Educate yourself on all of your options to ensure you select the right ad networks to work with. Keep in mind, affiliate networks and CPA networks have varying rates and payouts. You can also make multiple offers at a time.
- Take advantage of your niche. As previously mentioned, smart affiliate marketers know their niche. Use audience insights to choose or create offers for products that will interest your audience. You want them to take action, after all.
- Use several traffic sources. By using multiple traffic sources, you can increase sales and profitability. The more people you send to the offer, the better chance you have at conversion.
- Monitor and adjust. Take the time to look at your profitability, analyze your choices, and make adjustments to maximize your earnings. We suggest utilizing split testing to track and measure the performance of your offers.
- Be patient. Affiliate marketing is not a get-rich-quick solution. Most affiliate marketers have built this income stream over a long period time. Developing, connecting with, and understanding your audience will play a key role in your success.
Affiliate marketing can serve as a strong revenue stream when done well. If you know your niche, it may be time to explore your options as an affiliate marketer. As always, best of luck!