In today’s world, business plays a vital role. It improves people’s standard of living and society as a whole through creating new opportunities, new ideas, new innovations, more employment, and many more, which lead to the development of an economy.
Over time, the concept of business has evolved from a traditional offline business to a modern and affordable online business, which makes the activities of a business easier and has led to a boom of budding entrepreneurs and businessmen.
Entrepreneurs use various effective marketing strategies to develop their businesses and improve their revenue. One of the most important and efficient marketing strategies is “affiliate marketing”. In fact, 15% of the online sales are driven by the affiliate channel.
What is affiliate marketing?
Affiliate marketing, also called referral marketing, is a smart way to earn passive income where an affiliate promotes another brand or another company’s product or service and, in return, earns a commission for the sales generated from their referrals.
In online marketing, an affiliate can assist in increasing sales to the brand’s online store or website by writing a blog, creating a video on YouTube about the brand’s product or service, or providing a link to the affiliate company’s website. Statistics show that in online business and eCommerce, 15% of the total revenue of a company or brand comes from affiliate marketing.
How does it really work?
Firstly, the affiliates advertise or promote the affiliate company’s product or service by posting the links on their websites, blogs, video, and in social media pages. Then, when the consumer clicks on the affiliate’s link, they are redirected to the company’s website. After which the consumer purchases the company’s product or service, and the affiliates will receive a commission for the sale generated by them.
How Do Affiliates Get Paid?
As affiliate marketing is a subset of performance-based marketing, the affiliates get paid based upon their performance. As follows, there are basically three types of performance-based models in affiliate marketing.
- Pay-Per-Click (PPC) is where affiliates get paid for every valid click, they generate, regardless of whether those clicks result in sales or leads.
- Pay-Per-Lead (PPL) is where the affiliates get paid for each qualifying action caused by a click, such as installing apps, submitting online forms, signing up for free trials, answering quick surveys, and more.
- Pay-Per-Sale (PPS) is where the affiliates get paid for all eligible sales generated by them and the percentage of commission is agreed between the affiliate and the affiliate company.
The aim of affiliates is to achieve or generate sales as they get a high payment compared to the other two.
Want to become an affiliate marketer?
To become a successful affiliate marketer, you have to follow some productive steps as follows:
Firstly, choose a niche depending on your interest, and other factors like popularity, people’s demand, profitability, and so on, which help to make your affiliate marketing business successful and sustainable. The most popular affiliate niches in 2022 are technology, wealth-building, health, fitness, fashion, travel, and lifestyle.
Secondly, the most important step is to the best affiliate program to join. There are commonly two types of programs, one is the affiliate network which acts as intermediaries between companies and their affiliates and track, report, and manages affiliate payments. Some of the popular affiliate networks in 2022 are ClickBank, ShareASale, Affiliate, eBay Partner Network, M4trix Network, Commission Junction, Fiverr, etc. The other in-house programs are where the companies can create their own in-house affiliate programs.
Thirdly, choosing the best and most relevant publishing platform for the brand or product or services like websites, YouTube, podcasts, blogs, and other social media platforms.
And finally, promoting the affiliate link to the maximum in such a way attracts more consumers to click and engage with the company thereby you will get more commission and become a successful affiliate marker.
Myths vs facts!
There are many misconceptions about affiliate marketing among the people as it is considered to be a scam, it involves high risk but a low return on investment, also some mistook affiliate marketing as illegal. But the truth is that Affiliate marketing works effectively at low risk as there is no need for huge infrastructure and maintenance for the undertakings and return is solely based on the performance of the affiliate.
Affiliate marketing is completely legal and acts as a source of making money easily. In fact, as per Google trends, affiliate marketing has shown tremendous growth in the last five years and the US is the largest affiliate marketing country which has a $6.8 billion affiliate marketing industry. We should also note that affiliate marketing has shown potential growth in India also targeting to reach $835 million affiliate marketing industry by 2025.
So, Affiliate marketing has become the most popular way to earn money online and also an excellent strategy to increase the sales of a brand or company and leading to business growth and thereby developing countries all over the world.