Online Affiliated Marketing
Online Affiliate Marketing is a revenue sharing venture between a website owner and an online merchant. The website owner will place advertisements on his websites to either help sell the merchant’s products or to send potential customers to the merchant’s website, all in exchange for a share of the profits.
Affiliate Marketing Program
An affiliate marketing program is sometimes called an affiliate program, but also may be referred to as a pay-for-performance program or an associate program. An affiliate program is a marketing tool for the e-business that operates it, called merchant or advertiser and a source of revenue for the e-business that participates in it, called an affiliate or associate or publisher.
There are three ways to earn money through affiliate marketing:
1) Pay per Click or Cost-per-click affiliate programs: Every time a potential customer leaves the affiliate website by “clicking” on the link leading to the merchant’s website, a certain amount of money is deposited in the affiliate’s account. This amount can be pennies or dollars depending on the product and amount of the commission.
2) Pay per Lead or Cost-per-lead affiliate programs: The merchant pays the affiliate a set fee for each visitor who clicks through and takes and action at the merchant’s site, such as completing an online survey, registering at the site, or opting-in to receive e-mail.
3) Pay per Sale or Cost-per-sale affiliate programs: Every time a sale is made as a result of advertising on the affiliate’s website, a percentage, or commission, is deposited into the affiliate’s account.
The Amazon Story
The world’s biggest bookstore has one of the most successful examples of an affiliate program (called their associate program). Amazon now has well over 1 million affiliates! That is over 1 million websites actively promoting their products every single second of every single day. Amazon generates over 40% of its revenue through its affiliates program. That is over $3 billion in revenue every single year! As another (somewhat humble by comparison) example, Zeald generates over 50% of its revenue using its own unique affiliates program. Admittedly, not quite billions of dollars but that is definitely millions of dollars of revenue every single year.
Thousands of diverse e-businesses operate affiliate programs: E.g. barnes&nobale, dell,1-800-flowers, rackspace managed hosting etc.
Affiliate Programs as a Marketing Tool
The two major Advantages to merchant
1. Tie marketing effort directly to a lead or sales.
2. The merchant pays only for results.
The two major Advantages to affiliate
1. Additional source of revenue for affiliate who also sells products/services
2. Primary source of revenue for affiliate who offers entertainment or information
Two Approaches to Operating a Successful Affiliate Marketing
1. Acquire a huge and affiliate membership. e.g. The Amazon associates programs have over 1 million members as diverse as:
– RVPart – Sells parts for recreational vehicles and motor homes.
– Dilbert – Site for view cartoons, play games, send electronic greeting cards etc
– Books for Managers – Site for business reviews and lists of the currant top-selling business-related books provided by Business week, The New York Times, the Wall Street Journal, USA Today, and other publications.
– HaperCollins – Its site to promote its authors and their books. However, like many book publishers. HaperCollins sells its books through bookstores and not directly to the public.
2. Acquire a smaller number of highly effective affiliates that have a high volume of website traffic and offer web page content, products and services that are directly related to the merchant’s products and services.
Affiliate Programs as a Revenue Source
Participating in an affiliate program and then getting the most out of your participation involves:
– Selecting the appropriate merchant and affiliate program for your e-business
– Understand the terms of the affiliate agreement
– Add custom links to merchant’s site from affiliate Web pages
– Build traffic at affiliate site to increase click-troughs to merchant site.
Top 10 Tips for Choosing the Affiliate Program That Is Right for You
1. You have to identify a product or service for which there is a need. The product should be such that you would love and enjoy promoting it. You could start by searching for “Affiliate Programs” in the Search Engines.
2. The product or service should be relevant to your website.
3. It is always wise to join an affiliate program that is long standing, safe and secure and has a good reputation in the Internet world. This can be easily verified from the Better Business Bureau or other similar organizations. Visits to Forums and Discussion Groups will also provide you with a lot of useful information.
4. Most affiliate program providers provide a commission of 5% to 50%. The commission you earn for the sale of a product is your main income. So while choosing an affiliate program you should study the commission paid out and decide on a program that pays at least 35% for you to run your business successfully.
5. There should be a proper tracking system in place to record all the clicks and sales made through the text links and banners placed on your website, e-mails and other advertisements.
6. One important factor that is often overlooked is the “hits per sale ratio”. This indicates the number of hits that have to be made to a Text Link or Banner to generate a sale. This will give you an idea as to how much traffic is needed before a sale is made.
7. How often are commissions paid? This is another important matter that should be considered. Most reputed organizations pay their affiliates monthly or when they accumulate a minimum commission of $50 to $ 100 or as indicated by you. You should avoid any program that requires too many sales to reach the minimum amount.
8. Affiliate Programs are generally single tier or two tiers. A single tier program pays you for whatever business you have generated. On the other hand a two tier program pays you for the business you have generated and also a commission for the sales generated by a sub- affiliate, you have sponsored. A two tier program is always advantageous.
9. Long standing reputed organizations provide a whole range of tools and resources such as Banners, Text Links, Brochures, Websites and training for their affiliates. When choosing look out for such organizations because they certainly make life much easier and helps you grow your home based business.
10. Finally, you must read and understand the agreement before you join as an affiliate even if it happens to be the best organization in the world.
Understanding the Affiliate Agreement
The affiliate agreement created by the merchant and agreed by the affiliate, defines all aspects of the affiliate program and typically includes:
– Types of Web sites merchant will accept into the affiliate program
– Types of links allowed and guidelines regarding their use.
– Schedule and payments terms of fees and commissions
– Terms of usage of merchant logo, name and web content
– Technical specification that your web site must meet, if any
– Restrictions on types of content that may appear on affiliate sites
– Requirements for compliance with all government laws, ordinances, rules, and regulations.
Affiliate Tracking Systems
– Allow merchant to control how it credits click-throughs
– Monitor window of time in which affiliate can get credit for a click-through
– Record and store affiliate information
– Provide commission/fee reports
Affiliate management networks
An affiliate management network is a third-party entity that recruits affiliates, manages the registration process, tracks and properly credits all of the fee and commissions and arranges for payment. In return for these services, the affiliate management network collects from the merchant a percentage of each referral transaction’s fee or commission-perhaps as much 30 percent.
Well-established affiliate management networks: Example: Commission Junction, LinkShare 
Affiliate tracking technologies
To achieve this we develop a strategic online relationship with advertisers to improve the creation, management, and analysis of online marketing and sales activities. These activities are supported by a scalable and reliable tracking technology. Keeping track of the click-throughs and properly crediting the affiliates is a complex programming task. Companies such as BeFree and ClickTrade sell software that automatically monitors and credits all followed links resulting in a sale. Note that ClickTrade was acquired by Microsoft and is now co-branded as part of Microsoft bCentral.
Some tracking technologies are following:
– Custom links containing affiliate information or affiliate and merchant information
– Tracking cookies
– Third-party tracking software
– Application service provider tracking service
– Sub Domain tracking
– Database record matching.
Affiliate Marketing Risks and Challenges
Affiliate marketing is not without certain risks and challenges primarily form unethical affiliates and the negative perceptions online consumers have about tracking technologies.
– Cookie stuffing – Multiple cookies placed on visitor’s hard drive during a single visitor affiliate site.
– Spyware – General term used to describe software that has been installed on a personal computer without the owner’s permission, its unknowingly download and install spyware when you download games, screensavers, freeware utilities and so forth.
– Parasiteware – Redirects affiliate links and Replaces content of existing tracking cookies
– Spammers – Merchant is responsible if affiliates use spam to promote sites
– Negative perception of tracking cookies – Many consumers install and use blocking software which includes Block tracking cookies and Delete tracking cookies.
Why Affiliate Marketing Is Profitable for E-Business
If you have been considering an affiliate marketing venture, there are some very good reasons why you should go with this method of generating recurring revenue. Here are some of the ways that affiliate marketing can be a lucrative means of creating income that will be stable and allow you to grow exposure over time.
– One of the first advantages of affiliate marketing for the new entrepreneur is that the startup cost is very low. Most companies that offer affiliate marketing programs do not require any type of monetary investment on the part of the affiliate.
– The second expenses are limited to what you have to pay to connect with the Internet, the software you may need to load on your computer, and a web site where the ads associated with the affiliate marketing program can be placed. With web site hosting such an inexpensive service these days, setting up your own web site for the affiliate ads will be a breeze.
– Another reason that affiliate marketing is such a moneymaker is the fact that there are so many different types of ways to set up the program. You can go with the pay per click option, which works out great when it comes to promoting special offers. Ads that lead to product review sites often are a way to allow product users to go through your portal and leave comments on the items they purchase.
First Thing’s First-Avoid These Silly Affiliate Marketing Mistakes!
While affiliate marketing is a great way to earn a living, the fact is that many people become discouraged and drop out of programs. In many instances, the failure to be successful with affiliate marketing has to do with making a few simple mistakes. Here are some examples of those mistakes and why they should be avoided.
– A low-quality website with no original content and tossing in some affiliate links. While it is certainly true that you need to have a web site up and running in order to participate in an affiliate program, there is also the need to apply some effort to getting the word out about your site. Otherwise, the chances of people visiting your web site and clicking on one of the links are pretty slim.
– Another mistake many affiliate partners make is not choosing products that have some relevance to the content of your web site.
– Keeping your site content and the ads more or less relevant to one another will make it easier to generate revenue, and not fail as an affiliate marketer. Now, this may seem intuitive – but many make this mistake in subtle ways (i.e. they mismatch their customers with products).
– One final mistake that many affiliate marketers make is not sprucing up their web sites from time to time. Keeping the content fresh is one way of building and keeping a loyal reading audience because keeping the same old look and the same old text with nothing new to entice people back is a sure way to limit your chances at being a successful affiliate marketer. The fact is that you do have to proactively promote your site, keep the content fresh, and make sure the ads have some connection to the subject matter of your site.
What You Need Before Getting Started and Affiliated Marketing
While there is not a lot of expense in starting up as an affiliate marketer, there are a few things that you need to do if you really want to make money marketing other people’s products.
Here are some basic tips to help you line up all your things to do before you ever sign up for that first affiliate program.
– One of the basic needs for any successful affiliate program is to have a web site of your own. While it is possible to purchase ad space on sites and to advertise through Google Adwords, this is short term strategy setting up a basic web site that has a particular focus will make all the difference in the world to the success of your program. Keep in mind that your web site does not have to be complicated with a lot of flash media, animation or other fancy bells and whistles.
– In fact, if you plan on focusing your attention on affiliate marketing strategies that target the home consumer, you are better off with a basic site that will load quickly on a dial up connection. After all, dial-up is still extremely popular in a number of locations.
– Online payments are a great way to easily receive your affiliate payments and keep track of your earnings. From this angel, you may want to look into opening an account with one of the more popular online services that send and receive funds. i.g PayPal
– Another important aspect is determining just what your contact information will be, regarding communication with your affiliate program. This would include an email Address and physical mailing address. The email address should be one you have set aside specifically for your marketing business.
How to Pick the Best Product with the Best Payout and Great Demand
– One of the first things to think in terms of when it comes to affiliate marketing is determining where your talents and expertise happen to reside. One of the keys to picking the best products for your particular situation have to do with what you know and how much you know about it. As an example, a person that has worked in telecommunications for a number of years will probably know a great deal about telephony, related services, and technology that are used within that industry.
– Another aspect about setting up with the right products to promote has to do with where you see a niche to fill in. Finding a population or business sector that appears to be largely ignored in the marketing process can provide the inspiration you need to create a successful affiliate marketing program.
– Do not allow yourself to get discouraged simply because everything is not crystal clear as you begin this part of the process. Practicing some patience and giving yourself time to find the right products to promote as part of the program will only serve to make you more dedicated to the success of the program
In the end, you will find the products that will lead to a very successful affiliate marketing scheme and provide you with not only a handsome revenue stream, but also a lot of personal satisfaction.
Recommended Top Affiliate Networks on the Internet
When you decide to enter the world of affiliate marketing, there are a number of markets that are worthy of consideration. Here are three programs that have captured the attention of a lot of people, simply because of their stability and reliability.
1. Perhaps the best known of the three programs is Click Bank: clickbank. There a number of reasons why people find ClickBank such an attractive option when it comes to affiliate programs. One aspect is that the revenue generated by any purchase made through the ad portal is credited to your account within two minutes of the completion of the transaction. Because Click Bank provides such a comprehensive tracking program.
2. pavdotcom is also an excellent choice as an affiliate network. Just as with ClickBank, PayDotCom provides an easy to use affiliate interface that allows you to view your numbers in real time. You can easily track such data as the number of clicks on the ads and the amount of commissions you have made by directing visitors over to the marketplace through the portal on your web site. One of the advantages of PayDotCom is that this program will interface with your PayPal account, which means that vendors can send your monthly commission directly to your PayPal account. It is important to note that not all vendors will use PayPal as a payment method, so you may still receive payments by check as well.
3. shareasale is a third option that is rapidly gaining recognition among affiliate marketers. As a program that is designed to match up to the content of your existing web site, Share sale is free to join as an affiliate.
Rising to the Super Affiliate Level – What Constitutes a Super Affiliate?
A super affiliate is a marketing affiliate that has created a network that provides a high volume of traffic to affiliate products and a high percentage of completed sales from that traffic. The super affiliate is not one who reaches this level once, or even once in a great while.
– Creativity is an hallmark of a super affiliate. The ability to present the same old information is new ways will keep people interested. Super affiliates know how to look at products from a variety of different angles, determine a series of ways to present the product, and then go out and find an audience to match up with each one of those ways. For the super affiliate, there is always one more way to draw attention to a product, and find a larger audience than ever before.
– Another characteristic of a super affiliate is the desire and ability to master technology. This does not necessarily involve becoming an expert in information technology. But it does involve learning enough about existing technology to make good use of avenues already open on the Internet to promote products.
– Making the most of your status as a super affiliate means enjoying the opportunities that come to you through word of mouth; additionally, it means taking matters into your own hands and promoting your status in such a way that you increase your visibility.
The Super Affiliate Marketing Tactics Exposed!
So what is it that allows a super affiliate to make hundreds or even thousands of sales when you struggle to make 5 sales of the same product? Why is that super affiliates rake in the cash while you struggle to get by? Think about this carefully: you are both selling the exact same product. The only possible difference is the tactics you use to market it. Below, we have included a couple tactics that we should use to sell more like super affiliates. Try to incorporate them into your strategy.
Tactic #1: Play the Long Game
Whenever some new launch is coming up, they will throw together a promotional website; and try to direct traffic to it using pay per click search engine advertisements or solo ads. But there is a major flaw with this approach: almost without exception, people will purchase a “big launch” product from an Internet marketer they already know this is why you have to play the long game, rather than focusing on each individual launch, prepare an approach that will work consistently for years to make more sales.
Tactic #2: Steal from Super Affiliates Whenever Possible
Many super affiliates are also big name Internet marketers. They have public personas that we can follow quite easily. We can find their user ld’s, blogs, mailing lists and their web site’s. Through this approach we can learn from each of them.
Tactic #3: Ignore Talk; Look for Revealed Preference
Talk is just that: talk. Many Internet marketers will talk about all sorts of different methods you can use to make money. They will tell you to advertise using Google AdWords or to build a list or to create viral reports. While some of this information may be useful and legitimate, we should ignore what they say and watch what they do. This is called “revealed preference.
Tactic #4: Make Friends with the Seller
Believe it or not, the seller wants you to be successful, too. So contact him ahead of time, make friends with him; and see if he has any particular advice for you on selling the product. Keep in mind that he talks to a lot of affiliates on a regular basis (especially around big launches) and has the best understanding of the tactics they actually use.
Become a Supreme Affiliate Marketing: Additional Supreme Affiliate Marketing Tips
If you want to make a six figure income – and possibly a seven figure income – then you have to do something that is truly different than what you are doing now. The big question is “how can I do this”? Here’s following suggestion:
Tip #1: Start Acting Like a Business Owner
If you want to be a successful affiliate product marketer, you have to find people who can augment your weakness (and, trust me, no matter how smart you are, you have plenty of weaknesses). Additionally, affiliate marketers do not work in isolation. Most of them are friends with the marketers they sell products for; and this gives them far more leverage and information than you have access to. So start thinking of yourself as a business owner, rather than a completely self-sufficient Internet marketer.
Tip #2: Concentrate on Regular Sales
Regular sales are easier to quantify and predict; and, for this reason, it is far easier to continually ramp up small, regular sales until you are making hundreds of thousands or millions of dollars each year. So don’t worry if you’re the top affiliate for some major new product launch. Instead, focus on regular sales and regular increases in sales.
Tip #3: Do What They Do – Not What They Say
Observe the channels of marketer through which he promotes his product. Watch carefully to determine what methods he’s using to make sales, so you can replicate his successes, rather than chasing after dreams he’s written about.
We may conclude that choosing an Affiliate Program that is right for you might be time consuming but a worth while process. Going through the above whole process will also be a learning curve for new entrepreneurs who are serious about starting a successful home based business. So there is an opportunity for business students and young entrepreneur to develop a simple website with limited budget that can be arranged easily through their own personal savings. This website can be developed with only $100 to $200 (Approximately). You can increase your business growth through adopting the approach where you can affiliate your business with different websites having relevancy with your business and internet heavy traffic as well.
Finally there’s no single path to affiliate marketing riches – and that’s a good thing. Instead, there are many pathways through which you can make your millions. So scout carefully, look for functional methods you can use, and implement them in your own efforts. You may be surprised with the results. But whatever you do – don’t continue to use strategies that haven’t worked in the past. Always think like super affiliates because they use a range of tactics and adopt different ways in order to consistently outperform other affiliates. But one thing you should always play the long game and build lists, create forums, and secure a captive audience in advance of product releases.
10 Things You Didn’t Know About Affiliate Marketing
Most people have heard of affiliate marketing, even if they haven’t actually started doing it. Affiliate marketing is basically referring people to various products and services around the internet. For each sale you generate through your affiliate link, you earn a commission. The size of the commission depends on the products themselves, who is selling them and the percentage offered by the seller to the affiliate.
But what is actually involved in affiliate marketing? What do affiliates do on a daily basis? How do they earn money and how do they learn what to do?
1 An Example Of A Successful Website
There’s several ways of marketing products and services online. Many affiliates create a blog first and sell products and services through their blog. Martin Lewis has a very successful website called moneysavingexpert.com. This is also an affiliate website. By creating content and helping people decide which service to use: which credit card offers to choose, the best interest rate etc. moneysavingexpert.com makes money by sending website visitors to various offers. If a sale is made through this website, the link this credited to it and a commission is made. By creating content, offering value and helping people make sensible choices, the website has built a reputation and become more prevalent over time. Google ranks the site highly in the search engines and thousands of people use it to make purchasing decisions every day.
2 How Can I Get Started As An Affiliate?
Affiliate marketing is huge. There are thousands of people already making their main source of income from the internet. To get started as an affiliate you need to learn some basic strategies and build various methods of generating traffic from the internet to those offers. A lot of affiliates start with a simple blog. Many travelers ‘blog’ about their travels. If you don’t have a passion or interest to blog about, you can start by following an online course which will help. See my bio for more info on this.
3 How Long Does It Take To Make A Living?
Some people go into affiliate marketing with the intention of creating a second income. Some people want to make big money. Depending on how much time you can dedicate to your affiliate business, and how dedicated you are to it, is a big factor in determining your results. Results vary from person to person. With a large advertising budget and the right business model, some affiliates have replaced their living in 6-12 months. For others it can take years before it replaces their existing income. Depending on your approach, advertising budget, and business model, it can take between 3 months and several years to build it to a point where it can replace an existing income.
4 Can Anyone Do It?
One of the great things about affiliate marketing is that the technology is now available to allow anyone to build their own online business. As long as you are prepared to learn and implement that knowledge, anyone who can operate an email, can use online platforms and tools to build their own online business. The main thing you need is the desire to learn. Affiliate marketing isn’t for everyone though. It does take a lot of hard work and it can take years before you are rewarded financially.
5 What Are The Pitfalls Of An Affiliate Business?
You need to dedicate some time to your affiliate business for it to work for the long term. Some people go into affiliate marketing thinking it is some magic pill which will pay them instantly in cash. Much like a job you can’t expect to get out more than you put in. Affiliate marketing is performance related. This means you don’t get paid unless you can successfully sell products and services online. If you don’t know what you are doing it can take years to do this. You can’t be a dabbler and expect to earn the big money. The big earnings are created over years of hard work. Don’t expect to achieve this with only a small amount of input.
6 What Are The Best Things About Affiliate Marketing?
Affiliate marketing offers an incredible amount of flexibility and freedom. You can work an affiliate business from anywhere in the world providing you have a laptop and an internet connection. You can choose your own hours and build it up around existing work. Many people come into affiliate marketing because it offers this kind of flexibility. They can choose their priorities in life: spend more time with family, choose your working hours, travel and work abroad. No more commuting to work or working long hours for a boss you don’t like.
Affiliate marketing also offers incredible scalability. A business which is local is always limited to the people who can travel to that business. An online business can be global. Using digital products in conjunction with a global reach, you can scale using tools and software to reach thousands of people through digital technology. By using automation much of the work involved with an online business can be pre-built. By building automation into the business model, you can focus your activities on reaching a larger audience through content creation and paid advertising.
7 Why Am I Struggling With My Affiliate Business?
A lot of people struggle with their affiliate businesses.This can be for a number of reasons. Firstly building up an affiliate business takes time. You need to dedicate a lot of time to an affiliate business in the first place. Only when you reach a ‘tipping point’ do you really start to see your progress. Many affiliates simply don’t realise how much work is involved. They underestimate how much time they need to dedicate to their online business to make it work.
Paid advertising can allow you to grow your affiliate business quickly. But it costs money and you need the right products too. You can’t advertise small value items with paid advertising. You won’t generate enough profit to cover your advertising costs. You need a range of products and an email list to advertise through.
Content marketing takes much longer to work, depending on your chosen area of business. If you find an untapped niche to market your blog in, you can make some fast progress. However, with a competitive niche you will struggle to get noticed above all the other content which you will have to compete with. There’s several reasons why you might struggle. The main one is lack of knowledge. Get the right education first and your affiliate business will move much faster.
8 What’s The Best Affiliate Model To Use?
There are many different affiliate models, all offering something different to suit the individual. Some affiliates target search traffic and aim to get their content found on Google. Some create their own products and sell them directly to customers. However, having a range of products which you can sell over and over to existing customers is a great model for long term success. Selling a single item online is limited. It means you can only make one commission from each sale. By choosing membership products to promote which also offer back end sales and a built in sales team, you can benefit from monthly commissions and up-sell commissions for the lifetime of any given customer. Selling membership products is definitely a game changer when it come to affiliate marketing because you make an income from each customer, rather than a single commission. But a good model to choose is one in which you have a passion for and can keep doing for the long term. Choosing products which you have no interest in is a short sighted plan. Think about what you would like to do online to generate an income. If you choose to go with your passion, your business will last much longer, and be more successful.
9 Can I Just Sell My Own Products?
Many affiliates create their own products to sell online. However, when you are starting out it is a good idea to learn the basics of marketing first. That way you can start earning more quickly from your affiliate business. I spent a long time creating my own products when I first discovered affiliate marketing. But I didn’t sell anything because of a couple of reasons. Firstly I didn’t research whether my products would have a big enough demand. Secondly I didn’t know how to market them. By joining a program which teaches you how to market products first, you can start making money more quickly. Don’t waste time creating products if you don’t know how to sell them. Marketing is a much more important skill for making money online. Once you know this skill, you can then apply it later when marketing your own products and services. Also your own products will be limited in range. By using an existing product range, you can benefit from products which are already selling. You can choose a program which offers high ticket commission, monthly memberships, back end sales and a built in sales team. Building your own products which offers all of these things not a possibility for most people when starting out.
10 What’s The Point Of Affiliate Marketing?
Some people struggle with the concept of affiliate marketing.They think it sounds too ‘salesy’. When I understood affiliate marketing I immediately found it appealing simply because I needed a flexible way to work around my contract work. I had to drop what I was doing at a moments notice if the phone went. This meant other jobs were awkward to juggle around. No-one wants to employ a ‘flaky’ employee. I wanted to work from my laptop and affiliate marketing gave me that opportunity. For many people this is the reason why they choose affiliate marketing. They can earn an income from their laptop, choose their working hours and not have a boss or place of employment. You don’t have to sell directly to anyone or even talk to a customer. There is no stock to hold. Added to this, the scalability of affiliate marketing which lets you scale up to a global audience and deliver products on autopilot, makes it the best flexible business of the future.
How To Start Making Money Online As An Affiliate Marketer
The field of affiliate marketing is probably the quickest developing way to make money online. After all, billions of ordinary people use internet every day. Affiliate marketing gives you the opportunity to target potential customers regardless of their location in the world.
For this reason, it isn’t surprising that a huge number of people make a considerable amount of money through affiliate advertising and marketing. Many skilled affiliate marketers end up making more money in this field than they did in their previous job, and hence some of them even resign their normal 9-5 job and pursue affiliate marketing full-time.
A Quick Overview On Affiliate Marketing
Now that we have a little idea about the capacity of affiliate marketing, Let’s dig in and discuss what it truly includes.
The easiest way to describe affiliate marketing is when you help another company sell their products online, and then you get paid a commission for each sale you bring to them.
If you are promoting a product priced at $200, and the company pays you 10 percentage commission of the sale, you would make $10 for each sale.
However how do you refer sales? You can begin promoting your seller’s products on your website, which receives targeted site visitors in the same niche as the product you are advertising. For example, if you have a website that sells makeup you would not advertise health insurance, but instead you could promote makeup related products. Every time one of your website’s visitors clicks on your affiliate link which was supplied to you by the seller, you will be paid a commission.
How To Choose A Good Affiliate Network
One of the largest errors new affiliate marketers make is becoming a member of nearly each affiliate network they encounter. This is without a doubt considered to be a totally incorrect technique. That is due to quite some reasons.
Firstly, being an affiliate marketer is an undertaking which calls for a lot of awareness. So, if you try and work with many affiliate networks at the same time, chances are that none of your initiatives might go as planned and consequently, none of them might end up being very successful.
Secondly, focusing on just one or a few products without a doubt will let you research them thoroughly before you start to promote them. This method also helps you refine your strategies, making the required adjustments, and thus making your marketing a whole lot more powerful. An effective approach will yield better outcomes, and reward you for your efforts and time.
Thirdly, make sure you do some research on the affiliate network as there are some networks that will only pay you once a month which might not work for you or worse they could not pay you at all. I am not telling this to discourage you from being an affiliate marketer, but instead I want you to succeed in finding the correct network and products to market and make your commission.
There are affiliate networks that resort to “shaving”, a very common exercise in affiliate marketing where the networks display a discounted number of sales than what you referred, consequently paying you drastically less in commissions.
Hence, to avoid been a victim to this action I would suggest that you stick to known and trusted affiliate networks. In any case, they only way you will succeed with a network is if you are comfortable with them and the products you are promoting.
How To Start Getting Sales As An Affiliate Marketer
Getting instantly to the point, some affiliate marketers use social media web sites including Facebook, Twitter, YouTube, and more, for doing associate marketing, other decide to build out their own site. Getting your own site is an exceptional approach to affiliate marketing, because it gives you control over everything.
So we will focusing on affiliate marketing using your own site moving forward. First matters first, as mentioned earlier, you will want to find an affiliate network you’re comfortable with. This includes being knowledgeable about the products you are promoting, so that you don’t come to be selling products you don’t know anything about.
Amazon’s Associate Program
That being said, many marketers look at Amazon’s associate marketing program as one of the best. It’s possibly the most trustworthy network, and has a large inventory of products to promote and get your commissions.
This offers you a possibility to promote nearly any product in the market, or pick a niche with low competition and you could be earning commissions in less than a week.
Finding A Good Keyword
That is considered to be one of the hardest parts of marketing. You simply cannot blindly choose any keyword and expect to start making sales quickly. One of the reasons why many affiliate marketers fail is due to using a wrong keyword.
If you are new to the affiliate marketing, you are going to want keywords that have low competition. Start your keyword research by finding long tail keywords with a low search volume, that means much less money, but not really with the ones that have large competition.
You may test the top 10 and 20 results and do a few studies to discover if you may outrank them. Review keywords being used by the competition to determine if they are using identical key phrases you are looking to target. If they are, and they have a high authority website in that niche, I would recommend that you keep away from that niche, and opt for a brand new, less competitive.
This is significant. If you think you will make a lot of money creating items that doesn’t help the visitors in anyway, you are very wrong. Although your goal is to earn cash by means of referring visitors to the offer, you will have to offer one thing of importance to them. Merely posting your hyperlinks along with lame sales pitches like “this is a wonderful solution, purchase this product via my personal hyperlink and get a discount”, and so on, you might be only heading to disaster.
If you decide to join Amazon’s associate program, you could write an informative article on your homepage and include your primary keywords and some secondary keywords throughout the article. You could have the purchasing guidebook, and write your brief opinion of each product you are marketing. Remember that the greater the cost of the product you market, the greater the commission.
We realize it’s probably the trickiest method to accomplish, unless you are an SEO guru. Contacting site with high authority and guest posting on these sites is a really well-known means of getting great backlinks. These great backlinks, along with guest posting in related sites in your niche will get you ranked on the first page of the search engines as long as the keyword you chose has really low competition.
However, even when your site doesn’t reach page one, as long as you have guest posted on a number of sites in your niche, you will be bringing substantial amount of targeted traffic coming from these sites. So that it is a great tactic anyway.
Mistakes To Avoid
Now you are aware of the process to becoming a great affiliate marketer with your own website, I want you to also keep in mind some of the most common errors brand new affiliate marketers make.
Not Providing Any Good Value
Though we’ve got covered this item, it’s certainly important to remind you if you try to be extreme with your words to pressure the visitors to click on your affiliate link, it’s likely being deemed as junk or spam by many websites.
Rather, it’s suggested to help these individuals select the right solution determined by their particular wants. This method makes these individuals feel more, which in return will check out the products you are marketing based on the value in your article.
Numerous online marketers will not do proper product research to gain knowledge on the product they are promoting, instead they are only worried about the amount of commission they will earn per sale regardless whether it will provide value to their visitors. This is an oversight, and will at some point lead to your readers not relying on anything you tell them.
Tracking Your Links
When you begin advertising on Amazon or even some other affiliate network, it will be beneficial to track your affiliate links. It can help you find out which website is doing more sales and then you can make your other websites have the same kind of setup.
I would like to say that despite the fact that affiliate marketing can be very fulfilling, it has a steep learning curve to it. You might face disappointment on numerous occasions prior to making a nice amount of money online.
That said, affiliate marketing it’s suited simply for individuals who are likely to deal with several failures, but will come back with a positive attitude and willing to learn from their mistakes
Why Affiliate Marketing Is the Best Way to Start an Online Business
If you’ve educated yourself enough with the information available to us via the internet, then you should have realized by now that your pursuit of a career in the corporate ladder is futile at best. Basically, the idea is to start as an intern, then a regular employee, then move up to a supervisory and/or managerial position and finally up to the executive levels of the corporate business that you’re in. Personally, I have nothing against this kind of aspiration as I too once dreamt of such things myself; however, the toll it takes to get to EXACTLY where you want to be could at least take 30 years; 20 if you’re exceptionally good at it.
The problem is we all can’t be exceptional and aside from the fierce competition in play, you’ll also have to face the insurmountable amount of bureaucracy, racism, favoritism, gender inequalities and other negative things in order to literally move up the ladder. The trade-off is not an ideal payoff even from an optimistically assessed standpoint. Therefore I would advocate that you start your own business and the cheapest way to do it is by building an affiliate marketing blog or website.
Defining Affiliate Marketing
Affiliate marketing is an easy income-generating business method where you take the role of the promoter and help the manufacturers and sellers connect with the end consumers. It should be clear that whether you take a passive or active role in this business, you are by no means the originator or creator of the products/services you promote. But you will get a small portion of the sales as compensation nevertheless. It’s basically a 3-way relationship between you, the seller and the customer.
What Affiliate Marketing is NOT
If you get an unsolicited email inviting you to join an affiliate network and it’s asking for an upfront payment, then you definitely have to scrutinize them and find out whether or not they’re scam or legit. Go to the Better Business Bureau (BBB) and find out about the company, if you can’t find any, then go to affiliate marketing forums and discussion boards. They would know a lot about these scam sites as news spreads fast in social media and forums. Another thing to look for is if these people are selling you unrelated products or something that you will never be able to use, like the $350 “Secrets to Affiliate Marketing Success” book or some other catchy titles; although a few are genuine but they don’t charge you that high.
The truth is you can learn basic affiliate marketing from top ranking websites and blogs. In fact, they can teach you more useful information than all those specialized books and DVDs that other people are selling. Becoming an affiliate is free when you sign up to affiliate marketing programs and the only thing that will really cost you money is web hosting, which is around $70 – $100 a year for your affiliate marketing blog. A few other expenses may include a unique website/blog logo (optional), your electric bill; hire a blog writer (optional because you can write the blogs yourself) and probably paid advertising to promote your website or blog (optional).
Types of Affiliate Marketing
What’s interesting about affiliate marketing is that you can earn commissions in more ways than most people think. Allow me to explain the 3 different types of affiliate marketing and how you can earn through them.
1. Unattached Affiliate Marketing – This type of affiliate marketing will not require too much work from you, you don’t even have to setup an affiliate marketing blog like those for Amazon Affiliate Programs. This is more like a PPC marketing (pay-per-click) where you just show affiliate ads on sites that allow this kind of marketing and then get a commission for each click through that web users make on the ads.
2. Related Affiliate Marketing – This type of marketing is where you are required to have some level of involvement and this is where you create an affiliate marketing blog or website and always show affiliate links on almost all of your website/blog pages. You also earn a commission for each time a web user clicks through the affiliate links.
3. Involved Affiliate Marketing – This kind of marketing may require you to actually use the products/services before you write a review about them and you should be able to write a more comprehensive and honest reviews.
You can choose from these 3 types of affiliate marketing methods, but most affiliate marketing programs uses the Type 2 affiliate marketing, which has some level of involvement and online presence from your end.
Putting the Cogs and Wheels Together
Now that you have an idea of what affiliate marketing is all about and what its common pitfalls are, you are ready to start your journey to financial freedom and a wealthy lifestyle! Affiliate marketing is just like any other type of business and you’ll have to plan a strategy months or even years ahead before you begin, so I will give you the basic strategy of how to become an affiliate marketer, signing up for affiliate programs, setting up your affiliate marketing blog and all the other important details about it.
Steps to become an affiliate marketer:
1. Decide what niche topic you want to use for your blog or website. It’s better to write reviews or general information about products/services that you’re passionate about, because you will write better articles for them compared to those that you don’t like. For instance, if you’re mad about crochet or kids bicycles, then that is the niche you should pick for your blog! Affiliate programs have a huge inventory of items for sale and they do include crochets and bicycles for a fact. If you’re more of the business-minded individual and you think you can write just about on anything, then by all means pick the niche that’s most profitable among the lot.
2. Create your website and purchase a cheap but reliable web hosting. You don’t need a web designer to build a website or a blog. You can use WordPress, Weebly, Web.com, Blogger, eHost and others to do that. Using their user-friendly “click & drag” features you can create your blog/website in 5 – 10 minutes!
3. Learn basic SEO and use it on your blog or website. Search engine optimization or SEO is a very good marketing strategy to allow your website to be known throughout the entire internet or at least the majority of it. If your website is easier to find in search engines, then it is more convenient for people to visit it, and more visitors means more money for you.
4. Learn social media marketing to extend your presence online. In reality social media marketing or SMM is also a part of the grand scheme of SEO and without it, your SEO campaign would not be as successful as you’d expect it to be. There are literally billions of people hanging around the web on a daily basis and much of them are in social media sites. It would be a logical choice to get visitors there for your website and increase your income potential.
5. Learn about paid advertising and consider it deeply on whether you need to use it or not. Paid ads help because they target the right kind of people who are already looking for products that you promote. Meaning there is a good chance that they will buy. Wouldn’t you want them to buy products through your affiliate links? I would!
6. Start filling up your website with content. In case you plan to write boring and unimpressive blogs and articles, then I’d advise you to no longer continue in your pursuit of creating an affiliate marketing blog, because I promise you people will not want to read your blogs or visit your site. Write articles that will impress you first. This will let you know whether or not people will want to read about what you have to say. If you can find an extremely critical person to judge your writing, then that would be better as it will help you greatly improve on your writing style. Reader engagement is absolute in affiliate marketing. It will determine your income capacity, so do your best in writing content for your site above all else.
How you earn in affiliate marketing:
• The manufacturer/seller signs a partnership deal with the affiliate network or program and in turn, when you sign up with the affiliate network as an affiliate, the partner affiliate network will give you a small percentage share on every item you helped sold.
• You’ll need to embed or display affiliate links on your website or affiliate marketing blog about the products you’re promoting. The purpose of these links is to guide your blog readers to the seller’s webpage (which is usually in the affiliate network’s site) so that they can make purchases of the items they like.
• The percentage commission on each sale range from 1% – 10% (some give more than 10% but rarely) and this is how you generate income. For example, a web user happens by your blog about coffee machines and he/she read your blog review or informative article. The reader was impressed by your blog and decided to click on the affiliate link, then make a purchase of 1 coffee machine worth $350. If the affiliate network allowed 7% of that amount to be your commission, therefore your income for that sale alone will be $24.50.
• You may notice that $24.50 is a small amount and not enough to convince you to become an affiliate; however, if you were able to bring 10,000 visitors to your blog in the span of 30 days and about 4,382 people bought coffee machines for themselves, then your income for that particular month should be $107,359! If you’re able to bring as much visitors to your website on a regular basis, then you can bet that your monthly income should be around these numbers. Now you can appreciate the value that SEO and SMM can do for your affiliate marketing business.
How Much can you Make?
The straight answer to this question is… there is NO LIMIT to how much you can earn. The website called Pickmyshaver.com around October or November 2013 and then 8 months later its regular monthly income became $8,446! If it had continued as is it would earn over $50,000 a month by now, except that it was purchased in Flippa by an anonymous buyer for $60,100 around June 2014. That’s just 1 website and I’m pretty sure on your best day you can manage 2 – 3 sites for affiliate marketing.
At this point I will let you use your imagination as to how much you can earn; or is it how hard you desire to earn. It’s entirely up to you. I am confident that this article should help you get started in creating your own affiliate marketing blog and earn not just money, but your freedom from the everyday worries of life. Once you start earning over $8,000 a month, then you can buy more time to spend it with the people that matters to you most – your family. I wish you all the best and don’t forget to drop a comment below and tell me how affiliate marketing has changed your life like it has changed mine.
Why So Many People Crash In Affiliate Marketing
More and more people are lured into affiliate marketing and you might be one of them. Indeed, affiliate marketing is one of the most effective means of generating a full-time income through the Internet. It’s a fair deal between the merchandiser and his affiliates as both benefit from each sale materialized.
Like in other kinds of business, a great deal of the profits in affiliate marketing depends on the affiliates selling, advertising and promoting strategies. Everyday, as affiliate marketing industry expands, competition heightens as well so an affiliate marketer must be creative enough to employ effective and unique ways to convince potential buyers to purchase or avail of the products and services offered.
Compared to traditional advertising practices, affiliate programs are more effective, risk-free and cost-efficient.
Reasons people fail in affiliate marketing
So why do many people still fail in affiliate marketing? There are a lot of reasons and a lot of areas in the program to look into.
The most critical aspect in the affiliate program is advertising. It is the most important thing all other kinds of business as well; many affiliate marketers fail in this aspect because they lack hard work. Although it pays to be lucky, you cannot merely rely on it. Affiliate marketing isn’t as simple as directing customers to the business site.
You must invest in yourself
If you want to earn big, of course, you have to invest time and great amount of hard work in promoting the products. The competition is very high and customers nowadays are very wise, too, as earlier mentioned. After all, who doesn’t want to get the best purchase? That is, to pay less and get more in terms of quality and quantity.
Being prepared is critical in affiliate marketing
Lack of preparation is also a reason why one fails in affiliate marketing, whether he is a merchandiser or an affiliate. Part of the preparation is researching. On the part of the merchant, he has to be highly selective in choosing the right affiliate websites for his affiliate program.
In order to be sure he has the best choices, he must have exhausted his means in looking for highly interested affiliates whose sites are sure fit to his products and services.
The affiliate site’s visitors must match his targeted customers. On the other hand, the affiliate marketer must likewise research on the good-paying merchandisers before he signs up for an affiliate program.
He must ensure that the merchant’s products and services match his interests so he can give his full dedication and attention to the program.
He can get valuable information by joining affiliate forums, comparing different affiliate programs and reading articles on affiliate marketing where he can get tips from experienced affiliate marketers on how to choose the best merchants and products with high conversion rate.
Your website is critical to the success of your affiliate business
The website is a very important tool in the whole affiliate program. You should plan how your site is going to be, from domain name to the design, the lay-out, the content, and ads, as a marketer.
Some users are particular about what they see at first glance and thus when they find your site ugly, they won’t spend their time looking at your site. On the other hand, there are those who want information more than anything else. Marketers with “rich-content” web sites are usually the ones who prosper in this business because the content improves traffic to the site.
Websites with high quality contents and relevant keywords are the best optimized sites. Having the right information about the product and service and not just a bunch of empty hyped-up advertisements will allow you to earn big in affiliate marketing even when you’re asleep.
If you’re not able to sustain the interest of your site visitor, you won’t be able to lead them to purchase. No click-through means no sale and thus, no income on your part.
Selecting a top level domain name is also crucial to the success of the affiliate program. Lots of affiliate sites don’t appear in the search engine results because they are deemed by affiliate managers as personal sites.
Major search directories and engines would think of your site as a transient one and thus, they won’t list it in the directory.
Know first what you are going to promote, before you decide on the domain name. Even if they feature the exact products the customer is looking for, the customer might think the site is not relevant and becomes weary of the site contents.
An educated affiliate is a successful affiliate
Above all, an affiliate marketer must be willing to learn more. Certainly, there are still a lot of things to learn so an affiliate marketer must continue to educate himself so he can improve his marketing strategies. Many fail because they don’t grow in the business and they are merely concerned about earning big commissions quickly.
If you want long-term and highly satisfactory results, take time to learn the ins and outs of the business. Continue to improve your knowledge especially with the basics in marketing ranging from advertising to programming, web page development, and search engine optimization techniques.
Likewise, study the needs and wants of your site users and how different merchandisers compete with each other.
If your initial attempts are failures do not give up. Keep plugging away. Do not get disappointed. You see, thousands are attracted by the possibility of generating skyrocketing incomes through affiliate marketing and so they sign up in any affiliate program without carefully understanding every aspect of the business.
When they don’t get instant results, they quit and sign up for another program and repeat the process of just copying links and referring them to others. When you sign up for an affiliate program, don’t expect to get rich in an instant.
Work on your advertising strategies and be patient. Stay focused and become the best student you can be and you will not be one that crashes in affiliate marketing.