Affiliate marketing is gaining more and more traction. And this suggests that it is the best time to take advantage of its opportunities.
Affiliate marketing has been around for many years but is still growing fast. Everyone from major retailers to brick and mortar stores to bloggers and other content creators is involved and reaping the interests.
Affiliate marketing allows brands to grow their audiences at a low cost. With this method of promotion, one of the partners – usually the owner of an affiliate website, blogger, or influencer – attracts traffic to their site and posts links to the brand’s products.
The best part about this concept is that it’s not hard to get started. It doesn’t require any digital marketing knowledge or physical product inventory.
Whether you’re a content creator looking for the best high ticket affiliate programs to join or a brand looking to generate sales with affiliate marketing, this type of marketing channel can work marvelously for your business income.
Affiliate marketing is a popular strategy to drive sales and generate remarkable online revenue. It is highly beneficial to both companies and affiliate marketers. It has also been proven to pay off.
The question is, how do I get started in this marketing and start making money online?
This Supreme guide covers everything you need to know about affiliate marketing, how it works, and how you can leverage it to make a passive income this year.
What is Affiliate Marketing?
Affiliate marketing is a set of works to promote products or services on the Internet owned by others for a commission. Simply put, you advertise a product and make a profit for a targeted action from a potential audience, which means a lead or a purchase.
An affiliate product or service cost through a publisher is similar or discounted to that of the owner or manufacturer.
Affiliate marketing allows advertisers to earn more because they get new customers, the potential audience increases, and the product is popularized.
Now let’s reveal all the cards of affiliate marketing. We will find out what benefits it gives to the participants, how to maximize the advertiser’s benefit, and how to choose a partner.
How Does Affiliate Marketing Work?
The first stage is finding a product or company that you will advertise. It’s better to use a niche of interest. If you are blogging with an affiliate marketing website, choose products that interest your audience.
This increases the number of sales and ensures the success of the promotion. To understand the work structure, you should familiarize yourself with the people who participate in the process.
Who is Involved in Affiliate Marketing (Affiliate Marketing Parties)
There are four parties involved in the Affiliate Marketing system. Let’s look at each of them.
Advertiser or product creator
This is a company, brand, or store that offers products and services. The advertiser provides an object for promotion on the market, makes a budget for advertising, and bears the risks associated with partners’ work.
What does the creator of the product get? More customers, brand awareness, and profit from sales.
- Marketing Partner (Publisher)
This is the person (or group of people) who attracts users to purchase a product or order a service. Publishers motivate visitors to take action – and buy the product. For each goal achieved, money is dropped into their pockets.
Specific tasks of the partner:
- find products for promotion;
- work out the target audience, identify its pains, problems;
- analyze the product, find out its advantages and benefits for the target audience;
- study the strengths and weaknesses of competitors;
- develop marketing materials (ads, landing pages, etc.);
- attract potential consumers;
- optimize an advertising campaign (make it profitable);
- expand the campaign to an even larger scale.
What does the partner get? A commission from advertising someone else’s product or privileges when buying it, expanding own audience at the expense of attracted users.
- Client, Traffic Source
This is the visitor who came to the landing page. Traffic can be both paid and free. In the first case, the audience is attracted to the offer through social networks, search engines, and native advertising ads.
Content marketing and search engine optimization remain the main ways of free traffic.
Content marketing is creating and distributing valuable, exciting content for a specific target audience. These can be blog articles, YouTube videos, pages, and social media posts. For example, a video blog about fishing.
The author attracts an interested audience with great content, gains a large following, and at the same time earns money by recommending various products for fishing.
Search engine optimization (SEO) is a series of actions aimed at increasing the ranking of a website in search results. Search engines have a complex search algorithm that takes into account several thousands of variables.
Trying to optimize it takes a lot of time and labor. In addition, this algorithm is constantly being updated, and each new update can destroy the results for many months. However, if you can figure out the SEO puzzle and get to the top, you can get tons of free targeted traffic.
These are advertisements on the Internet. To promote the offer, the partner creates landing pages and ads. The affiliate pays money when an ad is shown to a visitor or clicks on a banner.
There are 3 main payment methods:
- Cost-per-click (CPC) —Payment is made only when visitors click on your ad. For example, the CPC is set to $ 0.1. The maximum cost per click is $ 0.1.
- Cost per thousand impressions (CPM) – you pay for every 1000 views your ad receives. For example, 1000 impressions cost $ 2. If your ad is shown 10,000 times, it will cost $ 20.
- Fixed-rate. The fee is set regardless of clicks/views. For example, ad unit “B” was purchased on the site for one week for $ 500.
Benefits of paid traffic:
- Campaigns are completely under control: you can set the required daily or daily budget, set bids per click or per 1000 impressions, and you can also start/stop a campaign at any time.
- Fast results. How successful the campaign is can be judged a few hours after launch.
- No dependency on one campaign. If the campaign fails, you can stop it and start another one.
- You can earn more and faster.
How can you buy traffic?
You can buy directly by working with a specific site. For example, vk.com, facebook.com, google.com, or use the services of advertising networks (Ad Network).
Ad networks are the “marketplace” for the various sites on which advertisements will be displayed. For example, MarketGid is a network full of individual sites.
- Audience coverage. The audience can be the whole world or maybe a dozen countries; for example, the female audience may predominate. The audience’s reach determines the number.
- Targeting options. For example, age, gender, country, time, device type, and sites visited. The more targeting options there are, the more accurately you can reach the right audience and the more sales there will be. Why is contextual advertising or advertising on social networks so effective? Because they allow you to segment your audience, target narrowly enough, and hit the target.
- Traffic quality. Some sources sin with a large number of bots.
When registering in the sources, you should familiarize yourself with work rules, payment methods, and rate models.
Types of paid traffic sources
- Social traffic (Social Traffic). Sources: Facebook, Instagram, etc. Targeting is possible by age, interests, geography, etc. If the user matches the selected targeting options, then the advertisement will be shown to them. Social media offers a wide variety of targeting options and a lot of traffic.
- Search Traffic. It comes from search engines. Paid search sources: Google Adwords, Yandex Direct, Bing (Microsoft), and others. These are potent sources, as they allow you to target by keywords, that is, by users’ search queries. Advertisers will pay to get to the top for keywords. CPC depends on the keyword you are bidding on and the ad and site match for that keyword. Google and Yandex advertising platforms are user-friendly and have various tools to help you create an effective campaign.
- Mobile traffic. Mobile targeting is possible by phone brands, operators, site identifiers, and operating systems. The low barriers to entry, growing popularity, and the sheer number of countries available for targeting make mobile devices a desirable traffic source for advertisers. The most popular mobile ad formats are Display/Banner, Pop-unders, and Push-notifications.
- Native Ad Traffic. Sources: MGID Taboola, Outbrain, etc. Native advertising involves blending naturally with the website’s content. In conditions of “banner blindness,” this is an effective way to reach out to the audience.
What does the client get? The product or service they need with detailed information.
4. Affiliate Network
Affiliate networks are platforms for offers, i.e., goods/services that companies promote. Networks are intermediaries between partners and offer owners, that is, advertisers.
Such sites provide valuable resources to the two parties mentioned.
A marketing partner can work both with an affiliate program and directly with an advertiser. But working with an affiliate network has several advantages:
- Affiliate networks give access to hundreds and thousands of offers in various directions and up-to-date information on what needs to be promoted.
- Affiliate networks appoint a manager who can help with technical questions, suggest what’s hot right now, activate private offers, increase payouts, and much more.
- Affiliate networks provide a fast turnover of funds. They make payments once a week. Most advertisers usually pay once a month.
- Affiliate networks take on the risk of non-payment from the advertiser. If the advertiser decides to end cooperation without paying the due amount to the affiliate program, it will still pay the earned amount to the marketing partner.
Affiliate network income is the difference between the money received from the advertiser and the payments to the affiliate. The commission rates vary for different advertisers.
Most of the networks have proposals in many existing directions. Some specialize in physical goods, games, digital products, and financial services.
What and how do affiliate networks pay for
Affiliate networks pay only for the completed target action or conversion. Conversion flow is a series of sequential steps that a user must take to accomplish this expected action.
When it is completed, the conversion is counted. The advertiser pays the affiliate network, and the affiliate pays the marketing partner.
Conversion rate (CR) is the percentage of visitors who made a targeted action on the site in relation to all curious people.
For example, 500 people came to the site, and 30 people bought. CR = 30/500 * 100%, that is, 6%. For every 100 people, there are 6 purchases, that is, 100 clicks and 6 bought.
A conversion is understood as a specific user who came to the site, completed all the necessary actions, and will turn from a visitor into a buyer. The marketing partner says, “I got a conversion.” The completed target action is also called a lead.
There are several types of conversions:
- SOI (Single Opt-In) – one action. A conversion is counted when a user has sent an email address, filled out a credit card questionnaire, registered a profile on a site, and submitted a request for a free sample. For such actions, the advertiser is ready to pay from $ 0.50 to $ 2. The payoff is small, but the conversion is high, and many split tests can be done.
- DOI (Double-Opt-In) – two actions. The user must send the application and confirm it by clicking on the link in the email: more steps, lower conversion, but more payouts.
- Complex conversions require even more action. For example, you need to not only register in the game but also reach level 5. A complex algorithm of activities is also present in mobile subscriptions.
There are several ways to pay for the completed target action:
- CPS (Cost-per-Sale) – payment is made upon sale. It can be a fixed payment or a percentage of the cost.
- CPA (Cost per Action) – payment for the desired action. For example: Sending an email, applying for a credit card, registering a profile on a dating site, applying for a free sample.
- CPI (Cost per Install) – the installation of a mobile application is paid for.
- CPL (Cost per lead) – the payment for a lead.
Pay-per-action (CPA) offers are the easiest to convert. It is much easier to convince a person to leave their data than to force them to pull out their wallet.
What does the affiliate network get? profit (the difference between the money received from the seller and the payments to the partner).
Where is Affiliate Marketing Used?
Affiliate marketing is already quite developed, and the popularity of such a promotion technique continues to grow. It is mainly used to promote a company or brand on the internet to attract the audience’s attention and increase the number of sales. A few examples of such programs:
- YouTube video with products reviews and unboxing. You shoot a video, tell in detail about the product, and draw viewers’ attention to the merits and features. Then link to an online store where users can purchase goods;
- Live webinars. These reviews take video ads to the next level. Viewers who are potential customers can interact with you in real-time. Many buyers enjoy this experience. It also builds loyalty and trust in the company or product;
- Banner advertising. A simple, proven, and effective way of marketing. All you need is to find web resources related to a product or service and place ads on them. The main goal is to choose a site with high traffic so that you can reach a large number of potential buyers;
- Social networks. These are sites with tons of users who can become a client. Properly designed advertising will allow you to get the desired audience reaction. The main goal is to draw attention to the product, to give rise to emotions. Then you will achieve the final target auction – sales.
- Advertising on forums. On these platforms, you can establish yourself as an expert who will be listened to. The main thing is to be useful by providing value. Supplement your recommendations with links to products, and the reward for partnerships in the Internet business will not keep you waiting.
- Intermediate landing pages. Single-page sites increase conversion rates and allow you to control traffic flows. It will take a little time to create such a blog using ready-made templates that can be edited for an affiliate offer.
Many brands prefer influencers, especially when it comes to social media marketing/advertising. But anyone can become a partner of the brand. Such programs are effective for promoting various products and services.
In each niche, you can find your customers and clients. The main thing is to develop a strategy and implement it correctly.
The simplest example of using the tool is mentioning a brand in publications of a media personality on a page on a social network. This is mainly done by influencers who buy clothes, groceries, and use cosmetics; they recommend the place to purchase the products.
If we talk about specific areas where affiliate marketing will be successful, these are online commerce businesses, info-business, and the B2B segment.
Who Benefits From Affiliate Marketing?
Participation in affiliate programs is beneficial to EVERYONE – the client, the network itself, the seller (advertiser), and the partner/publisher. Everyone gets some benefit for themselves. But we will look at the benefits for the last two parties.
How a Marketing Partner Earns
This member of the scheme makes a profit by acting as a seller. Commissions or referral income goes into his pocket for every purchase made through an ad campaign or content creation.
Publishers receive a hyperlink or banner from the seller and publish it on their website. If the user navigated and closed the target action, the partner earns.
What is the benefit for the advertiser?
The advertiser must first invest their money to pay for the services from their affiliate program. Advertiser calculates the commission that he is willing to spend on attracting people.
The seller saves the budget for promotion, generates interest in the product, attracts new customers, and increases sales.
The Most Effective Types of Affiliate Marketing
Types mean a form of cooperation between an advertiser and a partner. How does the former determine the effectiveness of the latter’s actions?
To answer this question, it is essential to understand the payment methods for the partner’s services:
- Clicks. Banner and teaser ads work according to this model. Imagine that an advertiser’s ad is posted on a partner’s site. If it catches the visitor’s attention and clicks on the banner advertisement, then the publisher receives a commission.
- Impressions. Not a very popular partnership model. Includes payment for every 1,000 ad views.
- Action taken. The advertiser pays only for those visitors who have achieved a certain goal. For example, if the visitor downloaded the ebook, placed an order, subscribed to the newsletter, etc. Since the actions are “clean,” this format of cooperation satisfies both parties.
Affiliate models are not limited to this. But they are enough for successful promotion and making a profit for the first time.
Key working strategies for affiliate marketing
Let’s imagine that you’re a blogger or content creator (publisher), and you need to acquire strong partnerships with brands to promote their products through the site. What do you need to do? There are some tips on this:
Quality Content Creation
This is the key to a successful partnership. Good content builds trust with your audience loyalty and drives more traffic to your site. And therefore increases the chances of getting a sale. It is essential to make interesting, motivating, and persuasive posts.
You can’t go anywhere without an optimized website. There is a lot of work to be done, but worth it. With proper SEO optimization, your site will rank better in search results. Consequently, more people will see it and follow the affiliate link.
Social media promotion is now one of the best ways to increase brand awareness and attract buyers’ attention. You need to share content from the blog on social networks and publish valuable posts. The more interested users you reach, the faster your revenue will grow.
The term means the sale of more expensive products, from which the total profit increases. This sales technique implies adding additional characteristics to a product that form its value to the customer.
But do not consider cheap goods meaningless to promote. You just need to identify a problem from potential customers that a premium product will solve. The higher the price of the ordered product, the more profit.
How to Get Started With Affiliate Marketing
Affiliate marketing is about attracting the attention of your target audience to products (if an affiliate) or looking for people who will promote a product or service (if a company).
This is an effective way to make money on the Internet passively. But to achieve the result, you have to work hard; you need the above strategies.
You need to build a marketing strategy gradually. First, you need to analyze incoming traffic and evaluate potential partners.
Here are the specific points with the steps to be taken in the first steps (For advertisers):
- Tracking incoming traffic for affiliate programs. Google Analytics and Yandex services will help, but Google Analytics is more reliable.
- Search for trusted partners. The aggregators themselves select the performers, and the stricter their requirements, the less the risk of getting caught by scammers. But with manual selection, the likelihood of a failed partnership increases.
- Start with a small number of partners.
If there is no marketing department, it will be difficult to track the results of many performers. Not every trade will be effective. It’s better to start with trusted partners who have your target audience.
Affiliate Marketing Success Secrets
All affiliate programs can be successful. The main thing is to develop a strategy correctly and make every effort to promote a product or service.
How to become a partner of a company and lead it to success:
- Analyze. Examine the product itself and determine how the audience will react to the product or service.
- Build rapport with potential buyers. This will build confidence in the product or company and increase the chances of more people purchasing goods.
- Be honest with the buyer. If you don’t believe in the product and services, any marketing strategy may be doomed to fail. Advertise products of which you are confident in the quality.
- Use different advertising channels. This expands your potential customers and drives more traffic to the brand site.
- Analyze data from marketing campaigns. Keep track of how well your ad strategies are performing and make any necessary adjustments if needed. This will allow you to determine the best direction to move and the marketing tool that brought the highest result.
- Follow modern methods. In the world of digital marketing, everything is constantly changing, and new ways of promotion appear. Due to fierce competition, you need to use the most appropriate advertising methods and channels.
- Use tools. Special software programs will facilitate the process and automate several tasks. Don’t forget that there are tools already in place for almost every job to do it for you.
- Be patient and persistent. As a business in general, Affiliate marketing involves a lot of work. At first glance, everything seems to be straightforward. But over time, you will have to learn new methods, test them and analyze the results. It is not worth advertising many products; it is better to focus on a few and fully realize your full potential.
- Explores new advertising strategies. It is so accepted in Internet marketing that some tools are rapidly becoming obsolete, while others are replacing them. The partner should follow the trends and try to be one of the first to use them. Affiliate marketing requires total immersion in the topic, applying new methods of audience expansion.
- Stays up to date with trends. Affiliate marketing is changing rapidly, so you shouldn’t spend too long on one strategy. The publisher must monitor trends, try them and draw conclusions about their effectiveness. It is essential to respond to changes in time, adapt to them, and then the profit will steadily increase.
Always find ways to increase your chances of success. Find and eliminate strategy flaws, select an advertising channel and marketing tool based on the characteristics of the product and target audience, watch for changes and follow trends.
Budgetary Question: How Much Do Partners Earn?
Many users ask themselves not “how to start making money on affiliate marketing,” but “how much will I get?” Everything is formed individually.
An advertiser can pay for clicks on an ad, displaying banners, or targeted action (installation, lead, purchase). The latter is the most lucrative and beneficial type of affiliate marketing program for both parties.
The percentage commission of a partner depends on the niche and the amount of work that he does. With a successful strategy, you can earn 6-digit amounts every month. But this is facilitated by a large amount of work and attracts many potential and genuine buyers.
How to Become an Affiliate Partner: A Comprehensive Guide
Affiliate Marketing is an effective way to make money on the Internet, which will allow you to practice and gain experience to develop your own business in the future.
With its help, you’ll learn how to sell. If you master affiliate marketing perfectly, you won’t have any difficulties marketing your business. You will already know how to market, advertise and increase sales.
How to become a brand partner? You need just 4 steps:
- Choose a product in a specific niche to sell. You have already skipped the step of creating a product. Pick a topic that interests you and focus on a specific category. For instance “clothing” is a big group of products. Limit yourself to a particular type: “shoes,” “jackets,” “hats,” etc. Work on a narrow topic that you understand and that you can gather your target audience.
- Collect emails. To do this, you can use separate landing pages for a lead magnet, blocks for capturing contacts on the site, or a pop-up window. Having an email list of interested customers will make it easier for you to sell affiliate products. It is one of the best and most effective marketing channels out there.
- Increase loyalty and build audience trust. This is simply by conducting masterclasses, webinars, and live broadcasts. They are needed to achieve the final goal of selling and providing the audience with free valuable content, increasing their trust and loyalty to the brand and its products.
- Use PPC advertising. You need to create a Landing page, write a good selling copy and launch an ad. This will allow you to expand your potential audience and direct the product to targeted buyers.
Affiliate marketing allows you to work with a brand/company from anywhere in the world. The main thing is to have an Internet connection and a device (PC, tablet, phone).
Earnings can go around the clock without requiring investment in the purchase of goods, warehouse rent, or employees’ wages.
Top 4 Affiliate Networks
The site offers an affiliate marketing program through which you earn by placing ads on your site. Each purchase after clicking on your link brings referral income.
The platform’s main advantages are:
- The trust and loyalty of users.
- A variety of products.
- A high probability of completed transactions.
Advertising can be configured to show products from the relevant topic of the site, section, or category.
This is an International partner network with different models of cooperation and one of the best affiliate marketplaces. You can get a commission per click, registration, and sales.
The level of remuneration for the latter is up to 50%. And you can get $ 100 per click. Withdrawals are made by check or transfer to a deposit account. There is a Payment schedule – once a month, subject to reaching the minimum limit set in the settings.
This hosting provider offers around 60% commission for every new customer. It has well-designed banner packages and access to a personal manager. All this provides excellent conditions for practical work.
An advertising company that helps publishers and sellers find partners to promote their products and services.
The advertising broker works with a considerable number of advertisers. For successful work, the site even provides professional recommendations for free!
It provides free professional guidance on advertising your product and reaching your most influential audience. With a partner’s growth, new opportunities and options for cooperation with large, world-famous brands open up for him.
It is easy to join affiliate programs. You need to sign up and verify your personal details.
How to Create a Product and Promote it With Affiliate Marketing
For product creators and salespeople, partners replace the marketing and sales department. Despite this simplification in doing business, goods manufacture and promotion are complex processes.
Creating a product that will interest buyers and the partners themselves is necessary.
The work falls on the shoulders of web admins, bloggers, and content creators interested in increasing their audience and additional income.
If they are interested, they will appreciate the product’s usefulness, then advertising on their part will give excellent results. How to do it?
- Find an idea for developing a sought-after product. Analyze the market carefully, identify the pains of the potential audience and create a product that helps to solve them. You must be sure of its usefulness and quality. The main task is to interest the end customer. A potential partner must identify the essence embedded in the product and wants to work with it.
- Test the idea. This is an important step that will save you from unnecessary waste of time, energy, and investments. You can use Internet marketing tools to test your idea, run sweepstakes and surveys, and offer a pre-order. All this will show how interested the potential audience is in purchasing.
- Create a product. So, the idea makes sense; the product will be in demand, and you can proceed to the third stage. It is creation itself. A company’s reputation, product popularity, earnings, and customer satisfaction depend on the quality of the products. This characteristic cannot be neglected. Only in this way can the creation of one product grow into large-scale production.
- Find partners. You already know what affiliate marketing is. Consider a partnership model and reward for a sale or other targeted action. The optimal commission size for physical goods is about 10%, and for informational goods such as digital courses is approximately 10-60%. Use online services like Post Affiliate Pro to track the effectiveness of your strategy and control sales and payouts.
You won’t have to be confused with calculating sales and commissions yourself. There are many services for this. With their help, you will track the progress of a specific partner and estimate the amount of commission. Affiliate Marketing is convenient and cool.
How to Increase the Average Earnings From an Affiliate Program
We have evaluated all the features and nuances of work in this area. But there are still a few things left to help you achieve success and profit in affiliate marketing.
Be careful when choosing a company and a product. Well-known brands are more likely to sell better than new brands. But you can also work with the latter. The main thing is to emphasize the advantages and usefulness of the products and build trust and loyalty among the audience.
A different commission is charged for each product. There is no need to promote only expensive positions. Think about the audience choosing quality.
This leads to long-term cooperation. If the customers are certified with the goods they bought, they will return to you for new consignments.
If possible, negotiate a discount with the seller. It is a win-win strategy that will allow you to sell a large volume of goods and reach the same profit. For the seller, a slight discount can’t harm. This is a tempting bonus for the buyers.
Affiliate marketing platforms
Affiliate marketing is used by approximately 81% of brands, according to Mediakix. At the same time, profits from affiliate programs have grown by 10% since 2015.
In affiliate marketing, the commission is paid only for the conversion. Such a scheme of work is beneficial for companies and does not require additional costs.
Almost all significant stores have affiliate programs: Etsy offers a commission of 4%, eBay – from 40 to 80%, AliExpress – up to 50%.
For example, Amazon has partnered with travel and wildlife survival sites – Every Day Carry and Gear Patrol. Each link leads to themed products on Amazon – folding knives, flashlights, sleeping bags, and tents.
The financial blog (Money Saving Expert) explains saving and investing money in partnership with uSwitch and TotallyMoney.
The site theme does not have to be directly related to the brand. For example, the Consumer Search site exposes brands and selects companies with impeccable reputations and quality products. They give affiliate links to Home Depot, a home furnishings store.
Affiliate Marketing Tools
To carry out any kind of activity, special tools are needed. Affiliate marketing is no exception.
Popular affiliate marketing tools include:
- product reviews (for example, the Vacuum Wars channel shoots educational videos about vacuum cleaners and provides links to the products of partner stores);
- YouTube (most powerful tool: 82% of traffic will come from video)
- Aggregator sites like Momondo and Skyscanner.
- The marketing partner needs domains for the title of the landing pages. The landing page is the site that the user comes to. Landing pages play a crucial role in sales – after all, these are sellers, and their requirements are profound.
- Then you need a hosting that will host the landing pages. Shared hosting is enough, and pages will load quickly. 40% of users will leave if the site doesn’t open after 3 seconds. VDS (virtual dedicated server) is also suitable, but replacing it with a dedicated server is better. You can start with Bluehost
- The leading partner’s tool is the tracker. It is software that allows you to monitor and analyze traffic. Each user who comes to the page has their unique identification number in the tracker. Thanks to the tracker, you can find out where the potential buyer came from, from which country, city, at what time, from which device (including you can find out the device brand and operating system), what keyword typed into the search engine, on which banner he clicked and much more. The tracker allows you to understand how much money has already been spent on the campaign, how much is earned, and profitable and unprofitable users. Which tracker to choose? Firstly, Voluum is an advanced cloud tracker that can quickly handle tremendous traffic. Secondly, Keitaro professional tracker. Unlike Voluum, it is not cloud-based; it must be hosted on your server.
- An essential tool is an Adplexity service. This spy tool helps you understand which verticals and offers are working. In which countries, on which traffic sources, with which promotional materials. It will save money and time and indicate the wrong choice of an offer or country.
- To keep abreast of the latest developments in the affiliate marketing industry, it is a good idea to register on affiliate forums. Some forums are paid, but the information provided is more expensive. You can get valuable advice and read about strategies and tactics for promoting various offers.
- If it is time-consuming to create pre-landers and banners, you can hire freelancers. There are a lot of freelance exchanges. The One Hour Translation service is suitable for translation into the desired language.
Influencers as an affiliate marketing channel
The most popular channels for affiliate marketing are micro-influencers with a small audience (from 300 to several thousand users) and narrow topics, for example, cycling routes reportage photography or the design of creative spaces.
According to AdWeek, 59% of micro-influencers consider Instagram the best engagement platform. Influencer marketing reached $ 6.5 billion in 2019.
Their traffic is less, but the audience is more loyal, and the conversion rate is higher. Smaller companies can always join programs like the eBay Partner Network and Amazon Associates Program, which help find partners among content creators and influencers.
You can also look for influencers in intermediary agencies.
Skillbox prepares individual promotional materials for large platforms with an audience of 5,000 or more. Partners receive 16% of the cost of each course and a bonus. In the fall, at the peak of orders, conditions improve.
Partners include bloggers, media, and cashback services. A test launch for several weeks is underway with major partners. 27% of courses are sold through affiliate marketing.
Artificial intelligence (AI) technologies can be used to regulate blogging to improve partner sampling and content creation.
Artificial intelligence can classify content depending on the interests, demographics, and geography of influencers, assesses the mood and ways of interaction of the audience, and predicts the return on investment.
It’s better to choose influencers carefully so that you can plan to work with them for a long time. Constant collaboration with a brand looks more convincing than a one-time advertisement.
Influencers need to understand deadlines, type of content, product, and budget, and for this, they need the help of the brand.
Potential partners can be searched for in search results, on forums and thematic communities, in related areas, from competitors’ traffic – tools such as Semrush, SimilarWeb, or Ahrefs will help you with this.
What Affiliate Marketing Gives to Companies
Here are some examples from various industries to see how affiliate marketing is doing.
Saving the budget for promotion and increasing interest in the product
Lenovo decided to accelerate its Legion gaming brand. The company launched the King of the Hill loyalty program.
Clients play games on the platform, earning prizes by defeating opponents. Later, the rewards can be exchanged for discounts on Lenovo gaming equipment in the brand’s official stores.
During the pandemic in the Legionnaire’s Store, it became possible to exchange earned points for promotional codes of partners – Ivi, Delivery Club, Citymobil, or computer games, for example, Cyberpunk. Games sold out in less than a minute.
Every week, the most active participants are rewarded with game trophies from World of Tanks and other games.
As a result, the budget has decreased three times, the number of participants has grown from 31,000 to 36,000 people, and the cost of attracting one registration has decreased by 40%.
The attraction of new clients
Aviasales works with Travelpayouts to help airlines find customers for a low commission by partnering with travel companies and affiliates – bloggers and travel websites looking to monetize their sites.
Find organizations that suit your product or service.
Significant increase in sales
Online men’s clothing store Kanzler increased sales 11 times thanks to its partnership with the Amistad partner network.
The brand gets 12% of sales through affiliate marketing; the average check has grown by 30%, and the number of orders – by 19%. The brand develops promotional codes for 107 partners.
Full sales cycle delegation
The online planner for developers Panoplan has abandoned individual sales in favor of a partner model: the agency takes over the entire sales cycle. It receives 20-30% of the revenue, and the company only has to ship the order.
Test drive sales
The online service for the rental of children’s goods TOYRENT tested the try & buy partner model for the first time in 2017. It helps the affiliate promote and sell products and get honest user reviews.
The first with whom we entered into such a partnership was Cinemood, the creators of the MultiCube. It is a smart projector, home cinema and 2 in 1 filmstrip player. It allows you to project an image in your car, plane, or room.
Since the gadget is quite expensive, customers are ready to take it for a test drive for 5% of the original cost. Upon purchase, the rental price is deducted from the final amount. We placed the multi-cube on our website, made a landing page, and carried out an advertising campaign.
After a test drive, every fifth user who rented a gadget wanted to buy it.
After that, the company decided to work on the try & buy a model with other manufacturers. They take children’s transport (bicycles, balance bikes), strollers, and sports complexes from her for a test drive. Things are selected individually.
As the CEO of the online service TOYRENT Alexey Graudyn notes, each mother has her ideas about the convenience of a stroller.
Before figuring out which bicycles best suit their height and build, the children should try several options. A test drive saves money and time and helps you decide on a purchase.
Affiliate Marketing Advantages and Disadvantages for All Parties
Affiliate marketing has pros and cons for almost all participants in the scheme.
Pros of Affiliate Marketing
- You can work anywhere in the world (you only need a laptop or internet).
- You can make good money around the clock (a profitable campaign brings money 24 hours a day, 7 days a week).
- There is no need to spend money purchasing goods, renting office and warehouse premises, or wages for employees.
- There is no need to look for suppliers, sign contracts, or travel to business meetings.
- There is no need to deal with clients’ complaints and claims.
The partner only focuses on marketing.
Cons of affiliate marketing
- The marketers do not create assets that can be traded. They only earn when they launch campaigns and produce quality content. Affiliate marketing is good for generating money and building skills. Many see it as a stepping stone towards the realization of other plans.
- Campaigns can be volatile. You can make $ 5,000 one week and nothing the next. The reasons may differ: the advertiser has stopped the offer, new rules have appeared limiting promotion methods, and competition has grown.
But the affiliate marketing industry is full of opportunities, and it’s not too late to take advantage of them.
Affiliate marketing remains one of the main methods of online promotion. The parties simply need to learn to predict risks and minimize their consequences.
What is Affiliate Marketing?
Affiliate marketing is a way to make money online by promoting products from other companies for a commission. From an advertiser’s point of view, it is a method of increasing customer reach, sales, and profits through collaboration with publishers.
How does affiliate marketing work?
The circular pattern involves the advertiser, partner, affiliate network, and customer. The partner is looking for networks (platforms) where products can be promoted. The client buys the advertised product, and the advertiser receives income.
What is the manufacturer’s risk when launching an affiliate program?
For the seller, the risk is not to fall into the hands of fraudulent publishers. Sometimes publishers create fake sites and post links so that they cannot be tracked.
Where can I find an affiliate network?
Lists of reliable affiliate network sites for advertising are freely available. This article also lists the most popular affiliate networks.
Affiliate business is not just a trend or a new promotion technology. This is a business that works and allows you to sell more and increase your target audience with the help of partners.
To achieve your business’s goal, different marketing tools are used. The main affiliate marketing strategies are quality content, SEO, social media, and upselling.
To become a successful partner, you need to make a lot of effort. But the main success factors are the right choice of a niche (which is interesting for you and the audience) and the creation of high-quality, informative, helpful content.
Making money on affiliate programs can become a passive, additional source of income for everyone. For a company, affiliate marketing is an effective way to popularize its product and increase the number of sales with the help of partners and publishers.