Affiliate marketing is a kind of relationship where the website publisher and an online merchant agree to help each other and to share revenues. The merchant pays the publisher a commission that is computed based on certain parameters – pay per lead, pay per click or pay per sale. Meanwhile, the publisher allows the placing of ads on the website to help display and sell the merchant’s products. If you understand what is affiliate marketing, it can be the opportunity for you to monetize your website.
Certain sites make affiliate marketing its core activity because it can be a profitable venture. Other sites also have other preoccupations but place affiliate marketing banner ads just to earn on the side. If there is a plan to get into affiliate marketing, it is most important to understand to affiliate marketing to know better how to make it a profitable endeavor.
Therefore, what is affiliate marketing? Affiliate marketing can be done offline and online. The operating principles are similar, but the way advertising s done in websites can pose a technical challenge especially to a newbie. To succeed, what must one know about it and what must one always remember?
1. How to promote: The products are promoted by through links of products in your site with a code embedded on it. This code is important as it helps the merchant track the leads, clicks, and sales that are made in your site. Your income depends on how many are tracked to be generating leads, buying, or clicking on the links.
2. How it works: The affiliate marketing program benefits both the affiliate and the advertiser. The affiliate earns through it; the more visitors, the higher are the conversions and income. Meanwhile, advertisers get more exposures with more publishers agreeing to be affiliates. They need not pay nonperforming affiliates. They only pay when a click, a lead, or a sale is made.
3. Type of affiliate marketing: There are three types – pay per click. Pay per sale and pay per lead. These mean that a commission is earned every time a visitor clicks the links, buys the product, or registers respectively. The amount varies between products and companies. Payment is usually transferred electronically at regular schedules or through a check.
4. Drawbacks: Affiliate marketing is not all benefits. While it is true that the both parties can benefit from the credibility of the other, objectionable reputations of any can party also affect the other party. Further, if the affiliate is not going to pump the traffic actively to the website, the ads can sit there for months without any conversion.
5. Finding the right affiliate products: Every beginner’s dilemma is finding the right products to promote. There is a wide spread of choices out there; the problem is knowing which can give you the benefits that are supposed to come with affiliate marketing – huge profits and building of brand. Here are some suggestions: browse affiliate networks, check online stores, find out about competition, and search Google. Evaluate each company and product objectively, but consider your passion.
6. Promoting the products: This is the harder part of the ballgame. You will hear people say that this is easy. That is easier said than done. Of course, you need to work on generating and driving quality traffic to your website; and that is a tough job. Here are some suggestions: create great content, write blogs that you can promote, use social networks to share your content/blogs (Twitter, Facebook, etc.), join forums, build your community, be active and visible online to be recognized as an expert in your niche and build your email list.
What is affiliate marketing? Simply put, you can earn more and get your brand associated with the big names in the niche that you are part of through it. It is work at the early part as you build your traffic, but very rewarding once you get readers clicking those links.