Affiliate marketing is having a third-party promote your business and sharing your profit with them. You get increased sales, and the affiliates get a commission on each sale they make for you. Already a multi-billion dollar market, some creators are making six figures in passive income every month.
Though it sounds pretty simple, affiliate marketing won’t be successful only by slamming a few affiliate links on your site. You need to build a robust strategy and an execution plan to make it a real success. This blog post will show you how!
How it works: The framework
A merchant partners with one or more affiliates and give them individual links to track sales. Once an affiliate makes a sale, they earn a percentage of that sale. The best part about affiliate marketing is scalability. The merchant can work with many affiliates. And an affiliate can sell products for different brands and make profits from them all.
This advertising model is sophisticated- helping the advertiser attribute a sale to the right person. If you have good, relevant traffic coming to your website, you can cash in on it and monetize the traffic.
The publisher promotes the advertiser’s products via different channels such as blogs, emails, and affiliate networks & platforms. The advertiser or the affiliate platform ensures they give customized links that track qualified purchases. So, as a publisher, you promote products to your audience, and if they buy them, you earn from that particular purchase!
The merchant only ends up spending if a purchase is made, unlike other advertising models where a business has to pay for the interaction even if it didn’t result in a sale.
What to Do: The right strategies
Find your niche and make sure you operate in it. Don’t try to sell everything at the same time. For instance, if your specialty is books, you shouldn’t start promoting mobile phones on your website.
Partner with businesses that offer quality products in your niche and then educate, entertain & engage your audience.
Understand your niche thoroughly. Drill down into the industry trends and consumer behavior- what kind of products do customers buy, why, and how? What are their preferences? You need to know your customer to build strong relationships with them, and for them to buy from you, you need to get them to trust you first.
Once you’ve decided on a niche, it’s time to find the right affiliate network or platform. Do people trust this network? Is it well-known? What is the payout system? If you can’t come to a conclusion, you can directly get in touch with brands whose products you like and want to sell and gauge if they have any affiliate programs in place. In this way, you can get into multiple brand partnerships with the right businesses!
For a merchant, it’s as crucial to find the right affiliates. You don’t want to partner with someone who can put your brand reputation at stake. Find the affiliates who are admired and trusted in your product category.
The Editor’s Note
There are two reasons why most affiliates fail to make good money- either they don’t have enough traffic coming to their website, or it’s not quality traffic. In short, the website doesn’t have an audience willing to buy.
You may want to become an expert in your niche. If you don’t offer the kind of information your audience needs, they’ll do business with your competitors. An area of expertise is the key here!