Making an immense fortune with almost zero investment is possible. By using Affiliate marketing, many affiliates achieved total freedom. They make hundreds of dollars while they sleep thanks to affiliate marketing online. It is a popular tactic to drive sales and generate significant online revenue. But unfortunately, many people fail in this business because they don’t know the right methods and don’t have the necessary skills.
This article about affiliate marketing for beginners will help you use the best strategies and some untold secrets if you want to know about affiliate marketing online. You’ll learn how affiliate marketing works, how much affiliate marketing commission you can earn, how to start affiliate marketing, and tips to help you achieve affiliate marketing success.
What is Affiliate Marketing?
Affiliate marketing is a sort of performance-based marketing where an affiliate earns a commission for marketing other people or a company’s products. This is famous in the marketing industry today. You can simply search for a product that you enjoy, then promotes that product, and earns a piece of the profit from each sale you make. You, as an affiliate, will serve as a bridge between potential customers and the brands. The sales are tracked through affiliate links from one website to another.
Gathering useful information will help you earn higher affiliate marketing commission rates through affiliate marketing. It is helpful to both brands and affiliate marketers. In fact, 81% of brands and 84% of publishers leverage the potential of affiliate marketing. This statistic continues to increase as affiliate marketing spending rises every year. In 2018, content marketing costs were gauged to be 62% of traditional marketing schemes while simultaneously generating three times the leads of conventional methods.
Another good thing about affiliate marketing online is that you can do it at scale. As an affiliate marketer, you can promote affiliate marketing products from different brands and companies while earning commissions from all of them, unlike a salesperson who only sells products from one business. There is no limit to how much you can earn. It all depends on how good the product you are promoting and how much time and effort you invest in it. As an individual, you can even start affiliate marketing online without a website.
How Affiliate Marketing Works?
Affiliate marketing is a pretty simple concept. The merchant offers a product or service for sale, promotes their product to the consumer. The merchant will give each affiliate a unique link to track who was responsible for a sale. When the consumer clicks that link, a small file called a cookie gets stored on their device. An affiliate cookie will help the merchant attribute the sale back to the right person, and it holds an expiration date, so you get paid even if the buyer delays their purchase.
Since affiliate marketing works by dividing the duties of product marketing and creation across parties, it manages to leverage various individuals’ abilities for a more effective marketing strategy while providing contributors with a profit share.
The business owners who offer a product or service for sale don’t need to be actively involved in the marketing. Still, they may also be the advertiser and profit from the revenue sharing associated with affiliate marketing.
The affiliate who promotes the product or service on behalf of the business can be either an individual or a company that markets the seller’s product in an appealing way to potential consumers. They promote affiliate marketing products to persuade consumers that it is valuable or beneficial to them and convince them to purchase it. Affiliates share these products on blogs and social media. They often have a particular audience to whom they market, generally adhering to that audience’s interests. If the consumer ends up buying the product, the affiliate receives a portion of its sales.
Lastly, the consumer who makes a purchase, either directly through the business or through the affiliate. Whether the consumer knows it or not, their purchases are the drivers of affiliate marketing.
Sometimes the affiliate is disclosing that they are receiving affiliate marketing commission for the sales they make from the consumers. Other times the consumers are unaware of the affiliate marketing infrastructure behind their purchase. The consumer will make the purchase and receive the product as usual, unaffected by the affiliate marketing system in which they are a significant part.
How much Affiliate Marketing Commission Can I Earn?
There are plenty of affiliate marketing programs out there, each offering different affiliate commission rates based on several factors. Somewhere between 5% and 30% is considered an average affiliate marketing commission rate, depending on what industry, price of the product, and the value of the company itself. For example, if you’re promoting a product that’s worth $1,000 with a 5% commission rate, you’re getting $50 per sale. This can be increased if you put more work into outreach and gaining your initial traction.
But it is also essential to know that the consumer doesn’t always need to buy the product for the affiliate to get a commission. Depending on the program, the affiliate’s contribution to the sales will be measured differently. The affiliate may earn commission in different ways, such as the following:
Pay per sale (PPS)
Pay Per Sale or also known as Cost Per Sale, is the standard affiliate marketing structure. It is an online marketing pricing system or arrangement where the company that owns the business only pays for those sales generated by the affiliate after the consumer purchases the product due to the affiliate’s marketing strategies. With this program, both the advertiser and the business are aligned perfectly with their goals.
Pay per lead (PPL)
Pay per lead is a more complicated system in which payment is based solely on qualifying leads. The affiliate must persuade the consumer to visit the merchant’s website and complete the desired action, whether filling out a contact form, subscribing to a newsletter, signing up for a free product trial, or downloading software or files.
The only disadvantage of pay per lead system is the potential for fraudulent activity by incentivized 3rd-parties. So it is advisable to make a regular audit of the results.
In terms of generating leads, we recommend Viral Lead Funnels, a program that will help you create viral marketing funnels and build your email list. Then manage your leads with Snovo.io, a Customer Relationship Management (CRM) tool that will help with your sales conversion.
Pay per click (PPC)
Pay per click is an online system in which payment is based solely on qualifying click-throughs. It is a middle ground between paying per impression and paying per action. When paying per impression, the advertiser assumes the risk of low-quality traffic generated by the affiliate. When getting paid for actions, the affiliate takes the risk of low-converting offers by the advertiser.
The affiliate does not have to worry about the target site’s sales conversion rate in a pay per click system. On the other hand, the advertiser does not have to worry about how many impressions it takes to attract the specified number of clicks. The advertiser only pays for qualifying clicks to the destination site based on a per-click rate.
To track your clicks, we recommend Click.org to help you. Click here (insert link to article) to read more about Pay-per-Click Affiliate Marketing.
How to start affiliate marketing?
Affiliate marketing online is a billion-dollar industry and is how many creators and affiliate marketers make their money through referrals and affiliate marketing commissions. Here’s a step by step guide on how to start affiliate marketing.
1. Choose an Affiliate Marketing Platform (Blog or Youtube)
The first thing you need is a platform to promote or advertise and make money with affiliate marketing. It can be done on any platform, but it’s more lenient to build an audience and increase your affiliate sales by starting an affiliate marketing blog (insert link to Affiliate Marketing for Bloggers article) or YouTube channel (insert link to Affiliate Marketing on Youtube article).
Starting an affiliate marketing blog is relatively easy and inexpensive. With WordPress, you can quickly build a professional-looking website in minutes. Besides, WordPress has more tools to help your website perform better than other website builders.
Once your website is up, optimize it to have a better chance of ranking on search engines. From there, you can insert affiliate links to your content. If you want more information on how to use WordPress for blogging, please read this article.
In YouTube, creating and uploading videos is free, which makes it ideal for many creators. If you want to do affiliate marketing on this platform, optimize your videos for search engines, and include affiliate links in your description. Don’t forget that you’ll need to disclose that you’re including affiliate links in both platforms (Blog and YouTube). The Federal Trade Commissions or FTC requires creators, publishers, and affiliates to be transparent when receiving an endorsement income.
2. Pick a Niche for Affiliate Marketing
The next step on how to start affiliate marketing is picking your “niche”. It refers to a particular segment of people with specific interests. Finding your niche can be one of the most difficult aspects of business research for all marketers. Choosing a niche without enough potential could leave you with meager results for hundreds of hours of effort.
When it comes to affiliate marketing online, it’s essential to choose a niche that focuses on a specific category. Keeping your niche narrow can help you build a more focused audience and potentially help you rank higher in search engines.
Choosing a niche is as important as the quality of your content. You can make a list of niches you think are good candidates and write down search terms related to them. Use keyword research tools to take those queries and find out their search volume. Look for keywords in the 2,000 to 5,000 range of searches per month.
3. Look for Different Affiliate Marketing Programs
After choosing a Niche for Affiliate Marketing, it’s now time to look for potential affiliate marketing programs. This should be easy —selecting affiliate marketing products that fit your niche and relate to your content.
There are lots of affiliate networks out there that you can join. These are businesses that connect affiliate marketers and merchants so both can earn more money. You can use these affiliate networks to make better product selections to promote on your chosen platform. Some offer affiliate marketing for beginners with high pay but low volume, while others pay low but in high volume. Here are the three types of affiliate marketing programs that you can choose from.
High-paying, low-volume affiliate programs
These are affiliate programs for niche products with high payouts. There also tends to be more competition for programs with high commissions. It’ll be quite challenging for beginners to make a meaningful amount of money competing against skilled marketers with deep pockets.
Low-paying, high-volume affiliate programs
These are affiliate marketing programs for products with low payouts but mass appeal. The redeeming quality of these types of programs is that they usually offer tons of products to sell, like Amazon. Through Amazon’s affiliate program, you can earn up to 10% commissions on almost anything they sell. The other good thing is that you often get commissions on the purchase’s entire value rather than just the product you recommended. To make these types of affiliate programs pay, you need to drive tons of traffic.
High-paying, high-volume affiliate programs
These are affiliate programs for products with mass appeal, which also pay high commissions. The disadvantage of these affiliate marketing products is that they attract affiliate marketers with lots of expertise and deep pockets. Some even use spammy tactics that you can’t compete with.
If you’re looking for a high-paying affiliate marketing program to get your business going, we highly recommend ENTRE Institute. It has one of the highest paying affiliate programs on the internet! As an ENTRE Institute Affiliate, you will learn how to earn money online, build blogs/websites, and make money from it.
4. Create Great Content on Your Affiliate Site
To earn with affiliate marketing, most beginners simply publish random content and insert affiliate links within it. This strategy may work or not, depending on how you do it. But if you genuinely want to boost your affiliate revenue, you need to create high-quality content where your affiliate links fit naturally. It’s one of the best tips on affiliate marketing for beginners that you should remember.
Also, you’ll need to make sure the content you publish reaches your target audience. Your target audience is a specific group of people who needs the product or service. Sometimes, the consumer may not even know which product to buy for fulfilling their needs. So as an affiliate marketer, it’s your job to help them discover the right product for their needs with high-quality content, help them make a purchasing decision, and then navigate them to the product website for completing the purchase.
If you want a faster way to create great content, you can use Smodin to rewrite high-ranking articles in your niche.
5. Get More Clicks on Your Affiliate Links to Earn Commissions
While not all clicks and merchants are created equal, you need more clicks on your affiliate links if you want more affiliate revenue. Your sales will depend highly on your platform’s traffic, whether it is an affiliate marketing blog or YouTube. For this, we recommend using LeadFarm, a program that will boost your website or Youtube channel’s traffic.
Assuming your blog attracts people interested in your niche and, therefore, potentially interested in products within the niche, the more clicks on the affiliate links you generate, the more revenue you’ll earn. To get more clicks on your affiliate links, here are a few things to consider:
- Integrate links into as many posts as possible.
- Do product reviews, tutorials, and product gift guides.
- Use social media to promote your links.
How to Achieve Affiliate Marketing Success
Now that you have a good idea about affiliate marketing for beginners, let’s look at ways to become successful. Successful affiliate marketers can make an income of more than five figures per month. Achieving this success in Affiliate marketing is not that easy. In fact, only 1 to 5 percent of marketers achieve this status. So how does one become a successful affiliate marketer? You need to work hard and a hefty time commitment. Here are some tips and strategies to help you achieve affiliate marketing success.
Define your target market
Determining who your target market is is essential. Because if you target everyone, you’re targeting no one. The target market is a specific, defined segment of consumers to who you want to sell your product. You need to know who they are, what they are like, their buying behaviors, and, where you can find them.
Recommend quality affiliate marketing products
The key to being successful in affiliate marketing is to build relationships with your audience. To do this, you must only promote quality products that you truly trust. If you genuinely like the product you promote, it’ll show in the content you create, and your audience can quickly tell if you know what you’re talking about. On the contrary, you’ll lose your credibility if you recommend crappy products. They will soon lose their trust if you promote affiliate marketing products you haven’t used before or aren’t a good fit for them. If you make good recommendations, your audience will more likely come back for your expertise.
Promote products from different merchants
Affiliate marketers can promote products from different merchants, so you need to maximize this affiliate marketing strategy. It is important to work with various merchants in your niche and promote a wide range of products. This strategy will diversify the number of commissions you make and create a steady stream of revenue when building an affiliate website. If you only work for one merchant, you are stuck with one source of commissions and conversion rates.
Choose affiliate products with high commissions
Commission and the potential profit you earn from the product is the most critical factor in Affiliate Marketing. Many merchants offer enticing commissions and offer affiliate sales, so it’s essential to choose the right affiliate products and programs with high commissions for your success.
Choose affiliate marketing programs with recurring commissions
Recurring commissions are usually subscription-based services where you earn for every purchase your referrals make, not just a commission on their first purchase alone. This means you have to win your clients only once, and you get money every month as long as your referrals keep their accounts.
Always test and optimize your conversion rates
Testing and optimizing your conversion rates is essential in achieving success in affiliate marketing. If you currently get 10,000 visits per month at a 3% conversion rate, you have 30 referrals. To increase these referrals, you can either focus on doubling your visitors or simply increasing the conversion rate. The latter is the better option. This can include optimizing your landing page, testing your calls-to-action, and having a conversion rate optimization strategy in place. If you continue doing this, you’ll get far better results with much less effort.
Engage with your audience
Most successful affiliate marketers talk to their audience. If you have an affiliate marketing blog, allow comments. To start a discussion with your audience, you can ask questions at the end of an affiliate marketing blog post like “Have you tried any of these?” or phrases like “Let me know what you think in the comment section below”. These strategies will help foster community interaction and will give you the chance to have a conversation with them. The more your audience comes to see your platform as a community, the more they will come back and help you increase your conversions.
Focus on your affiliate traffic sources
Aside from determining your target market, it’s also essential to know where your traffic is coming. Traffic sources may include paid, organic, social media, referral, email, or direct. Knowing where your audience came from will allow you to customize your messaging to provide the best affiliate product recommendations. You can check traffic source data in Google Analytics to view things such as time on page, bounce rate, location, age, gender, time of day, and the devices they are using. This analytics data is imperative for you to make informed decisions, boosting your conversion rates, and making more sales.
Set proper expectations
It’s impossible to make a million dollars in a month for a beginner in affiliate marketing. Many people give up way too soon if they don’t see immediate success. That’s why you need to set realistic and proper expectations in order to achieve success in affiliate marketing. Remember, success will not happen overnight. Monitor your statistics mindfully to see what is working and not. Make changes when needed, and you’ll likely start getting more payments.
Follow these tips and you’re inches away to affiliate marketing success. You can also read this article on what mistakes to avoid on affiliate marketing (insert link) to guarantee more affiliate marketing commissions.
Hire an Affiliate Marketing Professional at Kosmos Digital Solutions
We hope that this guide will help you become a successful affiliate marketer in time. Keep in mind that what worked six months ago may not work today. It’s essential to seek knowledge and start by learning something new about affiliate marketing every day. The best educational materials we have found for affiliate marketing are 301k Challenge, Elite Affiliate Pro, and Elite Traffic Pro 2.0.
You can hire an affiliate marketing professional to help you with your affiliate marketing journey. Kosmos Digital Solutions is a global digital agency network that focuses on collaboration between digital service providers, knowledge-sharing, as well as business support & research for digital products & services.
If you need help in affiliate marketing, Kosmos Digital Solutions can help you. Click here to reach us.