WHAT IS AFFILIATE MARKETING?
Affiliate Marketing is a type of performance-based marketing that is conducted on the internet. Basically, a company that wishes to sell its products or services creates an affiliate program. Marketers can then participate in this affiliate program, promote the company’s products/services online, and when their efforts result in a sale for the company, the marketer is paid a commission on that sale.
It’s a simple model, but it is extremely effective. Many companies have been able to acquire tremendous amounts of customers relatively quickly simply by creating an affiliate program. Amazon is just one well-known example.
HOW DOES IT WORK?
There are 3 main participants in this model:
The first participant is the merchant – the company with a product/service for sale.
The second participant is the affiliate – the person/company that agrees to market the merchant’s product/service (usually from their website).
The third participant is the customer – the person who visits the website and decides to buy the product/service.
The diagram below illustrates how this process works:
Chatting With Champions
BENEFITS OF BECOMING AN AFFILIATE MARKETER
1. You don’t need your own product
2. You can make money quickly
3. You have little to no overhead costs (product creation, storage, shipping, customer service, etc.)
4. You can participate in several affiliate programs and generate multiple streams of income
5. Marketing and training tools are often provided by the merchant
HOW TO SUCCEED AS AN AFFILIATE MARKETER:
Amateur marketers think that by simply having a website with banner ads and affiliate links they are going to make a lot of money. This just isn’t true. There are a series of steps required to successfully build an affiliate marketing business online.
The Right Approach:
1. Direct visitors to your website.
This is called traffic. A website that receives lots of traffic will likely generate more sales than one that doesn’t. You can do this by paying for ads, having great search engine optimization, sharing links on social media, etc.
2. Capture your visitor’s contact information
Gather their name and email address. You want to build a database of potential customers (prospects) that you can maintain contact with over time. Very few people buy immediately.
3. Direct them to your merchant’s sales page
Make sure the page has your affiliate link so the merchant knows you are the one sending them this visitor. Many merchants will have a presentation page for their product/service.
4. Follow up, follow up, follow up.
Stay in contact with this prospect (email autoresponders). When they don’t buy right away, sending them valuable information or recommendations for related products increase their likelihood of buying.
Affiliate Marketing is one of the fastest, easiest, and most profitable way to make money on the internet. It is essentially a joint venture between you, the marketer, and a merchant that wants to sell a product/service. The merchant provides the product, the website, the customer service, order handling, and so on. They give you a link so that when you refer clients to purchase its products, you earn a commission from every sale.