What is Affiliate Marketing?
This is a comprehensive guide to new comers in Affiliate Marketing world.
Searching the internet on keyword “affiliate marketing”, you should come out with a lot of result on this term.
The simple term of Affiliate Marketing is the process of you promoting third party’s product. As a reward, you will earn commission on sales you have referred to the merchant’s site.
I am using the word ‘referred’ because that’s all you need to do to make money as an affiliate marketer. You only need to refer potential buyers to the product or service page on the merchant site and you are done. All the selling parts including the sale presentation, product or service delivery, customer service and supports are handled by the merchant.
Any purchase that take place on the merchant site is tracked via affiliate links which embed your affiliate account. After confirmation of a sale, your account will be credited with the commission you are entitled to promoting the product.
It sounds simple right?
Affiliate marketing – a win-win business model
Affiliate Marketing business model is really a win-win business model. It’s a win for everybody – the product owner, affiliate marketer and the customer (buyer).
It is a win for the merchant (vendor or product owner) because it has acquired a new customer or a sale that otherwise it has never gotten. If the merchant has a lot of affiliates, it can generate more sales and customers through its affiliate program.
It also a win for you as an affiliate marketer as you have the opportunity to earn money with a little efforts. You don’t have to come up with the ideas to create product, handle the product delivery and customer supports. All you need to do is refer potential buyers to the merchant. In short, you are leveraging the business owner’s product, brand and marketing efforts to earn commission.
It is also a gain for the customer who gets the benefits of the product or service you promoted because the product has solved the problem of the customer.
As simple as it sounds, affiliate marketing is not for everybody. Huh? Yes, it is as simple as what I have explained but it takes some works on your part to be successful in this business.
If you are someone who are willing to take action to achieve your financial dreams, this is definitely for you. But if you are lazy and refuse to do anything to see your success in this online business, this is definitely not for you.
I have never heard something that can generate online income without you do something. If there is any, that is the obvious sign it is a scam. If you heard or presented with a program that promised you huge income with a ‘push button’, that is most likely a scam product.
If you are someone who don’t mind to learn and do some works, you may continue to read. Hopefully, nobody falls under the latter category.
Affiliate marketing basics
Before we jump deeper into it, first we need to look at the process of getting start your affiliate marketing business.There are 5 basic requirements you need to know to start your affiliate marketing business.
A niche is a market segment.
As an affiliate marketer, you need to choose a niche market in which you want to do your promotion. There are millions of niches you can choose from but a question you may ask, which one you should choose.
How to choose a niche?
Choosing a niche is super important in affiliate marketing. Although there is no right or wrong in choosing a niche, there are a few things you need to consider before deciding what niche you should head on to make sure you venture into something profitable.
A simple but effective way to choose your niche is by asking yourself what are the the things you have passion about. Choose a program or products you want to promote that is aligned with your interest and knowledge.
Some people love cats so they choose cat as their niche. Other may have interest in computer, so they choose topics related to computer as their niche and so on.
The obvious reason to choose a niche from your interest as this is the topics that you may already have knowledge. It is easier to promote something you already know compared to something new to you, right?
Once you have chosen your niche, you must have a place where your promotion take place. The easiest way to do that is by having a website.
Having a website is important as it is accessible through the internet and you can reach your audiences from all over the world online. A website is basically your online business.
Again there are things you need to consider when building a website such as your domain name, hosting account, platform you use to create the website and so on.
Now you have your niche and website. The next one is to fill up the website with content.
Using certain keyword, you would create content for your website.Content marketing is the back bone of an affiliate marketing business. This is where you get your free traffic or also called organic traffic.
May be you can recall going to Google or any other internet browse and search for something you are interested to know by typing certain words on the search column. What you typed on there is what is termed as keyword in the internet marketing.
Google, being the No 1 search engine, will return some results from your search. And if your website appear on top of the search, people will come to your website to find more about the information they are searching. If they like your content and click your affiliate link to go to the product page and make a purchase, you will earn commission.
Traffic here simply means website visitors. There are many ways to get traffic for your website. There are free traffic as well as paid traffic.
You can attract people to your website through your content which they found on Google search, the link your shared in social media networks like Facebook, Twitter, Pinterest, Instagram, LinkedIn and so on.You can also get traffic through paid advertisement.
This is more effective way to get traffic to your site in short to medium term. However, this requires some capital as you need to incur cost paying for the advertisement.We are going to look into the matter in-depth in other discussion.
If a visitor comes to your website, read your blog and click a link to the product you are recommending and if he purchases the product, you will get the commission from the product sold.
All these clicks are recorded in the merchant affiliate site which you can monitor and track. Obviously, the more product you sold, the higher is your commission.
So, that are the basic components of affiliate marketing.
We hope you start to have understanding of the concept of affiliate marketing and how it works.
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