Affiliate Marketing for Starters – Great Insight Here!

Affiliate marketing is a marketing practice in which you promote product or service of a company/vendor, and it rewards members in the form of commission for each visitor or customer brought about by the affiliate’s marketing efforts.

For example, if you sign up for Amazon affiliate program and promote its products then if the visitor you send from your website through an affiliate link and that visitor makes a purchase then you will get a commission.

The person responsible for the sale is called an affiliate.

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This kind of advertising is called Cost Per Action (CPA) (also known as Pay Per Action (PPA) or Cost Per Conversion), where the business only pays for the specified action, e.g., visits the site, makes a purchase, registration, etc.

Another important thing is you don’t need to sell products every time to make a commission. Different affiliate programs are using different plans for promoting their products such as:

  • Pay per Sale: In this program, a seller pays you a commission on the sale price when the purchase is completed. (Most common scenario)
  • Pay per Click: Irrespective of sale is made or not you get paid based on the number of visitors you redirect to the sellers' website from your site.
  • Pay per Lead: In this program, you get paid once you send visitors from your site through an affiliate link to seller’s site and that visitor provide their contact information on the vendor site by filling out a simple contact form.

If we convert complete affiliate marketing into one picture then this will look like this;

Affiliate Marketing for Starters

There are a lot of affiliate programs out there, and it is not possible to even count these affiliate programs, but here I will name some of the prominent affiliate programs.

Amazon is no doubted a leader in this industry, and it offers a broad range of products. Other famous affiliate programs include; LinkShare, Commission Junction, ShareASale, and ClickBank, etc.

Benefits to the Company:

Affiliate marketing offered many advantages to the enterprise, the most prominent are:

  1. Companies keenly look for people to sell their goods on their behalf, and in return, they pay a percentage of the sale to the affiliate. It’s because it allows them to generate more sales without hiring thousands of salespeople.
  2. Companies advertising cost for a particular product is mostly limited to the percentage paid to an affiliate, and the company only has to pay when the actual purchase is made. It is even better than banner advertising, where the corporation pays whether or not any purchase occurs.
  3. The company can save time from advertising hassle and focus more on their production process and improve customer service which ultimately benefits to both company and affiliate. Because it built trust in customer and customer satisfied from both affiliate site and company.

 Benefits to the Affiliate:

  1. You don’t need to have your own product, you can quickly find suitable affiliate programs online and start promoting their products.
  2. The affiliate earns big amount of commission by promoting products, so long as visitors click on the affiliate links and make purchases.
  3. You don’t have to bear the trouble of setting up e-commerce functions, take credit cards or shipment; you just join some affiliate programs and let someone else do the “dirty work.”

Affiliate Commission:

Commission varies from 4% to 70%. It is low for physical products and high for digital goods and services. The commission may also vary on the number of goods sold, e.g., let’s see Amazon affiliate program.

Clickbank offered commission ranging from 1% to 75%. ClickBank after processes the sale applies its charges, then calculates the commission on net sale amount. Here's an example with a 50% commission rate:

Retail Price: $50

Subtract 10% + $1: -$6

Net Sale Amount: $44

50% of Remainder: $22

The maximum commission you can earn in click bank on a single sale is $150.

How to Become an Affiliate?

Some affiliate programs will give you immediate approval like Clickbank etc. while others have some conditions.

Becoming an affiliate is not much difficult all you need to fill out an online form, which allows the Seller to identify whether you’re a good match for what they’re selling. Then you’ll get approved in 2 to 3 days.

How to Track Sales?

A cookie usually tracks the sales. A cookie is a technology that works with web browsers to store information like login or registration information etc.

This allows the company to calculate the commissions accurately. Therefore, it is important to ensure you’re using the correct affiliate link before you send visitors off to the product.

Amazon referral cookie only lasts for 24 hours, while some affiliate programs referral cookie lasts for 30 or 60 days, which is common for online sales of digital products.

It means that if you refer someone to Amazon today, and he/she will buy a product three days from now, you won’t be getting anything at all. There are tons of tools available online and even if you want to search for profitable products online, AmaSuite will do all the work for you.

How Do You Get Paid?

It depends on the affiliate program you are in, most programs though give you the options of either receiving the money through checks, direct deposits or through some other means like “points or credits” to use on their own products.

You can use these points or credits to purchase the company’s own products for yourself.

Earning Potential of Affiliate Marketing?

This is the question most people asked. Earning potential is enormous. People are making +10000’s of dollars even from one site. But if you are not implementing the right strategy for your site then it’s tough to succeed in affiliate marketing.

If you know all about affiliate marketing and building a website then do start early because you can earn your good part of the share. Remember in online business you don't need to put as much effort as in offline business.

But if you are still not confident then I am showing you platform whose primary focus is to train in this field and develop you a successful homemade business.

The name of the site is Wealthy Affiliate, and it is the best online learning platform to build your online business using affiliate marketing. If you want to know much about Wealthy Affiliate, then I have provided a detailed review here.

I hope you will like my article, and if you have any question, then please ask in the comment section.

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