What is Affiliate Marketing and How does it work | 2020(Affiliate marketing)
Working hours and hours without getting the credit from the work makes life boring as hell.
All of us want to make our life easy and comfortable.
As all of us now know, just creating a blog post only doesn't spice things up. We need to have a good marketing platform to earn a healthy amount of money.
There are many marketing strategies to boost our products or blogs to the next level but today we will discuss affiliate marketing.
Driving down the road of marketing. Here comes an affiliate marketing.
So, what really is affiliate marketing? Any guesses?
Well, Let me make it clear to you.
What is Affiliate marketing?
Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or a customer brought by the affiliate's own marketing efforts
The affiliate simply searches for a product they enjoy, then promotes that product and earns a piece of the profit from each sale they make. The sales are tracked via affiliate links from one website to another.
You now have a vague idea about affiliate marketing but here comes a question why would you really wanna pursue an affiliate marketing?
I am sure after reading these successful stories of affiliate marketing. You will surely want your hands to get dirty in this area.
Affiliate marketing success stories
Instead of directly showing you how to be successful we are going to look into some examples of success to demonstrate that you can make money with affiliate marketing.
Hieu Nguyen
Hieu Nguyen is a Vietnamese affiliate marketer who was working as a software developer before he took the plunge into selling affiliate products.
He has had a ton of success by building niche sites that target specific Amazon products. One of the first sites he built he sold for $17,500 profit and he continues to make money with niche sites and promoting Amazon products as an affiliate.
The Wire Cutter
The wire cutter is a huge site and In the five years from its launch from 2011 to 2016, the company generated $150 million in revenue from affiliate programs with its merchant partners. As of 2018, it had more than 100 employees.
They post reviews of affiliate products such as the latest gadgets, outdoor gear and health, and fitness products. One of the reasons for their success is that all the products they review are tested rigorously so they are genuine reviews
Chris Guthrie at UpFuel
Chris is the host of the UpFuel Podcast and an expert in the Amazon Affiliate space. He is the owner of several businesses in the Amazon space, including affiliate, SaaS, and physical product businesses.
Predominately working with Amazon affiliate links, he has made a lot of money marketing different products online and it is one of the best examples of success in this sector.TripAdvisor
Perhaps one of the biggest success stories in affiliate marketing. Most people don’t even think that TripAdvisor is an affiliate! That’s how good they are.
With over 116 million visitors per month, they have become the go-to the place to look at restaurants, hotels and everything else to see what travel destinations are really like around the world.
I hope this much of information gives you drive to get started with affiliate marketing.
Let's discuss on how does the affiliate marketing works
How Does Affiliate Marketing Works?
To those on the outside, the inner workings of affiliate marketing can be mysterious and confusing. Some marketers even think it's a channel that you can turn on and turn off like you can with paid search or paid social
Affiliate marketing works by spreading the responsibilities of product marketing and creation across parties, it manages to leverage the abilities of a variety of individuals for a more effective marketing strategy while providing contributors with a share of the profit.
The overall goal of an affiliate program is to create a win-win framework for both brands and their affiliate partners.
To make Affiliate marketing work, three different parties must be involved:
1. Seller and product creators.
2.The affiliate or advertisers.
3.The consumers
seller and product creators
Seller and product creators are the brand owners and have exclusive distribution rights of their product.The product can be a physical object, like household goods, or a service, like makeup tutorials.
The seller does not need to be actively involved in the marketing, but they may also be the advertiser and profit from the revenue sharing associated with affiliate marketing.
For example, The seller could be a SaaS company that leverages affiliates to help sell their marketing software.
The affiliate or advertisers
Basically, An affiliate or advertisers create their ads to persuade the target audience to buy,think, or do something and they put their ads where the target audience is likely to see them.
The affiliate can be either an individual or a company that markets the seller's product in an appealing way to potential consumers.
and if the consumer does end up buying the product, the affiliate receives a portion of the revenue made.
Affiliates often have a very specific audience to whom they market,generally adhering to that audience's interests.
This creates a presonal brand that helps the affiliate attract consumers who will be most likely to act on the promotion.
The consumers
Whether the consumer knows it or not, they (and their purchases) are the drivers of affiliate marketing. Affiliates share these products with them on social media, blogs, and websites.
When consumers buy the product, the seller and the affiliate share the profits. Sometimes the affiliate will choose to be upfront with the consumer by disclosing that they are receiving commission for the sales they make. Other times the consumer may be completely oblivious to the affiliate marketing infrastructure behind their purchase.
Either way, they will rarely pay more for the product purchased through affiliate marketing; the affiliate’s share of the profit is included in the retail price. The consumer will complete the purchase process and receive the product as normal, unaffected by the affiliate marketing system in which they are a significant part.
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