Being a marketer or entrepreneur, the risk of getting into affiliate marketing is minimal as compared to the high rewards. All you need to invest is for paying affiliates on a conversion and not for driving website traffic.
In this blog, I have planned to talk everything about affiliate marketing that a person should know when initiating an investment into the area. It will help you know how to start affiliate marketing and increase your growth and earnings.
Affiliate Marketing – Foundation
Affiliate marketing can be considered as an outsourced marketing where you hire affiliates and pay them for bringing you potential customers. Remember, you only have to pay them for lead conversions and not for the traffic you receive to your website through them. While you try generating traffic being a marketer, your main motive should lie upon the goal to improve the count of total number of customers reaching you for business or sales. What is the use of getting millions of visitors a month who don’t convert into leads and revenue? This is what makes the foundation of affiliate marketing stronger as it helps getting better lead conversions in the right way. You might not know but there are top paying affiliate programs that pays huge amount. Now this is something tempting!
Affiliate Marketing – The Working Strategy
Here is a brief but informative step-by-step description on how affiliate marketing works:
A tracking URL is assigned to the affiliate
- The purpose is to keep a record which affiliates bring you traffic
Affiliate promotes your brand and company
- This is done in various ways like paid traffic through AdWords, email blast, YouTube video on the product linked to the affiliate ID, reviewing products, blog post, etc.
Acquiring leads or customers
- This happens when a visitor signs up or makes a purchase
Affiliate gets a commission
- You pay the affiliates for driving leads or customers.
Note: Be clear in your head that affiliate marketing and referral programs are two different things. Referral programs are a plus point for people already your customers. Consider an example: if KISSmetrics follows a referral program and an existing customer refers a friend, the customer is eligible to receive a reward or commission through the program. Talking about affiliates, it doesn’t require a customer as anyone can become an affiliate.
Affiliate Marketing – Advantages
There are numerous benefits of using affiliate marketing for increased income and business growth, here are some of them for you:
- Highly cost-effective
- Pay only when you get results
- You can have complete record of the cost per acquisition
- In majority cases, you never lose money
Affiliate Marketing – Disadvantages
Like there are two sides of a coin, affiliate marketing also has both advantages and disadvantages of its uses. Some of which are:
- You don’t have control over the message
It indicates that you won’t know if an affiliate is driving good or bad leads.
- No guarantee of the lead quality
There are high chances that the quality of people you get as leads are equally good as the leads reaching your website directly. Mismanagement results in traffic from an ordinary source, making your brand look unsatisfactory.
To estimate about affiliate marketing average income, you need to know about the concept and try your hands on the effective strategy of making money online. It is indeed an efficient and cost effective way to boost your earnings eventually but steadily.