Affiliate marketing is an online sales tactic that lets a product owner increase sales by allowing others targeting the same audience —“affiliates”—to earn a commission by recommending the product to others. At the same time, it makes it possible for affiliates to earn money on product sales without creating products of their own.Simply put, affiliate marketing involves referring a product or service by sharing it on a blog, social media platforms, or website. The affiliate earns a commission each time someone makes a purchase through the unique link associated with their recommendation.
How does affiliate Marketing?
To participate in an affiliate marketing program, you’ll need to take these five simple steps:
- Find and join an affiliate program.
- Choose which offers to promote.
- Obtain a unique affiliate link for each offer.
- Share those links on your blog , social media platforms, or website
- Collect a commission anytime someone uses your links to make a purchase. Commission rates vary dramatically, depending on the company and the offer. On the low end, you’ll earn about 5% of the sale but, with some arrangements, you can earn as much as 50%, usually when promoting a class or event. There are also affiliate marketing programs that provide a flat rate per sale instead of a percentage.
Benefits of the affiliate Marketing model
Affiliate marketing offers several benefits to affiliates (i.e., you), one of which is its ease. Your side of the equation simply involves handling the “marketing” side of building and selling a product—educating customers. You don’t have to worry about the harder tasks, like developing, supporting, or fulfilling the offer.
Affiliate marketing is low risk. Since there’s no cost to join affiliate programs, you can start making money with an established affiliate product or service without any upfront investment. Affiliate marketing also can generate relatively passive income through commission—the ideal money-making scenario. Though initially you’ll have to invest time creating traffic sources, your affiliate links can continue to deliver a steady paycheck.
Finally, successful affiliate marketing offers the potential to significantly scale your earnings without hiring extra help. You can introduce new products to your current audience and build campaigns for additional products while your existing work continues to generate revenue in the background.
Creating a plan to promote your affiliate offer
As we mentioned earlier, affiliate marketing revenue eventually can become a form of passive income, but you still have to do some heavy lifting up front. The success of your program will depend on the quality of your review. To create a good review, it’s best to get personal. Share your experience in your blog, social media post, or video. If you’re writing a personal review, give a candid opinion based on your experience with and knowledge of the product. The more open you are, the more authentic you will be. People will be more comfortable following your advice if they feel they can trust you.
Trust is a key factor in your affiliate marketing efforts, because people need to trust you enough to act on your recommendations. The level of trust you’ll need to make affiliate sales depends on your industry and the products you’re recommending—for example, it takes more trust to be an effective affiliate for a $1,000 course than it does for a $20 t-shirt.
Beyond just sharing your experiences, you can build trust by limiting the number of affiliates you promote, or by only becoming an affiliate for products you personally use, and sticking to your area of expertise. For example, people trust my recommendations for Canadian financial apps, but that does not mean I’m going to have much luck as a Sephora affiliate.