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You probably have heard this word - Affiliate Marketing.
For the last five years it has been one of the top methods of marketing for online businesses.
We could look into affiliate marketing from two perspectives - product owner's and affiliate's. This time we are going to analyse benefits of marketing other people's or companys' products as an affiliate.
Affiliate marketing promoting another businesses’ products or services and earning a commission for each sale referred by you. The best way to approach affiliate marketing is as a recommendation service. You are recommending products or services that you have personally benefited from and earn money just by that if anyone decides to trust you and purchase after clicking your link.
So for quite long time affiliate marketing has been one of the biggest revenue generating methods for majority of online businesses. Now we notice affiliate marketing everywhere. Youtube, social media, e-books, courses, personal branding websites and literally anywhere else. So what's so special about affiliate marketing?
You don't have to be an expert or guru to promote other people's products. They have done that for you. The product that you promote as an affiliate is not your liability. It's not associated with your brand or reputation other than that you recommend it.
One of the biggest time, money and effort consuming difficulties in any online businesses is product creation. In affiliate marketing you already have a product to promote that someone already have created. Your job is to do marketing and drive traffic to advertiser's website.
You get 20-100% commisions from each sale for marketing most of the digital products. Some companies are able to give all of their revenue away to their affiliates because they have larger sales funnels with upfront offers that will generate most of the profit for them. Affiliate commisions from physical products are much lower because of manufacturing, shipping, handling and other expenses. Most of the time it's about 3-12%.
There are a lot of affiliate programs that includes cookie in their affiliate links. This means that if person referred by you won't instantly get the product or service, he or she will have a cookie placed on their internet browser. You will still be able to earn commision if they will decide to purchase product or service usually no longer than after 30 days (for most cases that's when cookie expires) after clicking your link. Great example is Amazon, the biggest e-commerce platform in today's world. If a person will decide to buy anything from Amazon (millions of different products) in 30 days after clicking your link, you will still earn money even if the product is not even related to the one you promoted. Check out Amazon Associates for more information.
You will have to put some time and effort to create content that would involve some of your referral links but other than that it can be purely passive income! And it can stay for number of years and keep on generating you revenue if your page ranks well on Google. You can also leverage paid advertising and if you will find winning conversion, you can scale your earning on a big time.
There is huge sellection of products to promote as an affiliate. If you have following on social media, email list and/or constant natural traffic to your website, you can promote more than one product to your audience. You can actually promote whatever number of products that you want and make money out of many different affiliate programs. That means you can have multiple streams of passive income.
Affiliate marketing doesn't require any specific knowledge to monetize your online business. You don't have to be a programmer, designer or professional copywriter. Of course, some of these skills might help you to earn even more from affiliate marketing.
I hope you got a better understanding what affiliate marketing is and how it could be beneficial for you. At first, you should look at it as an additional stream of income. It's best to remain honest and ethical.
Try to promote only those products and services that you have personally tried and benefited from. The least thing you can do is to investigate if the product is good and works. You can do that by searching for reviews.