Affiliate marketing is one of the most thriving business opportunities in the online world. It is a means to provide consistent income to thousands of affiliate marketers for the last 20 years or so. In the last few years, the affiliate marketing business is trending and highly researched topic on the internet and is considered the best online source to generate consistent income to make a living. In this article, I will tell you what is affiliate marketing business?
You will also understand the basics of affiliate marketing, the different methods of doing it, the earning potentials, its benefits, and disadvantages.
What is an affiliate?
In business terms, an affiliate is equal to a subsidiary company of any organization that has limited ownership. In affiliate marketing terms, an affiliate can be an individual or a company that enters into an agreement with an organization having affiliate programs.
What is affiliate marketing?
Once you choose to become an affiliate of any company, you get the right to promote and market their products through online and social media which is called affiliate marketing.
What is affiliate marketing business?
When you are able to generate leads that convert into sales for your marketed products, you earn a certain percentage of commission as revenue on each sale from the affiliate company.
In short, you act as a third party who markets the products of your choice for the parent company in return for the commission. There are thousands of affiliate programs with millions of products online that can be promoted to earn consistent revenue as commissions. With experience, the Affiliate Marketing business could fulfill your desired living in the long run.
How the affiliate marketing works: Understanding it in simple four steps
- People like us search for information on the internet. The search engines such as google and yahoo return the searched information in the form of relevant websites and videos.
- You click on the most relevant result to gain the required information. You get the information and the associated products on the website as affiliate links.
- You click on the affiliate link and if convinced, buy the product (s) through that website.
- Once the product is delivered to you, the website owner receives a certain percentage of commission linked to that product by the affiliate programmer/merchant.
How do you do the affiliate marketing business: Step-by-step guidance
The above information about the affiliate marketing business must have given you a fair idea of its requirements and capabilities. If you are thinking that sales and marketing is not your cup of tea, then you’re wrong. You don’t have to be a professional seller/marketer to do affiliate marketing.
To give you the broader concept of affiliate marketing, I have listed it in below points:
- Write: Not as a writer!
You will have to write meaningful, valuable, and relevant information. Don’t worry, it doesn’t have to be professional, you just need to write in the way you communicate with your family and friends with an aim to guide and help them. Your writing could be relevant to your hobby, passion, interest, or personal experience.
I am sure everybody in their life has something that can be shared with others and which can become a lesson and guiding light for their future.
Select a topic of your choice and elaborate on your personal experience, struggles, good, and bad everything. For example, driving, whether you love or live to drive, you can put all your experience, guidance, and the help of driving along with the information on your vehicle and its requirements that you are aware of.
Don’t you think there will be millions of people like you who must be searching for this information and will take advantage of your experience in their own life? Definitely yes, it is similar to what you are looking for something online. Driving is just one of the thousands of topics that you can write and share with your audience.
- Share: Build the source
The next part is sharing your information. You can do that by building your own website. There are many platforms that can help you build your own websites such as GoDaddy.com, Wix.com, WordPress.com, and more. Just follow the instructions on building the website from these platforms.
- Join: affiliate programs
After building your website, you can search and join affiliate programs related to your topic. As an example of driving, you can choose products such as driving goggles, keychains, driving gears, etc. plus thousands of other products related to your vehicle for marketing. You can refer to the instructions from your affiliate programmer for choosing and listing of products on your website.
- Search Engine Optimization (SEO): Announce your online presence
Here comes the most critical part of doing an affiliate marketing business. Your website should appear in search engines for the visitors to go on your website, read the information, and buy the products. The best way to appear is by getting higher rankings. The relevant keywords to your topic play an important role here. The higher the rankings, the higher chances of clicks and sales.
The base and structure of your affiliate marketing business are ready. The next part is…. Of course, money.
Earning methods and potentials from affiliate marketing business
- Affiliate program earnings$$$
For each click and sale of products your earnings are accumulated and are paid as per your affiliate programmer’s payment terms and conditions.
Honestly, the earning potential from the affiliate marketing business is unlimited provided it is implemented appropriately.
For easy understanding, let’s estimate below calculation:
The commission rate varies between 1-75% depending on affiliate programs,
If you have 1,000 visitors on your website for a month and 20 of them click and buy your products potentially then,
For minimum 2% commission for a $100 product you earn $40 (100*2%=$2*20) =$40 a month
For maximum 75% commission for a $100 product you earn $1500 (100*75%= $75*20) =$1,500 a month
The realistic numbers are very different from what you see above. There will be a time when the monthly clicks are in the range of 100,000s and affiliate clicks could be into 10,000s. You can imagine the commission could go into 1,000s of dollars every month.
- Advertisement earnings$$
Once you reach a stage where you have a minimum of 500 visitors on your website, you have the option of posting relevant advertisements. On each advertisement click, you earn additional income from advertising programmers.
Some of the popular advertisement programs are Google Adsense, Media.net, Amazon Native shopping ads, and more. The additional income through these advertisement programs can go up to $500 (or more) a month depending on the number of visitors on your website.
- Earnings through videos$$
Another way of earning a really good income is by creating youtube videos. You can create product review videos for the products on your website under your own youtube channel, and post an affiliate link in the description for the viewers to take action.
This is one of the finest ways of making additional money and leveraging your website hard work. Affiliate marketers use this method quite often and top up their earnings through videos as a bonus.
You can also monetize your website through email marketing, list building, etc.
So you see, the earning limits are infinite with endless opportunities that you can think of.
In the end, affiliate marketing is a business like any other profession or industry that requires you to learn and implement consistent input to get maximum output. The monetization takes time and effort from you to see the financial numbers that will excite you.
The benefits of doing affiliate marketing business
- Irrespective of your age, gender, profession, and region affiliate marketing business is meant for all. No degree, certification, or experience required to do this business. You just have to be a keen learner and a hard worker to be an online entrepreneur.
- Affiliate marketing can be done from the comfort of your home, on a computer/laptop with an internet connection, and at your own time.
- Affiliate marketing is one of the best alternatives to replace your existing job once you have established your online business and also can be done along with your existing job simultaneously.
- With proper learning, guidance, and implementation you can scale the affiliate marketing business to the extent where you will be able to earn consistent income every month making it your full-time job.
- You get to learn new skills of researching keywords, buying domains, building websites, communicating with your customers, knowing about different affiliate programs and products, etc.
- You get to spend more time with your friends, and family and enjoy vacationing as an affiliate marketing business can also be managed online while traveling.
- With unlimited earnings, you can afford to spend money on your desired products and gadgets that you have dreamed of.
The disadvantages of doing affiliate marketing business
- An affiliate marketing business is not for someone who is looking to earn quick and easy money.
- Affiliate marketing may not be convenient for people who are not able to manage time because of their existing commitments.
- Affiliate marketing requires you to invest some amount of money in building your online business to gain maximum returns.
Affiliate Marketing Platforms
There are many platforms available online that teach you how to do affiliate marketing business. Some of them are as below:
Affiliate Marketing Programs
Some of the most popular and trusted affiliate marketing programs are:
Final Thoughts: Affiliate Marketing Business- My personal opinion and experience
The above information is a collage of my overall personal experience and in my opinion affiliate marketing should be done under the guidance of professionals. A business without proper knowledge or experience is worthless and may result in failure and incur losses.
If you want to spend money in business, it should go into the right hands that can guide and help you in each and every step towards building your online business.
My personal recommendation for doing affiliate marketing would be the Wealthy Affiliate platform. Wealthy Affiliate has a free starter membership with basic training and tools to start with. You can also upgrade to the paid premium version to become an affiliate marketing guru.