This article offers you a step by step guide to this form of entrepreneurship . You will learn what it is, how it works, and most importantly, how to make money with affiliate marketing.
Affiliate marketing: what is it?
The first question that most people raise when approaching this topic is quite simple: what is affiliate marketing?
Although the definition is simple, putting it into practice is a little less so.
Everyone talks about it but often there is no clarity around the affiliate marketing business. However, and it is confused with concepts such as dropshipping or network marketing .
Instead, there are big differences, with specific advantages and disadvantages. Whether you want to earn as an affiliate. However, whether you manage an ecommerce and want to sell your products with this method.
Affiliate marketing: how does it work?
Thanks to affiliate marketing, the marketer will have the opportunity to make a good deal by selling a product that is not his own. The more he sells, the more he earns.
And since he won’t have to worry about shipping costs, indonesia mobile number list overheads, or customer service, his risk is actually quite limited.
On the other hand, this method offers companies a 100% return on their investment, which makes affiliate marketing a fantastic resource among online marketing strategies .
In an affiliate marketing relationship, affiliates and companies can work together in a revenue sharing relationship between brands and marketers.
This is a win-win relationship for everyone:
- brands that have a product and want to sell more. However, thanks to affiliate marketing can offer a financial incentive through an affiliate program.
- People who want to make money online but don’t have a product can find. A valuable one and sell it thanks to affiliate marketing.
- Finally, customers who buy products from affiliates are satisfied. Because they found what they were looking for, often even getting some discounts.
How to do affiliate marketing
Surely you are thinking: ” interesting this affiliate marketing: how does it work in practice? “.
To earn with affiliation, in fact, you need to understand what all the parties involved and their roles are. Knowing each role and how each can earn is an essential first step in understanding how to do affiliate marketing.
Your overall success requires building relationships that are based on three distinct parts:
- Advertiser (the company offering the product)
- Affiliate platform (manages and tracks commissions and payments)
- Publisher (the affiliate who sells the product on their own channels)
Affiliate marketing for advertisers: the company that sells its products
The first part, typically referred to as the advertiser, advertiser or merchant, consists of who is selling the product or service.
The product or service could be a physical product – such as phones or laptops – or something intangible (such as insurance policies).
For the affiliation to work it must rely on a platform that allows you to keep track of the sales made thanks to each affiliate link, and this we will see shortly.
Affiliate Marketing Platforms
As we said, affiliation is a structured and automated commercial agreement, through which sales are tracked and commissions recognized. To do this, you need a specific platform, or affiliate network .
There are platforms on purpose through which any company can make its product available to a potentially infinite number of affiliates: anyone who wishes can register on the platform, provide their data, and if approved, receive resources such as links, banners and other advertising formats.
Alternatively, each company can create its own affiliate program, often integrated into the chosen ecommerce system. There are several apps that can integrate this type of program into a Shopify store, for example.
Affiliate marketing for publishers: in other words, the affiliate
The final part is the publisher or publisher, more commonly referred to as an affiliate.
It is the company or individual that works with the merchant to sell its products, in exchange for a commission, by trying to drive traffic to the advertiser’s site in the form of links, ads or otherwise.
The relationship between advertiser and publisher is highly strategic: both parties need to earn for the relationship to continue. Since you are working so closely, you need to be on the same page when it comes to roles, responsibilities and payment arrangements