What is affiliate marketing? Affiliate marketing is basically a form of performance-based sales marketing where a company compensates one or more affiliates per visitor or client brought about by the affiliates marketing efforts. The compensation is done through a commission on each sale or transaction. In its simplest form, when an affiliate uses his or her personal website to send a link to a company’s web site, the visitor goes through the affiliate’s website and is then sent to the company’s web site. In order to receive commissions, these people must follow the rules and policies of the company.
With what is affiliate marketing, the affiliates do not need to generate a product or service of their own to be paid. In fact, there are thousands of companies out there that need affiliates but cannot afford to hire them full time due to expenses. Therefore, an affiliate marketer can provide a passive income stream for these companies. There are two basic types of affiliate marketing – cost per action (CPA) and cost per sale (CPS). Cost per action is usually less costly because the person or company being marketed does not have to produce or deliver anything tangible to be compensated.
On the other hand, cost per sale programs require that the affiliate marketer produce a tangible product or service to be paid for his or her efforts. Many affiliate marketing programs also have social media platforms as a component of their commission structure. Therefore, an affiliate marketer who has a strong presence on social media platforms such as Twitter, LinkedIn, Facebook, and YouTube may find it very easy to generate high volumes of traffic for his or her websites. Moreover, these social media platforms provide the affiliate with a chance to show off his or her expertise and create a positive public impression.
So, once you have established your expertise and your social media profiles, it is time to start implementing your affiliate marketing strategies. Affiliate marketers should aim at attracting customers through their website or blog first before they venture into promoting other people’s products and services. After which, they should test the waters by promoting the products and services of their peers. Once customers start visiting their websites and buying their products, then they should consider expanding their target market by introducing new products and services.
The beauty of this strategy is that it requires almost no investment in terms of time, money, and resources. This makes it very popular among aspiring Internet marketers who lack the resources to invest in marketing campaigns. What is more, this kind of marketing involves minimum financial investment, making it easier for budding entrepreneurs to launch a career in affiliate marketing. Another great thing about this passive income generating system is that the earnings do not decline in the absence of a particular product or service.
What is also great is that it provides affiliates with the freedom to promote whatever it is that they want. In most cases, these products and services are ones that are supported by advertisers and marketers themselves. Therefore, affiliates have the option to cater to different clientele groups while promoting the same products and services that they are affiliated with. Affiliates can also choose to focus on different revenue streams, allowing them to earn additional revenue from different sources without having to develop their own products. This is how affiliate marketing programs work. Promoting a product through one’s website is one way of getting into this revenue stream.