They say that if you’re not online, you’re not anywhere… Agreed? We are sure that you will fully or at least partially agree that life is booming on the internet these days and every business that wants to be productive, have customers and, finally, be recognized – has to advertise in the virtual space.
And that’s where we need affiliate marketing.
What is affiliate marketing?
Affiliate marketing – a field of marketing that enables advertising on the internet by creating a partnership between the advertiser and the product owner. This area of marketing is based on a partnership, whereby an advertisement for a particular service or product is placed on the partner’s website, which not only benefits the advertiser but also the partner’s website. In this way, the website earns money from the advertisement, and the advertiser receives a clear increase in attention and sales for the services or goods sold. This type of marketing is said to be one of the best types of advertising and has the most attractive results.
Types of affiliate marketing
Cost per Action/Acquisition(CPA) is the amount paid for a specific sale.
The partners determine the commission to be paid when specific goods and services are purchased from a particular page. The amounts can vary widely and usually depend on the value of each purchase.
Cost per Click(CPC) is the amount paid per click on a banner.
The cost per click is usually minimal, but when the number of clicks is high, the marketer can enjoy a good payout. So, the more referrals to the entrepreneur’s page, the higher the commission.
Cost per Lead(CPL) is the amount paid for a specific action that has been performed.
Finally, it can be agreed to pay for a specific action that has been performed and which benefits the entrepreneur. For example, this could be a registration on webpage, email subscription etc. The more different customer data that is generated, the higher the remuneration for the intermediary who shares his/her page as an advertising platform.
Revenue share(RS%) model is the percentage of amount which customer spends on advertiser webpage.
This model is very popular between new companies who trying affiliate marketing for first time. You agreed to pay some part of your profit to your affiliate partner. So you are paying only if you are making profit. This model also very good for affiliate partner, because he can get big payments if he brings really valuable and huge customers.
Hybrid
Mostly: CPA + revenue sharing. This method is rarely used mostly for very strong partners to motivate them more. A one-time fee is paid for bringing in a paying customer, but if they buy additional services or goods in the future, the commission will be “crumbled” from them. This type of payment is quite common in the online gambling market.
Who can do affiliate marketing
At first glance, making money from the internet seems to require a lot of resources and investment. This is not true, as affiliate marketing relies heavily on online content and the opportunities offered by the second generation of the web (Web 2.0). All you need to get started is a good number of friends on Facebook where you can post “Does anyone need cheap hosting at 20 percent off?” and add your affiliate link. If one of your friends needs a server hosting service, and he or she signs up by clicking on that link, the advertiser will already receive a percentage of the services he or she ordered.
Nowadays, you don’t even need to have your own blog to start using affiliate programs. You can work with affiliate programs by using your social networks, creating video content, sending emails, or even sharing information live through word of mouth.
But if you wanna to do your own webpages/blog. You can use some services which will let you have your own blog completely for free.
Also understanding SEO in affiliate business is essential, because from a simple recommendation for hosting to spamming is just one small step. It is clear that nobody likes spammers, while people read serious blogs or pages that are accessed via Google. “Content is king”, say Google executives, and they are absolutely right.
Affiliate marketing is basically something that can be done by anyone who is literate, has some knowledge of SEO, internet marketing, and lurks on social networks and forums. Are you such a person? If not, it’s very easy to become one. If you are, why haven’t you done anything? 😉 The time investment is small and the payback is unexpected and not bad.
How to start?