With the advent of the internet and our inclination to buy things online, a lot of people are looking for ways to generate passive income. One way to do that would be to delve your toes into affiliate marketing.
Whether you are an online entrepreneur that wants to build their own successful online store or if you are someone who just wants to gain some money on the side and gaining income passively, then affiliate marketing is definitely something that you have to think about.
Today, I am going to provide you with a basic roadmap and the things that you need to know about this industry.
What is Affiliate Marketing?
Affiliate marketing has plenty of definitions, but for the purpose of this article, I am going to refer to it as a performance-based marketing model in which the online retailer will reward a person or a company (also known as an affiliate) a commission for every person that is referred via their own promotional activities. These marketers would only be paid a commission whenever the generated traffic ultimately purchases from their referred online store.
Affiliate marketing involves four stakeholders. There are the affiliates which are the promoters of a product or a service. Then, there are the product creators that, well, makes the product for selling.
Next, there are networks that will help entrepreneurs manage their affiliates. And lastly, there are the consumers who are going to buy the product that is being sold to them.
The reason why online entrepreneurs delve into affiliate marketing is due to the fact that they are not going to be the ones to do the brunt of the work- it is the affiliates’ job to do so.
So, who are these affiliates? Well, they can either be different personalities or companies that have a pretty huge influence in the industry you are in.
They will be the ones that will create the content, wherein they can embed the affiliate links on them so that people can click on it.
Content creators can either write articles or blog posts, make videos, and even put up their own banner ads if need be.
The merchant, in this case, is the one who creates the products or services and sells them to the consumers. Although they can have their own marketing campaign, they usually go to affiliate marketers as they can actually save more money in return.
Now, these merchants may employ different means when it comes to paying commissions. For instance, Hubspot offers commissions to their affiliates whenever one of their audience clicks on the link and buys something from the page from which they are directed to.
How Does It Work?
If you are an affiliate and you want to know the avenues as to which you can earn money, well that will depend on the payment model the merchant is using. Typically, they use a performance-based model wherein you only get commissions if your audience actually takes action (or, in this case, buys something from the page).
Other affiliate marketing models include Pay-Per-Click, where the affiliate gets paid whenever a person clicks on the link. There is also the Pay-Per-Lead where the affiliate gets paid for every lead that is generated. And there is also the Pay-Per-Sale which is the model that merchants typically use these days and this is where a customer clicks on the affiliate link, buys something from the store, and the commission will then be paid back to the affiliate.