Affiliate marketing is the way through which an affiliate earns a commission for promoting another person’s or company’s products. The former simply looks out for a product, then promotes it and earns fraction of the profit from each sale made. Sales can easily be tracked via affiliate links from one website to another.
How does affiliate marketing work?
In affiliate marketing, responsibilities of product marketing and creation are spread across relevant parties. For this procedure to work, three different parties are required:
- Creators of product / Sellers of product
- The affiliate / advertiser
- The consumer / client
This structure results in leveraging the abilities of the individuals involved for a more efficient marketing strategy while at the same time providing them with a piece of the profits.
How do Affiliate Marketers get paid?
For those looking to increase their online income, affiliate marketing is the ideal solution. It is fast, inexpensive and lacks hassle. However, one common question is how do affiliates earn their money once linking the client to the seller? What is important for you to know is that the consumer does not need to buy the product for the affiliate to get paid. Depending on the respective deals with the seller, affiliates get paid in different ways such as:
- Per sale
- Per lead
- Per click
If you keep wondering why you need to become an affiliate marketer, keep in mind:
- Passive income
- No customer support
- Remote work
- Flexible & Convenient
Remember that this is a performance-based system. You get rewarded depending on your performance, so, you actually get what you give.
Affiliate marketing in numbers
Below are some relevant statistics on affiliate marketing:
- 81% of brands and 84% of publishers take advantage of the power of affiliate marketing. Statistics show that interest in this field will continue to increase as seen from affiliate marketing spending in the United States which increases every year.
- By 2020 affiliate marketing spending will reach $6.8 billion judging from the 10.1% increase in the United States every year.
- While generating more and more leads, in 2018, costs on content marketing were gauged to be 62% of older, more traditional marketing programs. Actually 16% of all orders made online result from affiliate marketing.
- Amazon’s affiliate structure changed in March of 2017, when rates of 1-10% of product revenue for creators were offered. This way, affiliates could significantly increase their passive income based on their relevant sector.
- In 2017, Jason Stone’s, also known as Millionaire Mentor, affiliate marketing was responsible for as much as $7 million in retailer sales in June and July.
As previously mentioned, affiliate marketing refers to the popular method of driving sales and generating significant online profits. In the effort to replace the more traditional methods, affiliate marketing has become extremely popular and rewarding. In fact, it has been extremely beneficial to both brands and affiliate marketers.
Disclaimer: This information is not considered as investment advice or an investment recommendation, but is instead a marketing communication