What is online affiliate marketing?

8月 23, 2021
IronFX Affiliate team

Affiliate marketing is a model through which one advertises a company’s products and services and eventually generates sales online. The company uses this model to reward affiliate marketers for their efforts. . Bloggers are one example of people using online affiliate marketing and they are also known as affiliates. Affiliates place the ads of the products or services of a company on their website, app, or blog and get paid commissions based on leads that convert to sales. In other words, every time a client clicks on the ad and then buys the target product, the affiliate gets rewarded.

The Internet has further enhanced the prominence of affiliate marketing. Taking Amazon as an example, it made affiliate marketing popular by creating an affiliate marketing program with which websites and bloggers put links to the Amazon page for a reviewed or discussed product to earn advertising fees when a purchase is made. To put it simply, affiliate marketing is basically a pay-for-performance marketing program where the act of selling is given to a vast network of online third parties.

Becoming an affiliate: how does this work?

In order to become an affiliate marketer, you need to consider the type of platform you will use to advertise products or other services. To start with, blogs are an efficient medium for promotion and advertising purposes since bloggers act like experts and express an opinion about the offering.

Once you’ve found a platform, you then need to find a specific category—your own niche, let’s say, that is unique—and with which you are familiar or have a great interest in. The more targeted your niche is, the more dedicated consumer base you will attract.  

An important step of affiliate marketing is researching. You will need to research affiliate programs and choose one or more according to your requirements and goals. You might want to earn high commissions or generate more traffic. Last but not least, you will need to develop concise and appealing content around the products and services so as to increase traffic to your site.

How much money can you make from affiliate marketing?

Profit for affiliate marketers varies, with some earning only a few hundred dollars and others making thousands or millions. It really depends on what is being promoted, how much impact the marketer has, the affiliate’s range of audience, and how much time is invested in advertising products. It is often the case that those spending more time promoting the company’s products, make more revenue.

Affiliate marketing: conclusion

Affiliate marketing is indeed a unique and profitable advertising program that is getting more and more popular. The Internet and technology facilitate the implementation of such a program for both the companies and the affiliates. The former have improved how they track and pay commissions on qualified leads. Improving the tracking system results in  improved or better positioned products.

Those interested in becoming affiliate marketers will need to understand both what is involved in affiliate marketing as well as the relevant advantages and disadvantages. Companies looking for affiliates will benefit from properly evaluating their partners. All in all, this model is a low-cost, efficient way of advertising products and services, increasing brand awareness and consumer base.

Disclaimer: This information is not considered as investment advice or an investment recommendation, but is instead a marketing communication