Imagine you are at a party and you are enjoying it to your fullest. Meanwhile, a notification pops up on your mobile saying, “your earnings for today are transferred to your bank account.”
How cool is that?.. By doing almost nothing, you would have scored a fairly good sum of money.
Who would not like to earn even when they are not working for it currently?
Yes, we are talking about Affiliate marketing guys.
Let us explain it to you in detail.
What is Affiliate Marketing?
“Affiliate marketing is a type of performance-based marketing. In this, business rewards its affiliates for each visitor or customer brought by the affiliate’s marketing efforts.”
(as per Wikipedia – https://en.wikipedia.org/wiki/Affiliate_marketing)
In simple words, affiliates promote someone else’s products and get a share out of it. As an affiliate brings more and more customers so, they will earn more and more profit.
You will be surprised to know that the concept of affiliate marketing has been around long before the internet. It was earlier known by the name of revenue sharing.
However, it took 4 years for the internet to introduce this concept in e-commerce.
Which products are dealt with?
The products could be both online and offline.
Examples of some products commonly dealt with in affiliate marketing:
- Virtual Reality
- 3D Printers
- Phone Accessories
- Portable LED Projectors
- Home Automation
Amazon Associates is one of the top affiliate programs. It offers creators a share ranging from 1% to 10% of the product’s revenue.
No wonder why Jeff Bezos is the richest man out there.
Affiliate marketing is also done in offline products, but here we’ll mostly be talking about online affiliate marketing.
Why Affiliate Marketing?
Affiliate marketing has made businesses millions and ordinary people millionaires” – Robert Foster Bennet
Most people use affiliate marketing for their passive online earnings as it is very profitable.
Every producer needs to sell their product. They need a medium to reach potential customers, so what is better than this?
It is a kind of advertisement. Generally, people aren’t even aware if an affiliate is involved in the sale. The rest of the transaction is similar to a normal one.
How Does It Work
Firstly, the user clicks on an affiliate link, then he is redirected to the seller’s page where the user can make a purchase of their own will.
The affiliate marketer acts more like an agent for a seller. He connects the seller to the consumer and gets a decided share of the transaction. This is beneficial for both the seller and the affiliate.
As for the seller it enables to jump-start sales as a result and the affiliate earns commission through this.
Four crucial elements in Affiliate Marketing
The four major elements in affiliate marketing are as follows-
- A worthy product
- Affiliate marketers
- Ultimate customers
The person who wants to sell his product to generate profit is the seller.
This is where the whole chain starts. A seller puts in their resources and generates a product, to sell it further to customers for earning profits.
An affiliate is a person who is marketing/promoting the product on his own responsibility and efforts.
He is the medium through which people get to know what kind of product a specific merchant is offering and at what cost.
So we can say that he is the bridge, that connects buyers and sellers.
A Worthy Product –
This has great importance. There are people who think they can sell anything via affiliate marketing. But it does not work like that.
The goods manufactured or the services provided should be good. Else, the customer will not make the purchase. This will defeat the whole purpose of affiliate marketing.
This is quite important for every stream of marketing. You can’t get sales if your product is of bad quality. China is an exception though.
They are the ultimate element of this procedure. Above all, the customer has to be convinced to complete this procedure successfully.
The seller needs profits and affiliates need a commission, so it can only be possible if customers buy the product in the first place.
To Summarize –
In short, affiliate marketing can do wonders. It is very profitable these days and in trending as well.
All you need to do is choose the right niche and voilà.
More articles on Affiliate Marketing coming soon!
Have you ever run into such affiliates? Most importantly did you know what they were?
Let us know in the comments below. Also, if you want to learn about something, please let us know in the comments section.
Want to learn more about earning money? Go to this page to see a list of articles that can help you out.