What is Affiliate Marketing?
Affiliate marketing is one of the most modern common marketing tactics that can be very profitable for both the supplier and the advertiser
15:44 03 September 2020
To learn more about affiliate marketing, it is not bad to know:
- Eighty-one percent of American brands and 84 percent of publishers use affiliate marketing tactics.
- The annual cost to businesses of affiliate marketing is growing by 10% each year, which means it will reach $ 8 billion (in the US) by 2020.
- In March 2017, Amazon allocated one to ten percent of the profits from the sale of each product to affiliate advertisers (media owners).
- Jason Stone, an affiliate marketer who made $ 7 million in June and July 2017.
What is Affiliate Marketing?
Affiliate Marketing with titles such as Relationship sales, referral marketing, a sales collaboration system, and sometimes payroll marketing, is an approach to marketing that deals directly with the effectiveness of advertising (usually sales).
In affiliate marketing, a company that manufactures or supplies goods or services, in collaboration with an individual or a website (outside the organization), promotes the company's products and services and in return for any action taken by the user (which is an action). It can buy website traffic or, clicking, collecting leads, visits, etc.) It pays a commission to the person or website the advertiser (affiliate), which is exactly why it is referred to as affiliate marketing or sales collaboration.
Now, if we go beyond this encyclopedic definition and define Affiliate Marketing very familiarly , it should be said that affiliate marketing is a way in which a person who has a website, Instagram page, Telegram channel, Twitter or any other online media with a significant number of audience in its disposal to find something that interests and promoting and per sale or generally any type of return , receives a percentage of the selling company.
Affiliate marketing consists of three main groups:
- Product vendors (Merchant): who want to sell services or goods through the medium.
- Affiliates (media owners): Publishers who have media with a significant number of audiences and act as an external media outlet by placing links to the seller's website on their website or Buy social media traffic page.
- Users (buyers): Those who follow the affiliate and click on the links of the product sellers.
How is the affiliate commission paid?
Affiliate In order to receive a commission for selling or receiving a lead, it must have statistics on the number of users logging in from its media to the seller's website. Therefore, the following methods determine how the commission is paid to affiliate.
Payment per transaction (CPA):
Affiliate receives commissions based on the number of user entries through a link it publishes in its media.
Pay Per Sale (CPS):
If users log in to the seller page to purchase the product through the affiliate page.
In this way, affiliates should consider that they are promoting attractive products and users are willing to pay for it because otherwise they will not have any income.
Pay Per Lead (CPL):
Affiliates encourage their audiences to register their email, contact number and other information on the seller's website. In this method, a commission is received for each person who enters the website through the affiliate link and registers his information.
Advantages and disadvantages of affiliate marketing
Benefits of Affiliate Marketing
- Benefits of Affiliate Marketing for the Salesperson
As mentioned earlier Affiliate marketing as marketing methods with the highest ( ROI ) return on investment and risk-free marketing it is said. As a salesperson, you only pay for advertising when you conclude that you do not need to invest in start-up marketing.
- Affiliate Marketing Benefits for Affiliate Marketer (Publisher)
As an affiliate (publisher) you have the opportunity to sell products and earn high income without any problems with supply and storage.
If you have ever searched for affiliate marketing on the internet, you have probably come across more about the advantages, earning millions and ج about it than the disadvantages, but this method, like any other approach, It has many weaknesses and unspoken, the most important of which are the following:
- It is not that simple
Becoming an idiot publisher did not happen overnight. You need time to generate content, rank in search engines, attract and gain audience trust, and this process may take a year or more.
- You have to be a regular and accurate person
One of the advantages of affiliate marketing for a publisher was the freedom from the organizational framework and the freedom to schedule work, but if we look at it from another angle, if you are not a regular and accurate person and cannot plan your work carefully, you may never Did not reach the result. On the other hand, working at home due to the presence of various noises can disturb your concentration and upset the balance between work and daily life.
So, time management and planning is one of the biggest challenges in affiliate marketing.
- Maybe you do not have a good cooperation!
In affiliate marketing, everything may not go according to idea and instructions, maybe (the seller) interferes in your content and planning form and finally does not pay you a commission, you may have planned to promote the product a few weeks ago. Be and the (seller) cancels the cooperation at once, so you should always make sure about the product and the brand (seller) before starting the cooperation.
- (Publisher) has no involvement in pricing
Affiliate (publisher) has no involvement in pricing and commission rates. If the set price goes up, in any case, a certain percentage will be awarded to the affiliate. This can sometimes make things difficult for the publisher, and despite the difficulty, there is no change in the commission.
- Intense competition
One of the advantages for (seller) and disadvantages for (publisher) is the large number of affiliates. Becoming an affiliate publisher is not a difficult task. Almost anyone can become an affiliate publisher with general knowledge and perseverance. Every day, 140,000 affiliate websites are launched in the world and there is a lot of competition for (Publisher) Affiliate will be hard.
- Find the right product
As mentioned, you do not have to advertise every product, finding quality products at a reasonable price that your audience can afford can sometimes be difficult.
- The responsibility for everything lies with you
Wherever you run into a problem and do not find the answer to the question, there is no one but you to solve your problem, there may be a disruption in any part of the affiliate marketing process and despite your best efforts Do not take, in the end no excuse is accepted and will only determine the outcome of your work income.
There are many benefits and features that encourage us to move towards affiliate marketing. First of all, this method is cost-effective and flexible. The low cost you need to get started and the flexibility in how you operate, even at home and during different business hours, are the strengths of affiliate marketing.
Income that is generated for you after a while without the need for work, which is called passive income, and the variability of this income based on improving your performance are other positive features of this work method that can improve the sweetness of work and better progress. And bring you faster.