It seems that every marketer knows how to implement affiliate marketing? But it requires serious efforts and strategic ways to be conducted. And only selected people have ever been successful doing this since it is one of the challenging marketing tactics online. So what is the nature of Affiliate Marketing? This is a marketing strategy that involves an agreement between an online seller/retailer and third party or another website. The third party who is promoting the company’s products or services on its own platforms will obtain commission bonuses for sales and traffic. They commonly share it using various social media applications containing the referral link in every post. This is how an affiliate earns commissions.
So the seller or company will provide a commission percentage either for every product purchased or traffic on the business website. Through the referral link you embedded on your site or post, the audience will be directed to the seller’s page. That’s how businesses build brands and offer awareness. So if you are the one who is promoting it, you will be called affiliate or affiliate marketer. If you will learn its fundamentals, choose the right model and start building automated funnels, you can obtain passive income that might make you an instant millionaire.
The 3 Natures of Affiliate Marketing
1. Shared Revenue – this also refers to revenue sharing since the business model depends on pay per sale just like how revenue sharing works. Through offering financial incentives, a company can boost the volume of sales. This is perfect for an individual who does not have a product or service to offer. He or she can simply promote someone else’s products or services in exchange for paid commissions.
2. The Internet – due to the current advanced technology, affiliate marketing quickly changed and became so popular. In fact, Amazon is one of the platforms that introduced it to the public due to its wide range e-commerce website. Famous personalities or influencers are the ones who commonly do this business since people are likely to emulate what celebrities have or consume.
3. Before the Internet/ Digital Age – even before the occurrence of the internet, affiliate marketing was being practiced. For instance, direct service offerings of a sales agent to prospective clients. The agent will conduct a door-to-door product selling such as offering soaps, detergent powders and the like. In every successful sale, the agent will earn commissions.
The 3 Types of Financial Incentives An Affiliate Marketer Gets
1. Pay-per-lead – This where someone is being directed to the company’s website page and voluntarily provides his or her information like email or phone number by filling up a form. The user is likely to receive push emails or text messages about the company’s products or services that user’s find beneficial to him. Hence, this individual becomes a “lead” for that company that will likely patronize their offerings. In return, the affiliates earn money for every successful lead. One way to do this is to create a blog containing informative content that has a backlink to the company’s website using the hyperlink strategy. For instance, your article contains a keyword: sell my house fast chattanooga that is linked to the company’s website. That’s how pay-per-lead happens.
2. Pay-per-click – In this process, the affiliates will refer the user again to the seller’s or firm’s website. In every click it generates, affiliate marketer earns income regardless whether the user will make a purchase or not. This is typically made of ads that you can see on a certain page whether it’s moving or not. So this is paid traffic once the user clicks or visits the actual website.
3. Pay-per-sale – The company will only pay a percentage of commissions in every successful referral sales of an affiliate marketer. It means no sale, no commissions.