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What is affiliate marketing and how can you make money from it?

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Summary:

  1. What is affiliate marketing?
  2. Advertiser and affiliate: who they are and what they do
  3. How does the supporting technology work?
  4. How can you promote your business if you are an entrepreneur?
  5. How can you make money as an affiliate?

1. What is affiliate marketing?

Affiliate marketing is the activity by which an affiliate earns a commission for promoting the products of another person or a company. The affiliate looks for a product that could bring them sales, then promotes that product and earns a share of the profit from every sale they make.

Usually, sales are tracked online through affiliate links, from one website to another.

The simplest explanation for understanding affiliate marketing is this: a business designs an advertising campaign for their product, which an affiliate posts on their own website. The affiliate will receive a percentage of the sales, if its advertising generates results.

2. Advertiser and affiliate: who they are and what they do

ADVERTISER: the organization or person who wants to be promoted.

The advertiser is the one who proposes the services or products they want to promote and pays the affiliate commission for the sales generated by the latter’s advertising campaigns.

AFFILIATE: the person who promotes the advertiser’s products or services on their own promotion platforms: their own website, social media channels: Facebook, Instagram, Tik Tok, etc.

The affiliate receives a commission from the advertiser and is responsible for distributing or posting ads established by the advertiser. The affiliate can be an individual or a company that promotes the seller’s product in a way that appeals to potential consumers. In other words, the affiliate promotes the product to convince consumers that it is valuable or beneficial to them and convinces them to buy the product. If the consumer ends up buying the product, the affiliate receives a share of the revenue generated.

Affiliates often have a very specific audience to which they promote the services or products of advertisers through affiliation, generally addressing the interests of that audience. Interests are generally segmented based on certain well-defined criteria, such as job, hobbies, age, places visited, etc.

This creates a well-defined niche that helps the affiliate attract consumers who will be most likely to act to the promotion.

TARGET AUDIENCE: well-defined audience, to which services or products are promoted, the most important factor in affiliate marketing.

Whether the target audience knows it or not, they (and their acquisitions) are the driving force behind affiliate marketing. Affiliates share these products on social media, blogs and websites. When consumers buy the product, the seller and the affiliate share the profits made from their purchases.

3. How does the supporting technology work?

The process of promotion through affiliate marketing is relatively simple, at least at first glance.

There are online platforms dedicated to this type of activity. In Romania, such well-known platforms are profitshare and 2performant. Both the advertiser and the affiliate will have to register and create an account on these platforms.

The advertiser will publish the products or services he wants to promote, the percentage of sales he offers to affiliates and other useful details for affiliates. In turn, the affiliate will post its promotional offer, which consists in describing the platforms on which it intends to develop affiliate marketing, such as a website, social networks, mobile applications, etc.

4. How can you promote your business through affiliate marketing?

If you are an entrepreneur, you are definitely constantly thinking about how you can address a wide audience and gain as many customers as possible, without wasting money on marketing.

The best part about affiliate marketing is that you pay for the promotion only when it brings you sales.

Here are some reasons for you to try affiliate marketing:

  • It increase your brand awareness
  • You only pay for performance and sales
  • It is easier to reach a target audience niche in your field of activity
  • You save marketing costs
  • It increases the SEO performance of your website

5. How can you make money through affiliate marketing?

Given the economic uncertainty of a business or a job, business specialists recommend at least 2 distinct lines of income to provide you with financial security. And affiliate marketing is a great way to generate a steady income.

The best part about affiliate marketing is that, compared to a job, it does not require a constant presence, but you can earn money for a long time after you set up your marketing campaigns.

Here are some reasons to try affiliate marketing:

  • Passive income: doesn’t need your constant presence to make money;
  • You don’t have to deal with customers: this is advertising business, you just make the connection between the two;
  • You can work from anywhere;
  • Low start-up costs;
  • You have freedom and flexibility: you choose your partners, the working hours and the volume of work you want;
  • You are rewarded for your results: professionalism is always rewarded. So, the income will depend only on you.

Who can be affiliated:

Any of the categories below can earn money from affiliate marketing activities:

  • Influencers
  • Bloggers
  • Website owners
  • Marketing and communication specialists
  • Web programmers
Summary

Whether you are an advertiser or an affiliate, you only gain from this activity. Either you increase your sales or website visits with the help of the affiliate, or you are paid through commissions by the advertiser.

You will never pay for services that do not bring you results. And you will never get results without paying.

Find out more about what affiliate marketing is, and how you can start earning money from this business.

Digital marketing specialist

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