Affiliate marketing in 8 steps - what is it and how to make money from it?
Updated: May 9, 2020
1. What is affiliation? Affiliate marketing is nothing else than a product or service promotion model that allows you to earn partners to sell someone else's products. The easiest way to explain this is with an example. An online store selling electronics opens an affiliate program through which it wants to increase sales of its products. Anna, a blogger and photographer, wants to make money on her blog by selling cameras. She joins the affiliate program of the store mentioned above, downloads relevant links or banners from there, and places them on his blog.
Each person who enters through the given link to the store's website becomes a person recommended by Anna. If any of the recommended people makes a purchase in the store, Anna will receive commission in the form of e.g. 5% of the value of these purchases. This is a simplified model of cooperation in affiliate marketing.
In other words, it is nothing but a win-win-win relationship. The customer is satisfied with the purchase, the store with the sale, and the blogger with additional income. This is the big advantage of affiliation over other forms of promotion.
2. Who can earn from affiliation? We can say that everyone, because in fact we just need a Facebook or Twitter account to be able to recommend some products. The truth is, however, that we must have someone to recommend these products to, i.e. we must have a specific group of recipients on the network. The same natural claimants for affiliation are, for example, people who have their own websites or blogs. However, this does not mean that without a blog or YouTube channel you can not earn from affiliation. However, then you may need to invest a certain amount of money, e.g. in advertising. Currently, there are so many partner programs that we can easily choose a program offering products contextually matching the content of our blog. If we write a blog about cats, we can cooperate with a pet store. If we write about books, we can choose from online bookstores. If we run a YouTube channel or a popular Facebook FanPage, we can also use it.
Of course, a slightly different approach is also popular, i.e. creating a specific website specifically for a given affiliate program. Of course, for these types of activities we must have a specific set of skills, such as creating websites or knowledge of internet marketing. Of course, we can also outsource these activities to others, but then a good idea for the website or its promotion will be particularly important, so that the outlays are paid back.
3. How do you find the affiliate program that's right for you? There are a huge number of affiliate programs on the market and we are really able to find a program from virtually every niche. The most important thing is to realize which affiliate program is the most suitable for us. First of all, you need to think about what products or services your blog readers, Facebook fans or mailing list recipients may be interested in. Think about what products they use most often, where they stay, what they are interested in. This will allow you to choose products that are natural for them. For example, if you run a fashion blog, the best solution would be affiliate programs for clothing stores. You can also go out wider and think about cosmetics or useful gadgets related to fashion. The matter is simple, if you write a blog, then naturally the content of our posts will result in specific products or services.
But how do you find a specific program? First of all, find, for example, online stores that offer exactly the products you want to sell. Choose stores that your readers will most likely use. Check their site to see if they offer an affiliate program. Most often, the link to the affiliate program can be found in the footer of the store. If it's not there, you can always write to the store asking for affiliation. Maybe they are affiliated in some affiliate network, then they will write you in which network you need to register. The second option is to check the offer of several of the most popular affiliate networks such as Clickbank, JVZoo. This can be done even without registration.
4. How to start promoting affiliate programs? Sales through affiliate programs are based on referral links. This is a special link with a specific identifier of the partner, so that the store or affiliate network knows that the customer comes from you. This type of link saves a special cookie with a given Internet user, thanks to which even if a given Internet user buys something in the store after a few / several days, a commission will still be charged just for you. We generate this type of links directly from the partner panel, to which we log in after registration in the selected partner program. We can generate a direct link that we place somewhere in the text or in the Facebook post, or we can use other tools such as banner ads, widgets etc.
Once we place advertising material on our site, there is nothing else but the promotion of the site and specific entries. Remember to choose the right products for the right entries. When writing a blog entry, we can have in mind what products or affiliate programs it will promote. Various types of reviews of specific products work particularly well here. We can create, for example, a review of a book or electronic equipment, and add our affiliate link to the store selling the product in the entry.
5. How much can you earn? This is probably the most important question for most readers. The answer is simple, the amount of earnings depends on our skills, experience and work. The best partners earn up to several million dollars a month. I'm talking about US partners. Of course, these are the cases of people who got very involved in the affiliation, and their sites have achieved very great success. However, for skilled marketers and people who are highly stubborn, achieving revenue of $ 2,000 - $ 5,000 is very likely. Most people working in the affiliation treat it as an additional source of income and earn a few hundred dollars to their salary. It is worth noting that some industries are better paid than others. For example, we can get particularly high commissions in finance. On the other hand, this type of industry is extremely competitive and beginners may have a problem promoting this type of affiliate program. However, it is not the amount of commission that should be used when choosing affiliate programs. High earnings can also be achieved on products that are sold in larger quantities, but with a lower commission. 6. How are earned funds paid out and how to account for them? The method of commission payment depends on the affiliate program. Most often it is a regular transfer to a bank account, but some programs also allow you to withdraw funds to PayPal, Neteller or Skrill online accounts. When it comes to accounting for revenues, this is easiest when running your own business. Then, we simply issue a bill / invoice for the company operating the given affiliate program, and the commission is settled just like other revenues in business. In the case of natural persons, the matter is different in individual partner programs. The best solution is a work / commission contract. The other options are usually based on an advertising space lease agreement, which we must in turn settle ourselves and pay tax to the tax office.
The situation is different in the case of foreign partner programs. In this case, as a rule, we do not have any contract, and transfers come from abroad. In this case, we must account for revenues as revenues from other sources. However, it is worth remembering that if our revenues are continuous, they may bear the hallmarks of a business activity, and thus the Tax Office may require us to register such business. However, if our revenues are continuous and relatively large, it is worth doing even for your own convenience. However, it's best to consult your situation with the accountant individually to be sure of your actions.
7. Can I opt out? Yes, you can opt out of promoting a given affiliate program at any time. We are under no obligation to promote the program for a limited period. We can suspend our activities for several months and start the promotion again. There are usually no formal requirements.
8. How to develop in affiliation? Affiliate development is primarily based on developing your online marketing skills. The better we know the promotion of websites or marketing in social media, the better. Therefore, it is worth developing in such areas as SEO, email marketing, paid traffic acquisition (e.g. PPC) or even conversion optimization. I hope that the information presented in this article will help you start your adventure with making money on affiliation. Of course, not everyone has to find it, but until you try it yourself, you won't find out if it's something for you. If you already have a website or create landing pages, I highly recommend you paid Solo Ads. The most trustworthy is the Udimi platform, where you can buy the highest quality Solo Ads.