Affiliate marketing is defined as a marketing arrangement between an online retailer and a third-party publisher or an external website for sales or traffic generated from its referrals. This marketing strategy makes use of a company or a business site (particularly an e-commerce site) to generate commissions by referring visitors or readers to your products or services.
For some, it is one of the easiest and most popular ways to make money online and, once you are established, can be a great source of passive income.
However, unlike for viewing/printing (cost per thousand or CPM) or pay-per-click (PPC) programs, the only time a revenue can be generated from affiliate programs is when an action is performed, depending on the needs of the merchant. It could be as simple as submitting their contact details to signing up for a newsletter up until a purchase or payment is made.
Regardless of what action, you are not paid until the readers have been convinced to take the necessary actions.
With that in mind, there are some ground rules you need to be aware of to be a success in the field of affiliate marketing:
Understand your target audience
If you have a website or a blog where you post relevant content or articles, then you need to make sure that those articles cater to a specific set of audience. The same goes when choosing an affiliate program. It is a must that you only promote products or services to a specific link that can offer value to your readers or visitors. If you fail to do so, you are not maximizing your marketing efforts.
For example, if your product is centered on books and your affiliate program happens to be providing your readers with links or ads to sports programs, then it doesn’t really make a lot of sense to them. More than anything, it can even tarnish your reputation since it will make them think that you are only concerned about earning money and not really understanding their needs and providing them value.
Keep an eye out for trends
Always be on the lookout for emerging trends and the latest offerings of your affiliate programs. Innovations are fast and new ad units, tools, and advertisers are continuously being added to enhance stability and be more visually attractive. A change, no matter how small, can go a long way when it comes to motivating your readers to take action. Do not be complacent with your existing strategies if you don’t want to be left behind.
Stay relevant and alert about exploring new opportunities and monitoring current trends. Keep an eye out for new products or services that are relevant to your target market. Remember, the more products or services you promote that have a higher value to your audience, the more revenue you will get.
Never hide anything from your audience—always disclose your affiliations. Honesty is always appreciated. If your audience knows you are honest enough, they would feel more comfortable knowing they are contributing to your earnings.
When they sense that you are not that transparent about your affiliations, they will doubt you and tend to bypass your links and choose a different vendor. They will do so intentionally just to avoid giving you that referral credit. Full disclosure and honesty play a vital role in building a loyal customer base.
Choosing affiliate programs that work well with your business can be tricky. If you’re looking to learn more about how to start an affiliate marketing business, get in touch with us to see how we can help.