In the new age of technology, affiliate marketing is a surefire way of turning some extra profit for your company. The concept is simple: your company gets paid by referring customers from your online site to an online marketplace where they can buy items. Sarah from www.thestrollersite.com is here to help me explain how she makes an income from affiliate marketing.
How Affiliate Marketing Schemes Work
Affiliate marketing schemes are an extremely cost effective tool for your business to make profit. If we use the example of company X, we can break it down in to its most basic components and explain exactly how you could benefit from affiliate marketing.
Company X sells computer mice from their online marketing place. Your business can refer some of your client base via your website to theirs. A commission of 5% will be paid to your company by Company X for every customer from your site that successfully purchases a computer mouse.
Although it’s easy to see how their business easily benefits from increase traffic and purchases, you might wonder how you benefit. You may wonder why anybody would click on the links to Company X – but the premise is simple – Company X is usually a larger affiliate with brand awareness. Your customers are more likely to click through because it is a recognize brand and you are more likely to get the 5% commission on the sales.
Sometimes in return, especially if the two affiliates are newer companies that have smaller customer base, they may reverse affiliate market in an almost tit-for-tat fashion, where both will advertise the other and pay commission for traffic.
How to Become an Affiliate Marketer
With many companies offering deals in affiliate marketing schemes, it has never been easier to become an affiliate marketer and start making a profit. They are often free to join. You can also communicate with related industry business that may also benefit from inter-business joint marketing and see if you can become an affiliate.
By searching or contacting larger companies, that may offer you a better return and commission, can almost always yield results. Simply by following up on these requests, it is easy to set up an affiliate marketing program between the two of you. If they currently run similar programs with other smaller business, they likely have an in-house team that fully understands how to complete this type of work.
There are certain things you should keep in mind when looking and applying for affiliate marketing programs. Firstly, clearly communicate what you want to get from the scheme; remember that often the proposed company benefits by increased traffic and is more likely to be willing to accept a scheme than propose one.
Also, find the correct affiliate program for your business niche. If you run a tech company, it is unlikely that a knitting company will set up an affiliate marketing scheme with you, as the cost to set one up will clearly outweigh the amount of traffic they gain from a site that has very little to do with their niche.
A Real Life Example of Affiliate Marketing
On The Stroller Site, Sarah has many stroller articles and reviews. These articles then link to the strollers she discusses in Amazon. When someone buys a stroller in Amazon using her link, she makes money.
“It really is quite simple,” explains Sarah. “Probably the toughest part is finding the right things to sell through affiliate marketing online. You need to find a product that people want to buy and read reviews for and build a site that you know will rank well on Google. For example, through research I discovered that ‘best umbrella stroller’ was a relatively easy word to rank for, so I went and wrote some content that was the best that there was on the internet. In this way, I attract people who are looking to buy strollers.” It’s a great example of research discovering weaknesses in your “competitors.”
Does It Pay to Be an Affiliate Marketer?
There are some sites that will advertise ridiculous numbers for the amount of profit your company can gain from affiliate marketing (hundreds of thousands). These are often fraudulent and should be avoided. Whilst you can add extra income to your company, remember that affiliate marketing schemes work on a commission basis.
Unless you have tens of thousands of customers every day being redirected from your site who then complete an order on the affiliate website, you are unlikely to make huge mounds of cash from a scheme like this. Be realistic and remember that this is also an invaluable resource that can help your business grow. Otherwise, affiliate marketing can be extremely lucrative and cost-effective.