There are a lot of questions that start with the words, “ What is an affiliate marketing ? “. What is an affiliate marketing business, what is an affiliate marketing program? The list goes on. Our goal today is to answer some of these questions. And get you headed the right direction with affiliate marketing.
What is an Affiliate Marketing… is the start of a wide range of questions asked by people looking to start an affiliate marketing business.
What is an Affiliate Marketing Business?
An affiliate marketing business is any business consisting of one or more people who contract with a company as independent sales representatives. These Sales Representatives send website visitors to the company’s products in hopes those customers make a purchase. In exchange they make commission. Affiliate typically run niche marketing blogs and do product reviews. These tools help them convert sales.
What is an Affiliate Marketing Company?
There are a couple types of affiliate marketing companies online. One is the retail affiliate program. When a merchant offers their own program for affiliates to market their products for commission. Another type of program is the affiliate network. Affiliate networks run the affiliate programs of multiple merchants. The last is an affiliate program called a network marketing program, we will cover next.
A network marketing affiliate program is one where not only do they offer a commission on sales of products, but you can recruit other free affiliates and earn a commission when they generate sales as well. This differs from MLM or Multi-Level Marketing.
You do not have a minimum sales quota, or auto ship to pay for to get paid. Instead a network marketing program is free to join. MLM is not considered an affiliate program because you must pay to be a basic sales agent and meet company set minimums in sales and purchases to get paid.
What is an Affiliate Marketing Commission?
A commission is a portion of the sale you make for referring the customer who makes a purchase. Affiliates earn commissions, or a piece of each sale made to their referred customers over a term. That term can be as little as a single visit. Or it can be a lifetime sales cookie or hard coded commission. Regardless of the length of time a sale is recorded in the affiliate counts this as revenue.
An affiliate cookie is a piece of code that is sent to your internet browser like Firefox, Chrome, or Microsoft Edge. Some cookies last a day and then they expire or become invalid, others last a month, 6 months, or a year etc.… A Hard-coded commission or hard coded referral is typically tracked by cookie and IP Address, so the customer stays yours for life. If a customer buys during the life of a cookie or hard coded commission, you earn a commission.
What is an Affiliate Marketing Niche?
A Niche is a group of people who share a common interest. An affiliate niche market is people within the main niche who are seeking something to buy. The best niche for long term wealth building are evergreen niches. An Evergreen Niche is one that pays repeatedly such as selling bath soap, perfumes, lotions, vitamins and diet supplements. It can also be things like model glue, magazine subscriptions, insurance quotes, and advertising.
You can focus your marketing through content and ads by focusing on where the prospect is at in the sales process. A prospect will start by doing a general search like sprocket oil, or temporary tire repair. They will use that search to examine brands and types and will select a few to get more information on. That is called discover and research. Affiliates try to jump in at the point where the buyer is searching for best price on Fix-A-Flat or Where to buy Stanley Sprocket Oil. That is the point of buyer intent. If you have the money you can cast a wide net for the general terms or narrow down to those smaller ends of the funnel called sub niche markets. More on niche marketing and affiliate strategy in future post.
What is an Affiliate Marketing Strategy?
An affiliate marketing strategy is the methods an affiliate will use to attract buyer traffic. Some affiliates will run comparison sites like Esurance or Best Quotes. And others will aim at writing blog reviews and short comparisons of multiple products that fill the same need. Others will focus on single products like Fix a Flat and those buy now shoppers. Some cover all bases like Retail-me-not which offers up Coupons and sale prices updated daily.
Some of us run affiliate niche blogs that encompass multiple techniques and catch shoppers at multiple stages of the buying process. We even write post that help a person realize they need more instruction or need a certain product.
Another part of the strategy is deciding how much each buyer or sale is worth to us. That part is called budgeting ROI or Return on Investment. The fastest path to profits for many is to buy paid advertising or in the case of a blogger to gain paid placement on other websites and blogs to send traffic back to our sales funnels.
Sales funnels are another blog post all on their own. If a chosen ROI is 50% of the sale price a $25 commission earning product sale would allow us to spend no more than $12.50 to generate each sale. If we figure that 100 visitors will get us 4 leads, and 4 leads will get us 1 sale we need to get we can spend no more than 12.5 cents per visitor or 12 and a half cents per click. The math always varies product to product and advertisement to advertisement but the formulae for setting your budget for advertising stays the same.
Regardless of what your, “What Is?” question may be the most important thing you can do when considering a career as an affiliate marketer is to trust your instincts, commit, and start some serious training. For that I recommend our future post and the powerful training of Wealthy Affiliate. You can try WA for free and start training today. I stayed for the people, the training, and the opportunity. Also $23.50 residual monthly commissions aren’t a bad thing either. Anyhow check out our 2018 Wealthy Affiliate Review through this link or the right sidebar graphic today.