Affiliate marketing: understanding, how to work, type, and successful tips
The affiliate marketing program is one of the hundreds of ways to earn income from the internet.
But like other businesses, to succeed as an affiliate marketer you have to work hard, consistently, and creatively. With sufficient dedication, you can even make affiliate marketing a profitable business model.
Even many bloggers and influencers have earned up to tens of millions by becoming affiliate marketers.
Just tantalizing, right? To achieve the same success, you must know what affiliate marketing, how it works, the types, and how you can earn income by becoming an affiliate marketer.
What is Affiliate Marketing?
Affiliate Marketing is a program for giving commissions for someone successful in promoting a product or service through digital lines such as websites and social media.
In affiliate marketing, there are three interrelated parties:
- Merchant: Entrepreneurs, companies, or organizations that have products for sale. The products sold can be goods, software, or services. In general, merchants are not directly involved in the sales process by affiliate marketers, they only receive sales, and pay commissions to affiliates as they should.
- Affiliate: Individual advertisers or organizations tasked with marketing merchant products with the final destination getting conversions through the affiliate link or referral code. One of the advantages of referral code is an advantage offer such as additional free products, discounts, and so on which affiliates can use to attract customers.
- Customer: Consumers who buy products owned by merchants for the information and promotions provided by the affiliate. Generally, a customer who registers for services or purchases of products through the Affiliate referral code will get a bid in the form of discounts or other benefits.
Advantages of affiliate marketing
After understanding a little about affiliate marketing, it’s time for you to know about the advantages of being an affiliate marketer. The Affiliate Marketing program offers many advantages when compared to other online side businesses. Here are some advantages of affiliate marketing:
1. Do not require marketing skills
As an affiliate marketer, you don’t need special skills in marketing. You can learn all the knowledge needed while running the program.
2. Without capital or at a small cost
The affiliate business model can be run without capital at all, or a relatively low cost compared to other business models. You only need to have a social media account or create a blog with capital ranging from IDR 50 thousand.
3. Can be passive income
If you have a full-time job, you can still be an affiliate marketer. You only need to develop promotional media and marketing strategies in your free time. Then, you only need to monitor the results.
4. There is no responsibility for the management of the product
As an affiliate marketer, you are bound by the company owner of the product or service that you are promoting. But that does not mean you can as long as you choose the affiliate program you are promoting. Choose an affiliate program that you trust the quality, so that the customer who buys through a link or referral code is not disappointed or suffered a loss.
5. Flexible and not bound
You can run your affiliate program from anywhere and anytime. In addition, you can also follow more than one affiliate program to diversify your passive income path.
How does affiliate marketing work?
The way affiliate marketing works is quite simple with four phases like the one in the image below. The main challenge in affiliate marketing is designing interesting promotional strategies to get new customers through referral codes.
Here are the four phases in an affiliate marketing cycle:
List of programs to merchants
You can register to become an affiliate for a company. Each company has its terms and conditions to become an affiliate.
Share Programs with Promo Code
After getting your unique referral code, you can start sharing and promoting products or services sold by Merchants.
Customer list using affiliate code
With a successful promotion, there will be customers who register or buy merchant products using a special link or enter your referral code.
After successful transactions (or a few days later, depending on the merchant policy), you will get a disbursed commission.
In general, you will get a commission after you managed to get a new customer through a referral code or a special link. There are several types of affiliate marketing commissions, and each has its challenge to get it.
Type of commission affiliate marketing
Pay Per Click
The type of pay per click commission is the easiest to get because you only need to convince others to click a link that leads to a Merchant’s landing page. This type of commission usually prioritizes quantity, so the commission obtained per click is not too large.
Pay Per Sale.
The Pay Per Sale Commission has a much higher level of difficulty than other types of commissions. To get this type of commission, you need to convince people to buy a product or service. Therefore, you get a challenge to design a very persuasive offer.
Instead, you will get a portion of the transaction nominal as a commission in the form of a percentage of sales.
Pay Per Lead.
The type of Pay Per Lead commission is one of the big challenges for affiliate marketers. This type of commission requires the affiliate to direct the customer to a website while doing an action determined by the merchant such as registering an account, following a free trial program, downloading software, and other conversion models.
Well, after knowing the three types of affiliate marketing commissions, now we will discuss anyone who can run the business of this affiliate marketing model.
Anyone who can join the affiliate marketing program?
Anyone can be an affiliate marketer. But you need to remember that to become a successful affiliate, you must have certain media that can help you promote the products or services sold by Merchants.
The following are groups with great success potential in the affiliate marketing program.
Key Opinion Leader / Influencer
Maybe you don’t realize it, but there are lots of creators who earn income as affiliate marketers on social media. Influencers and cabbage have influence that can convince their followers to buy their referral code products.
In addition to the potential for promotional success, influencers and cabbage also have a considerable market segment, thus expanding the promotional scope.
Bloggers can also be a successful affiliate marketer because it has the potential to rank up on search results on search engines. If you have a blog with good SEO, then it is likely to be able to join the Affiliate Marketing program successfully. The higher the traffic of a blog, the more likely the conversion occurs through your referral code.
How to Succeed to Become Affiliate Marketer
Well, if you have been determined to follow the affiliate marketing program, what can you do to get a lot of new customers?
Here are some tips for increasing the success of affiliate marketing:
1. Choose the right affiliate marketing program
There are various types of commissions that can be obtained from affiliate marketing, but you need to consider the following factors before following:
- Relevance: Choose an affiliate program that matches the niche or topics of your content. If you have a blog about social media, then choose an affiliation related to social media management software, digital advertising platforms, digital optimization tools, and so on.
- Commission: Each affiliate program offers a different percentage commission. So, adjust your choice in the hope of the commission you want to get.
- Credibility: Make sure the affiliate you choose is a trusted program. You can assess the quality of an affiliate of how and anyone who has become an affiliate in the program.
- Support: Choose an affiliate merchant that is willing to provide full support, both in the technical form or customer service to ensure all affiliate-related problems can be resolved quickly.
2. Determine the best promotional media
After selecting an affiliate program that corresponds to your criteria, now it’s time to choose the media you will use for promotion.
In general, the best promotional media is the most number of followers and engagement. You can use blogs, social media, or YouTube channels.
Also, make sure the affiliate provider has allowed the use of the media before you install your referral link and code to avoid blocking.
3. Create a profound and personal review of content
After choosing a program that matches your follower’s demographics, then it is to create personalized content. If you make a generic review, your content is no different from hundreds of thousands of other reviews on the internet.
Write a personal and profound review without siding, so you can build empathy with your readers and followers. Thus, you will find it easier to convince them to try the product through your referral link or code.
4. Take advantage of a viral trend
A viral culture that you often find on social media is one of the free promotional lines that you can use to promote affiliate links.
Of course, you have to think of various creative ways to apply these trends with products or services that want to be promoted to produce relevant and interesting content.
5. Use FOMO (Fear of Missing Out)
Use the fearing marketing strategy of missing out aka fear miss to add the exclusivity of your offer. Try using phrases with high urgency such as “specifically for the first 100 people”, “only today”, and “special discounts for registration with this link” to provoke actions from followers or wakcenses.
6. Apply SEO to the blog
If you use a blog as a media promotion medium for the Affiliate Marketing program, implementing SEO is already obligatory. Without good SEO, your blog will not experience the addition of organic traffic from Search Engine search results.
Affiliate Marketing Program or Affiliate Marketing is one of the best choices for generating additional passive income from the internet. In addition to the potential for a fairly large income, you can also run affiliate marketing as a side job without sacrificing full-time work time.
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