Getting to know Affiliate Marketing
In the world of e-commerce, there are many business models to apply. One of the most popular is affiliate marketing. This business model applies the principle of selling commission-based goods and services. If it is spelled out simply, when you become an affiliate, it means that you sell other people’s goods or services, and when successfully sold, you will receive a commission from the sale. Before trying to apply it, let’s learn more about affiliate marketing.
Understanding Affiliate Marketing
Affiliate marketing is a business model with a commission payment system for someone’s services, after the person successfully sells merchant goods or services through marketing on the internet. So, the merchant does need someone else’s services to sell their products. Here, you become a person who does not have any products or services to sell, but you can help merchants to sell goods or services, by marketing it through the internet. After the goods or services are sold, then you will get a commission from the sale.
How Affiliate Marketing Works
Because affiliate marketing is done by selling other people’s products or services, it takes the role and responsibilities of each party involved, especially the seller and the affiliate. It is intended that marketing strategies that are implemented together can run effectively. If described again, we can conclude that there are three parties involved in the affiliate marketing process, namely:
- Seller and product maker
- Affiliate or advertiser
Therefore, let’s look at the relationships between the three parties so that they can support the success of affiliate marketing.
Who are the Affiliate Marketing Performers?
1. Seller and Product Maker
Sellers, whether they are single entrepreneurs or large companies, are vendors, merchants, product creators, or retailers who have products to sell. The product can be in the form of physical goods such as household appliances, or services for example in the form of makeup tutorials on the internet. Usually, the seller or seller is also known as a brand, and they do not have to be directly involved in the marketing process itself. However, they can also become advertisers and benefit from the sale of affiliate marketing.
2. Affiliate or advertiser
Also commonly known as an advertiser, this affiliate can be an individual or company marketing the seller’s product, in a way that is attractive to potential consumers. In other words, simply, the affiliate has a role in marketing the product or service to consumers who are most likely to buy it. Affiliates also act by convincing consumers that the product is beneficial to them, so they buy it. If consumers buy their products, the affiliate gets a commission from the sale.
In general, affiliates already have their specific target audience or customers. Usually, this consumer segment is created by affiliates based on their interests. This also helps in the process of creating a niche or personal brand, which can help affiliates to attract consumers, who will provide a positive response to affiliate marketing.
The role of consumers is very important in affiliate marketing. This is because affiliates market products based on consumer interests and requests, usually through social media, blogs, and websites. When consumers buy their products, the seller and affiliate will share the profits from the sale. There are times when affiliates make it clear to consumers that they will get a commission from the sale. However, many affiliates do not explain that selling the product is part of affiliate marketing, so consumers do not know it at all.
Because, if consumers know that the product is part of affiliate marketing, likely, they will not want to buy it through an affiliate. Meanwhile, the commission for the affiliate becomes an additional selling price for the product. Most consumers do tend to choose to shop without going through an affiliate marketing system so they receive their products directly from the seller, at normal prices too. So, you need to consider carefully, whether to be honest or not need to explain to consumers, that you are an affiliate.
Payment System for Affiliate Marketers
There is an easy way to get income from sales, without actually having to sell the product. The way is by running an affiliate marketing business model. However, what kind of commission payment system for affiliates, after they successfully sell products to consumers? The system is diverse. Consumers also do not have to buy products from the affiliate so that the affiliate can get a commission. So, the payment depends on the system implemented. Therefore, affiliate contributions are also assessed in different ways depending on the system. Here are the various payment systems for affiliates:
1. Pay per sale
This is the most standard affiliate marketing system. In this system, the merchant pays the affiliate a percentage of the sale price of the product sold to consumers. Where the sale is the result of an affiliate marketing strategy. In other words, the affiliate must get an investor or merchant who has a product ready to sell to be marketed by the affiliate. That way, then the affiliate can get a commission from the sale of these products.
2. Pay per lead
This system is more complex compared to pay per sale. In the pay per lead system, commissions are given to affiliates when they have successfully converted leads. This means that the affiliate must be able to invite consumers to visit the merchant’s website and then take certain actions, such as registering to become a website member, trying free product services for promos, subscribing to newsletters, or downloading software or files. Only later after consumers do one of these actions, the affiliate will get a commission from the merchant.
3. Pay per Click
This system applies by providing incentives to affiliates, to direct consumers from affiliate marketing platforms to merchant websites. That is, the affiliate must establish engagement with consumers so that they can invite consumers to move from the affiliate website to the merchant’s website. So, the affiliate will be paid based on increasing web traffic. The more consumers from affiliate websites visit the merchant’s website, the commission the affiliate gets will also be higher.
In conclusion, affiliate marketing is an effective way to bring in income, whether you apply it as a main or side job. By always following the latest trends, then you will be able to compete superiorly in the competitive affiliate marketing world. Come on, immediately promote your affiliate marketing products on Froggy Ads the best solution for your business! We provide the best deals for you with only a $ 50 initial deposit. You can run your campaign!