The most common type of affiliate marketing is done on the internet. With this type of affiliate marketing, you create a website that talks about the product you want to help sell and the company you are affiliated with gives you a special link to use. When people click on this link, the company knows that they came from your website. Then when these people buy something, you get a certain percentage of each sale.
Affiliate marketing is also called "performance marketing", in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding objectives. Affiliates are not employed by the advertiser whose products or services they promote, but the compensation models applied to affiliate marketing are very similar to the ones used for people in the advertisers' internal sales department.
Affiliate marketers have to consider whether a particular product or company is worth their time to promote. Some companies only pay a one percent commission, while others pay 75 percent commission. And you can get paid as little as a few cents and as much as a few hundred or thousand dollars depending on the type of item sold. As the affiliate marketer, you also have to determine how much time you need to spend in order to make a sale. Affiliate marketing is not a set it and forget it kind of method, as some people claim it to be - it takes active work to make a sale. If you have to spend one hour in order to make $0.38, then it may not be worth it for you. But if you spend only 20 minutes and you get paid $50, then that's probably worth it.
In February 2000, Amazon announced that it had been granted a patent on components of an affiliate program. The patent application was submitted in June 1997, which predates most affiliate programs, but not PC Flowers & Gifts.com (October 1994), AutoWeb.com (October 1995), Kbkids.com/BrainPlay.com (January 1996), EPage (April 1996), and several others.
Be sure to check what kind of customer support you can expect from your affiliate program once you have signed up. Do your research online and if possible, speak to other sellers using the program to get their thoughts. Can you speak to someone via phone or Skype or do you have to wait 72 hours for email responses? Be clear on this because trust me, you will need support at one point or another.
Amazon is always a good choice for those looking to get into affiliate marketing. It is a well-known and trusted merchant and let's not forget they carry almost everything under the sun. Many of the cookies are only 24 hours and the commission is usually 1% to 10% depending on the product. But, people usually buy so much more than the one thing you are recommending. One holiday season, a person clicked on a link to a book I had mentioned on my site and bought a $1,900 engagement ring with it. At 7% commission on jewelry, that one sale earned me over $130. And I don't even promote jewelry! Amazon also pays a flat fee bounty on several of their verticals such as Amazon Video, baby registry, Audible, Prime and more.
Along with that, Amazon is a complete SELLING MACHINE! What I mean by that, is they have drilled their conversion rates down to the last detail. Typically I can convert traffic I send to Amazon from my affiliate sites around 12%. The reason why it works so well is that the moment people land on Amazon, they are automatically switched into "buyer mode". Meaning, they know the only thing left for them to do is BUY. What that means, is all you have to do is get people to Amazon's site, and they literally do the selling for you.
One of the main reasons why most newbie affiliate marketers give up after 3 months is the fact that they can’t build up traffic to their affiliate website. It’s a thorn in most marketers’ sides, but one that can be easily resolved if you put the effort in. Below I have covered a few areas that will get you good targeted traffic to your affiliate deals.
It’s a little silly how often people overlook this step. The simple math is, if you have more eyeballs on your affiliate links, the more likely you’ll make sales. Sure, that’s a bit of an oversimplification buuuut it still holds true that you should be trying to gain traffic on these posts anyway. So, remember the importance of promotion! It’s not enough to just write killer affiliate posts.
I am new to this website and the funny thing is that l was looking for an objective analysis on starting an Amazon affiliate site. Your review on this issue is the BEST that i have ever seen in the last 3 years. This article was a joy to read. It was detailed, honest and very hard hitting especially when you are trying to get readers to understand that they MUST diversify their traffic sources and STOP relying on getting to first page on Google. As a result of reading your article l am changing my digital marketing services, affiliate marketing and , e-commerce strategy. I look forward to hearing new and innovative ideas from you on internet marketing. Keep up the great work!!!
Note: I think the line where readers will push back probably will vary from blog to blog depending upon their readership. For example here on ProBlogger I get a little more negative feedback from readers on affiliate promotions. I suspect ProBlogger readers are a little more tuned into the issue and suspicious of some of the affiliate marketing that goes on around the web.
The other type of Amazon affiliate link I use is when I’m mentioning a product in passing and/or a new product is announced. For example, when Nikon announced the Nikon D300s we immediately posted about the news because it was a notable and anticipated camera announcement. The camera was not yet available in stores and we were not able to get a review sample yet – but it was available for Pre-Order on Amazon so we linked to it.
There are other questions you’ll need to answer before getting started. You’ll need to determine how long you’re willing to wait to see results. Brick Marketing full service monthly affiliate program takes a minimum of three months. Also, some businesses have chosen to use web sites like Google, Yahoo!, Lycos, Ask.com, or a popular site such as Amazon.com as affiliates. These are also great affiliate tools and have helped thousands of businesses increase their traffic. Once again, making sure your ad comes up under all the keywords you want and none that you don’t is absolutely essential to your business’ long-term success and enhancement of its web presence.
But more than just that, 75 percent of shoppers shop on Amazon most of the time. And Amazon has awesome conversion rates—the rate at which a customer who visits the site actually purchases something. If you’re talking about Prime customers, as many as 74 percent of them convert. That’s compared to an average of less than 10 percent for most retail sites!
Repetition is the key to success. It's probably not too surprising that I make a nice little chunk of change on Swagbucks every month. It's a service I use myself. I mention it in my newsletter regularly. It's also mentioned in 40 posts on my blog at the time of writing this email. FORTY. Whether it's Swagbucks or your favorite whisk, when a reader sees you mention something so naturally over and over again they eventually say, “You know. All this lady does is talk about this magic whisk. I better try it for myself.”
Now most affiliate programs have strict terms and conditions on how the lead is to be generated. There are also certain methods that are outright banned, such as installing adware or spyware that redirect all search queries for a product to an affiliate's page. Some affiliate marketing programs go as far as to lay out how a product or service is to be discussed in the content before an affiliate link can be validated.