Well, in my personal experience, affiliate marketing makes up the largest chunk of my blog income. Since getting started back in October, I’ve made a few thousand dollars from affiliate marketing (including $1500 in the first 30 days!). The road to get there wasn’t easy though… affiliate marketing isn’t just about dropping links and hoping people will buy things. There is, in fact, a lot more strategic thinking involved, which brings us to the next major question:
Don’t put all your eggs in one basket. If you only promote one merchant’s products, you are stuck with their commissions, their landing pages, and ultimately, their conversion rates. It is important to work with many different merchants in your niche and promote a wide range of products. This affiliate marketing strategy will diversify the amount of commissions you make and create a steady stream of revenue when building an affiliate website.
Affiliate marketing pulls together marketers who want to advertise and publishers, sometimes called influencers, who want to promote products and services and get paid to do so. Publishers place customized links to things they want to promote within their website or social media content. Then, they get a portion of the sales as a thank you for their promotion.
One great way to get ideas for related products to promote is to look at the stats/reports that Amazon gives you to see which products readers are buying. After a while you’ll start to notice that they’re not only buying the products you directly promote but other products as well. Some will be completely irrelevant to your niche – but many times trends will emerge that could signal other products that it might be worth promoting.
The topic you choose must have enough depth that you can create a lot of content for it. This is important for building an authoritative site, for search engine optimization, and most importantly, for the end user. If you don't have enough content about a topic, you're not going to be taken very seriously as an authority on the topic and it's unlikely you can convince someone to make a purchase from you.
Mention it in a blog post. A lot of bloggers get great initial results by working backward. Make a list of your top 5 or 10 blog posts. What things would be a natural fit in there? If it's a recipe post, maybe it's a few of the necessary tools needed to complete the recipe. Include your Amazon link. If it's a potty training tale, include a list of books you read or potty training supplies you recommend. Still not sure? Google posts similar to yours. What are those people promoting within those posts?
Still, as Amazon shifts its attention to new ventures in streaming and personal assistant hardware, many see it as an ominous sign for the affiliate program. “Amazon has done such a great job taking all their profit and dumping it back in to their business. And investors are now asking Amazon to show a profit,” says Lakes. “I’m not surprised that they’re whittling a few percent here and there.”
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.
The two main parties involved in the affiliate relationship are the merchant (sometimes also called “advertiser”), and the affiliate (sometimes called “publisher”). There are different ways to run, manage and promote affiliate programs, which involve more parties in the relationship, but the two main participants (without which the existence of the very marketing channel would’ve not been possible) are: (a) the party that has the product (or service), and (b) the party that knows how to sell it.
When beginning your affiliate marketing career, you’ll want to cultivate an audience that has very specific interests. This allows you to tailor your affiliate campaigns to that niche, increasing the likelihood that you’ll convert. By establishing yourself as an expert in one area instead of promoting a large array of products, you’ll be able to market to the people most likely to buy the product.
You can put up banners on your site, to promote your affiliate offers. Most affiliate programs will usually provide their own creatives when you sign up for their offers. All you have to do is insert the banner on a highly trafficked page (your affiliate tracking is usually embedded within the code). Banner ads in the right locations can do a great job of driving sales.
Once you've protected your prospecting pool, maximize your affiliate program by working with the best and leaving the rest. As the old 80/20 adage implies, most of your revenue will come from a very small percentage of your affiliates. Because it can be time-consuming to manage a larger affiliate network, consider selecting only a few companies initially, and interview them before signing them on. Affiliates are an extension of your sales force and represent your online brand, so choose partners carefully.