Some of the most successful content in our network is repurposed for email, social media and other channels to enable publishers to share their expertise as widely as possible. If you’re an expert in your area, it only makes sense people will want to discover your content, get advice on purchases they’re making and act upon them in a channel of their choice. So think about how you can generate interest in your content from other avenues than search alone.
Affiliate marketing owes its birth and first developments to CDNow.com and Amazon.com. Back in November, 1994 CDNow started its Buyweb Program — the first online marketing program of its kind at that time. Amazon continued this pattern in July 1996 with its Associates Program. Amazon claims that currently the number of their affiliates worldwide exceeds 1 million associates. (A Practical Guide to Affiliate Marketing, p. 11)
This next one is not exclusive to Amazon, but it’s probably going to give you the biggest bang for your buck with Amazon. That is, showing people what they’re going to get before they get it. Instead of just talking about the product or sharing a little information about it, then posting your affiliate link and leaving it at that, you can give people a much richer preview of their potential experience with a given product.
Videos also make it easier to build a relationship with your audience; you can talk right to them, and they can hear your voice (and see your face, though that’s not always necessary). Plus, not only are you sharing what the product looks like and how it works, since you’re the one who’s showing your audience how it works, you’re also building your authority with them as an expert they can trust.
I’ve read a lot of horror stories where Amazon has randomly closed people’s accounts for different reasons. Fair enough – many of these are due to breaches of their terms and conditions (e.g. failing to properly disclose links, not using the appropriate images and links provided in the affiliate dashboard, buying from one’s own affiliate links, etc.) but yes, if you fail to comply by their rules, you’re at risk of being shut down (and losing all the commission you’ve racked up). SO, don’t be a dummy, read the terms and conditions thoroughly and make sure you’re not breaching them.
But I think the biggest deciding factor in this, goes back to the site as a whole and all of the other posts. Are the genuine? Is the blogger constantly trying to push products? I’d like to think I’ve been doing this long enough that my audience knows I’m not out to make a quick buck – and I think even relatively new bloggers can prove this based on their other content.
Most businesses require startup fees as well as a cash flow to finance the products being sold. However, affiliate marketing can be done at a low cost, meaning you can get started quickly and without much hassle. There are no affiliate program fees to worry about and no need to create a product. Beginning this line of work is relatively straightforward.
I personally prefer to do it that way--you can create a more convincing review that's more likely to make sales. It's not always possible or practical, though; for example, would you break up with your significant other just to test a product for getting your ex back? ;-) In cases like that, or if the product is expensive, it's usually best just to use the vendor's affiliate resources instead.
So, there you have a comprehensive answer to the question – what is affiliate marketing? It can benefit a wide range of businesses and delivers a strong return on investment. The setup requires some initial work to define program terms and create promotional content for affiliates to use. However, once this is completed, affiliate marketing can be a relatively passive source of revenue.
Cost per click was more common in the early days of affiliate marketing but has diminished in use over time due to click fraud issues very similar to the click fraud issues modern search engines are facing today. Contextual advertising programs are not considered in the statistic pertaining to the diminished use of cost per click, as it is uncertain if contextual advertising can be considered affiliate marketing.
Affiliate marketing also gives you the freedom to choose what you promote. In other words, it offers you the luxury of being picky. Not only do you get to decide precisely which programs to work with, but in most cases, you’ll even select the individual products and services you want to promote. As such, you always have full control over what’s featured on your site.
Giving away a free informational product such as an e-book, an email series or a mini-course is a popular tactic many affiliate marketers use. Usually, your readers will have to provide their email addresses to receive the product from you. You can then use this to sell to them via email marketing. Additionally, an informational product can generate interest in the actual product you're trying to sell. If your product is popular enough and brings enough traffic to your site, you could also monetize the traffic in other ways, such as AdSense.
Stands for Return on Advertising Spending, also shortened many times to Return on Ad Spend and can also be referred to as ROI. It refers to the amount of money made as a result of a specific advertising campaign. To find the ROAS of a campaign, you take the revenue divide it by the ad spend and multiply the result by 100. The result is presented in percentage form. Example – if you spent $200 to run a campaign and you made a gross profit of $600, you would take $600 (revenue) and divide it by $200 (ad spend) to get 3 and then multiply that by 100 to get 300 – displayed as a 300% ROAS. The amount over 100% using this method of calculation is your profit. In this example, that would mean you received a 200% profit on the campaign.
A metric used to show the number of times your affiliate link has generated a predefined conversion compared to the number of times the link has been viewed displayed as a percentage. To find your conversion rate take the amount of sales a link has generated and divide it by the number of impressions the link received and multiple the result by 100 to get your conversion rate percentage. Example – if your link was viewed 100 times and generated 2 sales, then you would take 2 (sales) and divide if by 100 (impressions) to get .02 (result) and multiply that by 100 to get a conversion rate of 2%.
The terms of an affiliate marketing program are set by the company wanting to advertise. Early on, companies were largely paying cost per click (traffic) or cost per mile (impressions) on banner advertisements. As the technology evolved, the focus turned to commissions on actual sales or qualified leads. The early affiliate marketing programs were vulnerable to fraud because clicks could be generated by software, as could impressions.