What is Affiliate Marketing?
When searching for ways of making money online, you’ll often bump into the term affiliate marketing, mostly because of its special benefits and experience overall.
In this article we are going to explain to you what affiliate marketing is, how it works, some examples of affiliate marketing, why is it so appealing and finally, we’ll introduce to you one of the biggest opportunities for you to make money online with no risks involved.
What is Affiliate Marketing?
Simply put, Affiliate Marketing is the process in which a marketer (the affiliate) is advertising and promoting someone else’s products or services and gets a commission every time he makes a sale. This whole process of affiliate marketing stands on the idea that your earnings are purely based on your performance of marketing and selling other people’s products.
Affiliate marketing is widely used for brand awareness and is also a very efficient way for online retailers to expand their reach and get customers from all around the world.
While it might not seem so great at first, affiliate marketing comes with benefits you probably won’t take advantage of from other ways of making money online.
How Does an Affiliate Program Work?
Affiliate programs are used by various companies to effectively and professionally manage their affiliates, the revenue brought by them, and commissions.
Such programs mainly consist of 4 parties: the seller/retailer, the affiliate, the end-customer, and finally, the merchant network.
The retailer (or the merchant) is the business that actually produces/has and sells the product, they are the core of this entire chain, without them, there are no goods to sell. The merchant usually has an integrated affiliate program within their website where the affiliate can register and start marketing for that business.
Becoming an affiliate is free and no big information is required when signing up. Once the registration is complete, you get to choose whatever product or service you want from their affiliate product list. Once you select a product, you get information about the product commission rate and a personal tracking link. The commission rate represents the amount of share you will get from the sale, usually 5%- 15% depending on the merchant and product. As for the personalized link, this is a unique trackable link that only you will be able to use.
Whenever a buyer makes a purchase via this link, the affiliate will receive a commission of that sale. This is usually done through different marketing strategies such as social media marketing, promoting affiliate products on youtube, blogs, web advertisements, etc…
The merchant network is a special software integrated within the affiliate program that tracks the affiliate links, takes care of the commission payments, and handles the logistics of link activity overall. The affiliate does not have to worry about dealing with this network as they would never have to encounter it.
A good example of an affiliate program is Amazon, the biggest online retailer and merchant in the world. The Amazon Associates Program is one of the biggest Affiliate Organizations, contributing a lot to the growth of the company and the overall revenue.
Benefits of Affiliate Marketing
Affiliate marketing is well known in the make money online industry to be the least risky method in terms of money, goods, and online safety overall.
First and foremost, affiliate marketing is a win-win for both the merchant and the affiliate. Although the merchant has to give out the settled commission, given how much the conversion rate and the sales have risen, in the end, it’s just a small part of the overall profit for them and the company gets to grow even faster and bigger.
The affiliate is also greatly benefited considering the little job they do. First of all, there is no responsibility for them as they don’t have to ever produce, keep, ship, or even touch the product. The affiliate doesn’t have to deal with running a whole company, doesn’t have to take responsibility for the services they sell, for the logistics and accounting involved, or for customer support, they only lend the buyers to the merchant, get paid for their part and that’s all.
Moreover, affiliate marketing can easily be done without any costs required as many strategies such as promoting on blog or youtube don’t necessarily require any costs. If the affiliate can’t convert any customer, that’s it, nothing is lost except time, everything is about your performance.
Now that you know what affiliate marketing is, feel free to try your chances and become an affiliate for HoneyHost, where you’ll get up to 35% commission for every conversion you make.
You can check our affiliate program for more information if you want to become our affiliate.