Lots of people want to work from home, and to make money in affiliate marketing is one of the best ways to do it in the modern world. Understanding how it works, ways to get started and the right strategies can put those with enough determination on the road to affiliate marketing success.
Those who make money in affiliate marketing are simply getting paid to promote other people’s products. It can be thought of as a type of advertising. However, affiliate marketers only get paid for the results they produce. While there are a number of different ways of earning compensation, most people make money through affiliate marketing in either of the following methods:
Pay Per Sale (PPS) is when the affiliate marketer gets a percentage of sales made from referrals made to the merchant’s site.
Pay Per Click (PPC) occurs when the affiliate marketer gets paid simply for referring a potential customer (who may or may not make a purchase) to the site of a merchant.
Which system is best depends on the product being sold, percentage and the type of sites the affiliate marketer wants to create. While PPS usually pays well for each sale made, these sales can be difficult to make, and the information on the site in most cases has to be very much geared for a specific product. PPC sales are much easier to generate, but the amount paid for each visitor is not going to be nearly as much as it is in PPS.
Cost per action or CPA is another common form of online marketing in which marketers are paid when visitors carry out a certain action such as completing a curvy. More on this at CPA marketing methods.
Advantages and disadvantages of making money in affiliate marketing
Affiliate marketing has all the advantages of working from home with some added bonuses. People doing this kind of marketing can set their own schedules, work for themselves, avoid commuting and so on. What is marketing especially attractive is the potential to make money 24/7 since websites should always be up and working. Finally, there is no need to keep inventories or provide customer service. Best of all, some affiliate products have very lucrative payouts of 75% or more.
Of course, there are drawbacks to this type of work. People have to work alone and be self starters who discipline themselves to put in the long hours required. In addition, sales can be difficult, and there are no guarantees of income. Some people put in many hours and never make much. There is also the fact that the income is not steady and is at the mercy of various factors to include changes in the algorithms search engines use to determine results.
Choosing networks and products
One of the advantages of affiliate marketing is that people can choose to work in areas that interest them the most, and this has practical advantages for the marketer. Whenever one can write and promote things they have a knowledge or passion for, it becomes easier to create better content and more of it. Therefore, the first step in making money in affiliate marketing should be finding one’s interests.
The first networks many people start with are Amazon and ClickBank, although more experienced marketers invariably join more (see the following guide to affiliate programs for affiliate products for any niche). Amazon has a huge selection of physical products, and ClickBank has an equally large number of virtual products. Both networks are respected yet easy to join.
Whatever products are chosen, one needs to do some research to ensure there is a demand for them. In addition, be wary of fad products but look for products that will be around for a while. In the time it takes to rank for a fad product in the search engines, people may lose interest.
Tips on making money from affiliate marketing
While nobody ever knows everything about marketing online, there are some basics that everyone can use. At its most basic level, affiliate marketing is creating web content that attracts visitors and makes people want to buy.
Type of site
There are many options in creating websites for affiliate marketing. One choice is whether to go with free hosting such as the very popular Squidoo or with paid services. Another question is deciding between creating a standard website or try blog affiliate marketing.
In the end, it is probably best to experiment and see what is most effective. Generally, free hosting sites are used primarily in support of the larger, paid sites, which offer a lot more freedom and flexibility.
Create good content
Since search engines do have ways of judging the quality of content, creating professional content is necessary both for search engine rankings and keeping visitors at a site. Therefore, the focus should always be on creating good content that will appeal to people emotionally as well as rationally. Remember that people are often quite product savvy, and it is necessary to give an honest assessment of things.
Know the products
Even if one does not have a passion for the field being promoted, it is necessary to develop a good knowledge of it. Read extensively on the niches being promoted. Whenever practical, obtain a copy of the product that will be sold (it is often necessary to purchase it) to create the best review possible.
List building and email marketing are vital to those who want to make enough money online to generate a full-time income. Give away an ebook or offer something else for people’s addresses for a newsletter or some other correspondence with them. People are often very interested in the niche of the product they are searching for. Establishing a communication with them can pave the way for many extra sales.
Knowing both on-page and off-page SEO is necessary as a basis to make money in affiliate marketing. While it is fine to use pay per click (PPC) advertising for some traffic to a site, natural traffic to a site works the best and is free. Keep abreast of the latest SEO techniques and news.
Start out slow
It takes time build up content, get it ranked in the search engines and gain the knowledge to really do well making money in affiliate marketing. The best route is to proceed slowly at first, starting with a low number of products, and gradually expand with knowledge and experience.
Track carefully and learn
There is no teaching like experience when learning how to make money with affiliate marketing. To best learn these lessons, make sure to use tracking tools as much as possible to know exactly what is being sold and from where. This data can be more valuable than any marketing course.
There are of course many more things to learn when making money from affiliate marketing but following these basics is the best place to start.