As you probably know, Affiliate Marketing for beginners has great potential, in my opinion. And you can easily do it as a part-time or full-time online job with just a few hours a week. Why? Because you don’t need to create a product. You don’t need to show your face publicly if you don’t want to. And you don’t need to worry about payment issues and that kind of work. In this article, I am to answer how affiliate marketing works and what to consider.
How does affiliate marketing work, and is it legit?
Before defining the term and analyzing this concept of affiliate marketing, It is helpful to have in mind a couple of statistics that illustrate the state of affiliate marketing in the business world at this moment:
• Approximately 15% of the digital media industry’s revenue now comes from affiliate marketing. (BusinessInsider)
• Over 50% of top affiliate programs fall into 6 categories: Fashion, Sports, Health &
Beauty, Travel, Weight loss, and make money online. (AMNavigator)
• Affiliate marketing will affect 14% of all e-commerce purchases in the United States.
• 40% of marketing professionals quote affiliate marketing as the most desired digital skill. (AMNavigator)
What We Can Conclude About Affiliate Marketing
• Affiliate marketing has (and will continue to have) an important role in online marketing.
• Online Marketing is an amazing opportunity to increase sales (and revenue) for merchants and affiliates.
• Posting regular content is the best way to promote affiliate links.
• Working on authenticity and reputation is the best way to earn credibility online and increase affiliate marketing profitability.
History of Affiliate Marketing
The entire concept of affiliate marketing is focused on sharing the revenue by partnering up with others. It is a concept that has been around for a while before the internet even started. In terms of affiliate marketing as an online business model, we can trace its origin back to 1994. Back then, the first affiliate program was launched by PC Flowers & Gifts.
One year later, they had over 2000 partners in their affiliate program. Perhaps the best-known affiliate program today, Amazon’s affiliate program, was launched in 1996. In fact, e-commerce websites, in general, started seeing affiliate marketing as an excellent way for them to increase sales without any direct promotion on their part.
Even though there have been several business models in affiliate marketing, what really changed the game was the introduction of Web 2.0. This shifted the focus to the user-generated content, optimization, and integration of social media.
As a result, affiliate marketing became even more available to ordinary people, bloggers,
influencers, etc. They suddenly started seeing this type of marketing as a perfect way for them to monetize their online influence.
The Importance Of An E-Mail List
You might have heard to therm “the money is in the list” or something similar. Let’s imagine for one second that you own a company that produces laptops. As the company owner, you need to find ways to make your product popular and increase brand awareness. Here comes affiliate marketing into play. Affiliate marketers usually have an audience of a few thousand people. The people on his/her E-Mail list are interested in the tech industry in this case. They will trust the option of the affiliate marketer and eventually buy the recommended products.
Since you are an affiliate marketer, there are various ways you can build your E-Mail list. You can achieve that, for example, with a blog, doing youtube videos, paying for ads, and many more. Each affiliate marketer has a unique “affiliate link,” and sales can be backtracked to your link. For each sale, you receive a commission. This can be anything from 10% up to 90% of the price of the sale. How big this commission depends on the company or the vendor that you are promoting products for and on the niche. Commissions on Amazon tend to be lower, while commissions for digital online products can be quite high at the moment.
Affiliate Marketing For Beginners: What To Consider
So far, the basics and some history. We will now jump to the important stuff for you! There are a few essential points that you should consider before starting:
Choose your niche wisely
One of the first steps to start is to choose your niche. Do not underestimate the importance of that decision. Your perfect niche is a combination of a topic you are passionate about (this will help you stay motivated), a topic where you have more knowledge than your audience, and a niche with high monetizing potential.
Ideally, new affiliate marketers choose a niche where competition is low, and search volumes are high. Be very specific when choosing your nice and always keep in mind what problem you can solve that your audience is having. The most important thing is that you create value for your audience, helping them with some issues they need help with. (Please read my full article on how to find your perfect niche here.)
Consider this as serious business and not as a way to get rich quickly
Do you remember that I mentioned earlier, building up a list and connecting with your subscribers is one of the most important tasks as an affiliate marketer? That relation doesn’t come overnight and needs time to build up. Therefore it is absolutely mandatory to be persistent, be it with E-Mail marketing, posting a blog post or youtube videos, or whatever you are doing. It is better to post 2-3 times per week than posting daily for four weeks straight but then have a gap of multiple weeks.
Understand the importance of a benchmark
Ultimately, many people underestimate the importance of a benchmark study when it comes to affiliate marketing for beginners. Before you get started and choose your niche, do not miss out on searching on the internet and finding out what is already out there. Are there other blogs or youtube channels in my niche? How do they do it? Especially if there are already other successful competitors out there, analyze how they do it.
I can recommend jumping on the E-Mail list of other people in the same niche to see how their E-Mails and articles are structures. However, Do not copy and paste texts from other websites but find inspiration, and maybe ideas come to your mind that could be improved. You don’t need to invent everything from scratch when it is actually already there!
That’s it for this article. I hope you found it helpful. Maybe I was able to highlight the potential of affiliate marketing for beginners for a couple of you:) Feel free to reach out to me if you have any questions!