What is affiliate marketing? The basic idea of this type of marketing is where an affiliate- a person who does all of the advertising- will create content and will attach affiliate links that their audience can click on.
That link will direct users to a certain product that the content creator’s partner merchant is selling and once the user ultimately buys that product, the marketer will get a small percent of the profit in the process.
Affiliate marketing, when done correctly, can actually be a lucrative business. Although it may require some time to put it all together in a more effective manner, once the initial process is done, you can create a money-making machine where you can earn cash passively (or doing nothing at all).
How Do Marketers Get Paid?
For the most part, partner merchants will pay their affiliate marketers by using the pay-per-sale model. Essentially, what this means is that when one of their audiences click on the affiliate links that they’ve posted on their content and ultimately buys whatever is on that link, the marketer will get a small percentage of the sale. It could go anywhere between 5%-15% but there are times that it can go higher.
There are some partner merchants that will use other payment models as well. For instance, they can employ the pay-per-lead model wherein the user doesn’t necessarily have to buy the product, but simply just signing-up or even enlisting themselves on the merchant’s email list will suffice.
The old and now-defunct method (but is still used by some) is the pay-per-click model, where the marketer will get a small profit just by clicking on the affiliate link. This is now a defunct payment model because it can be abused by others.
Main Reasons Why You’d Want to Be an Affiliate
- Helps Generate Passive Income
Once you’ve set up your entire affiliate marketing machine, you can earn income passively and you are free to do something else. That is the reason why some people would still work at a 9-5 job, but will check on their affiliate accounts during the night.
- Work from Home
Affiliate marketing can actually be a full-time job and if you treat it as such, you can work even in the comfort of your own home.
- Flexible and Convenient
Your success in affiliate marketing will depend on your chosen strategy, as well as how many hours you’re willing to put into it.
That is what makes it so flexible and convenient because you are basically your own boss. Your earnings will depend entirely on your approach.
When you want to build your own business, you will need a pretty huge initial capital to get things going. However, affiliate marketing is quite appealing because you will only need a good working computer with a reliable internet connection to get started.
- You Don’t Have to Deal with Customers
Another appealing proposition about affiliate marketing is that you do not have to deal with angry customers and people that want to tell you something about the product.
Your main job is to just advertise the product by creating your own content and sharing affiliate links and that’s about it.