Affiliate Marketing is an old term, which has been used in marketing for years. It gives the opportunity to earn commission by selling products or services offered by other companies or vendors. So learn affiliate marketing at AlphaIRT, it provides the best affiliate marketing training in Indore.
What is Affiliate Marketing?
Affiliate marketing is the process by which a person (affiliate) earns commission for recommending another person’s or company’s products or services. In the case of blogging, a blogger becomes an affiliate for a company by inserting their links, products or banners within the blog so that it leads readers to visit the merchant website. If the consumer performs an action through your reference you get good earnings.
Components of the Affiliate Marketing System
To make affiliate marketing work, 4 components are involved – Merchant, Affiliate, Consumer and Affiliate Network.
Merchant: Also known as vendor, retailer, company, a brand or an entrepreneur with a product to market. A product or service can be shopping items, IT services, and software. From small startups to big brands, anyone can be a merchant behind an affiliate marketing program.
Affiliate: This party is also known as a publisher that promotes merchants’ products in an appealing way to generate a potential customer. An affiliate can be an individual or an entire company.
Consumer: Customers or consumer plays a vital role in the whole system. When a consumer purchases the product via an affiliate, every time the affiliate earns a commission from the merchant. It is not necessary that consumer knows he is the part of the affiliate network system. Consumer undergoes a normal purchase process and receives the product. They are unaffected by this system.
Affiliate Network: Generally, the network is not considered as a part of affiliate marketing however, it plays an important role in the affiliate business. In many cases, it works as an intermediary between affiliate and merchant. With the rise of e-commerce, affiliates need to go through a network to promote the products effectively. Amazon is an example of the biggest affiliate network for consumer products like toys, books, household items and so on.
How to start Affiliate Marketing?
- Create a website or a blog
- Find an industry or product of a niche you want to promote
- Search for an affiliate program that offers products or services of your niche.
- Join an affiliate program. Mostly it is free of cost, however, it may ask for website URL and its details
- After joining an affiliate program, you will get a unique link that will allow a merchant to track who clicked their product
- Add that link to your website or blog
- If the user visits the link and purchases the product, you get a commission
How Do Affiliate Marketers Earn Money?
There are three ways to earn money online through affiliate marketing:
Pay Per Click (PPC): You make money online relaying upon the number of visitors redirected by you to the website of the Merchant from your own blog or website, whether you make a sale or not. This means affiliate must engage the visitor to an extent that they will redirect from affiliate toa merchant’s website.
Pay Per Sale (PPS): This is the standard form of affiliate marketing. In this, the affiliate gets paid a certain percentage of profit only when the consumer purchases the product from his recommendation.
Pay Per Lead (PPL): This is a more complex scheme than the others. This program is based on the conversation of leads. Here, the affiliate gets paid once customers visit a merchant’s website and perform the desired action – whether it is filling a contact form, signing up for a trial of a product, subscribing for a newsletter, or downloading software or files.
Cost Per Miles (CPM): CPM also known as Cost Per Thousand (CPT) is the affiliate marketing model where an affiliate gets paid for advertising over the internet. The merchant or an advertiser gives money for every thousand impressions along with advertising materials.
Pay Per Install (PPI): PPI sometimes called CPI (Cost Per Install) is the method of buying advertisements that are targeted to mobile users. This is a very cost-effective method because merchant only pays when a user installs or downloads your application or offer.
Affiliate marketing is an elegant straightforward process, which has a good future because many organizations today are adopting this marketing technique. And if you are looking to gain more income online by focusing on performance-based revenue then, this is an ideal solution.