Affiliate marketing is a commission and performance driven marketing strategy, which aims at increasing the number of products sold by a company by signing up companies or individuals, known as ‘affiliates’, who promote the company’s products in exchange for money.
Who are the actors?
- A company who owns a product is known as ‘the merchant’
- A person/blog/website promoting the merchant’s products is known as ‘the affiliate’
- People buying the product via the affiliate are known as ‘customers’
Let’s take a look at how these three actors interact to leverage real value from each other with a simple example:
John and Larry, aka ‘the merchants’ own a business that sells pots and pans. Marc is a chef and a owns a blog which has many followers, who enjoy his daily recipe posts.
John and Larry would like to sell more pots and pans and let more people know about their business and Marc would love to earn some extra cash.
Marc, aka ‘the affiliate’ decides to advertise John and Larry’s pots and pans on his website, earning commissions on each product that it is sold to his followers, aka ‘customers’.
Now you have a clearer understanding of affiliate marketing, let’s see how to get started in four simple steps:
Choose your niche and the type of products that you would like to market, do your research to make sure there is demand for this product and that you have the ability to reach the right audience. We suggest you choose a profitable industry that you have good knowledge about, or an industry that you would like to explore further. Writing articles is always a lot easier if you know or like the subject you are marketing.
Sign up to an affiliate program and focus on building traffic to your website.
There is a whole ocean of affiliate programs out there, choosing the right one for you can be tricky sometimes. We will soon dedicate a full article that aims to help you effectively select the right program for you.
Start to market the product and track the results to get a clear understanding of what is working, and what needs more research and work. A common way to track your results is via an affiliate software which will show you statistics, number of views, products sold etc.
Reap in the commission when someone buys a product using the link on your website!