Affiliate Marketing is an appealing strategy for anyone working with internet sales, and the promotion of services or products online. It works as follows: a product launched by an entrepreneur or company is disclosed by an affiliate through their channels; and once a sale is successfully completed, the affiliate earns a commission.
Affiliates don’t need to create a product or come up with a great idea to make money through their websites, social networks or blogs; it’s possible to make a profit simply by selling third-party products through these channels. Many companies already use this strategy, which can be very efficient. Examples include large online stores such as Amazon, Submarino and Magazine Luiza. Paid advertisements allow these companies to further increase their capital.
I learned a lot about Affiliate Marketing during the three years I spent working at RecargaPay. Based on what I learned and observed, I have singled out six myths around this strategy, so that people can increase their understanding, and decide whether or not it’s right for them. Check it out:
1- You won’t be successful if you only participate in one Affiliate Program.
Participating in multiple Affiliate Programs is ideal, since doing so leads to greater knowledge of platforms, content and people. But that doesn’t mean that you won’t be successful participating in just one program. It can happen, although the odds are stacked against you. The more programs you participate in, the more likely you are to succeed.
2- Investing in Affiliate Marketing is an outdated strategy
Google’s new SEO algorithms have transformed traditional link building. For this reason, many people believe that investing in Affiliate Marketing is a strategy that no longer gets results. But using SEO techniques together with Affiliate Programs makes it easier to gain visibility and conversions for your brand.
3- Starting activities and managing platforms is easy
In the affiliate market, getting good results takes hard work and dedication, because the competition is fierce. To win conversions and be successful, you’ll need to have solid partnerships, produce quality content, and invest in campaigns and strategies to leverage your business.
4- You must be a blogger to be an Affiliate
This is one of the greatest myths surrounding Affiliate Marketing, because the market gained a great deal of notoriety thanks to blogs. But an affiliate can by anyone who wants to represent a brand on the internet and increase traffic towards their social networks, websites… and even blogs. Simply use the tools you already have, or adapt some features to exclusively explore the Affiliate business; for example, providing a portal for posting discount coupons, and making a profit from all sales.
5- It’s a strategy that doesn’t reach consumers
This myth often leads inexperienced advertisers to exclude Affiliate Traffic from their Digital Marketing plans, and overlook the potential for capitalization. In fact, Affiliate Traffic allows brands to reach places that are beyond the reach of conventional techniques. Before consuming or buying anything, everyone searches online for more information. This means it’s vital to produce content that shows off your website’s unique selling points, in order to generate more traffic and increase the volume of visits.
6- To be successful, just work within the niche that you believe to be the most profitable
Many people believe they will make more money this way. The chances of success in product sales niches, where most people make their purchases, are considerable but not guaranteed. Certain niches are suitable for some, but that doesn’t mean they will be for everyone, including you. Deep understanding of the niche is required, otherwise you’ll just be limiting your success by staying in your comfort zone.
Common Affiliate Marketing Questions
What are the commissioning formats?
When an affiliate advertises a company’s product, they earn a commission, usually when someone buys that product. But other forms of commissioning exist too, including:
CPC (Cost Per Click) – In this model, the affiliate earns a commission for each click that a user makes on an advertisement;
CPM (Cost Per Thousand/Mille) – In this case, the affiliate receives a commission for every thousand user impressions on an advertising banner, regardless of whether it was clicked or not;
CPA (Cost Per Action) – This is the most popular model. Here, an affiliate will only earn a commission if the user has taken a specific action with a banner. This can include filling out a form or purchasing a product.
CPS (Cost Per Sale) – This is widely used by e-commerces. In this case, the affiliate earns a percentage of sales made by an e-commerce user.
CPL (Cost Per Lead) – Commonly used in B2B business. Here, the affiliate receives a commission for each lead generated.
CPI (Cost Per Installation) – This is linked to mobile usage. Here, the affiliate earns a commission for generating app installs.
RVS (Revenue share) – This model is widely used by sports betting sites. In this case, the affiliate receives a percentage commission for user purchases.
What types of companies use Affiliate Marketing?
Several types of companies use this strategy because of its effectiveness, including virtual stores, companies offering online courses, accommodation and tourism portals, bars, restaurants and service providers. In fact, anyone who wants to earn money online can use it, such as e-book and course developers, for example.
What are the main advantages of Affiliate Marketing?
The main advantage is being able to make money online without having to come up with a great idea, using a simple business model.
Is there a difference between Affiliate Marketing and an Affiliate Program?
Yes. Affiliate Marketing is the strategy – the framework that allows people to advertise products or services from other companies. An Affiliate Program is the platform provided by companies so that people can register and share their affiliate links.
Can I use an Affiliate Program and Google Adsense Ads simultaneously?
Yes. Google’s program terms and conditions allow you to use both at the same time. But affiliate programs tend to pay better.
Do I need to pay to join an Affiliate Program?
No, you won’t need to pay anything. However, it may be that your affiliate profile is not interesting to a specific company, in which case they will decide not to accept you.
Now that you have gotten to know this market, discovered the myths and answered questions about how it all works, you can decide whether the time is right to apply it to your business.