WHAT IS AFFILIATE MARKETING?
Affiliate marketing is a concept that we have heard for a long time and actually experience every day. It means promoting someone else's product for a small commission for every sale. You do this by using an affiliate link, and you earn money by promoting the product or service. Yes, you know, the situation where influencers promote products, recommend and ultimately get a share of the sales on Instagram.
The thing about affiliate marketing is a sales conversion after all. However, some affiliate marketing programs also provide great benefits in terms of obtaining potential customers, reaching free trial users, number of clicks or downloading applications. Most affiliate programs are free to join, which is a huge advantage. And when done right, an effective affiliate marketing strategy is a means of generating a healthy income without much hassle.
HOW DOES AFFILIATE MARKETING WORK?
At this point, it is useful to dwell on the expression cost per action, that is, CPA. There are two parties in the model defined as cost per transaction. These parties consist of the company/brand/affiliate site that owns the product or service and the people who advertise this product through their own effort and network.
Affiliate affiliate marketing involves sharing a product or service on a blog, social media platform, podcast, or website. This influencer person also earns commission on sales through each affiliate link.
Simply, the affiliate marketing steps are as follows:
- You show an advertisement or link for brand X on your website, blog or social media account.
- A customer clicks on your link.
- The customer buys a product from brand X.
- The organization in question records the transaction.
- X brand confirms the purchase.
- And you are paid commission.
Commission rates vary depending on the brand and the content of the offer. However, in general, it is possible to get a minimum commission of 5% and a maximum of 50%. (This large rate is usually possible in organization promotions and famous people with a large number of followers) There are also programs that give a fixed rate per sale instead of a percentage, let's add it without forgetting.
WHAT ARE THE TYPES OF AFFILIATE MARKETING?
In order for the strategy in affiliate marketing to be sustainable and connective, it is necessary to know the existing partnership types well and proceed accordingly. If you've ever said to someone, "This is now excessive and unnecessary link sharing, but", you know well. Some partnership types may never be suitable for your brand/follower, so be careful.
“UNATTACHED” AFFILIATE MARKETING
In this affiliate marketing, which we can translate as unaffiliated, you have no authority over the product you advertise, and you do not have a connection with the customer. With the link you provide, you run pay-per-click advertising campaigns and you expect people to click on the link, buy the product and earn a commission.
Why does it appeal to some? E is suitable for some lazy and easy people. Normally, for a healthy strategy, affiliates aim to build a trusting relationship with their online audience. Institutions that do not want to deal with this or do not have the time prefer this model.
We can also say that just wanting to generate income and not putting forward a real business model.
“RELATED” AFFILIATE MARKETING
In related affiliate marketing, the event is to share product/service links that you do not use but are suitable for your audience. An influencer who has power and influence over his audience can be successful in selling products that he has not used before, as he will be an active source in shopping. But the risk could end up being pretty unpleasant, in the form of promoting a product that you don't know how terrible it is because you've never tried it. And sometimes one bad piece of bad advice can drive the audience away instantly.
“INVOLVED” AFFILIATE MARKETING
This inclusive affiliate model is in the form of recommending products that our influencer really uses, is satisfied with and believes in. Since originality, trust and sincerity are involved, it brings forward-looking, strong business results for both parties. This model, which we can call the most effective type of affiliate marketing, comes with the wonderful plus of "being a reliable source" on both the brand and the advertiser side.
WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF AFFILIATE MARKETING?
Even though we often get fed up with the series of affiliate links and things get a little out of hand, a piece of advice from someone we trust for smart, sustainable shopping can make our lives a lot easier, while also helping the world . Therefore, if we leave aside the side that fuels excessive consumption, the importance of the model is quite obvious. Moreover, it is a very powerful marketing tool for brands as it is a cost-effective and high-profit venture.
Already growing wildly, the affiliate industry will reach $8.2 billion by the end of 2022, according to Statista.
But what to do before diving into a business? Of course you should look at all the pros and cons.
WHAT ARE THE TYPES OF AFFILIATE MARKETING?
In order for the strategy in affiliate marketing to be sustainable and connective, it is necessary to know the existing partnership types well and proceed accordingly. If you've ever said to someone, "This is now excessive and unnecessary link sharing, but", you know well. Some partnership types may never be suitable for your brand/follower, so be careful.
“UNATTACHED” AFFILIATE MARKETING
In this affiliate marketing, which we can translate as unaffiliated, you have no authority over the product you advertise, and you do not have a connection with the customer. With the link you provide, you run pay-per-click advertising campaigns and you expect people to click on the link, buy the product and earn a commission.
Why does it appeal to some? E is suitable for some lazy and easy people. Normally, for a healthy strategy, affiliates aim to build a trusting relationship with their online audience. Institutions that do not want to deal with this or do not have the time prefer this model.
We can also say that just wanting to generate income and not putting forward a real business model.
“RELATED” AFFILIATE MARKETING
In related affiliate marketing, the event is to share product/service links that you do not use but are suitable for your audience. An influencer who has power and influence over his audience can be successful in selling products that he has not used before, as he will be an active source in shopping. But the risk could end up being pretty unpleasant, in the form of promoting a product that you don't know how terrible it is because you've never tried it. And sometimes one bad piece of bad advice can drive the audience away instantly.
“INVOLVED” AFFILIATE MARKETING
This inclusive affiliate model is in the form of recommending products that our influencer really uses, is satisfied with and believes in. Since originality, trust and sincerity are involved, it brings forward-looking, strong business results for both parties. This model, which we can call the most effective type of affiliate marketing, comes with the wonderful plus of "being a reliable source" on both the brand and the advertiser side.
WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF AFFILIATE MARKETING?
Even though we often get fed up with the series of affiliate links and things get a little out of hand, a piece of advice from someone we trust for smart, sustainable shopping can make our lives a lot easier, while also helping the world . Therefore, if we leave aside the side that fuels excessive consumption, the importance of the model is quite obvious. Moreover, it is a very powerful marketing tool for brands as it is a cost-effective and high-profit venture.
Already growing wildly, the affiliate industry will reach $8.2 billion by the end of 2022, according to Statista.
But what to do before diving into a business? Of course you should look at all the pros and cons.
ADVANTAGES
It's easy to execute: the brand side of the equation is simply creating the product and enforcing the model with a suitable intermediary. There is no more difficult task. It's an easy to manage process.
Low risk: Since there is no cost to join the program on the influencer side, you can start making money by promoting products or services without any prior investment. An essential tool on the way to a passive but flowing income.
Simple to scale: A successful affiliate marketing program offers you the chance to scale your earnings without extra help. You can continue to add new products and additional campaigns while your existing products continue to generate revenue in the background.
DISADVANTAGES
It is not sustainable without care and effort: We can never call the model a way to get rich quick. It takes time, effort and patience to grow the audience and build trust and interaction. Blog, social media platform, event? Which channel will you choose as a brand? With whom and how will you cooperate? Planning and careful strategy on both the partner and brand side are essential, otherwise it cannot go beyond being a short-term solution.
No salary: Earning commissions on the influencer side is sweet, but it's important to remember that there's no agency that pays a monthly salary. Therefore, incomes are constantly changing.
Mysterious: At the end of the day, on the user's side, we do not know whether the product recommended to us was recommended after it was actually used, or whether it was offered just to make money. That's the usual mystery. For this reason, honest, authentic and creative collaborations always come to the fore.
SO HOW IS THE MONETIZATION SYSTEM IN AFFILIATE MARKETING?
We can say that there is a broad spectrum in the model when it comes to generating income. Earning hundreds of thousands of lira per month and closing the week with just a few hundred TL are also included in love. Of course, there are many factors here, such as the strength and scope of the partnership, the content of the offer, etc.
Okay, but how exactly do you make money? If you want to go a little deeper:
Common affiliate payment types include:
Pay-per-sale: A commission earning model for every sale made. This is the payment model that is common in e-commerce.
Pay-per-action: Here, commissions are earned for a particular transaction. Many programs use this payment model because it has a wide scope and can be applied to different offers. For example, newsletter signup, click, form submission, etc.
Pay per download: Affiliate is paid for every upload generated from website traffic. Here the content goal is to promote mobile apps and software for people to download or install.
Pay-per-lead: In this model, the partner is paid each time a user signs up for something. It's a very popular payment method as companies use it for sweepstakes, leads, and other types of offers. Cost-per-lead bids are especially common for newbies because lead acquisition is much easier than selling a product to an audience.
Pay-per-click: A rarely used payment system where commissions are earned on every click. Pay-per-click programs can be used by big brands to build brand awareness. Customers do not need to register or purchase anything to visit the seller's website.
At the end of the day, how much revenue an affiliate and thus the brand will generate depends on the niche offered. What is the appropriate partnership structure? What would be the appropriate platform for the audience? What are the criteria in the product/service and partnership model that followers will trust? These are the most basic questions.
So how to log in to the affiliate system? What should be considered in order to apply the model effectively? Here's another long post. But maybe you want to think about it, let's leave the following steps as an introduction.
1- Choose your platform and method
2- Decide on your field and audience
3- Find the product/service
4- And select the affiliate program
As in any business, focus and discipline are very important in a successful affiliate strategy. What and how to focus in the second article? How to set up a strategy? Which affiliate programs to look into? We look at all these questions in detail and draw up an easy roadmap.
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