One of the most lucrative ways to generate income online and should be part of most online businesses is Affiliate Marketing. It’s a way for a company or a marketer (in this case you) to reward someone else for bringing traffic and conversions to your offer. When you will have your first product to sell online you will most surely depend on other people promoting your product and thus sharing the profits with them.
But in this article I’m going to talk a little bit about why you should also promote other people’s products. In affiliate marketing there is always the Merchant and the Advertiser. The Merchant rewards the advertiser of bringing in conversions on their product or service by typically sharing the profit of the conversion. It’s basically you earning money when you refer someone to a specific product or service.
An example of doing affiliate marketing is that you review a product in an article on your blog and then you provide link to the product where readers can buy it. This is a special link that is tagged with your id and if people decide to buy through that link then the tag will make sure you get your commission.
The good thing about affiliate marketing is that it’s rather easy to do if you have a big list of followers or subscribers that you can promote to that are already engaged with what you are doing. If you have a blog, email list or YouTube channel it’s relatively simple to promote something that could help them and therefor make money.
If you don’t have an online following then it should be one of your first goal to get a blog going, a Kindle book published and a YouTube channel started. These or one of them most inexpensive things to create but can build a list of followers for you with time so you can market to them later.
The difficulty level is a step above beginner and it could take anywhere from 1-6 months on average to get it going. The startup cost is very low but the returns can be $1,000,000 + a year if done correctly.
If you are starting out in online marketing the nr. 1 goal is to build subscribers and followers and you do that by making content on your blog and YouTube for example to get traffic. Then you need something to collect the information of your visitors to be able to connect with them. The best way to do this is to give them something of value to them for free. That way they are going to like you for it and maybe willing to exchange their email address in return. The tool we need to catch their email is something called an autoresponder. My personal favourite is Aweber as they are considered to be the most established autoresponder ever since 1988 with one of the best delivery and open rates of emails.
With the autoresponder in place you will be able to send out messages (broadcasts) to you subscribers everyday with valuable information and offers that are going to help them. This is the right way of doing affiliate marketing.
The great thing about affiliate marketing is that you can make money really fast with as little by sending one email. You don’t need to own your own product as you can just promote other people’s products or service. Profit margins are very high as the cost of doing it is cheap. Some people make their entire living on just affiliate marketing (super affiliates). Affilate Marketing can also be passive income. You want to promote products or services that you have tried yourself has benefitted you. If you think it could also benefit your subscribers than you would want to tell them about this product. This can be a blogpost or a video that will be generating traffic in the long term. It can also be a part of your email follow-up series (autoresponder) so whenever a new persons subscribes to you he will get an email further down the road about this product. So this can be totally automated and therefor passive income for your business.
The number 1 rule I try to stick with in affiliate marketing is to not promote a bad product to my subscribers. It could make me some money of course but it’s not going to give value and benefit my subscribers and they will dislike me for it and discredit my name. If you build up a good connection to your list of subscribers and deliver great value and help to them what is going to happen is that they will start to communicate with you and even ask you if you have something to sell them. The best situation to be in is to not having to sell to your customers. They come to you.
Many companies have their own affiliate programs but there are also webpages you can go to like Clickbank, JVZOO, Commission Junction and more that specialize in providing affiliate offers to advertisers.
The downside of affiliate marketing is that you need to have the traffic of visitors already in place and preferably people that like your content and trust you. That’s why you want to be giving them value and helping them in the long-term.
Hafsteinn Thordarson / Next Step Freedom