As we approached the end of another work day, a conversation between myself and our Accounting contractor about entrepreneurship somehow turned into a discussion about Affiliate Marketing. In our country especially, so many youngsters in their 20′s or even teenagers have found extreme wealth through taking advantage of the Internet, which is truly a gold mine.
What is Affiliate Marketing
Here is Wikipedia’s definition of affiliate marketing:
Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.
There are many ways in which an affiliate marketer can and will promote a business or specific product.
Example of Affiliate Marketing
Affiliate marketing websites like Mecanto posts reviews of Internet Marketing products. Their goal is to walk the fine line between providing unbiased information about a certain product and blatantly selling it, but since the ultimate goal is to sell the product, affiliate marketers need to take a very specific and strategic approach to writing their reviews.
How do they get paid?
When an Affiliate marketer sells a product through writing a product review, this is known as a “referral” or “conversion”. Each affiliate will receive their own affiliate link which is unique to them and allows sales to be traced back to the person promoting the product through their website, video, email, etc. The link’s destination is normally the official landing page for the product.
While an affiliate marketer has to be careful not to blatantly sell something, their goal is to send each visitor to the landing page, and in contrast, the landing page is indeed geared to finalize the sale.
If the sale is finalized and the visitor submits their payment, profits are split between the product owner and the affiliate. With Internet Marketing products, commissions are generally high and the average is between 50% to 60%.
But in some cases, an affiliate could even earn 100% commission per sale. Why would they want to give 100% of the revenue to their affiliates? Simple.
Nothing is more valuable than the possession of a Buyer’s email address. A large list of email addresses is not necessarily valuable by itself, but if you could filter the addresses associated with proven buyers, you have opened the door to recurring income because most people that have bought once will most likely buy again.
Going back to why someone would want to pay their affiliates 100% is because even though the product creator would forfeit the profits for the actual sales, their sales page would collect each buyer’s email address, and since they are giving their affiliates amazing incentive to promote the product, product creators that pay at 100% are likely to have more affiliates and therefore more buyer email addresses. This is a strategic approach with long term benefits.
When an affiliate marketer promotes a product, the most effective method also happens to be the easiest and fastest method if you have the means to do it. Of course I’m referring to promoting a product via e-mail to your list of buyers. If you look at any affiliate leaderboard for any product, the leaders are always affiliate marketers that promoted through their lists.
So where does that leave affiliate marketers that might not have a buyer list yet?
With Internet Marketing product reviews, if the affiliate is not promoting through their lists, they are most likely going to create a review page on a website such as this WP Mega Pack review and they can also create a supplemental review on YouTube. Since YouTube is free and takes less time, some affiliates will focus all of their efforts in promoting the product through YouTube and bypass the Review site completely. This is not a bad idea especially since you could also think in terms of creating several YouTube videos for a single product, spread out through different YouTube accounts if you would like, and you may have an opportunity to reach a larger audience.
Regardless of an Affiliate Marketer’s approach, a good strategy will often be the difference between a successful affiliate marketer and someone that’s struggling. I would recommend that every newbie or aspiring affiliate marketer should invest some of their time into analysis of their competition and planning. This is where the strategy is developed. So grab a pencil and a notebook, research a few Internet Marketing forums, ask questions, look at existing websites, and take notes the entire time!