What is Affiliate Marketing?
Affiliate marketing is basically when you go to the trouble to tell other people about a product or service you do not own or provide.
The expected outcome is that those people will listen to you and purchase the item or service you’ve introduced to them.
The merchant who is selling product or service pays you for your effort to introduce these people to their product or service.
Why Affiliate Marketing?
Merchants are wise enough to know that despite all their efforts the merchant doesn’t know everyone who might be interested in their product or service.
In fact some merchants don’t have a clue about marketing. Those merchants are highly dependent on someone else identifying, discovering, contacting and encouraging the public to purchase from the merchant.
Merchants have a variety of affiliate programs to offer, some offer many and some offer only one affiliate relationship.
Some merchants will pay an affiliate to simply introduce the public to the merchant’s offer.
Some merchants will only pay if the affiliate produces a purchaser.
Some merchants will pay a set amount, while others will pay a percentage of the purchase price.
Some merchants will pay a higher percentage to an affiliate that brings a greater number of purchasers.
Some merchants will pay a higher or lower percentage regarding the sales price of an item or service (Higher sales prices sometimes are awarded a lower percentage or set (flat) fee for the purchase made).
Some merchants will arrange an exclusive affiliate relationship, an agreement that the affiliate will not sale similar items to anyone, but instead only promote the item by that specific merchant.
The ingredients to the best affiliate relationship
Get these six ingredients on your side:
- A fair ratio of commission between purchase price and affiliate pay.
- A means for both parties (merchant and affiliate) to see the same record of transactions and be assured both have made the contribution that each should be making to the sale.
- A good product or service with good follow up by the merchant.
- A good and supportive review and promotion by the affiliate.
- An ever broadening reach to new purchasers by the affiliate.
- A turnover of good products
What’s The Best Affiliate Setup?
An affiliate is only as good as the extent of reach and quality of customer the affiliate can attract.
- That means a clear and seductive presentation of the offer.
- That means an easy to navigate website.
- That means a predominate and pervasive presence on the internet.
- That means lots and lots of traffic (guests who come to the website and click).
A successful affiliate will find a way to get the traffic.
- Some affiliates pay for traffic sites to drive traffic to the affiliates website.
- Some affiliates build a number of appeals through social websites, or blogs, or posts.
- Some affiliates skillful achieve the highest positions on search engine results pages.
- Some affiliates pay advertisers to point the public toward their site.
Affiliates in for the long haul will secure agreements with merchants for lingering representation of their efforts:
- Securing a uniquely identified affiliate coded entry
- Agreeing to a 60-90 cookie (computer stamp) that give them credit for the entry and purchase
- A snippet coded to your unique affiliate number and site identification
When Do I Get Paid?
Most merchants will agree to a 30 day following payout. The reason has to do with any returns and refunds that might affect the purchase.
That means you make a sale and you are paid 30 to 60 days following.
Get enough sales in the pipeline and you can begin to calculate your income very close to the outcome.