Do you remember when you were a kid, and people asked you what you wanted to do when you grew up? Back then, your priorities were different. You used to dream about being a sailor, an astronaut, or a pirate! After that, you grow up and discover the world isn’t as magical as it seems in Disney movies. The definition of a dream job changes into being able to earn a lot of money working less. But is this possible? What if I tell you that you can make easy money with affiliate marketing? Unlike work-from-home job positions, an affiliate marketer can make passive income and set an independent schedule based on how much you need to earn.
Too good to be true? Let’s look at how it works and why affiliate marketing is a valuable alternative to making money without working more hours.
What is Affiliate Marketing?
In short, affiliate marketing means earning a commission promoting services by another retailer or advertiser. An affiliate partner (you) gets a payout after providing a specific result to a retailer or advertiser.
Usually, the outcome is a sale. Some programs give rewards for leads, free-trial users, clicks, or app downloads. Depending on the refer-to-earn concept, an affiliate marketer promotes services and products to potential online buyers via e-mail marketing, producing content, or pay-per-click promotional campaigns.
You can find products to sell through affiliate programs. Usually, these programs are free to join or have low start-up costs. By joining the program, the affiliate marketer looks for a product to promote, earning a percentage of the profit of each sale they make. The aim is to bring in more referrals as possible to increase the company’s sales – and get more commission on your side.
How Much Money Can You Make With Affiliate Marketing?
According to Glassdoor, the average annual earning for affiliate marketers is $65,800, ranging between $42,000 and $83,000 per year. How much you earn varies depending on how you optimize your content and your chosen program.
Most affiliate programs pay a one-off commission when your audience clicks or buys through your platform. However, not every program allows earning automated income with a regular allowance. Depending on the program, earning an additional commission for a fixed period after the sale or a permanent monthly commission is possible.
Turning the business into passive income requires some time, but once you set your platform and create an audience, you can build a passive income on:
- Sales: Getting commission on sales is the standard payment method in the affiliate marketing structure. With this method, the business pays the affiliate a percentage of the sale price.
- Leads: Other affiliate programs compensate the affiliate marketers depending on the conversion of leads. In other words, you need to persuade the consumers to visit a website and complete a specific action, such as subscribing, completing a form, signing up for a trial, etc.
- Clicks: With this method, the affiliate must redirect consumers from their marketing platform to the product’s website. The aim is to persuade the consumer to stay as long as possible on the business site. The pay rate is based on the increased web traffic.
How does Affiliate Marketing Work?
The affiliate marketing structure separates the responsibilities of promoting and producing a product across three parties.
First, the seller is the one who makes the product. It can be a physical object, a course, or a service. As the brand owner, the seller doesn’t get involved in the marketing process. Secondly, the affiliate marketer or the publisher promotes the product by reaching potential consumers and niche audiences with different strategies. Finally, the consumer buys the product through the affiliate’s platforms, and the seller uses affiliate tracking software to record the sale.
In short, here is how affiliate marketing works between these three parties:
- You promote an ad or a link to a product on your blog or social network.
- A customer clicks on the website or purchases the product through your platform.
- The affiliate program tracks the transaction and confirms the purchase with the business owner.
- The affiliate marketer receives compensation based on performance.
To recap, affiliate marketing means earning a commission by promoting and selling a product or service on a blog, social media, podcast, or website. Commission rates depend on the affiliate program and the company’s offer. On average, sales commissions range from 5% to 50 % of the sale – usually when promoting a class or event. Some affiliate programs provide a fixed rate per sale instead of a percentage.
6 Top Benefits Of Affiliate Marketing
By now, you are probably wondering if affiliate marketing is worth it. First, you have to sell and promote someone else’s product. Secondly, your pay rate depends on how much effort you put into it.
In the past few years, businesses around affiliate marketing recorded constant growth. Statista estimates that the affiliate marketing industry will grow by $8.2 billion in 2023, compared to $5.4 billion in 2017.
Let’s have a look at six benefits that make affiliate marketing worth the effort to make a little extra money:
#1: Easy To Start
The good side of selling someone else’s product is that you need to take care only of digital marketing. Your job is to promote the product with original and effective campaigns without worrying about developing the product or implementing the offer.
#2: Low Risks
As we mentioned, joining an affiliate program is usually straightforward and accessible. You can immediately start making a profit with established brands without upfront investments. In addition, once you build and grow your network, you can generate passive income with other affiliate links. Creating traffic sources will take some time, but after a while, they guarantee a steady paycheck.
#3: Quick To Scale
Another benefit of affiliate marketing is the fast business growth. Once you start your program, you can quickly scale your income without hiring additional people. You can start promoting a new product or building another campaign to expand your audience to generate additional revenue in the background.
Just remember, affiliate marketing builds on trust. Promoting any product on the Internet won’t get you very far if the quality is low. Building an audience and creating trust around a product takes time. If you have products you use or would recommend to a friend, it’s better to start with a few to create a solid network around your business.
#4: Passive Income
Unlike traditional jobs, you can make money doing almost nothing as an affiliate marketer. After the first effort to launch the promotional campaign for a product, you can live off continuous returns as consumers buy the product over time. You will receive money for a product purchase long after the promotional campaign.
#5: Lack Of Customer Service
The good thing about contacting buyers and sellers is that customer service isn’t your concern. Who produces the product you are selling will take care of consumers’ issues and complaints. As an affiliate marketer, your only job is promoting and selling a product.
#6: Work from home
Last but not least, you can work from home. In the era of restrictions and lockdowns, affiliate marketing is one of the best alternatives to remote work. You can work from your kitchen and set your flexible schedule, deciding how much you want to work based on how much you need to earn. Especially when you start making money with passive income, it’s an easy and effective side job whether you work in an office or have other commitments.
Types of Affiliate Marketing Channels
Once you join an affiliate program, there are different marketing channels you can work on:
After Chiara Ferragni, there is no need to introduce the role of influencers. By promoting a product to a massive range of followers, influencers sell and promote through social media posts and blogs, interacting and engaging with their audience.
Bloggers usually earn with SEO and organic traffic on Google by increasing a seller’s online engagement. Then, by writing a transparent and complete product review, the blogger drives the audience to the seller’s website.
Microsites Paid Research
Another way to increase sales is by developing and monetizing microsites. Usually, microsites redirect to the seller’s main page and are advertised through a partner site or ad. However, with simple call-to-actions, microsites increase audience engagement by redirecting their clocks to the primary seller page.
Emails aren’t just old and reliable. They are also a winning strategy for affiliate marketers. You can launch mail campaigns and newsletters, including hyperlinks to products. Once you build your mailing list, you can promote different campaigns, expanding your target audience.
Large Media Websites
Large media websites aim to create constant traffic on the site to build a massive audience. On these websites, affiliate marketers promote a product with banners and hyperlinks. Compared to other types of affiliate marketing, this method guarantees greater exposure and improves conversion rates.
Start To Make Money With Affiliate Marketing
It‘s time to get started with affiliate marketing and make some money!
Joining an affiliate program is quick and easy. But successful affiliate campaigns require time and discipline, especially in the beginning.
Here are the first baby steps to get started with your affiliate marketing strategy:
Select a Platform and Focus on Your Niche
To select the best platform, think of the type of audience you want to build around your selling product.
You can opt for niche topics and review sites. This method builds the audience with reviews of products and comparisons with competitors, posting regularly to increase the target audience. Or you can create digital content such as blog posts, videos, and promotions on social media. Finally, you can include affiliate partnerships in your courses, events, or workshops if you are a tutor or educator.
Any of these methods are effective as long as you are transparent with your target audience. Remember, your audience will trust you if your opinion is personal and authentic. So starting with a product you know, and a platform you feel comfortable with is the best way to create compelling content – and turn your audience engagement into passive income.
Join An Affiliate Program
Once you pick your product and select your target audience, it’s time to join an affiliate program and see related businesses you can work with. For example, as a beauty blogger, you can affiliate with brand-producing makeup tools or creams for beauty routines. The most important thing to consider with affiliate programs is that the product you sell must align with your target audience.
Once you set up your strategy, you can create product tutorials, offer bonuses, or find relevant search terms to widen your audience. Get creative with your strategy and put in a personal touch. In no time, you will have an engaged and active audience following you and a stable passive income.
Grow Your Affiliate Income Overtime!
As we mentioned, becoming an affiliate for every product on the market isn’t the best strategy to keep your audience. However, rather than complex sales, giving reliable information will help you grow a loyal audience that will keep returning to your platforms.
Last but not least, don’t forget to have fun with the product you sell – and the strategies you come up with! As long as you are transparent with your audience, there is no right or wrong. It’s all about the time to put into building your platform and the energy to engage your audience.
And before you even realize it, you will be making passive income from your kitchen table!