Do you want to make money online with your website even without selling your own product? Yes, it’s possible. Instead, you can promote other brand’s products or services in exchange for a commission when someone buys through your site. How do you do that? Short answer, through affiliate marketing.
If you already maintained a blog or website for some time now, you might want to look at creating a passive income out of it with affiliate marketing. In today’s article, we’ll show you how you can leverage on affiliate marketing and make a profitable business, whether as a hobby or even something you can do full time.
What is Affiliate Marketing?
Affiliate marketing is a marketing process where companies sell their products or services through individuals or companies (known as the ‘affiliates’) and reward them with a commission for every customer referred or products sold.
- Advertiser – These are companies who sell their products and promotes through a publisher. The advertisers pay publishers a commission or certain percentage from the sale of the product.
- Publisher – an individual or company who agreed to promote the advertiser’s products or services in return for a commission. Publishers agree to promote them through different methods–in a form of banner, text link, widgets on their blog or website.
- Consumer – one who sees the publisher’s ad and acts on it by clicking on the link that leads to the advertiser’s site and completes certain actions.
- Affiliate Network – works as middlemen or intermediaries between the advertiser and publisher, providing them with tools and the platform to handle payment, deliver products, monitor reports, and others. Publishers have the option to promote their products directly to publisher or an affiliate network.
How does it Work?
It all starts with a cookie. We’re not talking about the sweet, baked goods we eat as desserts. It’s a small packet of data sent from a website and stored on a user’s computer. It is designed to remember something about you for future reference.
It works with web browsers by storing your data such as logins, preferences, registration information and others. Have you ever tried entering your name and contact information, only to have them automatically populate without any effort from you? Or have you tried browsing for smartphone accessories, then noticing similar ads on other websites? These are one of the functions of a cookie.
In affiliate marketing, one of the tasks of cookies is to remember the ad or link website visitors clicked on. It has the capability to remember the type of content you’re frequently browsing with. Affiliate marketing uses the first-type cookie for such purpose.
When a visitors go to the publisher’s website and clicks on any of the affiliate ads, the visitor’s web browser obtains the tracking cookie that traces back to the advertiser, publisher and affiliate network.
Pros and Cons of Affiliate Marketing
- No need to create a product from scratch or perform a service.
- You don’t have to take stocks or ship the products. The advertiser does it for you.
- An inexpensive way to get started. It’s free to join for most affiliate network and any costs associated with it are mostly coming from your publishing efforts.
- As long as you have a decent Internet access, you can manage your affiliate marketing business anywhere at anytime.
- Depending on your efforts and strategies, it can be a great source of passive income.
- Ideal for those with huge-traffic websites or social networks.
- You will need to attract a huge amount of traffic before you can earn any good income from it.
- As an advertiser, working with bad affiliates can be a waste of time and money and may damage your reputation. Choose to work with high-quality publishers only.
- As an affiliate, you don’t have any control on the product, creative designs, and the commission rate.
- Affiliate link hijacking may happen. It occurs when the affiliated ID is stripped from the affiliate link which deprives the affiliate of the commission for their referral.
- There are a few advertisers who don’t actually pay their publishers. It’s crucial to screen them before applying to be their affiliate.
- It is highly competitive. There’s bound to be thousands of other publishers who are also promoting the same affiliate products or services.
How to Choose an Affiliate Program
In order not to waste any more time and resources, we suggest that affiliates choose an affiliate network that looks after your success. After all, when you’re successful, then it will translate to better conversion for them, as well.
Most newbie affiliates will most likely commit the same mistake of choosing one that pays the highest commission. While this is understandable, high-paying advertisers don’t necessarily mean it’s the right fit for your website. Below are some tips you can take note before signing up to an affiliate program.
From a consumer perspective, check if the merchant’s website has compelling products to offer. Make sure that the checkout process is secure and easy to use. See if there are any leaks that leads to websites that don’t credit their affiliates for their effort. Here at Vodien we make sure that our service menu is easily accessible and visible to our customers and affiliates. We made sure that all valid commissions are credited based on our affiliates’ performance.
As an affiliate, make sure to do your research before signing up for any affiliate program. Visit affiliate reviews and forums. It’s not about the quantity but rather the quality of advertisers that offer you a better chance to earn more passive income.
Competitively-priced products are known to correlate with good conversion rate. Keep in mind, that many consumers are tech-savvy. They may use comparison shopping sites as a way to compare the competitiveness of products prices.
- Serviceable Locations
See if the affiliate program you like is applicable to your location. They might offer the best products, but if you can’t promote it your location, then it might not be right for you.
It’s understandable to want to go for players with a huge payout, but we suggest you don’t get too fixated on this factor alone. Make sure to create a comparative table of all affiliate programs you’d like to join and see how each one compares relative to your income goals.
- Payment Method
There are different ways you can receive commissions. You can receive your commission payment through checks, PayPal, or bank transfers. See if any of these methods are available for you.
You don’t need to create and sell your own products to earn money online. You can earn just as well, or sometimes more when you choose to promote other people’s products through affiliate programs. Go with someone that only gives the best chance for passive income, one that offers the best products that are relevant and useful to your users.
If you’re keen on earning unlimited commission for yourself, then we invite you to join our Web Hosting Affiliate Program. All you need to do is to simply refer friends to Vodien. Best of all, you don’t need to run a website or understand HTML to make money with it. Get paid up to 20% recurring commission for as long as your referrals continue to use Vodien for their hosting needs. Click on the link below to get in touch with our Affiliate Manager to get started.