Affiliate Marketing is a good option for generating passive income. 22% of the total revenue of E-Commerce is attributed to Affiliate Marketing. Affiliate Marketing is expected to grow exponentially in the next decade. Earning through Affiliate Marketing can be huge.
However, we should still understand the other complexities involved in the Affiliate Marketing field.
We must understand that if you are looking to generate passive income through Affiliate Marketing then results might take a little time to appear. Another factor is that you do not have complete control over things. Since you are a third party the control lies with the parent company and you will receive payment as and when the parent company wants. Though bigger Affiliate programs make the payment at regular intervals without delay. Though in some cases some irregularities are also noticed.
So without much ado let us jump into the details of Affiliate Marketing.
- What is Affiliate Marketing
- Who can do it
- The correct way to do it
- Be Patient
What is Affiliate Marketing?
Affiliate Marketing is when you refer a customer to buy a product and get your commission once the product is bought. There are many companies that run Affiliate Programs. You need to enrol for the program and start referring people to buy the products.
Affiliate – The person who joined the Affiliate Program offered by a merchant and is looking to make income from the commission earned by promoting the products offered by the merchant when it is sold.
Affiliate Program – the program offered by the merchant to influencers who can promote their product by promotions and advertisements.eg Amazon Affiliates
Marketplace – a common place where different merchants provide their Affiliate Programs. It is useful for both the merchants and the affiliates as they both get a fair exposure. eg ShareAsale
Merchant – the company, organisation or an individual who manufactures or sell products and makes a profit through it. eg Amazon
One of the most popular Affiliate Program is that of Amazon. It is known as Amazon Associates. Here is the screenshot of the Home Page of Amazon Associates.
As explained in the above screenshot it is a three-step process.
- Join – enrol for the Amazon Associates program
- Advertise – start recommending and referring people to the products on Amazon.com
- Earn – as soon as referred people buy the product claim the commission and earn.
Similarly, you can search for the Affiliate programs in the niche you are working. Here is an example of other organisation offering Affiliate Program in a different niche.
There are other ways also to join affiliate programs. You can go to various market places to join Affiliate Programs. Market Place shows multiple affiliate programs offered by different merchants. You can search, analyse, compare and decide to join the program of your choice. Below is the list of some of the most popular marketplaces.
Who can do it?
Affiliate Marketing can be done by anyone. The only prerequisite is that you should have a following on the social media platforms. Or else if you do not have a following then you will have to create a funnel to get the people to buy the products referred by you.
Things become easy when you have a loyal following. When people trust you they tend to buy the products referred by you easily. An influencer can make good use of Affiliate Marketing to generate a good amount of passive income.
The Correct Way to do it
Doing Affiliate Marketing is like walking a very tight rope. Since you are monetising the traffic on your Blog by referring them to buy a product. There are chances that some people might not like the product which might lead to a bad experience and un-following your website. That is why there is a list of recommended ways which you should follow so that you can earn money without losing any followers.
- Know the product
- Build trust with your audience
- Just recommend never sell
- Build knowledge around the product
- Look for multiple opportunities to drop the affiliate link
Know the Product
Before you recommend any product in your niche to others you must always use that product for some time, at least a few months.
Or let me re-phrase the sentence.
Recommend only those products which you personally use and have a very good experience about it. Never ever review or recommend a product you have not used or had a lesser experience. You would get multiple emails to review many products. However, if you think that the product is of not good quality or not worth reviewing then you should never do it. Some people offer you money to review their products but remember that one bad experience might lead to serious trust issues and may further lead to a downfall in your following.
That is why review and recommend only those products which you personally use and have a good experience with it.
Build trust with your audience
The entire landscape of Blogging and Affiliate Marketing exists on Trust. There are certain ways influencers grow the number of followers. One is by solving a problem and the other is by providing entertainment. People like and follow you just because you are doing something which is making their life easier and happier.
Hence it is very important that you continue to do things which enhance the user experience and strengthen the trust furthermore.
Just recommend never sell
Remember that you are not responsible for the product. Since you do not own the product in case if someone comes up with some issues in that product which was referred by you to him there is nothing you can do to fix it. This will lead to bad user experience.
You must always talk about the product genuinely and discuss its pros as well as cons with the same honesty. In your review never ever push or make a strong pitch to make people buy a product. Be honest, you must try to explain the deficiencies of the product upfront and let the user make the choice whether he/she wants to go ahead with it.
Build a knowledge base around the product
Another very important task. Since you are using the product you should create helpful content around the product. Write articles, shoot videos, answer the FAQs and do all the things required to make the usage of the product easy. Build the knowledge base around the product and keep on reviewing it with time.
Look for multiple opportunities to drop the affiliate link
It is possible that users might take some time to make a decision. And everyone has their own reasons hence you should drop the affiliate link at multiple places. For example, you can drop a link at the resources page, at the page where you reviewed it. Even some people drop it at the footer as well. Depends upon how you have optimised your website and its pages.
In the starting of this post, I said that Affiliate Marketing can give you really very good results in terms of generating income however it takes time. Because you need to establish trust with your followers. After a certain level of involvement and relationship, people start believing you and then only a small subset of those people would believe you to the extent that they will buy something from you. This entire process takes a lot of time and most of the bloggers do not show this patience.
Hence patience is the key to generate income through this way.