What is Affiliate marketing for earning money?
Affiliate marketing for earning money is one of the booming marketing in which users can collaborate with affiliate merchants and promote their product and earn a commission. As part of this partnership, the website operator provides the seller with advertising opportunities on their pages or channels. These are filled by the seller with appropriate content such as banners or links to online shops in order to address the target group directly on the partner site. This also includes ideas about products or services with corresponding links to sources of supply. In return, the website operator receives a commission based on various criteria such as the advertising period, per thousand advertisements, clicks, contacts won, or orders received. An affiliate network takes on the technical framework:
● Technology to measure clicks or orders
● Commission regulation between seller and publisher
Select affiliate programs
To be successful in affiliate marketing for earning money, it is important to understand the needs of your visitors or the community. Because bare advertisements have little chance of success. It is also important to know which target group is being addressed and with what intention they are visiting the website, watching the video, and reading a post.
● Recommendation: Don’t advertise, recommend.
● Authenticity: Only recommending what you find good yourself.
● Added value: Does the purchase recommendation offer added value for the reader?
If you have a website or a social media channel and want to earn money with affiliate marketing, then the question is how to find a suitable affiliate partner program at all.
There are many ways for publishers to find affiliate programs and partners for their sites. The simplest type is affiliate platforms, where the publisher applies to discontinued affiliate programs of the affiliates. But there are other options as well. And I talked to Marian Wurm about this during a congress. Marian is CEO and founder of Löwenstark, an online marketing agency that also takes on and optimizes affiliate marketing for customers. His tips are described in the section “Finding suitable partner programs “.
Affiliate Marketing: Compensation models to monetize traffic and reach
Website owners, bloggers, or influencers can convert traffic into money through various forms and media. Here are cookies and tracking -Left used. These ensure that sales ( Engl. Sales ), applications ( Engl. Leads ), clicks the affiliate can be assigned, etc.. This ensures that he receives his commission.
The most important compensation models in affiliate marketing for earning money:
Pay per sale remuneration
Pay per Sale ( PPS ) is the classic type of remuneration in affiliate marketing. If a purchase is made in the corresponding shop via the advertising placement/link, the publisher receives a commission. As a rule, this is a percentage of the purchase price that has been agreed upon in advance. The rates vary in the individual sectors. While there is 5 to 10 per cent for books, it is often 35 per cent for cell phones.
Pay per lead remuneration
If a customer contacts the seller or registers with his data for a newsletter, test account, download, etc., the affiliate receives a commission. The commissions for this specific campaign vary greatly. Sometimes it’s a few cents, sometimes up to 100 euros.
Pay per click remuneration
Here the cash register rings with a fixed amount as soon as the advertising material or the link of the advertiser is clicked. Pay per click has become relatively rare in affiliate marketing for earning money. Those who still practice it can expect 2 to 25 cents per click.
Further remuneration models
The pay per install models, if the user installs an offered program, or pay per sign up if the user registers for a service, is widespread among service providers.
What affiliate programs are there?
The huge network provides its affiliates with many well-converted and sophisticated advertising media such as text links, banners, site stripes, and widgets. Depending on the product category, 1 to 10 percent of the value of the goods is paid in commission. Furniture, clothing, games, and software as well as shoes and jewelry are particularly lucrative.
Here the internet giant puts another ten percent commission on the entire shopping cart. The implementation of this partner program is relatively easy. Niche sites can use it to earn three to four-digit commissions per month.
Most of the major corporate affiliate programs are run through affiliate networks. This also has advantages for the affiliate. Instead of logging into a large number of individual programs, everything is handled compactly via one platform. Dealers can be sure that they don’t have to go through the hassle of gathering their customers.
However, the central handling is an unbeatable advantage, but in addition to set-up fees between 500 and 5,000 euros, some networks require a monthly fee. In addition, most networks charge a commission that is 30 percent of the amount the affiliate receives.
When choosing a partner program, make sure that your own strategy coincides with the focus of the network. The general terms and conditions of the individual networks often forbid programs from different networks to run on a website.
But not every company appreciates the large affiliate base or the technical support offered by the networks. Some companies prefer to keep sales data internal. Therefore, many companies set up their own partner programs themselves or with the help of a specialized service provider. The best-known such in-house programs are Check24, Auxmoney.
The main advantage of an in-house affiliate program is that customer data can be stored internally. The following advantages arise for affiliates:
● Direct contact with the dealer enables individual campaigns and arrangements
● By saving network fees, the commissions are higher
● Since participation in some programs is only by invitation, these are lucrative
Should Affiliates Specialize in Products or Services?
The affiliate can promote both products and services. The affiliate must first make a decision as to which products fit their website/blog / social media channel and at the same time promise income.
Unfortunately, many starts with the supposed belief in the big profit and choose any affiliate programs that pay out the highest commissions. But then most of the time there is no success. For some pages, leads are more profitable than sales and vice versa. Proper strategy and choice of affiliate programs is something that an affiliate must try.
The acute needs of the user are the be-all and end-all when choosing the individual partner program. It must be tailored to the content of the respective website/blog article / social media posting and must not work like an egg-laying wool milk sow.
However, the publisher can indirectly awaken a need through the website/blog article or posting. In this way, a YouTuber can present his community with a product that is still quite unknown on the market but could be of interest to many followers. I know cases where products were completely sold out within an hour due to a YouTube video or an Instagram post. But of course, that requires a lot of reputation and trust.