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Affiliate Marketing: What it is and how it works

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With affiliate marketing we can leave our jobs, this is what many would like. However, the difference between those who want to do it and those who really do it is amazing.

In a venture there are two options, create an individual physical company or create an online business based on affiliate marketing. The affiliate business tries to sell products or services as an affiliate of one or more companies. Let’s get down to the basics, shall we?

What is Affiliate Marketing?

Affiliate marketing is a branch of marketing that allows website owners to earn money online by introducing advertising on their sites. A simple system that can give benefits with minimal risk.

The affiliation system involves three parts: the advertiser , who is the owner of the ads and who offers the service or product, the publisher , owner or owner of a website, blog or newsletter that will contain the advertising, the network of affiliates , which is the system that will manage the liquidation of the two people involved in the transaction.

How affiliate marketing works

How affiliate marketing works

To start earning money online with affiliation you must have a website or a blog, in order to enter the ads of which you have reached an agreement with the affiliate. Agreements and economic transactions are usually handled by affiliate networks, which allow companies to establish a mutual cooperation agreement, where companies must be interested in the strictly bureaucratic part, the technical task will be managed by the editor that should include The ad code in your webspace. These ads can be represented in the form of banners, pop-ups or forms to be filled out by the user.

How to earn with Affiliate Marketing

The distribution patterns of the commissions are mainly four and all linked to the actions that each user will convert into the website:

  • PPS (Payment for sale) – The publisher will receive a commission for the successful sale when the user arrives at the advertiser’s site through the ad, an option used primarily by large e-commerce stores such as Amazon.
  • PPC (pay per click) – The advertiser pays the fee each time a user clicks on the ad, similar to the system Google Adsense uses to reward those who host their advertising sites.
  • PPL (Pay Per Lead) – The advertiser is a distributor of a product. Which needs to create a database with user records. An advertiser could, for example, request registration in a newsletter or the viral spread of a video. It is understood that the advertiser will pay the commission to the editor each time a user performs the requested action (registration, submission of a video, etc.).
  • PPV (Pay per View) – The simplest model. In this case, the advertiser will pay the commission on the individual visits obtained on the publisher’s site. Whenever a user sees the ad.

Types of Affiliate Marketing

There are different types of affiliate marketing. It is not enough to want to delve into the affiliate world without understanding what affiliate marketing types and how they work. Below are the types of affiliate marketing:

  • Cashback and sites that share their income with users: Companies that use the cash back have a user registry and share commissions with them well with money, discounts or redeemable points.
  • PPC Affiliates working on search engines: Affiliates provide qualified traffic to merchants by purchasing words or phrases in search engines such as Google or Yahoo.
  • E-mail marketing databases: Another type of affiliate marketing consists of the transfer of data from registered users who are interested in a topic related to the product or service offered by the merchant and is usually used together with other types of affiliate marketing
  • Co-registration databases: Users who are interested in the products or services of several companies can subscribe to an affiliate’s newsletter.
  • Affiliation networks: In order to regulate the relationships between advertisers or merchants and affiliates, the so-called affiliate networks appear. Among the best-known affiliate networks, we can find Clickbank, Click2sell or Jvzoo. ”

How to start affiliate marketing

In order to earn money online through the affiliate system, it is important to know first of all that you have to have a website or blog that has enough visits to be able to have satisfactory results. The first step is to get a niche where you can generate enough visits by optimizing your blog and having a good SEO. It is best to choose a niche market still unexplored, they are difficult to obtain but some remain.

To achieve good results, it is also convenient to know the best analytical tools that allow you to have a broad view of the behavior of visitors on your website. Google Analytics, for example, is a very good option, where you can keep a very detailed track, such as obtaining more information about the number of visitors, reading times, dropout rate during visitor reading, the return rate on the site and, especially the keywords most searched by users.

Forge an affiliation agreement

Once you have a site with a stable or growing number of visitors you can choose between the various options available in the affiliate marketing market. Today, almost all large e-commerce stores offer their own affiliate programs. If you do an online search you will discover the companies or systems that are closest to your project, taking into account, of course, the percentages paid for each conversion.

Social networks and affiliates

To increase visits to your site, and with them the possibility of conversion in advertisers’ banners, it is always advisable to invest time in social networks. Spend time on Facebook, Twitter or Instagram pages to expand your fans and increase your chances of making money online through affiliate programs.

Measures for SEO purposes

An affiliate link could be seen by Google as a spam site, so you should be very careful when using the rel = »nofollow» attribute when we insert the link with the tracking code in our blog. Through this measure, we will tell the search engine not to pass part of the strength of that link.

Conclusion

Affiliate marketing is one of the best ways to earn money online. You will avoid unnecessary expenses, you will reduce the risks, you can start immediately and generate high commissions without too many complications.

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