If you work in marketing, chances are that you have heard of affiliate marketing. But maybe you would still like to hear more before embarking on your affiliate marketer journey. Perhaps you’re a blogger, SEO/SEM professional, webmaster or agency marketer. Or maybe you’re just looking to make money from home. Either way, affiliate marketing allows you to generate passive income by recommending, sharing or promoting the products or services of a business. The business itself, which is usually the creator of the product or service, is also known as the merchant.
The fact that 16% of all online orders were attributed to the impact of affiliate marketing in 2018 shows how much potential there is in affiliate marketing.
This ultimate guide introduces the ins and outs of affiliate marketing, covering everything you need to know before getting started. In case you’re interested in reading more about the basics of affiliate programs, you may check our earlier post about the launch of our program.
Navigate this post:
- How does affiliate marketing work?
- Affiliate programs and networks
- Who are the affiliates?
- Who are the merchants?
- Affiliate marketing pros and cons
- How to get started with affiliate marketing
- How to attract traffic: paid or free
How does affiliate marketing work?
Affiliate marketing is a performance-based model where a merchant rewards its affiliates for attracting visitors or customers. Affiliate management refers to the process of establishing and scaling relationships with a myriad of marketers that drive traffic and sales.
If you happen to be a blogger or social media influencer, you can leverage the value of your loyal community through affiliate marketing. When you have gained the trust of your audience, people are more likely to convert into customers which will bring you more commissions.
Instead of getting paid up front for their marketing efforts, affiliates only get paid when a desired action takes place. Typically, the desired action means sales. This is good for the merchant because it removes the uncertainty about whether a marketing investment is in fact profitable.
Affiliate programs and networks
Affiliates are managed within an affiliate program. This affiliate program is run on a platform where a business places its offers and affiliates sign up to promote these offers and bring new customers to the business. In return, affiliates receive compensation, usually a percentage of each sale or a fixed sum for bringing in new customers. For example, Supermetrics offers 20% recurring commissions for every subscription purchase made by your referrals.
Another important term in affiliate marketing is affiliate network. Put simply, it’s a collection of both affiliate programs and affiliates. A major difference between the two is that within affiliate programs businesses only have affiliates that promote their products. In the network, affiliates are free to join and promote multiple products and services in different categories. The network manages all transactions internally and gets a share of the transactions. Therefore, by joining a network, a company needs to pay for both the network and the affiliates.
Who are the affiliates?
An affiliate can be any individual or company who helps promote a product or service for a business. The promotion can be done, for example, through paid advertising, direct referral or by creating content such as blog posts, videos, and newsletters. You may also compile an email list or try to capture search traffic to your website by using SEO techniques.
Given this, there is no one-size-fits-all characterization of an affiliate marketer. A common feature is that they receive a commission when their visitors create a transaction. This usually refers to sales but it can also mean signing up for a newsletter or clicking a link, for example.
For SaaS companies such as Supermetrics, most affiliates are marketing professionals such as agency marketers and marketing bloggers. However, it depends on the product being promoted. One of the main requirements is that as an affiliate you understand what you’re promoting.
Who are the merchants?
The merchant is, in most cases, a business who is also the creator of the product or service. These merchants employ a revenue sharing model where they offer commissions to individuals and businesses who can promote their products. They can range from large enterprises to individual entrepreneurs, or even individuals, who are willing to pay for the affiliate transactions.
Affiliate marketing pros and cons
Affiliate marketing is not a shortcut to earning a high level of passive income. It requires a lot of effort and many unexpected obstacles may come your way. To better understand what you’re getting yourself into, here is a list of the pros and cons of affiliate marketing:
- Source of passive income – You’re able to generate passive income. Once you create your optimized content and embed your links, you tap into a profitable source of passive income. This allows you to dedicate your time on your main source of income, whether it’s a full-time office job or your own business.
- No major investments – You don’t need to make any significant investments with regards to money or time. Once you set up your website and join the affiliate programs, all you need is unique content and your referral links. Getting started doesn’t require you to be a marketing professional with many years of experience under your belt.
- High level of competition – Getting started with affiliate marketing is easy but it also means that competition can be intense between affiliates. You’re competing for leads and clicks and trying to find the most promising affiliate programs, while avoiding those that are fraudulent.
- No control over offers – As an affiliate marketer, your control over the products or services you’re promoting only extends to choosing the affiliate programs. After that, you have no control over what you promote. That’s why you should choose the affiliate programs carefully.
How to get started with affiliate marketing
In theory, being an affiliate marketer simply means joining the most promising affiliate programs you can find, inserting your referral links to your content and waiting for your commissions.
But if you want to earn proper income from affiliate programs, you need to follow certain guidelines. Here is a list of steps that will help you get started as a successful affiliate marketer:
- Find your niche
Decide which topics you feel passionate about and narrow it down to a specific niche. To make sure that your business is sustainable in the long term, choose a niche that you’re already familiar with so that you have some expertise to offer for your audience. Focus on unique, valuable content that provides a solution to a problem.
- Create your website
In case you already have a website, you can skip this step. Otherwise, start by choosing a domain and buying hosting services. These two often come in the same package as a bundle. Make sure that your domain is memorable and easy for people to spell.After this, all you have to do is choose the right platform. The easiest option is to install WordPress and pick a suitable theme for your website.
- Build a loyal audience
You cannot expect your visitors to convert if you haven’t offered them any value. It’s important that you build a loyal audience before starting to monetize your content. Monetizing too early is actually one of the top 10 mistakes affiliates make when starting out.
You should think about affiliate marketing as an exchange. You provide valuable content to your audience, and in return your audience might consider any offers that you present. Of course, provided that these offers bring value to them by solving a problem they have.
- Think about monetization
Once you have picked your niche and built an audience, think about how to monetize it. Whatever you choose to write about needs to bring you money in the long term.There can be a conflict between your passion and profitability. But since your primary goal as an affiliate marketer is to make money, the monetization aspect is important. Make your research to confirm that your niche has enough monetary potential.
- Choose between affiliate programs and networks
Affiliate networks are more suitable for you if you have no particular strategy or clear idea about your niche. Maybe you just want to try your hand at affiliate marketing and see how it works out.If, however, you’re determined that you prefer to work in affiliate marketing on a larger scale, it’s better to consider, for example, SaaS affiliate programs. Software as a service (SaaS) has the potential for higher profits since the value of such software is higher. Many of them, including Supermetrics, sell recurring monthly licenses to their software which means recurring fixed commissions for you as an affiliate. If you want to read more about our program, you can check the Supermetrics Affiliate Program page.
- Focus on SEO and promotion
After creating valuable content, you should optimize it for the search engines. This maximizes your visibility and leads to more traffic and conversions. It means carrying out a keyword analysis for your content before the actual creation process. You need to find the keywords with the highest traffic related to your niche. For this purpose, you can use, for example, Google Keyword Planner which is a good tool to get you started.Keep in mind that your main goal is to convert visitors instead of just attracting a large number of visitors to your site.In addition to SEO, you have to focus on promoting your affiliate offers. The best strategy is to add value with useful content such as product reviews, offer discounts and create email marketing campaigns. The key is to avoid being too promotional or pushy. You will achieve a better conversion rate with insightful content that adds value.
Join the Supermetrics affiliate program
Earn 20% recurring commissions from Supermetrics subscription sales.
How to attract traffic: paid or free?
As you probably know, traffic is the volume of visitors you get to your landing page. It’s a determining factor in evaluating how many potential customers you can bring for the merchant.
A difference can be drawn between free and paid methods of attracting traffic. Paid methods require actual money but they tend to take less effort and are easier to implement. And free methods are not exactly free, either. They demand a considerable amount of time and effort even if you’re not directly paying for anything.
If we look at free traffic, the most common methods include content creation and SEO.
You can create valuable content on different platforms such as social media channels, blogs, and YouTube. The key point here is that your content offers value to your audience. Converting them is highly unlikely unless you’ve established yourself as an expert in your chosen niche.
SEO refers to optimizing your website so that it ranks higher in search engines. There are many different SEO techniques, and if you want to read more about them, you may check our earlier post about SEO techniques on our main Supermetrics blog.
Paid traffic means buying ad space to promote your affiliate offers. There are different ways to do this, too. For example, you may pay for conversions only, or you may pay for views or clicks. It all depends on your goals. But in most cases, merchants pay commissions only for conversions which is why it’s the most common way of using paid ads as an affiliate marketer.
Deciding between paid and free traffic is up to you. If you can afford using the paid methods, it can pay off since you get more instant results and you have a higher potential to earn a lot. And if you have the time, you might want to use both paid and free methods to attract traffic.
We hope that this ultimate guide to affiliate marketing has improved your knowledge about affiliate marketing. The purpose of this blog is to bring added value to our audience and help you advance to the next stage on your affiliate marketing journey.
While it may take some time to get started, you will soon notice the vast potential of affiliate marketing as a source of passive income. And if you haven’t joined our Supermetrics Affiliate Program yet, make sure to take a look. We offer 20% recurring commissions along with a 90-day cookie life and give you access to a range of marketing materials to help you with the promotion.
About Johannes Rastas
An Affiliate Program Manager at Supermetrics, Johannes Rastas has worked in communications and marketing in Kyiv and Helsinki. Passionate about marketing, statistics and content, he’s actively looking for new affiliates to join the Supermetrics affiliate program. Feel free to contact him on LinkedIn