What is affiliate marketing?
Google’s definition of affiliate marketing: a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. In other words, you get paid every time you bring someone else a sale.
My definition: an easy, effortless way to make money online, without having a product of your own.
Benefits of Affiliate Marketing:
- Highly rewarding
- Usually cost-free
- Easy (simple link in bio, or post of the product) - No product/inventory of your own
- Develops your marketing skills
- Easy gateway into Entrepreneurship
Disadvantages of Affiliate Marketing:
- Dishonest companies (hiding payouts, avoiding payouts, etc.) and low commission rates (5-10% on average)
As you can see, there aren’t many disadvantages to run as an affiliate. As long as the company you’re running for is reputable, trustworthy, and you believe in their products, you should have a smooth experience.
How to become an Affiliate Marketer:
It’s quite simple. Most developed businesses offer an affiliate system where you get a personalized link or code to promote, and you’ll get commission based on the amount of sales made from your code/link.
With affiliate marketing, you can sell to millions of people, literally. This is an easy way to get into entrepreneurship as it develops your marketing skills on selling, networking, and influencing.
Let’s talk about becoming a successful affiliate marketer. The whole point of affiliate marketing is to promote something you believe in. Preferably something you’ve tried/used before.
If you truly believe in something, you’ll enjoy talking about it. You’ll enjoy promoting it. You’re putting your reputation and credibility on the line when promoting a certain product, so obviously you’d want to give your honest opinion.
Affiliate marketing is based on building relationships, and leveraging it to promote something. Let’s say you’ve used a hair product, and it works well. You suggest it to a friend, and they buy it. After the purchase, your friend enjoys the product too.
This increases your credibility, and people trust you more. For affiliate marketing, it’s the same strategy. You promote a product that’s reputable to an audience, a fan base, a friend, etc. They’ll try the product, and hopefully they’ll enjoy it. In return, you gain credibility, and you get commission.
So, why isn’t everyone doing affiliate marketing if it’s so simple and effortless?
The stressful part of affiliate marketing is, most businesses only offer up to 10% commission. This is VERY low. Imagine promoting a $100 product. You work for hours, and you finally make the sale. Your reward? $10. You’ll have to sell 10,000 of these products just to make 6-figures ($100,000).
My suggestion: run for a company that you believe in, that you look up to, that has a product that is truly helping individuals. If they have a high commission payout rate, great!