What Is An Affiliate Program And How Can You Use One To Make Money?
(Grateful thanks to Daniel Urmann, co-founder of diib.com).
Affiliate marketing is seen as one of the easiest ways to make passive income. But it is not as simple as joining an affiliate program and sleeping, hoping dollars follow you to bed. Done correctly, however, affiliate marketing can be a way to earn so much passive income that you may never need your day job again.
So, what is an affiliate program?
Affiliate marketing is the cheapest marketing method for companies, and the easiest way for online businesspeople to earn. The concept involves an affiliate, a product creator, and a consumer. The affiliate advertises or promotes products to the consumer. When the consumer buys a product (or takes any other action) on the product creator’s site, the affiliate earns a commission, which is a percentage revenue from the sale. To do that, product creators and companies create an affiliate program, also known as associate program, which is an agreement that the affiliate earns a given percentage of all the sales they drive.
Affiliate programs differ from one company to the next with some companies offering better terms for affiliates than others. As an affiliate marketer, you need to choose the best affiliate program which allows you to make money by promoting products.
Businesses like the BizHub Group of Companies (BGC), that understand affiliate marketing, have the advantage of spending less on advertising. Unlike other forms of marketing, a business only pays for marketing when they see the results. To the affiliate, this type of marketing means they do not have to develop products as they can sell established products whose value they trust.
Did you know? 16% of those entering into e-commerce sales have landed on a merchant’s site through affiliate marketing. (Hosting Tribunal).
Amazon affiliate earnings report (niche site project).
How Popular is Affiliate Marketing?
● More than 81 percent of big brands leverage the benefits of affiliate marketing to increase sales and grow their businesses. Better yet, 84 percent of publishers (bloggers and others who share online content) rely on affiliate marketing to earn online.
● There is an increase by 10.1 percent in affiliate marketing spending every year in the US. In 2021, the figure might climb to $6.8 billion. No wonder affiliate marketers are making so much online!
● In 2017, the Amazon affiliate program revised its rates to offer between 1 and 10 percent to creators. This, in turn, increased the product revenue for affiliates. (BizHub offers 52.5% comm.).
There are so many other stats that show the immense growth of affiliate marketing and affiliate programs. Most giant companies have also started affiliate programs, which increases the opportunities for the affiliate marketers who need to earn affiliate income. Some affiliate program examples include Fiverr’s Affiliate Program, Wealthy Affiliate Program, Amazon Affiliate Program, AliExpress Affiliate Program, eBay Partner Network, and so many more.
How Much Can You Earn as an Affiliate?
Companies are spending more on affiliate marketing and that means more earnings for affiliates. According to Statista, companies might be spending more than $8.2 billion on affiliate marketing by 2022. That will be a great figure as companies spent $5.4 billion in 2017.
According to a study by VigLink, 9 percent of the top affiliate marketers made more than $50,000 in 2016 from affiliate marketing. Additionally, more than 65 percent of merchants claim to earn between 5 and 20 percent of their total revenue from affiliate marketing. Merchants with the highest earnings from affiliate marketing have been at it for at least five years and this is why they earn as much as they do.
(webdigitalblog.com) Bluehost earnings dashboard.
For both the merchants and the marketers, affiliate marketing allows them to earn revenue passively. Marketers only need to grow their websites or blogs so that there is a steady flow of traffic, and they are good to go. The marketers need to make their visitors feel compelled to buy the products they promote. (BizHub's Founder & CEO, Paul, holds regular Zoom meetings to which Affiliates invite their prospects, and Paul sells to them on their behalf, giving them the commission).
To avoid the crush of millions of marketers all fighting for customers, you should subsribe to the BizHub Business Development & Income Plan, where you get training on how to be a salesperson and an online entrepreneur, with your own shop in the BizHub Mall, and use of our auction site.
How Do Affiliate Programs Work?
Affiliate marketing was developed to spread the responsibilities of marketing to different parties. Marketers have different capabilities, and hone in on their skills to perfect the marketing process.
The affiliate program is complete with the three parties mentioned above:
● The seller (product owner, store, or creator, ie: BizHub)
● The affiliate (advertiser or promoter, ie: you)
● The consumer (buyer of products or services, ie: your work colleagues, social media friends, etc)
The seller can be a solo entrepreneur or a large entity, a vendor, retailer, or product creator. Anyone with a product or service to market is a seller. Products can be physical objects, subscriptions, or services, or digital products such as videos. The seller doesn’t have to actively promote the product, but some of them do and actively share in the revenue with the affiliates. (BizHub markets the BDP alongside its Affiliates and does the selling for them, too, if they bring their prospects to the Zoom sales meetings).
The affiliate, also known as the publisher or the advertiser, is a company or an individual that promotes products on behalf of the seller. Their work is to persuade the consumers to buy the products. Once the consumer buys the product, they receive a percentage of the revenue from the sale. Affiliates have audiences they market to, and they work to meet the interests and needs of the target audience.
The consumer doesn’t need to know that they are part of an affiliate network. This is a person who buys products by following a link on the affiliate’s blog, website, social media, or YouTube channel.
How Do Affiliate Marketers Earn an Income?
You will earn when the consumer buys the product or shows interest in the product or service. It depends on the affiliate program you join. Programs measure affiliate sales differently which results in different ways of earning. There are three main ways affiliates get paid:
● Per Sale (The BizHub Method): Here, you will only earn when a consumer buys a product. The consumer needs to click the link from the affiliate’s website and buy a product. This doesn’t increase the purchase price for the buyer. Per sale affiliate programs are the industry standard.
● Per Lead: This is a more sophisticated program where the affiliate is paid based on lead conversions. Here, the affiliate needs to show the consumer why they should visit a merchant and perform a given task. These tasks might be signing a form, downloading a product, subscribing to a monthly newsletter, or taking a survey.
● Per Click: Pay per click involves sending traffic from the affiliate’s website to the merchant’s website. This means that the affiliate needs to be engaging enough to make customers want to move from their website to that of the merchant.
Did you know? Mobile optimization can be a major conversion boost.
As 51% of online shoppers stated, they were more likely to buy if the site was optimized for mobile. That is why BizHub will soon be creating its own mobile app, so our merchants and customers have even greater convenience and selling opportunities. In addition, Paul will create videos and post them on this web site for people to watch, on many different elements of the BizHub business.
Developing a Strategy for Affiliate Marketing
Understanding affiliate marketing for beginners and choosing the best affiliate program to make money - the BizHub BDP - is easy. However, making money is an entirely different game. The key skill here is persuasion. (As mentioned earlier, we help you by doing the selling for you on Zoom).
Your strategy should start with understanding your audience and choosing the right people to become a part of your Sales Team! You need to understand what the audience wants, what they are using currently, and then seek to give them products that add value to their life. When you understand your audience, you are better placed to advise them on the BizHub products that will meet their needs.
How Do You Know BizHub is the Best Affiliate Marketing Program?
For starters, if they want to learn to sell, run a successful online retail business and earn a residual income that supplements their current income, then BizHub offers what they want and much more. For instance, if you communicate with entrepreneurs or large companies that want a new stream of income and a new advertising and marketing platform, you need to sell them BizHub's products. Our products include business and sales training, an ewallet, live weekly business networking meetings, a shopper's assistant, and much more. By choosing BizHub, you choose an affiliate program whose seller offers the services or products your audience needs.
There are a number of factors that must be taken into account with affiliate marketing:
Commissions – How much do you want to earn? It goes without saying that you will earn more selling cars than you will selling lighters. However, you can sell more lighters in a month than you can cars and machines. Some affiliate programs offer more commissions than others. With Amazon, you will earn between 1 and 10 percent for different categories of products. With some other products, you earn up to 50 percent. (BizHub pays up to 52.5%). Subscription products like BizHub's offer the highest amount of commission, as the customers will keep subscribing after the first subscription.
Product Reputation – You might earn more when you market new products on new affiliate programs, but it may be difficult convincing customers to try new products. It is even harder convincing customers to buy from a program or products that have a shady reputation. You can start by reading BizHub's comprehensive documentation of the program and the products before you delve in. The trick is to offer value to your audience and not send them to buy substandard products, which is why we offer only the best quality merhandise.
(petagadget.com) Amazon earnings dashboard
● Competitive Prices – Technology has made it easier for consumers to compare prices. If you are always recommending high-priced products, you might lose customers to your competitors. Again, concentrate on offering value to your audience. BizHub's cost is low enough to be affordable, and high enough to produce outstanding incomes for the least amount of effort, a carefully calculated balance.
● Market Saturation – Some niches are so crowded that you can hardly make a living selling products in that niche. If you are seeking to join a niche with a lot of established businesses, you will have a tough time trying to earn a few bucks. BizHub offers exclusive products and services.
● Payment – BizHub pays commissions on a monthly basis, directly into your free, incognito ewallet provided specially for you to take back control of your money and to keep you off the banking grid, so you pay extremely low fees.
● Other factors to consider include cookie life (duration within which a consumer should buy for you to get a commission after referral), approachability (is the merchant available for questions), and terms and conditions of the site. All of which BizHub provides.
Choosing an Affiliate Marketing Channel
Once you have chosen BizHub as your affiliate program, you need to choose a marketing channel.
A good channel is one that keeps your audience engaged and receptive to wanting to purchase the products you promote.
Some marketing channels to leverage include:
● Influencers – An influencer is someone who has the power to influence the buying decisions of people. These are people who already have a huge following of people who trust them. If you are an influencer in one niche or the other, you can use your influence to market to people who look up to you.
● Blog – Blogging is the standard channel for many affiliate marketers. A blogger only needs to rank high in search engines to increase the conversion rate and sell more. The blogger earns from spreading the word on the benefits of a product and getting their audience to take action.
● Paid search microsites – If you do not want to start a blog, you can create microsites within the partner's site or on other sponsored listings of search engines. These microsites are not part of the partner’s main site, but they are linked to it in a few ways. Unlike blogs, these microsites are simple and they require less to maintain.
● Email Lists – Email lists are mostly available to complement other marketing channels. For instance, you can use your blog to collect email addresses from your audience and then market to them through the emails. You can leverage email marketing by hyperlinking products on your email.
In addition, BizHub teaches you how to set up an autoresponder account and database into which all your sub-affiliates' details go so you can send them regular newsletters informing them of the latest news, events and opportunities.
● Large Media Websites – If you have a website that generates a lot of traffic such as a news website, you can leverage the traffic to make some money on the side. You can use banners and affiliate links in between content.
Affiliate Marketing for Beginners: Step-By-Step on How to Make Money
Choose Your Niche and Your Channel
The easiest way to start affiliate marketing is to start a blog. You might already have followers on your social media accounts, but a blog always comes in handy. Today, starting a blog is easy as platforms such as WordPress offer drag-and-drop website building tools. These platforms also offer great blogging and SEO tools so you can get started within a short time after creating the website. (BizHub provides a free WordPress blog site for all its Merchants and Affiliates to use).
Social media and other marketing channels are great, but they should complement the marketing on your blog. This way, you will have audiences from different platforms bringing you earnings.
Create Content to Promote Affiliate Products
Once you have a channel, the next step is to create quality content to attract your audiences, which BizHub does for you, since no-one knows as much about our business as we do.
Blogs and videos are the most common types of content you can create. (BizHub has a sister company that creates stunning promo, intro and sales videos and also creates automated prospecting surveys to find the right target markets for you, so you don't have to). The content you create should not be hardselling as no consumer goes online to look for articles that sell to them. Consumers are looking for the best products in a certain category, how to do something, or how to solve a problem they might have. As an advertiser, you need to solve their problem and integrate an affiliate marketing link into the content. Which is why our products are mostly training products that teach people how to be successful online, and we provide the tools and the platform to make that happen.
You need to keep your content fresh to convince the consumers to buy through your affiliate links.
Optimize your Content for Search Engines
Once you have good quality content, you need to tell Google and other search engines what you have. There are too many ways to optimize your content for search engines to cover in this article. Check out keywords, link building, scannability, short URLs, and much more to optimize your content.
By optimizing your content, consumers can find your website on search engines, and provide you with more traffic and greater earnings. (BizHub teaches you how to use SEO to optimize search engine results on your web pages).
Having an astute understanding of affiliate marketing is the first step in becoming a successful affiliate. Earning from these programs requires that you put in the work! Once you have enough content, enough links and enough traffic, you can now reduce the rate at which you create content and instead focus on optimizing the content and the site to bring in more traffic.
How do you become an affiliate marketer?
● Pick a niche (eg: BizHub)
● Sign up for our affiliate program
● Promote it on a blog, website, in emails, on social media, or other mediums
Is affiliate marketing worth it?
Yes, it all depends on your niche and how hard you work promoting your content!