Marketing strategies are increasingly developing, therefore smart entrepreneurs who run a growing business will carry out several amrketing methods that can be done to attract more consumers. One of the ways to grow your business with increasingly complex marketing methods is affiliate marketing or what is commonly called affiliate marketing.
Affiliate marketing is not like other conventional marketing. There are several parties involved in carrying out this marketing strategy. In addition there should be a marketing plan that is actually cooked agaar all went smoothly. That’s why usually those who carry out this strategy are businesses that are already large or at least stable in their growth.
For those of you who have a large and growing business, you can try to expand your business by creating an affiliate marketing program. This will open the opportunity for anyone who still has the time and ability in terms of marketing to join the program.
Understanding Affiliate Marketing
Affiliate marketing is an online sales method that allows product owners to increase sales by allowing other people to promote their products and targeting the same audience. Other people who market it will earn a commission by recommending the product to others.
Thus those who market can get money from selling products without creating their own products. Social media marketing needs to be done. Affiliate marketers can share them on blogs, social media platforms or websites. They will earn a commission every time someone makes a purchase via a unique link or referral code associated with their recommendation.
One company that is popular with affiliate marketing programs is Amazon.com. Amazon launched its affiliate program in July 1996. Amazon affiliate partners can post banners or text links on affiliate partner sites that advertise Amazon products.
When a visitor clicks on the affiliate’s website and then goes to Amazon to buy a book, the affiliate will receive a commission. Amazon is not the first to offer an affiliate program for the sale of their products, but its program was first widely recognized and then its strategy exemplified by many business people.
Affiliate Marketing Players
When the affiliate program is running, there are several parties involved in the program. These include:
1. Brand Owner
Brand owners are sellers or companies that own and sell products or services. These industries include retail, direct-to-consumer, subscription services, financial services, travel, telecommunications, broadband, gaming, e-commerce, B2B and many more. This company also opens an affiliate program, or uses third party services to create programs.
2. Partner or Associate Affiliate (affiliate)
They are people who join affiliate programs where their role is to recommend products. They can be active blog owners, socialites, owners of sites such as custom content sites, personal websites, product review sites, shopping sites, mobile apps, app-to-app marketing platforms, mass media sites, and even other brands.
Consumers here are consumers who buy products through affiliate channels. This means that he buys the product not directly on the seller’s website. But sometimes they don’t make a purchase, they can just send out lead forms, sign up for newsletters, test services, etc.
How Affiliate Marketing Works
In building affiliate marketing is very easy. The scheme of how the affiliate marketing system works is like someone who offers a product usually. It’s just that he doesn’t own and manufacture the product, but the product he offers is someone else’s product. Here is the scheme.
1. Find an Affiliate Program
When a seller or brand owner sells a product, they can build an affiliate program at the same time. This program does allow sales to increase by being ‘referred’ by others.
In installing affiliate features on the website, of course it makes it easier for people to join. The more people who reference the product, the greater the chance of increasing sales. You can also use a third party in the affiliate. Affiliates will find affiliate marketing programs and they register themselves as affiliates.
2. Unique Links
When a potential customer finds an affiliate marketer, when they buy a product through an affiliate partner or affiliate, the consumer will get a unique link or referral code on the website, blog or forum where the affiliate offers affiliate sales. That’s why in order for many consumers to be interested, affiliators spread the unique code or link on blogs, social media platforms, or websites.
3. Acquisition of Commission
The affiliate will get a commission from sales when a consumer makes a purchase using the referral code provided by the affiliate. There are various methods of distributing commissions. Starting from per sale to counting the percentage.
Advantages of Affiliate Marketing
Various marketing methods ranging from traditional marketing to digital marketing have been implemented by many companies. But in terms of advantages, it looks like affiliate marketing has many advantages.
1. Make Marketing Easy
Affiliate marketing offers several benefits for affiliates or affiliates as well as brand owners. One of them is the ease of running the program. If you work on the side of the affiliate, you are only engaged in the “marketing” sector in building and selling products. You don’t have to worry about more difficult tasks, such as developing, returning goods, or shipping.
If you are in the position of a brand owner, or a seller of a product, it will be easier for you to sell it by other people. This means you don’t have to bother looking for new customers to run the business. The better your relationship with the affiliator, the more affiliators, the better your business.
2. Low risk
Low risk affiliate marketing. This kind of marketing model costs nothing to join an affiliate program, you as an affiliate can start making money with an established affiliate product or service without investing in your initial joining. Of course, this is very different from MLM, which requires an entry fee, or an agent that has to stock a certain amount of products.
3. Passive Income
Affiliate marketing can also generate relatively passive income through commissions. You can distribute to various blogs, websites or other media. While you’ll need to invest time in creating a traffic source initially, your affiliate link can continue to generate a steady salary if it goes smoothly.
4. Building Business Independence
Successful affiliate marketing will offer you the potential to significantly increase your income without hiring additional help, meaning you can be completely independent. You can introduce new products to your current audience and create campaigns for additional products, while your existing work continues to generate revenue automatically.
Affiliate marketing is tempting for everyone. But before you get excited about joining, bottom line is that great affiliate marketing is built on trust. You should therefore market any product that you use yourself, or at least recommend it to others even if you do not join an affiliate program.