What is affiliate marketing and how to earn money from it?

In this blog, we will talk about the foundation of affiliate marketing and would explain how to make money by doing it effectively and in the right way.

An individual/agency ties up with a reputed organization to sponsor their products or services on his/their website or social media to earn commissions on every successful sale. This was a one sentence definition of affiliate marketing. Now, there are many people doing affiliate marketing, but if we ask them that which type of affiliate marketing do they do? Then there answer will be “Is there many types of affiliate marketing?” So basically the masses are aware about the concept but are not knowledgeable and just follow the heard. But after reading this blog, you will learn types of affiliate marketing, which type is the most successful and money making technique.

Types of affiliate marketing:

  1. Affiliate on product
  2. Affiliate on premium tools
  3. Affiliate on leads
  4. Affiliate on traffic

1) Affiliate on product – This type includes promotion of a unit or a whole ready made product of other business on affiliate’s website or other digital platforms and earning commissions when audience purchase the product through his link. This performance-based model benefits both the affiliate, who gains revenue without creating the product, and the product owner, who enjoys increased exposure and sales through the affiliate’s efforts. It’s a win-win collaboration, where affiliates leverage their audience and marketing skills to generate income while helping businesses reach a broader audience and boost their sales.

2) Affiliate on premium tools –  This type includes promoting software / paid media / professional tools or other premium services of websites or brands to target audience with affiliate links. You must have seen this on YouTube that many creators paste an affiliate link of premium websites or tools and ask you to join through their links. This shows that they are an affiliate member of any website and are promoting their products and earning commissions through it. The commissions are comparatively less than Affiliate on product.

3) Affiliate on lead – This type includes affiliates generating leads for a business through digital media. The commissions are comparatively lesser than product and premium tools as the leads generated should be relevant and affiliate do not provide much value for the business. though generating leads is a hefty task but commissions are lesser in this type.

4) Affiliate on traffic – This is the least commission paying affiliate program which pays when an affiliate drives traffic / audience to a website or business. The uncertainty is that all the traffic diverted to the businesses’ website might not create a purchase so the earning here is the least.

After understand this, it might be clear that which type of affiliate marketing is the most rewarding and successful. Yes, it is AFFILIATE ON PRODUCTS!

So now, when it is decided which type of affiliate program is the best. Its time to know the types of products which one should promote. Understanding this will not take time. There are two types of products i.e. FMCG (Fast Moving Consumer Goods) & SMCG (Sloe Moving Consumer Goods).

We have to promote SMCG as the rate of commissions is lower approx. 5-10 % but the amount of money is more than compared to FMCG where rate of commissions is higher but amount is less.

Lets take an example to understand, Mr. A is an affiliate associate with a cosmetic company selling shampoo(FMCG product). On every sale of a unit of shampoo bottle of Rs 80 he earns a commissions on 30%  which comes out to be Rs. 24. Whereas Mr. B is an affiliate associate of  laptop company(SMCG product). On every sale of a unit of laptop through his link which is of Rs. 50000, he earns a commission of 5% which comes out to be Rs. 2500.

Which one is generating more income, Sale of FMCG product or SMCG product? Of course SMCG product! Where rate of commission is less but the amount in currency term is more. 

In the last section, we will discuss on how will you do all these things and generate income from affiliate marketing!

There are various business providing their affiliate program but AMAZON Affiliate is the most easy and fast method to get into this field. Follow the steps and you will begin your affiliate journey instantly:

  • Create a website or a social media account and start sharing and creating valuable content which can engage the audience with your account.
  • Create amazon associate profile by login in on Amazon associate website. Its super easy! Just fill in your details and Submit.
  • Copy the affiliate link of product you want to promote from amazon.in to your website or social media.
  • People will click on that link and purchase the product the you will start earning passive income without actually creating a product.

In this blog, we tried to explain Affiliate marketing fundamental, types, which type to execute practically & how to become an affiliate member of a business. Hope this helps to start your affiliate marketing journey. You can also check out our services on digital marketing. We provide advanced digital marketing services to individuals and large businesses.

THANK YOU!

 

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