How to start affiliate marketing as a beginner
There are many companies, product owners, and service providers who are looking for other ways to promote and market their services and products, either through traditional marketing methods (television – radio – magazines – newspapers – advertisements) or through the internet.
There is also a large group of companies that have lost the ability to reach customers who are interested in the services or products they offer. As a result, they often experience stagnation in sales at the branch or the company.
On the other hand, there is also many marketers who have practical marketing skills that enable them to reach a wide range of customers and consumers. However, they do not have the right products or services to market and sell for profit.
Therefore, the idea of delegated marketing aims to use the strengths of both parties – the product owner and the marketer – to reach as many interested consumers as possible; increase sales and increase conversion rates, and effectively increase profits for both parties.
In this process, affiliate marketers act as intermediaries or intermediaries between the merchant and the customer, with their various marketing efforts helping to get the product or service (regardless of type) into the hands of the target customer, thus making the merchant or marketing effort wasted for the Product Owner.
In this article, you will learn a complete guide to affiliate marketing, starting from the concept, through its advantages and benefits, whether for a business or a merchant, regardless of the type and form of affiliate marketing the merchant accepts, and finally, the steps required. to start your affiliate marketing efforts.
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1. Affiliate Marketing Concept
Affiliate marketing is an activity or business that has been known for a long time. This is not a new business as some might think, but it used to be known as a “broker” profession, and people who practiced it were called “brokers”. This person’s job is only to mediate between the owners. In all cases, ownership is between the purchaser; This is a percentage of the proceeds received by the property owner and sometimes the buyer when the sale transaction is completed.
While the modern term for a brokerage firm – especially one operating online – is commission marketing, it is said to be a three-pronged process, viz. Product owners, affiliate marketers, and consumers, but the most prominent presence is the intermediary between the seller (product owner – buyer) and what we call affiliate marketing.
As a result of the affiliate marketer’s marketing and promotional activities and efforts, the product or service owner, regardless of type, has access to any user or customer who is interested in the product or service he maintains or offers and purchases, and the user can easily find the product he/she wants. Suits him; All this in exchange for the merchant receiving a percentage of the price of the product sold, which we call a “commission”.
Say affiliate marketing is an agreement between a product owner or service provider and a broker or affiliate marketing. Let’s say you are an affiliate marketer so you promote a product to sell to a large group of people from that product. The number of users who are interested, so you get a bonus or a negotiated percentage that the same product owner has to pay for every sale you make.
We should note that affiliate marketing has recently been listed as one of the most popular activities that can bring you huge profits online. So, if you are excited to start this business, keep reading the report to learn how to create an eCommerce business with affiliate marketing.
2. Types and Forms of Affiliate Marketing.
There are many types and forms of affiliate marketing. As for the types of marketing that are known worldwide, there are two main types that all affiliate marketers in different countries of the world work on as follows:
Affiliate Marketing Broker
What is meant here is the existence of third-party intermediaries between product owners or service providers and affiliate marketers, these third parties are referred to as affiliates or networks.
The affiliate marketing network legitimizes the agreement between the product owner and the merchant promoting the product for a commission agreed upon between the affiliate marketing network and the service provider or product owner.
In this regard, it should be noted that every affiliate marketer must be fully aware of all the affiliate marketing networks operating in this space, so that they can choose the appropriate network, and then the market segment relevant to their marketing efforts, and then the part in which it works, or the right product for your audience.
Affiliate marketing through direct contracts
Second, marketing commissions occur through a direct agreement between the product owner or service provider and the commission marketer, without the need for an intermediary between the two parties, in what we call affiliate networks. In the first form.
This type of work comes in two forms, either the product owner or the production company that already has its own commission marketing system or through a special contract between the two parties where everything is agreed, especially the commission rate, the marketer through the market. Profit from every sale.
As for the forms of marketing commissions that are prevalent among all affiliate marketers and companies working within the system, there are two main types of commission marketing:
(Pay on Sale, which means the marketer doesn’t get any commission unless the user buys through that marketer)
Example: (eBay — amazon — ClickBank)
(Paying for a transaction, either filling out a form or downloading an app, maybe even entering the customer’s email into the database of the company where the advertiser sells their product)
Example: (Max Bounty – PeerFly – Clickbooth).
3. Affiliate Marketing Advantages and Benefits
Affiliate marketing schemes offer many advantages and disadvantages, both at the level of product owners and service providers, as well as at the level of the affiliate marketer itself.
The following are the main benefits that both parties get from working with an affiliate marketing system:
First for companies and product owners:
Distribute their services and products more widely at the lowest cost
Affiliate marketing helps companies and product and service owners to achieve a wider distribution of the services and products they produce or offer, which significantly increases the chances of selling to more people, resulting in higher profits than usual.
Increase the number and percentage of sales and product demand
As a natural result of the widespread of the services and products you promote through affiliate marketing, the demand for this or that product will increase dramatically, resulting in higher sales for the business or product owner and higher overall conversion rates.
One of the most important and prominent characteristics that the commission marketing system offers companies that are “first parties in the process” is that the company should not be exposed to any risk in this process because of the company or the “advertisers” first. The second party does not pay. Commissions “except after the sale is completed and the user or consumer completes the purchase through a third party “authorized marketer”; For this reason, affiliate marketing is considered one of the safest operations in e-commerce and offers all guarantees to both parties, regardless of whether the advertisement is still of a special nature.
Collection and billing only
One of the most important benefits that companies derive from an affiliate marketing system is that it frees many companies, product owners, and service providers from the many tedious and tedious tasks and jobs that require a large amount of time and budget, the most important of which is product sales and marketing. is an effort to reach the target customer.
In this case, Party B, as an affiliated company, is fully responsible for managing marketing and advertising and carrying its own budget, which greatly saves the company and product owners, so its role is limited to payment collection, order processing, and so on. on is simply a check that is highly appreciated by all business owners whether e-commerce or traditional welcome.
Second / for affiliate marketers:
To work from home
One of the most prominent advantages and advantages that a commission trader gets from this job is that it is considered a free job in which they can do as they please without any interference or control from anyone other than the need to move or engage. with a similar work schedule from home. All affiliate marketers need is a PC and an internet connection to manage the marketing of the products they work on.
Make big and fast profits
Working in affiliate marketing can help people earn guaranteed profits quickly and easily. As mentioned earlier, affiliate marketing is one of the best ways to make money on the internet and it doesn’t require any capital.
No risk or liability
Affiliate is not responsible for anything in this process, be it product storage, product delivery, or even customer value capture, but the company or the first party bears that responsibility, but affiliates only bear what they have agreed to market and promote products before the commission. Therefore, it is hoped that this process will not involve any explicit risk, as it is a guaranteed and profitable process without any risk or loss to either party.
4. Marketing Commissions and Commissions
Many companies in the world allow affiliate marketing schemes to operate, either acting as a third party in the process between the product owner and the affiliate marketer, such as B. Affiliate companies or companies that offer affiliate marketing themselves. Line in the program. Here are some of the most popular and best affiliate marketing companies to work with and start your affiliate marketing business:
- ClickBank: Commission up to 75%
- Amazon Associates: 4 to 15%
- Affiliate Commission: Between $1 and $100 per sale, depending on the item sold, of course
- ShareASale partners (both platform companies)
- Sales commission: 20.00%
- Host Commission: $1.00
- eBay Affiliates: (Sellers decide what percentage they want)
Thank you for reading! I hope this article helped understand what affiliate marketing is and how it works. If you have any questions, you can leave a comment and I’ll be happy to answer them.