In this post, I am going to tell you how to start an affiliate marketing business, so let’s start. Have you ever clicked through to purchase an item from a website, such as a blog, news article, forum, discount code site or social media post?
This is affiliate marketing. It is the practice in which a publisher promotes an online retailer or products and earns a commission based on the sales or leads that advertising generates for the concerned online retailer or products.
The publisher is given these campaigns by an affiliate. An affiliate is an individual or network who partners with a retailer or brand to help sell that merchant’s product. This product can be anything a customer would be for. It could be something tangible like clothing, electronics, appliances, etc. or something virtual like a software, e-book or service.
How is the commission set in Affiliate Marketing Business?
Pay per Sale: Under this program, the publisher is paid by the affiliate network, a percentage of the product price once the purchase is complete.
Pay per Click: In this program, the publisher is paid by the affiliate network on the basis of the number of visitors it redirects from its platform to the retailer’s platform. In this program, the publisher is paid irrespective of whether a sale is made or not.
Pay per Lead: In this affiliate program, the publisher is paid by the affiliate every time a visitor fills out a contact form on the merchant’s platform.
So, how is this journey tracked in Affiliate Marketing Business?
Most publishers work with affiliate networks to track their affiliate campaign. The networks provide a unique set of tracking links to the publishers.
When a customer clicks on the publisher’s affiliate link, a cookie is dropped and the click is registered on the affiliate network’s panel. When that customer then completes the purchase and reaches the retailer’s confirmation page, the publisher’s tracking tag is fired. This sale is recorded by both, publisher and affiliate network, on their respective panels.
Via their panels both the publisher and affiliate network should be able to see that the sale has been tracked and a commission can be awarded.
Types of affiliates
There are many different types of affiliates a publisher can choose from. Each type of affiliate fulfils a different role in terms of volume, reach and earnings. The publisher can choose any of these affiliate types depending on its goals and objectives.
A reward website is a platform that offers reward points for completing certain tasks. Common tasks that need to be completed on these sites include completing surveys, participating in daily opinion polls, referring other members, buying goods or services through referral links, etc. This type of affiliate drives sales by rewarding its members through a share of the commission it earns from the affiliate network.
Content sites and blogs:
Another way to drive sale is to create a content platform or blog. Quality and unique content is a great way to engage potential and existing customers. Content affiliates usually form a part of an affiliate network’s long-tail strategy and are rarely large volume drivers. They usually work on a pay per click or pay per sale model.
Email affiliates drive conversions for affiliate networks by sending targeted emails to their own or third-party subscribers.
Comparison websites give customers the opportunity to compare products of different brands and help them in choosing the best one. By giving its customers a compelling offering, comparison affiliates can generate large sales volumes. They usually work on a pay per click model.
A PPC (pay-per-click) Affiliate is a paid search specialist who drives traffic to a retailer’s platform by bidding on relevant keywords via a custom-built landing page. They generally work on a pay per click on pay per sale model.
Voucher and deal sites
These types of affiliates generate sales by offering their users an offer, a deal or a discount code that can be redeemed online against their purchase. They generally work on a pay per click on pay per sale model. One of the best and most effective affiliate websites is the Khojdeal – coupons and cashback website.
Partner with various networks to promote deals and offers from various Indian and International online stores.
Social media influencers usually use this type of business model. They target their social media followers through sponsored posts that can help in driving brand awareness and assist in generating more conversions for the retailer.
How to start an affiliate marketing business?
Step 1 – Research and Select the Right Niche
The first thing to do when you’re starting the affiliate marketing business is to select the niche you would like to promote. It is always better to opt for a niche that will make you a lot of money and has a lot of different vendors to choose from. There are a plethora of categories like e-commerce, travel, hosting, recharge, fashion, food, beauty, gifting, home, etc. to choose from.
When you’re getting started it is advisable to choose only two to three categories. Once you become comfortable with the whole affiliate marketing process, you can expand to other niches as well.
Step 2 – Choose the Right Affiliate Network
The second thing to do when starting an affiliate network is to choose the right affiliate network. This is the most important step when you’re starting an affiliate marketing business because if you and your merchant network are unable to find the right fit, your affiliate marketing business just won’t work.
Some of the best affiliate networks in India include vCommission, Optimise, Komli, Admitad, iCubesWire and Cuelinks. Many popular e-commerce stores also have their own independent affiliate program. These include Flipkart Affiliate, Amazon Associates, Bigrock Affiliate, Nykaa, etc.
Step 3 – Choose a platform to dominate your marketing
How do you want to market your business? This is where you have to really search yourself, determine your strengths and leverage your skillsets.
There are many different ways to promote and build your business online. You have social media sites like Facebook, Instagram and YouTube.
If you’re not camera-shy and are great with verbal communication then consider video marketing with YouTube or Facebook Live. If you’re great at written communication, then start blogging.
Step 4 – Build a Personal Brand & Provide Value
You may have heard that people only buy from those they know, like and trust. Well, that’s the whole idea behind building a brand online.
You see, people don’t actually have to know you to like you, trust you and ultimately become a raving fan and buy anything you’re selling.
So how do you build a brand that people fall in love with? You can do this a couple of ways, but the best way is simply by being yourself. It’s funny how people always try to be someone else when in reality YOU are your own million-dollar brand.
The second way to build your brand is by providing value to the market place. You can do this by teaching your audience something you know.
Step 5 – Set up your marketing system for business
Now that you’re building a brand and putting valuable content out there, people are going to start responding to that content. This is where you want to be ready to capture leads and make sales.
Here’s what you need in place to make this happen:
Capture Page – A capture page is something you MUST have in place if you’re serious about building a business online. It has many names: capture page, squeeze page, lead capture page. All of these are the same and have one purpose; to collect a lead so you can follow-up with your prospects. The best way to go about this is to give something away for free in exchange for someone’s e-mail address.
E-mail Autoresponder – This is an email software that stores all your leads so you can follow up with them. Imagine having a new product you want to promote and with the push of a button you’re able to send it to thousands of people. You can see how powerful this is.
E-mail Automation – Inside your autoresponder, you have the ability to set up automated emails that will go out in a sequence. This is where the true leverage of e-mail marketing comes into play because now you can automate your follow-up.
Step 6 – Tweak, Rinse and Repeat
If you’re a beginner then this may seem like a lot of information and you may even feel a little overwhelmed. As you continue to market online you will start to find your groove. Once you start generating some leads, turn up the heat and 10X your efforts.
Now I hope that you must have understood well how to start an affiliate marketing business.