What is affiliate marketing and how to make money on them in the Internet?
Affiliate (referral) program is a collaboration of sellers and advertising agents, in which the owner of the affiliate program shares part of its sales profit with those people on whose recommendation these sales were made. It looks like a payment of commissions, most often a certain percentage of the value of the goods, sometimes the amount of remuneration is fixed.
The amount of affiliate reward in different categories of goods and services may differ by orders of magnitude and depends on what initial level of profit is incorporated in the product. The largest percentage of rewards is given to those affiliate programs with the help of which intangible goods or services are promoted, for example, training courses, hosting companies and other services. The smallest percent have services and goods whose market margin is very small, for example, airline tickets, equipment, etc.
The size of the affiliate reward does not indicate how much you can earn on this affiliate, as payments come from real sales. You can meet such affiliate programs in which payments reach up to 90%, but these goods or services are not at all demanded by the market and the cost of their promotion is higher than the bonus received. And, on the contrary, some services are so much in demand that due to the large turnover of goods, partners earn a lot of money.
There are affiliate programs that pay for clicks (potential client’s clicks to the site), but it’s probably worth referring to another type of advertising, since there is no direct relationship between the income of the partner and the income of the owner of the affiliate.
First of all, the theme will affect the amount of earnings on affiliate programs, the closer the goods and services promoted by the affiliate to the needs and interests of your audience, the higher the conversion of sales and, accordingly, the size of your commissions.
Affiliate programs became popular when special services and scripts appeared that made it possible to automate the processes of registering partners, tracking their recommendations and sales. Now all this is being monitored by the program, so neither the owners nor the partners need to manually watch the sales.
Affiliate programs are single-level and multi-level, the most popular models with one or two levels. The multi-level affiliate program allows you to earn not only from the promotion of goods to customers, but also invite other people to participate in the promotion, receiving a percentage from their sales too. A multi-level referral program encourages partners not only to engage in sales, but also to increase the sales network.
A general idea of what affiliate programs you have received will gradually be able to master the subtleties. You can start with recommendations on choosing affiliate programs; I wrote how to do this here.