If you’re new to the business world or you’ve been around awhile, you might’ve heard the term ‘affiliate marketing’ and wondered what it’s all about.
When you hear about affiliate marketing, it’s generally used as another way for online businesses and retailers to sell products and services. But the concept has been around a long time before the internet.
A good example of offline affiliate marketing would be going to your favorite dentist. You’ve been going there a long time and the dentist says he wants to take on more clients. If you refer his practice to others, he’ll pay you for each new additional customer he gets. Or when your cable or phone provider offers you $100 for each friend or family member who opens a new account.
Online affiliate marketing works sort of the same way. Let’s say an advertiser or brand desires to boost their sales, but has a limited budget to work with. They don’t want to hire additional staff or go with any of the generally more expensive advertising methods.
What they’ll do instead is get you, the publisher, to send traffic to their site and you’ll get a commission on every sale made within a set timeframe. A lot of the top online retailers, like Amazon and Walmart all have affiliate networks, which saves them money and effort in the long run.
Learning the ins and outs of affiliate marketing can be a daunting task. This is why all entrepreneurs should study the AWOL Academy Affiliate Marketing program, which is designed to walk you through each step of the process.
Different Types of Affiliate Marketing Compensation
There are multiple ways a company or affiliate program may choose compensate the publisher for their work generating traffic and sales. About 80% of the time, they will use revenue sharing, meaning that they get a certain percentage of the sales generated.
CPA (or cost-per-action) is a little different. The publisher will get paid per each action taken instead of a broad percentage of sales. The action could be a click, an impression, or any number of criteria. CPA is used most often if there’s no actual product or stock to sell.
CPC (cost-per-click) is reserved simply for traffic generation. A business might use CPC marketing to send traffic to a website via a search engine or maybe even social media. If you see a “sponsored” ad on a search engine like Yahoo, Bing, or Google, that’s CPC marketing.
Affiliate Marketing Is a Win-Win Proposition
Essentially, for businesses, affiliate marketing is a cheap way to advertise, generate traffic to their site, and increase brand awareness online. It’s a win for businesses, marketers, and advertisers alike because no money is spent up front. They don’t have to pay until a sale is initiated.
For the publisher, affiliate marketing can be a riskier proposition, but definitely low investment. Since you mostly get paid a commission for a sale, you’re responsible for buying the traffic. Publishers have lost money while trying to get into affiliate marketing, so it’s important to have a basic understanding of all the working parts that go into affiliate marketing before starting.
That’s why it’s essential to invest in a comprehensive teaching program, like the AWOL Academy Affiliate Marketing program, which will guide you through the process. Once you have the help required to get the ball rolling, you’ll have the cash flow needed to get your business off the ground.
Regardless of whether you’re the publisher or the retailer, affiliate marketing isn’t anything more than an additional stream of revenue. As more people catch on to sponsored ads and the rise of effective ad-blockers, it can negatively impact the effectiveness of affiliate marketing.
That’s why investing in a coaching system like AWOL Academy Affiliate Marketing can save you a lot of headaches in the long run. When you know how to navigate the process, it takes a lot of the risk out of investing and increases your odds of success.
So take it as it is, a quick, cheap way for businesses to advertise and publishers to make a commission with little effort, time, or money expended to do so. If you’re interested in learning how to make a passive income with AWOL Academy and their affiliate marketing program, follow this link for a FREE PDF “Digital Freelance Marketer”: