In recent years, with the development of e-commerce, affiliate marketing is a popular concept. Many people who want to make money online focus on affiliate marketing. So what is affiliate marketing? How affiliate marketing brings money to people?
What is Affiliate Marketing?
Affiliate marketing is a form of MMO (making money online). You will advertise products from the other producers, then earn money from survey completion, clicking on products, orders, etc. which stem from your affiliate platforms.
Components
Advertiser/Merchant: Provider of products and services who wants to improve business efficiency.
Publisher: Owner of websites or social networking sites that can advertise the products provided by the Advertiser.
Affiliate Network: An intermediary to connect Publisher and Advertiser. Affiliate network provides technical platforms such as banners, advertising links, etc. It also supervises and evaluates advertising effectiveness, resolves disputes, pays commissions to Publisher, etc.
End User: Customers who use Advertiser’s products or services or other actions required by the Advertiser.
Commission Models – How affiliate marketing brings money to people
Advertisers will pay Publishers an amount of commission with agreed terms of commission models as below
- Cost Per Click (CPC): Publishers receive commissions when customers click on advertisements of products on publisher’s marketing websites.
- Cost Per Thousand Impression (CPM): Publishers receive commission for every thousand impressions of advertising banners or links. This method is often used when providers want to make their products more popular.
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- Cost Per Action (CPA marketing): Advertisers pay commission when the customer performs a specific action such as purchasing a product, registering for a service, filling in the information, etc. There are several types of CPA:
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- Cost Per Lead (CPL): Publishers receive commission for each potential customer. In this customers need to complete a registration form, regardless of whether they purchase the product or not. Advertisers send money for commission after receiving information from their potential customers.
- Cost Per Qualified Lead (CPQL): Advertisers pay commissions when they receive information from customers that meet the criteria with their own requirements.
- Cost Per Install (CPI): Publishers receive commissions for each installation of products (online application for mobile or desktop) from their advertising link on their website.
- Cost Per Sales (CPS): Publishers receive commissions based on a certain percentage of sales from their affiliate platforms.
- Cost Per Order (CPO): Publishers receive commission when customers successfully make orders from the publisher’s marketing websites.
Why is affiliate marketing so popular?
👉In terms of Advertisers
- They can make their brands more popular (increase brand visibilities)
- Increase revenue as well as profit
- Can research market with surveys
- Diverse the marketing methods
👉In terms of Publishers
- Can earn money with low cost: you work as an online distributor only, you do not need to import, store, manage or ship products.
- Can make money anywhere, anytime as you want: you need internet connections and a PC/ Laptop only.
- You can get passive income when your affiliate websites have stable traffic.
How can we make money with affiliate marketing
First, you need to find out your niche. Ask yourself
- Which topic that you are interested in?
- Whether this topic can attract visitors or not?
- Are there many advertisers who are willing to pay commission for publishers in this niche?
Next, you need to select the affiliate platform that you want to build. There are various channels such as Google, YouTube, Facebook, etc. You can work as a blogger who provides knowledge, reviews, etc. It will take time when you build your affiliate channels. You need to create interesting content to attract lots of visitors. Luckily, there are tools for you to save time in getting traffic.
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Finally, you select the affiliate network to sign up, commission models and products that you want to promote.
Thank you for following this article, we hope it will be useful for you.
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