Most of you might have come across Tim Ferris’s iconic book on the four-hour work week, and probably dreamt of getting into that life. This is where the concept of passive income comes in. You might be providing towing services in Raleigh and your employees are well disciplined to work for you, such that money trickles in while you sleep. Asides owning a brick and mortar business, it is the dream of most entrepreneurs to build an online business that gets a lot of traffic, where they can monetize their traffic and earn through being affiliates.
What is affiliate marketing
Affiliate marketing is one of the world’s most popular methods of generating passive income online. It is performance-based marketing in which a retailer rewards a business or person with a commission for each customer referred via the promotional activities of the person’s or businesses’ website.
In affiliate marketing, there are four parties involved.
Affiliates: They are the promoters of your products
Product creators: They create the product
Networks: They are the networks managing the affiliates
Consumers: They are the end-user of the product
Who are the affiliates
An affiliate, also known as a publisher, can be a company or individual. They are typically bloggers or content creators who operate in the industry of the product they are creating. Their work is to promote products or services by creating content such as blog posts, videos, and other forms of media. They can also promote their content by putting their ads, building an email list, and capturing traffic from SEO.
Who are the merchants
A merchant is also known as a product creator or advertiser. They are typically the creators of the product or service. They offer commissions to those who refer people to their businesses, where each referral translates to a successful purchase or sale.
Who are the affiliate networks?
Next, we have the affiliate networks, which act as intermediaries between the merchants and their affiliates. Though these networks are not necessary, some companies choose to work with these networks to add a layer of trust. Their work is to manage relations and offer third party checks and balances.
Who are the consumers
Consumers are the ones who make transactions. They purchase the product or service and keep the business going. Without consumers, an affiliate will not be able to earn their commissions.
The working of affiliate marketing
As an affiliate, you will be paid whenever a visitor creates a transaction. This transaction could be anything, be it a click, a sale, or lead form submission. In most cases, affiliate marketing is performance-based. This means you only get paid as an affiliate if your visitor takes an action. There are different affiliate marketing models used, which include; pay per click, pay per lead, and pay per sale. To start affiliate marketing, all you need is to choose a platform or niche, build your audience, sign up for affiliate program, choose the products or services to promote and create remarkable content that promotes your affiliate products.