Affiliate marketing is a business model that has actually been around since before the internet. The invention of the internet sparked the exponential growth of this type of business. In 2016, most companies operate some form of affiliate program. Affiliate marketing is everywhere and you probably don’t even know it.
You know all those price comparison websites? All those things you compare online, credit cards ,loans, insurance, they all operate on the business model of affiliate marketing. It’s the same with flight bookings as well as with e-commerce giants like Amazon, eBay and Rakuten group.
It’s surprising when you realise how many companies use this form of marketing as their main source of income.
But how does it work?
Affiliate marketing works by referring a customer to a product or service. Take Gocompare.com for example, their service is built around helping you find the best deal with things. They recommend the cheapest offers for whatever you’re searching for and in turn they receive a commission from the company you buy the product from.
It’s a pretty simple business model. The affiliate refers the customer and gets paid a commission if that customer goes on to make a purchase.
Some of the top affiliate programs offer higher paying commissions. This is where the affiliate is rewarded a higher percentage of the product value for each sale. Typically digital products offer the highest commissions for affiliates as they don’t have the same small margins that physical products do.
Affiliate marketing is an attractive business model because it allows anyone with basic computer skills to start an online business and become self-sufficient, without the traditional barriers of entry.
Let me explain:
- You don’t need to invest thousands of pounds to get started. Many affiliate programs are free and you can literally get started with marketing on the same day.
- You’re not tied down to any particular location. Affiliate marketing is internet-based. Meaning you just need a laptop and internet connection for you to be in business. This is huge!
- You don’t need to create a product! The beauty of affiliate marketing is that it allows you to leverage the products and services that other people have created. You don’t need to spend all your time and money on coming up with an awesome product because so many people already have! Another thing that is beautiful is that you have the ability to align yourself with something you genuinely care about. So you can promote something you actually like yourself – not just trying to sell something to your readers.
- The earning potential is unlimited. There are affiliate marketers out there that are making seven figures a year just from promoting other people’s products. This is big business.
Something to bear in mind:
Affiliate marketing might sound like the perfect business model. In my opinion it is superior to everything else out there. However, this isn’t some push button solution. Affiliate marketing requires hard work and dedication, just like any other business would. You need to empower yourself with the training that will allow you to effectively market products online. Finding the right training program is essential. There is so much out there that you can absorb but one of the most important things to bear in mind is to not allow yourself to get stuck in “learning mode”. Pick one training program and stick with it until you master it. Once you start producing solid results then you can move on to the next strategy. This is how people succeed in affiliate marketing. Consistency, dedication and focus are an absolute must for success in any business.