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Affiliate Marketing for Beginners: A Step by Step Guide
Many people think that it is difficult to make money through affiliate marketing. Probably it is because of the jargon and the use of technology like affiliate links. Some people think that it is easier to manage money with direct sales. What many do not realize is that the potential to earn from Affiliate Marketing is unlimited. Now let’s take you on the journey of your affiliate marketing career.
What is affiliate marketing?
Simply put, affiliate marketing is an activity where you sell other people’s goods or services, not yours. In return, these merchants give you a fraction of their profits.
How much can you make from these sales? Many affiliate programs offer a minimum of 10% off the sale price. Some will offer up to as much as 50%. So imagine if the selling price is $100.00, you get $50.00. Multiply this by 100 sales per month and you get $5,000.00 USD per month. And this is just for a single product.
In a nutshell, look for merchants that have affiliate marketing programs. Once you’ve found one, sign up for the program and you’ll receive a link. This link to is unique to each affiliate marketer. This is your identifier.
What you need to do with this link is post it online. You can either hyperlink to a word or to an image. Anyone who clicks on this link will be taken to the retailer’s website. If that person makes a purchase, the retailer will know that you were the referrer. After the cut-off, the business will distribute the commissions to all its affiliates.
Choose what to sell
What exactly is a niche? We have heard this so many times, but its definition remains elusive. A niche is a specialization. It’s a topic or area that you can break down further. An example of a niche is toys. You can break this niche down further into drones or remote controlled cars. Another example is beauty products. You can drill down further into this niche in make-up or perhaps whitening products.
Without the right niche, you will not be profitable. How can you sell anything when you sell everything?
The niche you choose should be something you really find interesting. Even better, it should be a niche in which you have some level of expertise. Selling a product you like makes work enjoyable. As a result, you don’t see your efforts as labor, but you see them as fun and fulfilling activities.
The niche you choose must also have high demand. Despite doing what you love, you cannot make money if there is no demand for the product you are selling. There must be enough people out there who are willing to buy what you are offering.
A profitable niche is something that has great potential to scale and develop. The best example we can give you is digital products. Selling digital products can be a great way to reach your financial goals. The product you choose must also have the support of many companies that offer affiliate programs.
A good example to demonstrate this is the weight loss niche. Maybe you find it exciting to help people learn and understand ways to lose weight. You feel fulfilled by helping people live a healthier lifestyle. Weight loss is considered an “evergreen” niche because it is a product that people will always be interested in.
Another example is pets. This is a billion dollar industry and pet owners spend crazy amounts of money on their pets – from food to toys and pet clothes. You name it. You can sell books on pet training and health care.
The key to choosing a niche is finding the right balance between your interest and its potential to earn. You must concentrate on subjects that you love, and at the same time these subjects must be sellable.
Plan your business and stay focused
The common pitfall of affiliate marketers is their inability to focus. They do so many things at once that they lose track of the meaningful things and activities that make sense. They try to sign up for many affiliate programs at a time, in different niches, and they get stuck with the amount of work they have to do.
While many experts will tell you to launch multiple niches at once, we have to disagree because there is no way you can stay organized and focused if you tackle too many niches at once. We believe that people should start with one niche, plan the approach carefully, stay focused on the activities and then launch the product. Once it becomes profitable, then it’s time to move on to the next thing.
People who are new to the online marketing business must also have a marketing approach. Just posting online won’t do. You need a focused strategy as there is too much room for error. And one mistake can cost you. What we recommend is that you start a blog. Make sure to upload articles regularly. After mastering the blog, and only after that, it’s time to move to social media. As is often said, to build your house you have to lay one brick at a time.
If blogging is not your forte, the other way is to take You Tube. You can create video content and upload it on your own channel. The idea is that you provide your subscribers with valuable information. Subscribers will learn something new from you every time they watch your videos.
It is important to note here that you should not try to sell the product. Your blog and video posts should teach your audience something. It is in these topics that you will subtly insert the product you are endorsing.
Things to look for in an affiliate program
Horror stories abound about affiliate marketing programs. Some of them do not pay to affiliate and some of them are built on pyramid scheme. If you sell one of these products and they collapse, your customers will never come back to you and you can say goodbye to your business. You don’t want to be associated with these illegal companies because you take the risk of being sued.
What you want are legitimate, trustworthy and high quality products that will make your customers buy more. Below are a few guidelines on how to choose an affiliate program that is worth your time.
Select products of your interest
Always choose a product that is within the limits of your interest. You don’t have to be an expert at it, but at least it’s something you personally care about. It will be difficult for you to stay motivated if you are selling products that you are not interested in. If you are interested in a particular product, chances are that you are not alone, that there are others who are rooting for you the same product.
Must be of high quality
Look for affiliate programs and retailers that sell tried and tested products. You can check this out by reading customer feedback in forums and comment sections where they vote or rate the products. Do some research and track down the affiliates. Ask them about their experience through forums and check the credibility of the affiliate product you are selling or the affiliate program you are joining.
Choose a growth market
You need to join affiliate products that are growing in demand. This will ensure that you will sell more or you will get more referrals. The only way you can do this is by checking reliable feedback and looking at the sales statistics of the product you have chosen.
Choose a good compensation plan
A 5% commission just isn’t worth it unless the product you’re selling is real estate. A good choice is a product that pays 40% commission. Always make sure that the amount you earn will compensate for your efforts. A good place to start is 25% if you can’t find a product in the 40% commission range.
Read the fine print
Some affiliate programs advertise incredible sales commissions. However, they also require sales quotas. Ask yourself if the quota is achievable. Some goals are too difficult to achieve, e.g. $1000 dollars. Before signing up, check the prerequisites and ask yourself carefully if these quotas are achievable in a short time.
Choose programs that offer tools
Finally, join affiliate marketing programs that offer tools. An example of this is a dashboard of your sales. Not all affiliate programs provide visibility on statistics and this will make it too difficult for you to make decisions. At the very least, the affiliate programs you join should give you your current sales and current compensation. Choose the ones that allow you to check your current sales performance online anytime, anywhere.
Understand the most common affiliate mistakes
While we’re at it, we’ll discuss the most common mistakes made by affiliates. These mistakes are costly and as a result many affiliates do not reap the benefits of affiliate marketing.
Mistake number 1: Choosing the wrong affiliate
Just because a company offers an affiliate marketing program does not mean it is reliable and trustworthy. We’ve mentioned this before, but we have to say it again. Don’t join the bandwagon of products-products that are a one-hit wonder. Anything that sells like hotcakes should be avoided.
Choose a product that is in demand even without the hype. Choose products that interest you, products that will still be there, even if it takes you some time to plan and get your website up and running. After choosing the right product, do your own research and see if they are in demand. It’s easier to promote a product you believe in than to promote a product you couldn’t care less about.
Mistake number 2: Joining too many programs
It is possible that your first affiliate program is successful and this is a good teaser for you to look for more products to sell. Making money so easily can be tempting. You may think that you have nothing to lose by joining too many affiliate programs.
On the contrary, you may find yourself drowning in a lot of work. Maintaining the quality of a website and its content is difficult enough, let alone managing multiple websites. What happens next is that you lose focus on the same affiliate programs that have been making you money. Therefore, you will not realize the maximum potential of a program if you are out of focus.
The best way around this is to join a program that pays 40% commission. This will give a reasonable profit if you concentrate your best and focus consistently.
Mistake number 3: Not knowing how the product works
Many affiliate marketers choose a product to sell without trying it themselves. Remember that as an affiliate you are primarily endorsing someone else’s product and service, and as such you cannot extol the qualities of a product you have not tried.
It will be easier for you to sell a product or service if you have experienced it firsthand. If the product is bad, then you will save yourself the pain of selling something that will never be patronized by customers. Trying the product yourself will give you a personal experience. It will be easy for you to create a desire and need for the product because you are a living testimony of what you sell.
Also, you can honestly point out the pros and cons of the product you are endorsing. Your customers will see and feel the truth in your blogs and the sincerity in your sales pitches. With such strong credibility, it is highly impossible not to drive sales if your customers’ expectations are set correctly. You don’t want to make ridiculous claims about the product and then end up getting bad reviews.
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