If you have a blog, then at some point in your blogging career, your mind will focus on the idea of monetising your blog. Whilst there are many ways to make money from your blog, including advertising, selling other people’s products (which you buy at wholesale and sell at retail), or creating your own products – perhaps the easiest way to make money from a blog is via affiliate marketing.
WHAT IS AFFILIATE MARKETING
One of the best ways to think about affiliate marketing is to liken it to the notion of recommending a movie. Once upon a time, we would go to the cinema or video shop, watch something and if we liked it we would recommend it to our friends. The same was true of hotels, restaurants, and all sorts of other experiences.
This natural recommendation tapped into the most powerful form of marketing; referrals from people we know, like and trust. Today, in the digital world, influencers are able to do the same thing on a larger scale – where their recommendation could reach several thousand if not million people. This is of significant interest to advertisers, and many companies are willing to pay influencers with decent brands a high commission to recommend their product to their audience.
HOW DOES IT WORK?
A special unique link is generated, which you place on your website, as the source of referral. This link has a tracking code that enables the company to see who referred the purchase, and therefore, who to pay a commission to, should the purchase come as a result of your referral link.
The simplest way to think of this, is to consider a nightclub promoter that touts business outside a busy club. Often, they will give you a flyer which has their name on it – this way, the nightclub owner knows how much commission to pay each person.
In a much more complex digital world it takes sophisticated technology to keep track of who is referring who and making accurate payments to affiliates. This is where reputably third parties such as commission junction come in to play, as they manage the process on behalf of all parties.
HOW MUCH ARE YOU LIKELY TO MAKE?
In a nutshell. It depends. If you consider that a recommendation of a book on Amazon is likely to bring in less than a dollar in revenue, it might feel disheartening, yet if you were selling a high priced ticket to a training event – which is $1,000 in value, and the person goes on to buy two tickets, you would likely be making 30%, which would be $600.
It would only take five of these referrals each month to make $3,000, which is a huge amount of money for simply pasting a link within relevant content.
Therein lies the power behind making money from affiliate marketing; once you have built your content and start recommending related products you have the ability to make a lot of money very quickly, as it can grow exponentially.