Affiliate marketing: What is it? Get a walkthrough with Alpha57
Affiliate marketing is one of the online marketing buzzwords. Basically it is a performance-based corporation, or in other words, a partnership between an affiliate and a business. A business or a company rewards or pays to the affiliate for the sale they make for them. Affiliate marketing can basically be explained as simple as that. A business or a company pays for example to a blogger (the affiliate) to sell their products through their blog or other personal website. However, the affiliate only gets paid by the company when the affiliate generates a sale for the company via their blog or their own personal website.
Affiliate marketing concept has four basic components.
- The merchant: that would be a brand or a retailer.
- The network: contains offers for the affiliate, and provides them the tools to make a sale.
- The publisher: the affiliate who is generating sales for a brand or a retailer.
- The customer: that buys from the affiliate.
So in general terms, the affiliate provides traffic, the merchant (business) with the goal to generate sale and commission for both the business and the affiliate. Usually the merchant and the affiliate agree upon whether the affiliate gets paid by lead, or gets a percentage of the current sale.
What’s in it for the partners and for the business?
The upsides and advantages for the partners, or so called affiliates is that they can make money without creating or distributing their own product. That’s up to the business. Affiliates only have to create the awareness of the product, integrate the product in their own organic content on their blog or website, and finally create the content to their followers and readers that will generate a sale.
For the business, the upsides and advantages with affiliate marketing are:
- it gets possible for them to get customers they wouldn’t normally get with their ordinary marketing
- the business only has to pay for the results that their affiliates generate for them.
Affiliate marketing: what are the challenges?
The challenge with affiliate marketing is, for the partners that they do might promote a product or a company, that their followers and readers don’t associate themselves or the affiliate with. To be a good partner means that you know your readers and that you have their loyalty. When you reach the credibility, they are more likely to follow your advises and recommendations.
For the business, the main challenge is to find the right partners to promote and generate sale to. Some bloggers and online personalities are more worth than others. And you have to be aware of what their online personal brand is. A good partner can generate a lot of sales for your business. But the wrong partner will not generate anything for you.
Affiliate marketing in the future?
Affiliate marketing will probably grow to become an even bigger industry than it already is. Generations of digital natives and the YouTuber-generation will become a larger and larger group of influencers. This allows “the common man” to become a great online influencer. So, in general, the young generation can get to the point, where they will start to challenge established personal brands such as the Kardashian-family on the online platforms. But, only time will tell.
However if you are interested in affiliate marketing now, feel free to reach out to Alpha57, and we can help you with your first steps into the affiliate marketing jungle.