Affiliate marketing can be lucrative, but it takes blood, sweat and tears and a lot of your time and capital to make it a real business. Keep in mind that traditional advertisements and selling your own products can help if your affiliate marketing revenue dries up.
Affiliate marketing is an underrated and quite simple way to make money. By setting up an affiliate site, you can generate money while you sleep or work at your regular job and thus get a passive income.
So what is affiliate marketing?
Affiliate marketing is a niche in digital marketing where an owner of a particular website receives a commission on purchases made via clicks on links from that website.
My own experience with affiliate marketing
With affiliate marketing, you can quickly start making money online with very little start-up costs. It can even become a full-time job if that is your goal.
I am working on a affiliate website myself which I started not too long ago which I know will work as a cash machine for me in the future. I have also worked my way up with google ads.
In this post, I will go through how I went about it. Gradually.
This is how you get started!
The first thing you need to do is decide what types of products you should market on your site.
Do research on how to reach your target group, the competitive image and of course – find out which affiliate programs are available for your niche and how much these partners are willing to pay for a new customer.
This can vary greatly up to thousands of dollars per “lead”, depending on which market you operate in.
Analyze the competition within your niche
Before you start, it is important that you analyze the opportunities and competition within the niche. Questions you should explore are:
- Are there any regulatory restrictions for the industry (or country you intend to operate in). Examples of industries with restrictions are, for example, loans and games.
- Do I have the conditions to create really good content on the subject?
- What channels are possible to use as an affiliate in this niche?
- What competitors are there at present? And how good are they?
- How big are the search volumes on my keywords?
How Much Money Can You Make As An Affiliate?
How much money can you make through Affiliate Marketing? That question is asked by many. For those who succeed as an affiliate, the upside is unlimited.
There are both larger and smaller affiliates. Catena Media, for example, earns millions of dollars every quarter. But then of course there are lots of opportunities to also work as an affiliate on a smaller scale on your own. That’s how I started.
Choice of revenue model – CPA or revenue sharing?
Another issue that is important to consider is which compensation model you should focus on.
It is common to receive a lump sum (CPA) for each lead / sale that comes from your channels. This lump sum is in turn based on how profitable each customer is with the company on average.
If a new customer is valued at 100 USD at the company you work with, you may, for example, receive 30 USD per new customer that you generate. That is 30%.
How revenue share works
The second type of model used, perhaps mainly associated with the gaming industry, is revenue sharing, so-called revenue share. Through the revenue sharing model, you instead get paid month by month for the revenue that your customer generates with your partner.
Often the revenue sharing applies for life, which gives you potential revenue streams for a long time to come. An example of a company that offers this type of model is Kindred Affiliates (Unibet).
Although this is most common in the gaming industry, there are also plenty of other industries that use the same model.
Which affiliate program should I choose?
Seen from a profitability perspective, casino affiliate and affiliate programs for banks / lenders are very popular as these partners provide a high remuneration per customer.
Marketing this type of product can, however, be questioned from a moral perspective, and even if you yourself have no problem with just that, it is extremely competitive markets to enter.
Other examples of niches are travel, hotels, perfumes, books, telephone subscriptions, clothing and so on.
Most companies that want to increase their sales online take the help of affiliates 2021. Choose something that you are interested in and preferably something where the competition is not so high.
Many affiliates are based on SEO (search engine optimization) and expect a large portion of the traffic to come from organic search on Google.
So if you are going to focus on getting a large portion of the new visitors through Google, it is a must to start by doing a solid keyword analysis for your segment.
You should do this both to find out what search volumes for specific keywords for your niche, but above all also to make an assessment of how difficult it is to get into a top position on Google for these keywords.
There are also affiliates who work with traffic from other channels in digital marketing.
There are many niches that are much easier than others to settle into, so it is not just the potential replacement part you should focus on.
One of the most well known affiliate programs in the world is Amazon affiliates. By joining their affiliate program, you will commission the sales that take place on Amazon.com through your website. Previously, the commission at Amazon affiliates was as high as ten percent. But to the disappointment of many, this commission was reduced by 70 percent in 2020, to only 3 percent. What has happened with Amazon clearly shows the risk for affiliates to only work with a few or a few important partners. Do not sit in that seat.
The best affiliate programs globally
- Blue Host
Build a website
After you have chosen an industry and done research on potential partners, it is time to get started for real.
Now is the time to buy or build a great looking website for your business. I personally recommend using WordPress as it is very easy to use and you can relatively easily and cheaply fix a nice website that suits your needs.
One of the several important aspects to success on Google is that your website loads quickly for the visitors. There are several different wordpress themes and self-coded variants to achieve this.
Other popular themes for you are, for example, fast-charging Astra Theme, or themes that include a page builder such as Divi or Avada. With these themes, it will be extremely easy to expand the website you want.
Also depending on how many plugins you use on your wordpress website can affect the loading speed greatly.
A lot of factors can go into loading speed but probably the biggest of them all is the size of your pictures. The bigger the longer the loading and slower the site will become.
Choice of hosting
Another thing that you need to decide is where to put the operation of your website, that is, choose the hosting provider.
Affiliate marketing without website?
Can you work with affiliate marking without a website? Yes absolutely.
There are several major social networks that are excellent channels for reaching your target audience as an affiliate, such as Facebook, Twitter, Instagram and Youtube.
Regardless of whether you work with a website or, for example, a group in a social network, the relationship with your followers is extremely important.
This is of course a big difference compared to the affiliates who only work with SEO/Google ads.
The niches with the greatest competition
The toughest competitive industries are, unexpectedly, among affiliate marketing for loan intermediaries and marketing for gaming companies in various niches such as casino, poker and betting.
What tax do you pay as an affiliate?
What then pays for taxes as an affiliate? You have to pay taxes for medicare future and social security benefits that comes up to about 15,3%
Earning passiv income with affiliate can be that little nudge you need towards your path to financial freedom. This is not rocket science, anyone can do it.
But if you dont feel like starting a website you can just start with Google ads, which is much much easier and then work your way up to a wordpress blog.