Like any other businesses or employment opportunities, making money on affiliate programs requires a certain amount of investment, time commitment, and knowledge of internet marketing. A major requirement for you to become an affiliate or associate of a company under the affiliate program is that you should have a website or blog.
Launching a website requires a budget for web hosting, domain name registration, internet marketing, and web graphic designing. And whether you’re a Do-it-Yourself or not, you need basic knowledge on website design and development for that will play an important role in succeeding with affiliate programs.
There are several ways on how to make money from affiliate programs. This article will clearly explain to you how to do it properly and how not to do things that could possibly put much of your time, energy and investment at risk.
1. Partner with an Affiliate Network.
Affiliate networks are mediators between merchants (the advertiser) and you (the publisher). Companies that want their products and services to be advertised online seek the services of affiliate networks companies. After setting up the merchant’s account, the affiliate network will then distribute the affiliate ad banners and links to the affiliate’s website under certain terms and conditions.
As an affiliate, your job is to post those ad banners and links to your website and implement marketing strategies that would convince your visitors to click these things. A “click” can be equivalent to one cent or $ 5 (or even higher), depending on the commission rates and payment arrangement (ex. Pay-per-Click) under the affiliate program. The bottom line here is: The more clicks you earn, the more money you can make.
2. Join Two-tier Affiliate Programs.
Unlike affiliate networks, the money-making scheme in two-tier affiliate programs is purely based on sales. You will gain a certain cut or commission after every sale that you’ve made through your website. A great example of two-tier affiliate program is Amazon Associates. You can earn 4% to 8.5% commission by selling Amazon products on your website. The sale can be tracked via Amazon’s storefront which you have to integrate on your website. Once clicked, this storefront will direct your customers to the checkout section of Amazon eCommerce site and from there; Amazon will take care of the order processing and fulfillment – just like in any other eCommerce site. Just remember that the more engaging your web contents are, the more likely your visitors will click the storefront.
3. Try Residual Affiliate Program.
This is more on the combination of two-tier and referral programs. Say you have directed your site’s visitor to the merchant’s site, you are owed to earn more sales commission for every succeeding purchase made by that visitor. The merchant will keep a record of that customer (which you refer) and for every purchase made, your commission will be automatically credited to your affiliate program account. The more customers you refer, the more money you can make.
4. Engage in Multi-level Marketing (MLM) Program.
In this type of affiliate program, you will work directly for the merchant. Usually, most MLM companies ask for membership fees and initial investment for the products or packages which you intend to sell under the program. As an affiliate of MLM companies, you are given exclusive rights to sell their products and services via your websites and other sales channels. In addition to that, you can also earn money by recruiting new sellers or distributors. As this is a form of direct marketing, you will earn a profit for every sale you closed.
More importantly, in order to succeed in these affiliate programs, consider following these tips:
· Only join affiliate programs that are relevant to your site or niche.
· Aim to generate more traffic to your site to increase the clickthrough rates on your ad banners and links.
· Become a smart seller by combining your networking and business management skills with sales and marketing.
· Before signing up, try to fully understand how the money-making scheme works in that affiliate program.