AFFILIATE PROGRAM : What Is It and How Does It Work?
Wake up at 6 in the morning, drive to the office, facing the jammed streets, slog through email, until the sweet release at five o’clock.
Doing that routine for almost everyday, but only getting a few bucks, and you still in need for extra income?
What if, you could make money at any time, from anywhere — even while you sleep?
That’s the concept behind AFFILIATE PROGRAM.
Someone else’s product, but you earn commission from every sales made.
Sounds interesting?
Before we dive in to what exactly affiliate program is and how it works, let’s have some context and perspective first.
WHAT IS AFFILIATE MARKETING?
- The process of earning income every time you promote someone else’s products or services.
- A type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts.
- The process by which an affiliate earns a commission for marketing another person’s or company’s products.
- The affiliate simply searches for a product they enjoy, then promotes that product and earns a piece of the profit from each sale they make.
- Via affiliate links from one website to another, the sales will be tracked.
If you generate a sale for the company, you will get paid.
If you don’t generate a sale, you will not get paid.
WHAT IS AFFILIATE PROGRAM?
- An arrangement where an online seller pays the affiliate commission for sales or traffic derived from their (affiliate’s) marketing efforts.
- An agreement that sets up and enforces the terms of the relationship between a marketer and the merchant.
- An agreement in which a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
- The process of spreading product creation and product marketing across different parties, where each party receives a share of the revenue according to their contribution.
1) The Merchant
This is the vendor who creates the product or buys it from a manufacturer, where they will resell it to customers online.
Whether it be selling a service, or publishing content.
Sometimes they are also known as the creator, the seller, the brand, or the retailer. This is the main player that creates the product.
It can be a big company, or, just a single individual. As long as they have the products.
Regardless of the service or product, they will do all the interaction parts with the customers or audience directly through their website.
They will be the one who will take orders, ship the packages, and provide after-sale services.
On top of that, merchants will run their marketing campaigns in which affiliate marketing forms part of the overall program..
2) The Affiliate
Affiliates are usually online influencer who talk about certain products or services to encourage people to buy them.
Their other names are also known as the publisher or marketer.
They can also range from single individuals to entire companies.
Affiliate can promote more than one product at a time.
They will not handle and deliver the goods or receive payments for them.
Their main task is to promote one or multiple products from the merchant, and tries to attract and convince potential customers so that they will end up buying it.
Then only the affiliate will receive a commission for any sale or site visit fruitful from their marketing efforts.
3) The Network
The network acts as a intermediary bridge between the affiliate and the merchant.
The infrastructure to administer the affiliation, and usually feature products from many brands that affiliates can choose from will be provided by this network.
This is why the network then also serves as a database of lots of products, which the affiliate can choose (to promote).
4) The Customer
They are the shopper or buyer to whom the products are being promoted.
Without people buying, there won’t be any commissions to hand out and no revenue to be shared.
Therefore, the customer or consumer makes the affiliate system go round.
The affiliate will try to market to the customer on whatever channel they are preferably to.
Note that the customer is not going to pay a higher price to the affiliate marketer, as the cost of the affiliate network is already included in the retail price.
The customer will complete the purchasing process and receive the product as normal, unaffected by the affiliate marketing system.
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HOW DO AFFILIATE GET PAID?
How does an affiliate get paid after linking the seller to the consumer?
Depending on the program, the affiliate’s contribution to the sales will be measured differently. (make sure you get a clarified terms from the merchants).
The affiliate may get paid in various ways, depending on the agreement of the program:
1. Pay per sale (PPS).
This is the standard affiliate marketing structure.
In this program, the merchant pays the affiliate a commission (can be a fixed amount per sale, or a percentage of the sale) after the consumer purchases the product as a result of the affiliate’s marketing strategies.
In other words, the affiliate must get the visitor (customer) to invest (purchase) in the product before they are compensated.
2. Pay per lead (PPL).
This is a more complex system, which this program compensates the affiliate based on the conversion of leads.
This format pays the affiliates for bringing in visitors who fill out their information and effectively become leads.
They must persuade the consumer to visit the merchant’s website and complete the desired action — (example; filling out a contact form, signing up for a trial of a product, subscribing to a newsletter, or downloading software or files.)
3. Pay per click (PPC).
In this format, the seller pays the affiliate marketer when visitors click on a link that leads them to their site.
It focuses on redirecting consumers from their marketing platform to the merchant’s website.
This means the affiliate must engage the consumer so that they will move from the affiliate’s site to the merchant’s site.
The affiliate will be paid based on the increase in web traffic.
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HOW TO PROMOTE THE PRODUCTS?
Let’s take a look at some of the favorite promotion strategies:
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Social media
Facebook, Instagram, YouTube, Twitter and many other successful social networking sites nowadays are powerful tools to promote the affiliate links.
A strong profiles on these networks (with interesting material and content) will get the the public engaged, thus easier to be able to talk about the product.
This is the objective of these networks where advertising with a context or relevant material is a subtial strategy and likely to bring good results.
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Blog
Well-written content about the market of the product can be used to promote thus attracting the public.
By using SEO techniques, good positioning on Google can be generated, which is essential in order to get traffic of a qualified audience, who has more to do with the product being promoted.
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Google Adwords
Google Adwords can be used to make segmented ads to the audience whom we want to reach, but will need to pay for every click that link receives, even if this click doesn’t make a sale.
Besides the Google search page, products can be advertised on the blogs and websites through banners, and also on YouTube.
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Email marketing
If we are able to reach people that willingly provided their email address, at the right moment, and with the right content, then we will be able to start a conversation with the audience in a personalized manner.
Through this way, it will increase the chances of conversion (promoting and purchasing).
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BENEFITS FROM AFFILIATE MARKETING
1. No Risk.
If you are interested to invest your money (or savings) in the e-commerce, or making money on the Internet, the Affiliate Program is an alternative that is financially safe.
Why?
Because the registration is free, and there is no need for any kind of investment.
You won’t have to worry about losing your long-time savings!
2. No need own product.
You don’t have product?
No worries.
You don’t actually need to come out with your own creation or product to start making money online.
Through the Affiliate Program, you just choose any products that were created by other people, then you just need to promote the links with the referrals of that products.
In return, you will get commissions whenever a sale is made through the links you promoted.
You can get the profit with worrying free about acquiring and delivering the material being sold.
3. You are your own boss.
You can work at anytime or anywhere.
How appealing does that sound?
Yes! When you sign up for an Affiliate Program, it can be considered as you are starting a your own business.
You will be your own boss, you will work from home and be the decisions maker from A-Z. You can manage your time with your own schedule, without having someone monitoring your time and buzzing with your work.
4. Many possibilities for promoting products.
As an Affiliate, you can choose many different products to promote.
Thousands of virtual products are available in the market, be it in different formats, divided into hundreds of niches.
Just make the best decision by choosing the ones that well related to your audience, and, of course, have a bigger potential for sales and profits to be achieved.
5. No customer dealing.
The merchant will be the ones who is responsible for all communication with the customer. (i.e. customer service and post-sale assistance.)
The processing of sales and payments is made by the platform.
As an affiliate, all you have to do is just promote the link, and free your mind from anything else.
6. You don’t need a website or technical skills.
Any person with a basic knowledge of the Internet can sign up for the Affiliate Program.
No need any certs or degree to make you eligible for this program.
You also won’t be needed your own website to start promoting those online products.
Other tools, such as social media can be used for that purpose.
As long as you know how to use the computer, (not necessarily to have advanced computer skills), you can be an Affiliate.
7. Maintain present job.
If you already have a primary or permanent job, you can still maintain it without having to gie it up.You can do both your present work or business and have the affiliate marketing income to supplement your financial.
8. Full control over the referrals.
You will have access to the platform where you can monitor if your work is generating good results, and also you will be able to control the performance of your referrals.
How many sales were made through the links you promoted will be showed to you by the system.
It is a great thing as you will have a good financial planning and knowledge about when you will receive your commissions.
9. Payment guaranteed.
You don’t have to worry about not getting the payment done, or miscalculation happened.
In this program, the payments are managed by its own platform.
Which means, after the sale, the commissions are computed automatically into the system. Totally eliminates the risk of default by the Producer (Merchant).
In this system, the Affiliate’s payment is hundred percent guaranteed.
10. Expand the business in the future.
This is one of the essential advantage of the Affiliate Program where you can see the possibility of growth.
It is normal that most people start promoting at a slow pace, (starting with social media and blogs with a free domain).
But as the payments start coming in, you can set aside part of the resources and start targeting to make it wider.
In the long run, you will have your tiny little business expanded to a bigger ones.
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Now that you have a clear picture about the affiliate program,
where do you get started?
Bear with us, as we will reveal our own Affiliate Program by Moncah. Best.
TERMS:
- Based on 30% commission and 35% commission for every wholesale membership registration fee.
- Cookie length: 30 Days.
- First cookie attribution.
- Please take note that affiliate commissions are not available to wholesale purchases. Only sales at retail price.
- Non-converting affiliates will be deleted after 90 days.
- Pay per sale (PPS) system.
- Payment method through Pay Pal (International User) and manual payment for Malaysia user only.
- $100k Shopper Identity Protection (TRUSTED SITE) when you purchase order in https://Moncah.Best
- Interesting Incentive, Bonus, Reward and Loyalty Point to be grab!
Click here to find out more.
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Today, we live in an era of opportunities.
The Internet has changed the way people connect to the world.
Why not grab the opportunities to do business by utilizing the new technologies available to bring us new channels and different ways to engage the consumer in services and content that is easier to be consumed with each passing day.
This was how Affiliate Programs originally started.
And it is all done in a free, easy, and also rewarding manner.
This kind of service is seen as a way of reaching the financial independence people have always dreamed of.
It is an effective and great approach to generate a secondary income which is a passive one in its core that could become your main income stream from the comfort of your home.
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SOURCES:
https://neilpatel.com/what-is-affiliate-marketing/
https://www.bigcommerce.com/blog/affiliate-marketing/#what-is-affiliate-marketing
https://blog.hotmart.com/en/what-is-an-affiliate-program/
https://www.thebalancesmb.com/can-you-really-make-money-with-affiliate-marketing-1794168
https://en.wikipedia.org/wiki/Affiliate_marketing
https://www.onlinetoolsexpert.com/what-is-affiliate-marketing-and-how-does-it-work/