Affiliate Marketing: What you Need to Know
If someone told you that you could earn money at any time in your comfort? You set up a website or social media platform, add a few affiliate marketing links, and start earning. This idea seems too good to be true right? Well, this is the whole idea surrounding affiliate marketing. There are so many people such as bloggers earning this way.
What is affiliate marketing? Affiliate marketing is an advertising method whereby a company pays a third party for promoting and advertising its services and products. The third party is called affiliates. They search for products and promote them in turn they earn a commission for every sale they make.
Affiliate Marketing Metrics.
Some metrics measure the performance of an affiliate marketing program. They include:
1. Conversion rate.
This is the percentage of link clicks that result in the purchase of products and services. This metric helps you check the effectiveness of the affiliate programs.
Using the revenue metrics helps you track the profits made in a specific period by the affiliate program. You will want to pay close attention to the incremental revenue and revenue growth made by the programs.
3. The percentage of active/inactive affiliates.
If you have many registered affiliate programs you may want to know which ones are generating sales. Getting to know the percentage of active affiliates pinpoints the affiliates that are generating sales and helping you grow.
4. The sales per affiliate.
The sales per affiliate metric help you compare the sales of affiliates you have. You can see who generates more sales over some time and reward them accordingly.
If you are a manager or have affiliate marketing programs and are looking for information on how to optimize your affiliate channels you can contact https://impact.com/partnerships/the-holy-grail-of-affiliate-marketing-metrics/
What Are the Types of Affiliate Marketing?
Affiliate marketing is categorized into three:
1. Related affiliate marketing.
Related affiliate marketing is whereby an affiliate promotes a product they do not use but is related to their job. The affiliates recommend products and services. to their audience even if they do not use the product or service.
2. Involved affiliate marketing.
Involved affiliate marketing is whereby the affiliate promotes products and services they have used and truly believes in them. They use their influence to push products that their followers may need and use.
3. Unattached affiliate marketing.
Unattached affiliate marketing is where the affiliate has no connection whatsoever with the products and services they are promoting. The affiliates run the promotions with the hopes that consumers will click and purchase the products and services.
Advantages and Disadvantages of Affiliate Marketing.
- The strategy is easy to execute as you only deal with marketing the product or service.
- Low risk involved. You do not need any fees to join the affiliate programs.
- One has easy access to a wide market.
- Affiliate programs are commission based. Partners receive payments by either sales, clicks, or leads generated.
- As an affiliate, you have no control of the program. You follow the guidelines stipulated by the company concerning its products and services.