Affiliate marketing has become one of the most attractive business models for new generations of entrepreneurs, who can start making money with nothing more than an internet connection. It’s a business concept that grew significatively during these last decades thanks to a constant increase in internet penetration.
Nevertheless, given it’s still a very innovative business model, many entrepreneurs actually don’t know what to take into account before getting started in this form of commercial alliance. To help you take the first step into the world of affiliate marketing, we present 4 essential aspects of this business model:
1. Companies and affiliates have different responsibilities
Affiliate marketing is not only about the seller (affiliate), but about the company that provides the products that are to be sold, which means each part has different responsabilites. The company must design an effective affiliate program that abides by the law, taking into account the needs of its affiliates and ensuring the creation of a responsible customer service.
On the other hand, the affiliate is responsible for investing time and money on the creation of a sales platform that allows for a seamless buying experience, but that also generates value for visitors through quality content. The seller must also make sure to track all essential data, such as visits, clicks, lead generation and sales.
2. Is not easy or fast money
As it usually happens whenever a new business trend becomes popular, many “experts” take advantage of people’s ignorance to increase their revenue stream. Coaches and gurus are the most common examples of this in the world of affiliate marketing, with many of these so-called experts assuring clients will make giant sums of money in little to no time.
Nothing could be further from the truth.
While it is true that affiliate marketing can be profitable, it is necessary to have a sales platform (website or social media profile) that attracts a high amount of loyal visitors in order to transform them into actual customers.
3. Middle men makes things easier
Many companies design and manage their own affiliate programs, nevertheless, more and more people are starting to go to intermediary services such as algo affiliates. This is because these types of services make it easier for companies and sellers to connect over topics and products of mutual interest.
These services will most likely charge additional commissions and subscription fees, limiting the amount of money each side makes when a product is sold. While this might sound negative, it is not only but the price to pay in order to accelerate the generation of profits.
4. Tracking, measuring and optimizing
A site that is supposed to work as a sales platform for other companies must maintain a constant growth, creating a steady revenue stream for the affiliate and the provider. This is why tracking, measuring and optimizing is so important for the model.
We must make sure that our site is attracting enough traffic, generating enough clicks to our affiliate links, and selling enough products, but also that it works properly, with fast load times, safety measures that can keep the visitor’s information private and with active links at all times.