We live in the most exciting age of technology which has drastically changed the way every business is conducted, There is a huge buzz about affiliate programs and all want to know “How Does An Affiliate Program Work?”
Life can never be better
Let me narrate an anecdote before I get to the juicy bit. It was a Friday, 2012 mid-year, monsoons were setting in, I had decided to buy dinner from a small Chinese restaurant located close to my home, I rolled out my bike from the parking space and rode down. The owner of the restaurant received me with a warm welcome, took my order and asked me politely to wait for some time for my takeaway to be prepared. It was almost 15 minutes and I was wondering why there was a delay hence inquired with the owner as I saw the place was empty, to which the response was, there were already 5 orders in queue before I walked in and it would take another 5 minutes. These orders came through a restaurants’ aggregator site who called themselves FoodPanda and they deliver orders placed online for a commission. WOW how cool is that and here I am all drenched and sitting under the fan, drying myself and thinking how sad it was for this nice restaurant to run out of business due to rain.
Finger Tip Technology
Over five years since then the online space has revolutionised every product or service that can be bought. We don’t realise this because technology has silently sneaked in and has embedded in our lives, sit back and just think for a minute how life was 15 years ago and you will understand what I am implying.
Now do this little task, what is the price of the latest Apple iPad? Don’t mail me your answer ;-).
So, what did you do? I am sure you searched for it on the internet. That is how business is done these days, if a business is not having an online presence it is virtually driving away prospective customers. I happened to overhear a couple of school kids conversation at a bus stop, they were speaking about the new Parker Pen available in the market, I was amazed to hear them speak so much about a pen because as a kid I would have never dreamt of those things. They had researched the net and found the best offer on Amazon after going through all the reviews. If you are here with me still reading this, understand the reach and impact of the internet.
Why am I telling you all this?
What did you do when I asked you the price of the latest Apple iPad, you googled it and figured out the price right! Similarly, there are 3.5 billion searches per day on Google (Excluding Bing, Yahoo and other search engines) and the numbers are growing. People keep looking for information on the internet which has forced businesses to change their business model to be more internet savvy.
It is not just providing information but to boost sales, products and services are being made available online and sold. Since the competition has been brewing up, more and more businesses are offering affiliate programs.
What is an Affiliate Program?
Let us do a role-play here, you manufacture or retail health products, in order to boost sales, you offer a scheme of giving commission to people who can lead prospective customers to your site, resulting in sales. I am an online marketer who blogs or uses other forms of marketing tools to advertise. I find your product good as per the current trends and would like to sell your product. The next thing I would do is sign up for your scheme which is called an Affiliate Program and I would become your official Affiliate Marketer.
Why would a Company offer an Affiliate program?
⇒ To boost sales
⇒ Wider reach
⇒ Minimise cost of the product to the customer due to reduced establishment cost
⇒ Reduce cost of advertisement
A perfect WIN-WIN Strategy
I love giving live examples, Google affiliate program for any big brand you like and check out the results.
Stop for a while and repeat the same exercise with some more products or brand names to understand what is in the offering.
How does the Affiliate Marketer benefit?
⇒ Compensated with a commission for every sale which can range from 2% – 75%
⇒ Nil customer handling or interaction
⇒ No delivery or return handling
A lot of companies do not handle their own affiliate programs and sign up with an aggregator who handles their affiliate program in terms of technical tracking and pay out of commissions to the affiliate marketer, these aggregators are called Affiliate Networks. To name a few, ShareASale, Rakuten LinkShare, Clickbank, Amazon Affiliate are all Affiliate Networks.
Pre-Qualifications to Affiliate Programs
⇒ Have a blog or website
⇒ A strategy to use all the affiliate marketing tools like Adsense, Keywords, SEO etc
⇒ Understand how to run Ad campaigns like native ads or paid ads and monitor them
Remember this is not any rocket science, just needs little research or you can check out Wealthy Affiliate Reviewed page for all your questions to be answered.
Don’t overdo the thinking about where or when to start, try the widget below and own your website for absolutely nothing.
If you have any questions at all let me know down in the comments and I will get back to you as soon as possible.