The best way to understand digital affiliate marketing is to begin from where it all began.
The concept was developed and patented by William Tobin in 1989. Back then there was no internet and the whole idea was to get paid or given a discount after referring someone to purchase a product.
It was digitally popularized by Amazon in 1996. Where the concept was further developed and it involved online links and better data tracking.
Now it stands as a whole marketing niche by itself. People now depend on digital affiliate marketing to earn a living can support their families.
It is also one of the most in-demand marketing strategies by companies. The best part of it all is that you can easily learn and start earning from digital affiliate marketing.
How to get into digital affiliate marketing
1. Knowledge in affiliate marketing
It should not be hard to find information about how affiliate marketing is operated and how you can get into it.
You can also enroll in affiliate marketing courses if you want to expand your marketing or starter affiliate marketing network.
2. Promotion niche
There are so many niches for affiliate marketing some that are more profitable than others. For example, you may choose to get into the wellness and fitness niche and be an affiliate marketer for fitness companies.
3. Affiliate program
Do your online search and find a program that best suits you and your niche.
4. Internet connection and working space.
With the main things out of the way, it is ideal that you have a good internet connection and dedicated working space.
What is affiliate marketing and how does it work
To understand what affiliate marketing is and how it operates, let’s get these times out of the way;
A person who connects a customer to a business. They get paid based on their efforts in promoting the product.
- Affiliate broker
An affiliate broker is a company or a person who organizes an affiliate program between a company and an affiliate.
- Affiliate network
It is a marketplace where businesses and affiliates are connected.
- Affiliate site
This is the website that holds an affiliate network.
They are referrals that an affiliate has brought in through their promotion strategies.
Affiliate marketing is therefore a type of marketing strategy where an affiliate is paid by a business depending on the number of people they drive to ascertain business based on their marketing efforts or promotions.
For one to be an affiliate marketer, you only have to have a way in which you attract traffic or have an audience that may interest a company to market their products to. For instance, a pet blog website.
What are the payment arrangements and how is it arrived at?
It all comes down to how, where, and when does an affiliate marketer gets paid.
An affiliate marketer is paid based on an affiliate program payment arrangement. Different programs have different payment arrangements.
Some programs pay at a fixed rate when others pay a percentage of the sale.
There about four main payment plans that many digital affiliate marketing programs use;
1. Pay per click
With Pay Per Click, the commission will be calculated depending on the number of people who clicked on your affiliate link or your merchant code.
2. Pay per sale
In Pay Per Sale, What you get from your affiliate promotion will be based on the sale made by your referees. You may have 1000 people click on your affiliate link but only 50 buys. Your commission will be from the 50 and not 1000.
3. Pay per lead
Pay per lead is another payment plan where an affiliate is paid based on the number of leads they bring. You may be wondering what the difference is between PPL and PPC is.
Well, a lead person who is a potential customer. This plan is normally applicable to the business-to-business type of affiliate marketing.
4. Hybrid model
AN hybrid model of payment is where you can get paid commission for all. Take for instance you refer 2,000 people a thousand of them buy the product will a thousand of them only view the product.
Usually, the payment for a successful sale from an affiliate referral is higher than the commission made through the number of referral clicks.
If it is not already obvious to you to make more money through affiliate marketing you need to make sure your promotion strategies bring in more traffic.
The more people you can get to convert or lead, the more you’re going to earn.