Affiliate marketing is one of the most profitable ways to generate passive income today. Thanks to marketplaces and online stores, promoting the products or services of a third party is perhaps the best online business you can do.
In this post we take a close look at this whole issue, because the profits will not come in the blink of an eye unless you consider a coherent and solid strategy. To help you master the
affiliate marketing, we have prepared this guide that summarises every aspect, definition and practice of this business.
What’s affiliates marketing?
Affiliate marketing is a business strategy that seeks to generate income through referral. What is more recent is its application in the digital ecosystem, together with the practices and tools used for monetization.
That is, this is a profitable online business idea that works through a collaborative relationship between brands that seek to promote and sell their products and an affiliate that earns a commission for positive results, each time a sale is made thanks to their promotional services and channels.
It is very attractive for the company, since it will only pay when one of its products is actually sold, and for the affiliate because they can build a whole business on automatic pilot that allows them to earn money online.
How Affiliate Marketing Works?
Since you are evaluating how to generate passive income online with affiliate marketing, there are 3 fundamental concepts that you must master. These are the foundation on which this type of marketing strategy works.
Advertiser
It is the company or person who requests the promotion of their products either through an advertisement or a link on an affiliate platform. But when using a link or posting an ad, the advertiser does not pay for visibility space, but pays for each time a user converts through the action that was agreed with the affiliate. The most common platform is a blog or website, but social networks have also become a profitable channel to make profitable in this way.
Affiliate
It is a partner or collaborator. If you want to be an affiliate, you would be the person who owns the promotion channel, who agrees to recommend the company’s product and receive a commission every time you get a person to buy that product. Of course, logic dictates that you only promote those products that have to do with your interests or knowledge and, at the same time, things that are useful or desired by those who visit your blog or follow you.
Affiliate link
It is the means that will lead to the website or product file (in the case of marketplaces) of the company where the user can make their purchase. The links have a unique code that serves to identify the affiliate and allocate the earnings. You can control the code to verify the profitability achieved and the commissions to be charged.
To get started you must join profitable affiliate programs or contact companies directly to offer yourself as a partner. The programs usually already have predefined the commission to pay:
- Conversion: commission for the sale of the referred customer.
- Click: commission for the number of visitors achieved.
- Form: when a user referred by you fills out a form.
