More and more people consider starting in affiliate marketing. After all, for most people, heading to work is just an unpleasant feeling. You don't only take a lot of time to get there as you probably don't even like what you do. Besides, in some cases, you may even need to deal with a terrible boss. So, if you see yourself in this picture, you're not alone. There are a lot more people who have this same idea and this is when they start wondering about affiliate marketing.
Some Stats About Affiliate Marketing
The reality is that affiliate marketing has a lot to offer you:
• There is a 10.1% increase in affiliate marketing spending in the United States each year. This means that this number should reach $6.8 billion in 2020.
• About 81% of brands and 84% of publishers leverage the power of affiliate marketing. And this is a statistic that will continue to increase as affiliate marketing spending increases every year in the United States.
• In March of 2017, Amazon’s affiliate structure changed, offering rates of 1-10% of product revenue for creators, providing the opportunity for affiliates to dramatically increase their passive income based on the vertical they’re selling on.
• In 2018, content marketing costs were gauged to be 62% of traditional marketing schemes while simultaneously generating three times the leads of traditional methods. In fact, 16% of all orders made online can be attributed to the impact of affiliate marketing.
But What Is Affiliate Marketing?
Simply put, affiliate marketing os the process on which someone - the affiliate - makes a commission for marketing and selling someone else's products or services. So, the affiliate will look for a product he likes and he will use different strategies to promote it. He will then get a percentage for each sale he makes.
How Does Affiliate Marketing Work?
As you probably already understood by now, there are three main parts involved in affiliate marketing: the product creator or seller, the affiliate or publisher, and the consumer.
#1: The Product Creator Or Seller:
As you can easily see, the seller is the product creator. Notice that the product can be anything you want from a tutorial to household goods, a service or a product. Notice that if you intend to start with affiliate marketing as the seller, you won't need to be involved in the marketing.
#2: The Affiliate Or Publisher:
This is the person who needs to pick the product they want to promote and then market it so they can sell it. When the affiliate or publisher ends up convincing the consumer to buy this product he is promoting, then he will make a commission or a portion of the revenue made.
#3: The Consumer:
We are all consumers. And the fact is that you may have no idea about if you are being marketed by an affiliate or not when you are buying a product. Ultimately, this doesn't even matter. The only point to retain is that as soon as the affiliate is able to persuade you to buy the product he is promoting, both the affiliate and the publisher will share the revenues.