Introduction
With over 4.39 billion internet users globally and 1.79 billion shopping online (as of 2019), the digital landscape presents vast opportunities for entrepreneurs. Among these opportunities is affiliate marketing, a low-barrier, internet-based revenue-generating method requiring only a computer, internet connection, and some effort.
The Origins of Affiliate Marketing
Early Beginnings
- 1989: William J. Tobin, the first internet marketer and owner of PC Flowers & Gifts, launched the affiliate marketing concept on the Prodigy Network.
- 1993: Prodigy generated $6 million in transactions through affiliate marketing.
Evolution
- 1996: Amazon introduced its Associates Program, popularizing the affiliate model.
- 1997: Affiliate directories like Refer-It.com made it easier for individuals to market diverse products.
- 2008: The U.S. Federal Trade Commission mandated disclosure of affiliate relationships, adding credibility and transparency to the model.
What Is Affiliate Marketing?
Definition
Affiliate marketing is a performance-based marketing strategy where a company rewards external marketers (affiliates) with a commission for driving sales or traffic.
Simplified Explanation
Affiliates promote products through various online channels. They earn a commission when a customer completes a purchase via their unique affiliate link.
How Affiliate Marketing Works
Here are the steps to get started:
- Research Affiliate Programs
- Platforms like Amazon, ClickBank, or ShareASale offer a variety of programs.
- Review commission rates, payment schedules, and promotional resources.
- Sign Up
- Register and receive a unique affiliate link for tracking sales and clicks.
- Promote Products
- Use social media, websites, or ads to direct traffic to the product page.
- Earn Commission
- When a sale is completed via your link, you earn a percentage of the revenue.
Types of Affiliate Marketing Websites
- Product Reviews: Offer in-depth reviews, comparisons, and customer feedback.
- Price Comparison: Highlight cost differences among products or services.
- Personal Blogs: Recommend products or services with affiliate links.
- Niche-Review Sites: Focus on a specific category (e.g., dog food).
- How-To Websites: Provide step-by-step guides while recommending relevant products.
- Coupon Websites: Share discounts and deals tied to affiliate products.
- Free Tools Websites: Offer resources while integrating affiliate promotions.
Popular Affiliate Program Products
- Physical Products: Clothing, electronics, household items.
- Information Products: E-books, online courses, and webinars.
- Service Products: Web hosting, design services, and SaaS tools.
The Future of Affiliate Marketing
Affiliate marketing is poised for continued growth.
- In the UK, affiliate networks generated £2.16 billion in revenue.
- Globally, the industry has reached $6.5 billion in earnings.
- Profitable sectors include travel, finance, gaming, and retail.
With consumers increasingly researching online before purchasing, affiliate marketing remains a valuable business model.
Get Started with Affiliate Marketing
Contact Guy Galboiz for expert advice on launching your affiliate marketing program or guidance on building a successful affiliate venture.