The word affiliate has been thrown around the Internet marketing industry quite frequently, but it might not be clear to you exactly what it means. In this article, we’ll explore the definition of affiliate marketing, as well as its many benefits to you as an entrepreneur or business owner. Let’s get started!
What is Affiliate Marketing?
An affiliate marketer is an individual who receives a commission by promoting products or services on behalf of an online merchant.
The merchant is typically responsible for product fulfillment, customer service, and order processing.
You can see it as a "Connector's Model".
Connecting people with outcomes they want, and having other companies deliver those outcomes. Similar to Uber and Airbnb.
Uber for example is connecting people who looking to go somewhere with drivers who can drive them there.
Airbnb, connect seekers of accommodation with owners of the accommodations in the desired location.
Let's briefly see seven of the main benefits of Affiliate marketing.
The seven benefits
1) Does not requires a lot of capital. It is very cheap to start
You don’t need any inventory, you don’t need any facilities.
You can start very small and grow quickly with only a few hundred dollars for your domain name, hosting, email providers, etc. That is for the basic computer infrastructure.
It is a perfect option for people who do not have much capital.
The beauty of it is that you will immediately get feedback on how well your product is doing in terms of sales and profit margin.
If your product or business isn’t earning enough money, there won’t be another month to wait and see if it catches on.
Since affiliate marketing is based around selling someone else’s products, your personal reputation doesn’t matter as much; when someone buys a product from one of your links or banners, they aren’t buying from you directly.
This lowers some barriers to entry because many companies are wary about putting their products in the hands of anyone but their most trusted affiliates.
Anyone can choose to become an affiliate and earn commissions by promoting other businesses’ goods and services.
There is no cap on commission earnings so what you make through your efforts depends entirely on what you decide to promote and how successful your campaigns are.
2) You do not need to have to create your own products and services to sell
The great thing about affiliate marketing is that you don’t need to come up with your own products.
There are literally thousands of products and services to promote online, so there’s no shortage of options to choose from if you decide to take a less hands-on approach.
In fact, according to some estimates, only 10% of affiliate marketers create their own products! The other 90% just sell others’ products and participate in other programs.
In short, it can be well worth taking an honest look at what working on an affiliate marketing program has to offer you before writing it off as an also-ran opportunity.
It may turn out to be exactly what you want without even knowing it!
You do not have to come up with your own product or service: Chances are good that someone else already offers something related to whatever it is you want or need — and many likely already sell those items online.
If not, someone else likely makes something very similar that you could use for your purposes anyway; perhaps they will let you sell theirs for them if yours doesn’t exist yet or isn’t quite right.
3) Does not require handling and customer service
With affiliate marketing, you have no customer service to handle.
This saves time and money. You also don’t need to carry any stock.
You simply act as a middleman between a product owner who needs customers and buyers who are looking for them.
Once you find someone on your network that matches what a potential customer is looking for, all you need to do is forward them along! That’s it!
The best part about being an affiliate marketer is that you get paid once a month by many different business owners.
And with so many affiliates working together at once, there’s never been more opportunity in MLM than now!
What's more is that these payments can come directly from big-name brands like Amazon, Google, and Walmart!
Best of all?
It takes less than 15 minutes per day to become a successful affiliate marketer.
All you need to start is your own website or social media account plus an Internet connection...followed by proven guidance from our step-by-step training course!
4) You do not have to store and deliver the products
The best thing about affiliate marketing is that you do not have to store and deliver any products, so you do not need your own storage space.
All you need is a website where you can post links to all sorts of things related to your niche.
After people click on those links and buy something, you get paid a commission.
You also get bonuses if they sign up for newsletters or even make repeat purchases at different websites through your affiliate link.
You might have an easier time setting up an e-commerce site or selling a product yourself but in most cases, it’s much more profitable (and probably quicker) to sell other companies’ goods using affiliate marketing.
That way, you only invest as much time as necessary but still earn money from each sale with zero additional effort!
5) You can work from anywhere in the world
One of the biggest benefits of affiliate marketing is that you can do it from anywhere in the world.
You don’t have to commute to an office or sleep in a cubicle.
This freedom means you are able to control your entire schedule and make money on your own terms.
To me, that is priceless and one of my favorite benefits!
I love being able to live life without boundaries, knowing that I am completely free to pursue whatever I want as long as I am making money at it. It truly is a liberating feeling.
The possibilities for location independence are almost endless.
For example, there are many full-time digital nomads who work remotely while living out of their backpacks and traveling throughout Asia or South America.
There are also entrepreneurs who build businesses while traveling throughout Europe each summer with family & friends.
If location independence sounds appealing to you, affiliate marketing is maybe the best option.
6) You can start form zero and launch your business in the next 30 days
The best part about affiliate marketing is that you don’t need any experience to make money with it.
It’s really a great way for beginners to get into business and entrepreneurs can scale their existing businesses.
This makes it one of the best internet-based businesses out there.
Getting started doesn’t take much time and investment - all you need is a good idea, a website and a bit of traffic.
If you have these three things in place then there’s no stopping you from becoming an affiliate marketer.
You could even start your own training program to help others learn how to do it.
Choose something you are passionate about and want to grow personally as well.
Once you find something you like, there’s nothing holding you back from starting.
Step 1: Decide on a niche.
There are several types of affiliate marketers based on what they choose to promote or not to promote.
Step 2: Choose what type of products or services would interest you most so that it will be easier for you when sharing ideas online.
7) You can generate profits and revenues very fast compared to other business models.
It takes only a few hours to set up an affiliate marketing campaign and start earning commissions.
If you’re just starting out, you can actually start making money on day one.
You don’t need to buy inventory or build anything—you simply choose products from your affiliate network and put links to them on your website(s).
Then with some basic traffic generation strategies and actions, you can see visitors to your offer increase and sales rolling in.
This level of control is attractive for entrepreneurs who are getting started because it doesn’t require as much time or as many resources to get going.
Your potential revenue is limited by how much traffic you can generate, which isn’t always easy when there are so many other ways for people to spend their time online!
Also, if you have any technical skills at all, setting up an affiliate program usually requires someone with those skills.
For example, they’ll likely need help building landing pages or creating tracking software that tells whether a customer has purchased after clicking your link.
Of course, these technical issues could be worth hiring a developer over if you plan to turn affiliate marketing into a serious business.
But even then, remember that you’ll need to hire someone (or contract work) to do things like upgrade technology as needed and ensure that affiliates are playing by the rules—that kind of thing definitely requires human interaction!
The GOOD NEWS though is that you can very easily acquire these skills!
There are training programs that can help you step by step, even watching other successful people (in affiliate marketing) how they made it and copy and apply the exact same steps!
See next paragraph for details and everything you need to start in Affiliate marketing
Are you interested in more details?
If you’re interested in learning more about affiliate marketing, then check out a dedicated FREE webinar I host on this website which is delivered by my mentor in Internet Marketing, Vick.