Busting Four Myths of Affiliate Marketing
The concept of affiliate marketing dates back to 1989 when William J. Tobin conceived, implemented, and patented the idea of affiliate marketing via the internet. In 1995, there were around 2600 affiliate marketers on the World Wide Web. Further, Amazon launched its associate’s website by 1996. Thus, the world witnessed a new marketing tactic over traditional marketing to boost sales and generate revenues. Today almost 81% of the brands utilize affiliate marketing in the U.S. Every year, an uptrend is seen in the use of affiliate marketing.
In straight and simple terms, affiliate marketing means promoting an individual product or a particular brand’s product or service on an affiliate’s site. The affiliate earns a commission for the sale. Let us understand exactly how affiliate marketing works. Followed by this, we will also explore the popular myths associated with affiliate marketing.
How does affiliate marketing function?
Affiliate marketing happens amongst four key players, and they are:
- The brand or merchant
- The affiliate network
- The affiliate
- The customer
An affiliate can promote a product or service of a brand or individual seller. If the consumer clicks the affiliate links or purchases the product, the affiliate can earn a commission on that purchase or click. Through affiliate marketing, the business can cost-effectively reach a wider target audience quickly. Affiliate marketing not only helps sellers sell their products or services faster but also helps sellers make their customers educate about their offerings. In modern times, the affiliate network takes care of the affiliate links for the affiliates and manages their payments. Affiliate networks such as WeLoveAdz help bring affiliate marketers and growing businesses, offering affiliate marketing programs to come together. Affiliate networks help in bringing forth effective affiliate marketing campaigns benefitting both the businesses and the publishers.
Affiliates could earn in a number of ways, such as:
- Pay per sale
- Pay per lead
- Pay per click
Affiliate marketers can earn passively through affiliate marketing from their homes, and it can be initiated cost-effectively. Affiliates can work in a flexible schedule and earn lucrative performance-based rewards. So, let us now look at why certain myths revolve around affiliate marketing which might be preventing investors from opting for this business.
Reasons why myths exist around affiliate marketing
Well, affiliate marketing offers a lot of scope to both the publishers and the brands or retailers. However, due to some complications in executing the affiliate marketing tactics successfully, newer affiliates and even businesses are often misguided by affiliate marketing myths.
Popular myths debunked
So, let us now look at what are some of the most common affiliate marketing myths.
- Quick and easy to set-up & manage: According to surveys, only 3% of affiliate marketers earn a decent amount of money from affiliate marketing, and very few affiliates have managed to be in business for more than five years. So, it is quite clear from the above-mentioned statistics that the affiliate marketing business takes time to grow, just like all other businesses.
First of all, the website or social media page needs to pull a decent amount of traffic and then convert that traffic to leads for the business or service that the company is promoting. For this, they need to ensure that their site or social media page is updated regularly, and they also need to collaborate with the right partners.
- Huge capital: The myth says that investors need a lot of money to start an affiliate marketing business. This can often seem overwhelming for newbies, but that’s not the truth. The fact is that one can start their website at a low price or even use social media platforms to begin their affiliate marketing business. Thus, they can start affiliate marketing with a nominal budget.
- Getting the product on multiple sites: This is another popular myth around affiliate marketing, whereas the truth is affiliate marketing seeks quality over quantity. The key is to find the right affiliates who can offer conversions. It doesn’t matter if the product or service is advertised by thousands of affiliates because only a handful of them might be generating sales and revenue.
- Affiliate marketing cannot be lucrative and promising: This is not true again, but in order to make affiliate marketing work and generate adequate income, the company needs to consistently put some effort into it and keep upgrading its affiliate marketing skills. Besides this, partnering with correct businesses is also essential.
Now that the affiliate marketing myths have been cleared, it would become easier for investors to kickstart their affiliate marketing business. If anyone is looking for an incredible way of earning passively, they could certainly look forward to this opportunity. Interested entrepreneurs could begin by becoming a social media influencer, blogger, email marketer, or creating a media website.