Affiliate marketing is a way of marketing using a third party or affiliate. It is just like having own personal sales team who can drive sales at your website using variety of methods.
Affiliate marketing is a way of marketing using a third party or affiliate. It is just like having own personal sales team who can drive sales at your website using variety of methods. They may be content marketing or blogging, email marketing, price comparisons, voucher code sites, pay per click and search marketing. Each sale generated by affiliate marketing will be recorded using tracking code and affiliate is paid a pre agreed fee which is a percentage of sales. Affiliate marketing helps to build brand awareness. It makes a link between brands and new customers. Most affiliate charge a set up fee, monthly fee and some percentage of amount being paid. Commission levels being paid to affiliate vary from 4% to 12%. Attractive and professional looking website that has good range of products and are easy to use will maximize the success of affiliate program.
So far as earning is related, we can get five earning groups. They are:
1. Affiliate apprentice
2. Low level affiliates
3. Intermediate affiliates
4. High level affiliates
5. Bag of dicks affiliates
Affiliate apprentice: loses money and time. Their main job is to cope with the relevant area.
Low level affiliates: may stay anywhere from $0 to $300/day. They mainly focus on profit around web. These may be POF dating campaigns, small scale face book advertisements; juicy advertisement buys etc. volume of traffic is smaller.
Intermediate affiliates: earn from $30/day to $3000/day. They focus on high volume traffic sources with smaller margin than beginners. High competition of large traffic sources decrease income. Mobile marketing, POP traffics are targeted.
High affiliates: focus on mass market media buys and huge traffic sources. Huge capital is invested. They are high risk bearers.
Bag of dick affiliates: focus on fox news. They earn not less than $10,000/day.
Affiliate marketing possesses a very volatile character. As far as income concerns it will never guarantee a particular income. A program on highest position today may flop tomorrow in competitive market. It is very difficult to maintain a fixed range of earning for a long period of time. If any affiliate program can maintain earning for a long period of time, it is said to be successful. In most cases, the last position of earning tells the last word. As a result most established affiliates stay in intermediate stage.
Expectation of potential earning does not match the work with actual income. This situation makes them more aggressive. It creates tendency to invest more on this area and bear high risk.One thing should be kept in mind that, the person making highest profit in the business may not be the happiest .This is due to the diminishing returns to scale. This states that after reaching a highest point, utility of money diminishes. So, no businessman becomes totally satisfied with his money.
So instead of profit, stress should be given on revenues. One should incorporate the cost of risk taking and investment making with earnings. Maintain work leisure balance and earn satisfactorily. In this way earning from affiliate marketing will be the best.