What Is Affiliate Marketing? Everything you need to know

Affiliate marketing is perhaps the best example of how an old marketing technique can be revolutionized by technology. The concept and practice of affiliate marketing has existed from the time marketing itself has existed and yet, it was not until Amazon.com incorporated the concept into their business model, that Affiliate Marketing became a thing.

What Is Affiliate Marketing?

Although the term is new, the idea of affiliate marketing has always been operating in the market. The recent development is just that it has been formalized under the term ‘affiliate marketing’. So, precisely, what is affiliate marketing?

In simple terms, it is when a third party promotes your stuff on their own digital spaces. Fundamentally, it is different from general media in that, unlike media owners, the affiliate marketers are not paid for the promotion, instead they are paid a fraction of the sales they help make.

The internet has various tools which you can use to tell which leads have been generated by your affiliate marketer. The more technical answer to the question of what affiliate marketing is would be that it is a marketing method where the job of pitching and selling the product is outsourced. The outsourced individual who gets a commission out of the sale is called an affiliate, and the process by which they make the sale for you is called affiliate marketing.

People have always been promoting business through word of mouth based on personal experience, Amazon just found a way to monetize it. And it worked. It worked so well, that they had to come up with a term for it. And that’s how affiliate marketing exploded into a big bang to create the world of digital marketing we live in.

Affiliate marketing is the hottest trend in digital marketing right now due to the exponential spike in social media over the last decade. Social media has immensely increased the value of goodwill in marketing. How many people know you have never been more relevant to the day-to-day life of the average individual?

The explosion of social media has made one’s social currency extremely relevant to marketing, the greatest example of which is affiliate marketing, with influencer marketing on its heels. According to Statista, business spending on affiliate marketing will hit $8.2 billion in the U.S in 2022. 

Types Of Affiliate Marketing

Broadly, there are three types of affiliate marketing. The incentive structure is more or less the same for all types of affiliate marketing, they all differ primarily on the basis of the involvement of the affiliate.

1. UNATTACHED AFFILIATE MARKETING

This is the most basic type of affiliate marketing. Just about anyone could do it. The affiliate is not related to the brand they are promoting in any way more than the next man. The sector the brand belongs to is not their niche or specialty. This kind of affiliate marketer is not looking to build their business network through it, they are just trying to make some money.

You don’t really even need an online presence for it, you can just spend some money on google ad words and use PPC for affiliate marketing.

2. ATTACHED AFFILIATE MARKETING

This is a moderate type of affiliate marketing where the affiliate is ‘’attached’’ to the product/service/sector of the brand in one way or the other. Usually, the attachment is that the individual shares the niche with the brand and is often kind of an expert on it. 

Moreover, the affiliate has an online presence that establishes them as a sort of authority on the subject. For example, a buff dude with his top less photos all over his Instagram would make a very good affiliate marketer for a fitness brand, say, a protein powder or a gym. 

3. INVOLVED AFFILIATE MARKETING

This type of affiliate marketing is different from the previous one in the level of involvement of the affiliate. In this type, the affiliate is more personally involved in the promotion. They vouch for the brand, basing it on personal experience. 

Their testimony becomes a proper ad for the brand. It’s like affiliate marketing boosted by endorsement. And, the affiliate has such an online popularity that their endorsement is no less than a celebrity endorsement. This type of affiliate marketing ends up being the most engaging for the affiliate. 

Benefits Of Affiliate Marketing

The most obvious benefits of affiliate marketing in simple terms:

• Low cost: You don’t have to pay the affiliate anything for promotion. They can promote you and promote you, but you don’t have to pay them a dime until you make a sale through their promotion. 
• Low risk: There  is no risk of losing your money. You invest no money in the affiliate’s activities. All you risk to lose, in the worst case scenario is a lot of time and effort you put into vetting out  the affiliate and setting up the arrangement. 
• High return on investment: The return on investment is calculated on an  investment of zero. So, it is a foolproof strategy where you just can’t lose. You only ever stand to gain from affiliate marketing. 

How does Affiliate marketing work?

As an advertiser, you’re always on the lookout for effective ways to promote your product or service to your target audience. One popular method that’s gained a lot of traction in recent years is affiliate marketing. At its core, affiliate marketing is a performance-based advertising model where you partner with other businesses or individuals (called affiliates) to promote your product or service in exchange for a commission on any resulting sales.

So, let’s say you’re selling a new fitness program online. You could partner with fitness bloggers, YouTubers, or other influencers in the health and wellness space to promote your program to their audience. If someone clicks on their unique affiliate link and makes a purchase on your website, the affiliate earns a commission on that sale.

But how do you make sure your affiliates are promoting your product effectively and ethically? That’s where tracking and reporting come in.

When you set up an affiliate program, you provide your affiliates with unique tracking links or promo codes that they can use to promote your product. This allows you to track their sales and ensure they’re properly credited for any conversions they drive. You can also use specialized affiliate marketing software to track and manage your program, including monitoring affiliate activity, generating reports, and automating commission payments.

However, you’ll also need to carefully vet your affiliates to ensure they align with your brand values and won’t engage in shady or unethical marketing practices that could harm your reputation. You’ll also need to continuously monitor your program and make adjustments as needed to ensure it’s generating the results you want. Overall, affiliate marketing can be a powerful tool for advertisers looking to reach new audiences and drive more sales. With the right strategy and tools in place, you can build a successful affiliate program that benefits both you and your partners.

How To Do Affiliate Marketing? 

1. Choose Your Niche

Identify Your Interests: Select a niche you are passionate about to stay motivated.

Research Market Demand: Ensure there is a viable audience and demand for products in that niche.

Analyze Competition: Study existing affiliates to understand the competition and identify opportunities for differentiation.

2. Select Affiliate Programs

Find Reputable Programs: Join affiliate networks like Amazon Associates, ShareASale, or ClickBank, or connect directly with companies offering affiliate programs.

Evaluate Commission Rates: Look for programs offering attractive commission rates and reliable payment structures.

Review Terms and Conditions: Understand the rules, restrictions, and requirements for each program.

3. Create Quality Content

Build a Platform: Set up a blog, YouTube channel, or social media presence where you can share content.

Produce Engaging Content: Write reviews, how-to guides, tutorials, or comparisons related to your niche products.

Incorporate Affiliate Links: Integrate your affiliate links naturally within your content without being overly promotional.

4. Drive Traffic to Your Content

Optimize for SEO: Use keywords, meta descriptions, and high-quality content to rank higher on search engines.

Leverage Social Media: Share your content on social media platforms to reach a broader audience.

Utilize Email Marketing: Build an email list and send newsletters featuring your content and affiliate links.

5. Track Performance and Optimize

Use Analytics Tools: Monitor clicks, conversions, and earnings through tools provided by affiliate programs or third-party analytics software.

Analyze Data: Identify which content and strategies are most effective.

Optimize Your Strategy: Adjust your content, promotional tactics, and focus on high-performing products to maximize your earnings.

Affiliate Marketing Examples 

1. Shilpa Ajwani (Instagram & Blog): 

Shilpa Ajwani is a popular Indian fashion influencer with a strong presence on Instagram and a dedicated blog. She leverages affiliate marketing by showcasing trendy clothing and accessories in her posts and blog content.  She includes affiliate links for the products, and if her followers click through and purchase, she earns a commission.

2. Hitesh Goswami (YouTube & Facebook): 

Hitesh Goswami is a prominent Indian tech YouTuber and reviewer.  He focuses on gadgets and consumer electronics, creating in-depth reviews and comparisons on his channel.  He partners with various tech brands and includes affiliate links in his video descriptions and Facebook posts. When viewers click through his links to buy the products, he earns a commission.

3. Siddharth Pickachu (Blog & Social Media): 

Sidhhार्थ Pickachu is an Indian blogger and social media personality known for his travel content.  He shares travel experiences, destination guides, and recommendations on his blog and social media channels.  He partners with travel booking platforms, hotels, or tour companies, incorporating affiliate links within his content. If his audience clicks the links and makes travel bookings, he earns a commission.

4. Shradha Sharma (YourStory Blog): 

YourStory is a popular Indian platform for entrepreneurs and startups. Founder Shradha Sharma leverages affiliate marketing by featuring business management tools and services relevant to their audience.  Strategic placement of affiliate links within blog posts allows them to earn a commission if readers click through to make a purchase.

5. FitTuber (YouTube Channel): 

Many Indian YouTubers focus on health and fitness content. A “FitTuber” might create workout videos, healthy recipe tutorials, or fitness product reviews.  They can partner with sportswear brands, supplement companies, or healthy food providers.  By including affiliate links in their video descriptions and strategically mentioning them during the video, they earn a commission whenever viewers click through to purchase.

Affiliate Marketing vs Digital Marketing

Parameters	Digital Marketing	Affiliate Marketing
Definition	The term “digital marketing” involves the seller or product owner promoting products and services directly to customers via digital channels.	The term “affiliate marketing” involves promoting other businesses’ products in exchange for a cut of sales.
Elements	Digital marketing includes a product, a digital channel, and a customer.	Affiliate marketing includes a product, a channel, an affiliate marketer, and a customer.
Focus	The primary reason for engaging in digital marketing is to increase traffic and brand awareness.	The primary reason for engaging in affiliate marketing is to generate quick commissions for products promoted and sold.
Approach	Digital marketing involves several activities, such as identifying the needs and interests of the customer, promotion, marketing, measuring the effectiveness of the marketing campaigns, and improving them.	Affiliate marketing mainly involves the promotion of products or services for a commission.

Best Affiliate Marketing Websites

Affiliate marketing, in spite of its success, is a relatively new marketing model, and best practices are still developing. If you are considering adding affiliate marketing in your advertising this year, you are going to need quite a bit of guidance to do it in the most efficient way without wasting a bunch of time vetting out affiliates.

The Media Ant does it all for you, from recruiting affiliates for you whose niche is the closest to your brand and whose terms make most sense, to helping you get the lowest rates of commission. 

Media Ant is a recognized advertising agency where you can book ads for affiliate marketing through partners at discounted rates. 

If you are looking for affiliate marketers for your ad campaign, in India, The Media Ant is one of  the best affiliate marketing websites for affiliate marketing through partners. 

Our team is a cooperative bunch who is always very understanding of the requirements of the client. We assist you closely every step of the way till the end of your campaign . We provide top class monitoring services  to ensure a seamless execution of your campaign.

Rates Of Affiliate Marketing Ads

The rates of affiliate marketing differ on a combination of several factors like the page position and the ad size. One very  important factor though, is the type of affiliate marketing you avail : unattached, attached, and involved. 

 The pricing is often determined in Cost per Click and Cost per Month. The affiliate usually gets 10 to 20 percent of the sales value, though in some cases the commision is a fixed amount.

Affiliate marketing through partners has one of the lowest CPM of all affiliate marketing options.To learn more about affiliate marketing through partners, visit The Media Ant to get the best rates of affiliate marketing ads In India.

FAQs on Affiliate Marketing

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