According to influencermarketinghub.com, affiliate marketing will be worth $12 billion in 2022, and Statista says that 8.2 billion of that will come from the US alone. In the digital world, there are no borders, so you can work for affiliate marketing programmes in India, the US, or anywhere else in the world. So, if you’ve been thinking about trying affiliate marketing, here are some things you need to know about making money online through it.
What is an affiliate marketing programme for the Internet?
Online affiliate marketing is a way for businesses that sell certain products or services to pay you for sending customers their way when you highlight or promote those products or services on your website with links that take customers to the seller’s website and lead to a sale. Affiliate partners are websites that promote the products or services of other businesses. As an affiliate partner, if your website starts getting regular successful referrals, it can become a steady and significant source of online income for you.
What is the process of affiliate marketing?
How do you find the best juicer, mixer, smartphone, or home spa service that meets your needs and gives you the best value for your money? A popular way that many people use is to search online. This brings up search results with links to many websites that have relevant information and their unique insights and suggestions. With their shortlisted and recommended products or services, these websites also offer links to buy them directly from the seller through affiliate marketing programmes. Most people trust some of the other websites that have the best information, so they often click on these referral links and buy the products and services they recommend. For each successful referral, the seller pays the affiliate partner a fee.
How much money can you expect to make?
Most affiliate networks pay between 5 and 15% of sales generated by a successful lead conversion from a specific link. But a lot of sellers offer lower commissions, especially in product segments where there is a lot of competition. Most sales may lead to one-time payments, but depending on the product or service being sold, some referrals may lead to recurring payments. Most products and services that you pay for regularly through a subscription have recurring payments.
When the commission on each sale isn’t very high, the seller sets a minimum payment amount, like Rs 5,000 or $100. The affiliate partner keeps sending customers to the business, and his commission keeps adding up until it reaches the minimum amount. The brand sets a minimum amount of money that must be earn before the payment.
For example, if you are making a fashion or beauty product that costs Rs 500 and the seller pays a 10% commission, you would need to make at least 100 sales for your commission to reach Rs 5,000 and for you to get paid. But if you’re working on a pricey product like an electronic gadget that costs Rs 20,000 and you get a 5% commission, you’d only need to make 5 sales to reach the Rs 5,000 payment threshold.
You can work with as many affiliate programmes as you want, and many affiliate partners work with more than one seller and make lakhs of rupees each month. But there are a lot of people who start but don’t even make the minimum payment.
How much can you make with affiliate marketing online?
Most of the big names in eCommerce are known to have large affiliate marketing programmes. For instance, Amazon, under the Amazon Associates program, pays a commission, typically in the range of 0.2 per cent to 10 per cent. eBay Affiliate pays a commission of 12% on each sale, while Flipkart Affiliate pays up to 15%. Players in web hosting and development have the best payment plans. For example, Reseller Club pays Rs 5,000 for every conversion, while Godaddy Affiliate pays up to 100% commission on a successful sale.
The United States has the most online affiliate programmes and pays its online affiliate partners very well. Payscale.com says that the average income of an affiliate marketer is $52,590 as of the date it was last updated, March 2, 2022. Hostinger, a web hosting company in the US, has one of the best affiliate programs, which pays up to 60% commission. SEMrush, which is a marketing platform that does everything, pays $200 for each successful subscription. So, anyone in the US who works on international brands can aim for higher pay, but there will also be more competition.
Popular products vs. products that fill a specific need.
Most of the time, the most popular products also have the most competition. For example, mobile and TV are the most searched-for categories, so there are a lot of affiliate websites competing for this market segment. So, if a player starts with few resources, he or she will have to work harder and wait longer to earn anything worthwhile in these categories.
Web hosting is one of the affiliate marketing programmes that makes the most money. Affiliates can make a lot of money in the fashion and health and wellness industries, which are the top niches.