Undoubtedly, Affiliate Marketing is proven to be one of the best ways to build a business with no investment in terms of cash.
This is so due to the simplicity of the marketing model in Affiliate Marketing.
Let’s simplify what Affiliate Marketing is.
Affiliate marketing is simply a type of marketing in which you promote other people’s, company’s or brand’s products/services that make you earn a certain percentage of money generally referred as a commission for each sale you make.Learn more about what is Affiliate Marketing
So if you are just starting out an affiliate marketing. This article will help you dive right in!
First, you need to know the essential terms and terminologies in Affiliate Marketing:
It is certainly important to notify you the significant terminologies so that you can better understand the advanced areas in starting out an affiliate marketing.
There are not too many terms to remember.
Just a couple of them…
Affiliate – any person or an organization dedicated to promoting advertisers’ products.
Advertiser/merchant – a company or a person that offers services or products.
Affiliate Network – a network that allows an individual/organization to participate in various affiliate programs.
Affiliate Program/Associate Program – an arrangement in which an advertiser or merchant pays affiliates for every customer or lead they bring.
Offer URL – a URL where a user lands after he clicked the promotion/affiliate link.
Affiliate/Promotion Link – A special and unique link that contains an affiliate’s affiliate ID or username to track CTR, sales, and leads.
[CTR] Click Through Rate – it is a ratio of users clicking a URL or link out of the total users who viewed it. [Or, the total number of clicks on total impressions]
Impression – how many times users have viewed your link.
Lead – a person qualified to eventually turn into a customer for a business.
Conversion – Completion of the desired goal by a user like buying a product or giving an email address, etc.
Landing Page – a page where an affiliate drives traffic to.
Commission – the percentage of the money you make on a sale.
Publisher – [That’s you my friend!] publisher is an affiliate marketer.
Promotion – your referral to a targeted audience for conversion.
The next thing is to understand how Affiliate marketing as a business model works. Knowing the system is also quite simple.
How This Business Model Works
Have you ever used Uber for a taxi service?
Of course, you did.
Just pay attention to their business model. What do they actually do?
According to me: nothing much – just affiliate marketing!
Uber is the best example of an affiliate marketing company.
Let me explain how…
It is the biggest taxi company in the world with a valuation of over $75 Billion that doesn’t own a single taxi.
Then what do they barely do?
They connect the person who needs the service and the person who provides the service.
Just think about it. How freaking simple that is to be executed.
Back home in Nigeria, Uber driving is a lucrative business.
In Nigeria, an average weekly salary of a uber driver is between ₦60,000 to ₦120,000.
That’s what an affiliate marketer or affiliate does. He/she also connects people who require the services or products to the ones who offer the same and in between, ends up making a commission(s).
Knowing the terminologies and understanding of the business modeWe shall peruse further on my next article