Affiliate marketing has helped a lot of businesses grow globally in recent years because it’s very lucrative for content creators and also for companies that need more customers but don’t have the time to promote or enough money to run ads.
With affiliate marketing, business owners don’t have to trouble themselves with getting traffic to their websites, building their mailing list or even making sales, because the affiliate ( The one promoting ) the product will take all responsibilities on him/her to make sure he/she makes sales in other to earn his commission.
In this article, we will be discussing the benefits of affiliate marketing that you need to know to succeed in this business model.
Affiliate marketing has many advantages, including increased brand visibility and the opportunity to offer your target audience something they want in exchange for signing up for your newsletter or mailing list.
If you already have a blog or website, joining an affiliate program can be another great way to monetize it and drive more traffic by promoting products on your site that other companies will pay you for if someone buys them as a result of your recommendation. Let’s take a look at some of the top benefits of affiliate marketing today!
What is Affiliate Marketing?
Affiliate marketing is a win-win business where an affiliate earns a commission by promoting a manufacturer’s product. For example, if you sign up as a Nike affiliate, you will only be paid a commission depending on what you sell.
If you are a beginner in the affiliate field, make sure to read our Ultimate Affiliate Marketing Guide for Beginners
Key Benefits of Affiliate Marketing
1. Affiliate Marketing Can Make You Rich
Theoretically, you can make a lot of money from affiliate marketing. The internet is a big place, and people can be very interested in your products. If you market yourself properly, you can easily rake in thousands of dollars a month. However, if you don’t advertise your product well or aren’t good at what you do, then you will lose money (and maybe not just a little bit).
The more effective your website is at getting potential customers to buy things, the more money it will make for you. In short: affiliate marketing can make you rich…if it works out well. It may not always turn out as planned, but with hard work and effort, it could be incredibly lucrative!
While affiliate marketing can be a fun and effective way to make money, it’s important to remember that there are many types of affiliate marketers. Just because you have heard success stories about people making a lot of money with affiliate marketing doesn’t mean that you will immediately start raking in the cash.
If you want to earn any money, then your efforts must be successful enough for other people to click on your advertisements or purchases. As discussed previously, it is unlikely that your business will do well right away and so while affiliate marketing can make you rich if it works out, there are many other factors involved that could keep you from earning very much.
2. Affiliate Marketing Can Be Fun
Many affiliate marketers start by creating a website or social media account and posting content around their favourite topics. Once they build up a following, they approach merchants with offers to sell certain products, leveraging their existing audience as proof that there’s demand for more information on their topic.
This is one reason affiliate marketing can be fun—you can create an income stream while you work on your passion and develop your craft. And let’s be honest: who doesn’t want to earn money while doing what they love? For example, let’s say you post recipes on Instagram because you love cooking and think it would be fun to turn your hobby into a business.
However, there are some drawbacks to affiliate marketing. It’s important to keep in mind that while you can earn money as an affiliate marketer, it’s not passive income by any means.
While most affiliate marketers work with a few different merchants and have several offerings available, it takes time and effort to create content, promote your offers and come up with new ideas for products you want to promote.
If you do it right, affiliate marketing can be fun—but only if you’re prepared for a lot of hard work. Affiliate programs are competitive: Another drawback is that becoming an affiliate marketer means entering a very competitive field.
3. Affiliate Marketing Provides an Opportunity for Businesses to Earn Income Through the Sale of Products and Services
For an established company, affiliate marketing helps you make more sales with less effort as you have well-known content creators who will be marketing your products to their audience. Meaning you can generate more sales without spending more money on social media ads.
4. Affiliates Can Earn Money Without Upfront Cost
They work as partners, getting payments in exchange for referrals. The affiliate is not at risk since they do not bear any initial costs and revenue sharing means higher payouts per sale. This makes affiliate marketing more cost-effective for businesses than employing traditional sales employees.
According to Statista, global affiliate revenues totalled $9 billion in 2017, up by 5 per cent from 2016. It is expected to grow to $17 billion by 2024 with an average yearly growth rate of 5 per cent between 2017 and 2022.
An affiliate can earn money by recommending others to buy a product online without any initial cost. They do not need to invest or distribute these products. They are paid in commissions whenever someone they referred purchases any service or product online through their link.
For example, if an affiliate sells a product worth $1,000 with a 10 per cent profit, they would make an additional $1,00 (considering 10% profit is considered good).
On average affiliates are paid between $2 and $10 per sale with an average commission of around $35. This makes affiliate marketing more cost-effective for businesses than employing traditional sales employees.
5. Affiliate Marketing Can Help Businesses to Build Customer Relationships
One of affiliate marketing’s major advantages is its role in building customer relationships. By providing a direct, personal link to a business, affiliates can help brands connect with users. This can help businesses and customers build trust more quickly.
According to research from Salesforce and Jigsaw, 60% of consumers are willing to share their personal information with brands they trust through a referral program—and they’re especially eager to do so if given cash or coupons as a reward.
Because affiliates help build stronger relationships between businesses and customers, affiliates can be effective in encouraging people to sign up for email lists and make a purchases.
By collecting leads early on in a customer relationship cycle, you’ll have access to valuable insight into what those leads are looking for in products or services.
6. Affiliate Marketing Can Help Maximize Blog Revenue
The best part about affiliate marketing is that it can help maximize blog revenue. As a blogger, you might be getting only $2 to $5 for every thousand page views from display ad networks.
In affiliate marketing, you can partner with other websites to help them reach their goals, and then earn a small commission for each sale that happens. In effect, you have a one-on-one relationship with advertisers on your site and they pay you directly.
This allows you to get more money without making any compromises when it comes to design and branding because advertisers love working with brands that target their ideal customers.
Best of all? By using affiliate marketing, bloggers don’t have to spend a lot of time pitching ad networks or waiting around for approvals. With affiliate marketing, they just sign up at companies like Amazon or HostGator and use banners or text links in their posts; if someone clicks on that link and buys something—the blogger earns money!
7. Affiliate Marketing Can Help Businesses to Save Money on Marketing Costs
As a marketing channel, affiliate marketing is ideal for many businesses because it has low costs. By marketing through affiliates you can connect with a global audience for an affordable price.
The fact that you only pay when someone takes action and your costs are minimal compared to other channels, affiliate marketing can help businesses save money on their marketing campaigns.
This can be great if your business is bootstrapping or trying to get started with limited capital. Because you are going to pay a lesser amount as affiliate commission to marketers than what you would spend on ads.
In addition, because it is low-cost, affiliate marketing isn’t for everyone and certain industries may not want to take advantage of it because they require higher conversion rates than other industries.
If your business falls into one of these categories then affiliate marketing might not be right for you. Even though affiliate marketing can save businesses money in some situations, there are also several advantages to working with professionals instead.
8. You get to help people and make a difference in their lives
We live in a very connected world, and it’s so easy to help those around us. When you become an affiliate marketer, you get to use your web presence and influence to help people.
Whether you are directing people to products that will save them money or telling their friends about a product that has changed your life for good – affiliate marketing allows you to make a difference in someone else’s life.
I don’t know about you, but I think helping others is one of my greatest blessings in life. This also means that affiliate marketing can be carried out by just about anyone with access to a computer or smartphone with internet access. It doesn’t require any special equipment or training.
Another aspect is that it can be done at any time, anywhere. If you have access to a computer or smartphone with internet access, you can be doing affiliate marketing and helping people.
It is even possible to be an affiliate marketer offline. For example, you can offer your expertise as an affiliate marketer in public places such as bookstores or supermarkets where people are likely to ask for tips on how they can make money through affiliate marketing too. The possibilities are endless!
Final Thought on Benefits of Affiliate Marketing
While there are a lot of benefits to affiliate marketing, it’s not for everyone. It does require a huge amount of work and determination to make it successful—and even then, you still may not succeed! But if you’re interested in making money from your passion, affiliate marketing could be one of your best bets.
Sometimes, you can make more money through affiliate marketing than through your core business. But it depends on several factors, so to get a good idea about what you can expect from affiliate marketing, you need to do some research.
How much do affiliate marketers make? Which types of products or services tend to be most profitable? What are others doing that’s working (or not working)? To get answers, check out our full guide on how to make money with affiliate marketing! We also recommend checking out our guide on how to start an online business and giving yourself every chance of success.
This post contains affiliate links.