Affiliate marketing, like any other business venture, works best when you have a reliable plan in place. By using time-tested strategies you can put power behind your business, avoid some of the usual pitfalls, and create the income you’ve been wanting.
Whether you are a budding or seasoned entrepreneur, the following tactics — done right — will help you along your journey as you build your first, or next, million-dollar business.
As an affiliate marketer, you can state how much you are willing to pay for each sale someone else generates for you. Simple arbitrage would suggest setting your commission rates below your gross profit per sale. At those rates, you want others to promote your products or services as aggressively and as often as possible. But that way, you may get priced out by the competition.
To attract the right partners, you need to offer a generous payout per sale. To expand your affiliate marketing budget, you will want to look at the lifetime value of a customer. Knowing that your average customer purchases your product or service 12 times over his or her lifetime allows you to easily multiply your affiliate commission rates while still remaining profitable long-term.
Email seems almost a prehistoric means of communication now that we have social media and instant messaging apps but it remains the most powerful way to connect with existing customers and potential leads.
Using customer segmentation and action triggers, you may create sophisticated email drip campaigns to provide buyers with timely information and gradually move them along the sales funnel.
– via Entrepreneur
With all the discussion of affiliate marketing, it’s easy to question whether or not it’s actually a viable revenue source. And how quickly can you expect to start making a true income? This firsthand account might give you some perspective.
This is a tough question to answer, because your mileage will vary. I have around 300,000 unique visitors a month, so I get enough traffic and have enough built-in trust to convert buyers reasonably well. On my site, a couple links I have are paying 1-3x my mortgage payment every month. That means, my kids have a house no matter what I do right or wrong with my business. Is that worth it? To me, it is.
What should you expect starting out? Aim for beer money. Then aim for steak money. Then aim for an additional car payment. Then mortgage. That’s how I did it. Some day soon, I’ll figure out what’s next: maybe aim for an entire salary off affiliate links?
This is just one stream of revenue, but it means that I can stop eating ramen noodles, and it means that I don’t wince whenever the mortgage check payment comes out. Is that worth it to me? I say yes.
– via chrisbrogan.com
Are you an affiliate marketer? Do you plan to use affiliate products to help build your business?