May 23, 2024

Marketing as an affiliate is an increasingly popular way for people to write on digital platforms about goods and services to earn money on sales that stem from their positive reviews. U.S. affiliate marketing spending is due to reach $8.2 billion by 2022, up from $5.4 billion recorded in 2017. Reviewers, known as affiliates, get a commission when readers click on the seller’s link in the review and make a purchase. Affiliate marketing is also an increasingly important part of business owners’ marketing. Here’s how it works and how reviewers and business owners can get started.

Affiliate marketers promote products or services produced and sold by other companies and gain commissions on sales or traffic resulting from their efforts. Low entry costs and opportunities to earn income from part-time, flexible work attract people seeking a better work-life balance. Low cost of sales and ability to accurately track sources of income appeals to companies that use affiliate marketers.
How Affiliate Marketing Works
Affiliate marketing is a way of using an online sales and marketing channel. Affiliate marketers use websites, blogs and social media platforms to recommend products. Companies that pay affiliate marketers employ browser cookies to identify customers referred by specific affiliates and software to track sources of sales.
An affiliate marketing transaction begins when an affiliate marketer recommends a product on a website, blog or social media platform. Shoppers who read the review can click on a link to be directed to a website where they can make a purchase or learn more about the product.
When the shopper follows the link to make a purchase through the seller’s website or an e-commerce marketplace such as Amazon, the purchase is credited to the affiliate marketer whose review the customer read. The affiliate places a tag in the shopper’s web browser identifying it as being referred by that marketer. The seller then pays a commission to the affiliate for referring someone who makes a purchase. However, some firms pay by click or impression.
Affiliate marketers are also known as publishers. They may be bloggers, owners of websites providing information about specific products and activities or influential personalities whose opinions can sway consumer purchasing behavior.
Companies that pay affiliate marketers include brands, advertisers and merchants. They may be in the retail, software, gaming, travel, financial services and other industries. Affiliate marketers are active in business-to-business as well as business-to-consumer arenas.
Affiliate Marketing Appeal
Over the last 20 years or so, affiliate marketing has become popular as a sideline for people seeking second income. They can do so by selling offerings from other companies without the need to invest money in creating and producing their own products and services. Further, there is no need to hold inventory, and affiliates enjoy the freedom to work when and where they choose.
Among sellers, affiliate marketing has become a significant channel. Businesses ranging in size from sole proprietorships to global corporations employ affiliate marketing as a way to sell their products. Some sellers rely primarily or exclusively on affiliate marketing while for others it is part of a mix of marketing channels. The low cost of sales and ability to accurately track sources of income account for much of the appeal that affiliate marketing holds for brands.
For both sellers and affiliates, their work is simplified by affiliate networks, which take care of tracking, reporting and paying affiliates. A network gives brands access to a group of affiliates who have applied to join their network. Likewise, these networks give affiliates access to large numbers of sellers or brands.
A number of lists exist of well-regarded affiliate networks. Networks tend to fall into three categories: high-paying/low-volume (often for niche products); low-paying/high volume (often for products with mass appeal); and high paying/high volume (products with mass appeal and high commissions, like credit cards).
Limits of Affiliate Marketing
Affiliate marketing usually requires considerable hard-won expertise to do well. Successful affiliates are effective communicators and also have mastered search engine optimization, keyword research, link building, landing site optimization and other online marketing skills.
Affiliate marketers also need to choose the right offerings to recommend. Promoting poorly designed, unreliable or otherwise bad products makes it difficult to generate sales commissions. Choosing the right products requires good research skills and understanding of customer preference trends and market trends.
Affiliate marketing is a highly competitive business. The low barriers to entry, promise of earnings with little effort and eagerness of many companies to sign up affiliate marketers means there are many rivals for sales in almost any product category. Affiliate marketers need to have a high level of competence to generate significant commission income.
Privacy regulations provide another potential stumbling block. The General Data Protection Regulation (GDPR) that took effect in the European Union in 2018 requires some affiliate marketers not located outside the EU to get consent from consumers before obtaining and using their data. Affiliate marketers have to be aware of regulations that could apply to them and use appropriate privacy policies and cookie notices.
Additionally, the Federal Trade Commission requires affiliate marketers to disclose that they receive commissions from sales resulting from their plugs of other companies’ offerings. FTC guidelines also restrict endorsers from making dishonest or misleading claims.
The Bottom Line
Affiliate marketing is a significant marketing channel for many makers and sellers of goods and services. It’s also a popular way for bloggers, website owners and social media influencers to earn income by recommending products or services from companies that pay them commissions on the sales, clicks or impressions. While being affiliate marketers affords people the opportunity to work when and where they like, it requires diligence and digital savvy to succeed.
Tips on Self-Employed Ventures
A financial advisor can help guide you through the complexities of handling taxes as a self-employed marketer. Finding the right financial advisor who fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors who will help you achieve your financial goals, get started now.
Being an affiliate is not the only way to make money in marketing. Another way is starting a franchise. It’s more complicated and expensive because it requires you to hire a lawyer and seek financing, among other initial steps. However, it has the potential to be more lucrative than an affiliate program.
Photo credit: © Oxford, ©, ©
The post Affiliate Marketing 101 appeared first on SmartAsset Blog.
It may not be practical — at least for now.
Oil prices have bounced around quite a bit this year. Brent oil, the global-pricing benchmark, started 2022 below $80 a barrel before soaring into the $120s following Russia's invasion of Ukraine. With the prospect of higher oil prices, we asked some of our energy contributors what oil stocks they believe are best positioned to capitalize following OPEC's bold move.
PayPal is in trouble. "You are independently responsible for complying with all applicable laws in all of your actions related to your use of PayPal's services, regardless of the purpose of the use," the document, called "Acceptable Use of Policy," said.
Take a look at this list of stock market holidays in 2022 to find out whether the market will be open on days like Labor Day, Black Friday, Christmas Eve and more.
The market rally attempt is reeling, back near bear lows. What will investors discover on Columbus Day?
For the retail investor, the only certainty of our current market environment is uncertainty. Volatility is up, and the main indexes are showing deepening losses. As if that wasn't enough, at least one market bull is turning a bit more pessimistic. JPMorgan strategist Marko Kolanovic has been one of the more bullish voices on Wall Street in recent months, but current conditions have him pushing the timeline back. While he still believes that the S&P 500 can hit 4,800, or a 32% gain from current
Each month I buy several dividend stocks to help build my passive income stream toward my goal of having it eventually offset my expenses. This October, I plan to add to my positions in Blackstone Group (NYSE: BX), Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A), Digital Realty (NYSE: DLR), Realty Income (NYSE: O), and NextEra Energy (NYSE: NEE) as more cash flows into my portfolio.
(Reuters) -Electric vehicle maker Tesla Inc sold 83,135 China-made vehicles in wholesale in September, smashing its record of monthly sales in China, according to a report released on Sunday by the China Passenger Car Association (CPCA). The number marks an 8% increase from August and outpaced the more than the 5% month-over-month growth of all wholesale electric vehicle sales in China, according to CPCA data. It set a new record for Tesla’s Shanghai factory since production began in December 2019, and topped the prior sales record of 78,906 in June, as the U.S. carmaker continues to invest in China production.
The company is reaping benefits from investments in 5G technology, but that's not necessarily enough to make AT&T stock a buy.
The first quarter of 2022 has been difficult for retirement savers and retirees alike, and according to investment firm Charles Schwab, it was one of the worst quarters for fixed-income in decades. However, the rising yields and changed Federal Reserve … Continue reading → The post Charles Schwab Says Now Is the Time to Add This Asset to Your Retirement Portfolio appeared first on SmartAsset Blog.
Usually Amazon is the tech leader, but Walmart may actually have an edge that will help customers get what they want faster.
Wall Street tends to give stock splits more weight than they should have. Annaly's reverse split, however, might be a genuine warning sign.
The three stocks that stood out to me are Taiwan Semiconductor (NYSE: TSM), Disney (NYSE: DIS), and Adobe (NASDAQ: ADBE). The company is a third-party manufacturer for chip leaders like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and dozens of other companies designing their own chips.
You would think this would be TIPS’ time to shine. Instead, the prices of Treasury inflation-protected securities—government bonds that are adjusted to keep up with inflation—have declined this year, even as inflation has soared. The comparable loss for ICE’s index of regular Treasury bonds was 13.5%.
Intel (NASDAQ: INTC) has been under tremendous pressure this year. Shares of the semiconductor company have tumbled about 50%. While Intel is facing its share of headwinds, I believe better days lie ahead for the tech giant and its big-time dividend.
If you want income, you're in the right spot, but if you want growth, you might want to look elsewhere.
Alphabet Inc.'s ( NASDAQ:GOOGL ) price-to-earnings (or "P/E") ratio of 17.9x might make it look like a sell right now…
The S&P 500 market index is down more than 30% year to date and the more growth-oriented Nasdaq Composite lost more than 30% over the same span. Taken together, these two effects make me want to pound the table about investing in Intel (NASDAQ: INTC) and International Business Machines (NYSE: IBM) right now. Semiconductor giant Intel's latest earnings report was admittedly disappointing.
NFL linebacker Brandon Copeland made $990,000 in the NFL last year, according to CBS Sports — but that’s not even close to the most fascinating thing about him. While attending the University of Pennsylvania, he interned at UBS and has since returned to his alma mater to teach a financial literacy course. One piece of his advice that feels particularly relevant now — as a recession may loom and some savings accounts are paying more than they have since 2009 (see the best savings account rates you may get now here) — is this: You need an emergency fund.
Investors are betting heavily on a decline in stock prices. They're usually right, according to research.


About Author

Leave a Reply