Chris and his statistics, that’s what my best friends say!
Why I want to talk about affiliate marketing is that affiliate marketing is coming more and more, especially in Germany this form of marketing is becoming more and more popular.
From the statistics above, we can see that we have seen a huge increase from 2006 to 2020.
Another statistic stated that 15% of the total revenue comes from affiliate marketing.
To put that in concrete terms, 12 billion in revenue comes purely from affiliate marketing.
Table of Contents:
- What is Affiliate Marketing ?
- How does Affiliate Marketing work ?
- The 5 best affiliate marketing platforms
- The step by step guide to success
1. What is Affiliate Marketing ?
Affiliate marketing is a type of marketing that is best compared to direct sales.
The only difference between direct sales and “affiliate marketing” is that this form of marketing takes place online.
2. How does Affiliate Marketing work ?
Each affiliate gets a link from the merchant whose product or service he sells, this link looks something like this and always contains an ID:
As soon as a prospective customer clicks on your affiliate link, so-called cookies are stored on his device and this for two reasons.
Reason number 1:
Should a prospect have used your link, the product or service, the sale can be attributed to your ID based on the cookies.
Reason number 2:
this “cookie” usually has an expiration date. (Yes, like the MHD at the yogurt etc.).
The purpose is that if a prospect does not make a purchase immediately after clicking on your link, you will receive the commission even if the purchase is made days later after clicking on your affiliate link.
3. The 5 best affiliate marketing platforms
4. The step by step guide to success
To get started with affiliate marketing, we go through 5 specific steps and they are:
- Niche finding
- Affiliate program selection
- Platform selection
Let’s start with step number 1 – finding a niche:
To get started with niche identification, perhaps I should first explain what exactly a niche is.
A niche is a subcategory of a main topic.
Let’s say you want to be in the food business, then we don’t take the main food category, we pick a sub-topic, a sub-category that has something to do with food, like grilling food.
Why do we do this ?
Once I explain how affiliate marketing works for you, you will see that the topic of search engine optimization is becoming more and more important.
Search engine optimization works to a large extent through keywords and since we are not the only ones ranking for this particular keyword, it becomes even harder to generate organic traffic through search engines with such a large competition.
Now how do you find the so-called niche ?
There are two possibilities:
- Choose a topic in which you are well versed, that interests you, or what you would like to do.
- Research the industries with the highest turnover
Step number 1:
Now we come to the selection of the affiliate program you can choose.
Step number 2:
You can now choose between three types of affiliate programs:
Affiliate programs with a high remuneration and a limited number of customers.
To give you an example for point number 1:
Convertkit gives a 30% commission to each of its affiliates who sign up with them through the affiliate link, not just once, but every month for as long as the customer has that account.
Partner programs with a low remuneration, but a wide mass of customers
To give you an example for point No.2:
Das Amazon Partnerprogramm ist ein gutes Beispiel, hier gibt es eine „geringe Vergütung“, aber hast eine breite Masse an Kunden.
Well-set remunerations with a broad mass of customers
Here is an example:
Yes, Check24 also offers a great affiliate program that offers great compensation and at the same time has a wide mass of customers because Check24 has a good branding in Germany.
I have presented you in point 3, the 5 best affiliate platforms, so that you can take your time to browse around on these platforms which niche product you would like to “affiliate”.
If these 5 affiliate programs do not appeal to you, I have prepared a PDF file with other great affiliate programs that will certainly appeal to you.
Step number 3:
Now that we have decided which niche to fill and which affiliate program to use for it, we need to decide which platform we will use to promote our affiliate link.
Of course there are platforms like Youtube, Instagram, Twitter and Facebook, but all this is useless if we haven’t created any buyer personas.
Step number 4:
We have now chosen our niche, our platform and our affiliate program.
Now we “only” have to write a great content for our niche products.
To make this a little easier for you, you can start with keyword research.
You can find tips and tricks for keyword research in my blog post
“Keyword Research 2021 – The Step by Step Guide “ which I recently published.
Step number 5:
This step is to publish and promote the post you have written on the platform of your choice.
Affiliate marketing is a great way to make money online, but even with this type of distribution, a long-term strategy is needed to achieve your goal.
Please do not expect overnight success, because search engine optimization is a process that promises long-term success and not overnight!
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