What is Affiliate Marketing?
Affiliate marketing is the process of earning a commission by promoting another person’s (or company’s) product. You find a product you like, promote it to your audience, and earn a piece of the profit for each sale that you make. It’s similar to a salesperson earning a commission, except you don’t work for the company. Instead, it’s like earning a reward for sending a new customer to the company.
In other word Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts. Affiliate marketing may overlap with other Internet marketing methods, including organic search engine optimization (SEO), paid search engine marketing (PPC – Pay Per Click), e-mail marketing, content marketing, and display advertising.
Types of Affiliate Marketing
- Unattached Affiliate Marketing: This is an advertising model in which the affiliate has no connection to the product or service they are promoting. They have no known related skills or expertise and do not serve as an authority on or make claims about its use.
- Related Affiliate Marketing: As the name suggests, related affiliate marketing involves the promotion of products or services by an affiliate with some type of relationship to the offering. Generally, the connection is between the affiliate’s niche and the product or service
- Involved Affiliate Marketing: This type of marketing establishes a deeper connection between the affiliate and the product or service they’re promoting.
How Does Affiliate Marketing Work?
There are three main players in an affiliate marketing arrangement:
- You and your website—the “affiliate.”
- The affiliate company (or network). In the simplest affiliate arrangements, you work directly with a single company to promote one or more of their products. There are more complex affiliate networks that provide an opportunity to earn affiliate revenue in Nepal on a various range of products, such as Daraz, Sastodeal and Digitalkhani.
- The customer. This is a member of your audience who uses your affiliate link to purchase a product from the affiliate company or network.
A company that offers an affiliate marketing program may call it by a different name—these programs are also commonly called partner programs or referral programs.
Benefits of Affiliate Marketing
- Affiliate marketing is easy to get started with, and costs little. Most affiliate programs are free to join, and you don’t have to create, stock, or ship products, which also means less hassle/responsibility.
- You’re not the product owner, so you don’t lose anything if a customer doesn’t buy.
- Affiliate marketing provides the potential for passive income.
- More freedom. When you start earning passive income, you can work anytime and from anywhere, as long as you have internet access.
Drawbacks of Affiliate Marketing
- It can take time to generate the amount of traffic needed to result in substantial income.
- You don’t own or control the product/service you’re recommending, so you can’t control the quality or customer experience
- Not all affiliate programs are created equal. While most companies that offer affiliate commissions are stable and ethical, there are shady companies out there too, some of which may not pay what they say they will.
What Is an Example of Affiliate Marketing?
Digitalkhani is a Nepal-based digital media affiliate company which was recently lunched. Affiliates and Visitors can read Vendor’s product reviews and select affiliate links to purchase and they can earn a commission from each sale generated from their website. Affiliates can also earn based on action or (PPC – Pay Per Click), e-mail marketing, content marketing.
Conclusion
Incomes for affiliate marketers vary, with some making a few hundred and some making six figures. It depends on what is being marketed, how much influence the marketer has, the affiliate’s reach, and how much time is invested in marketing products. Often, those spending more time marketing the company’s products will earn more money. Through Affiliate marketing all Vendor, Affiliate company and Audience can get benefits. In short affiliate marketing can be a win–win–win. But at the center of this is one thing: your audience’s trust.
