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What is affiliate marketing? An introduction plus ways to get started

Years ago, people used to spend thousands of dollars to advertise and promote their brands on TV, radio or magazines. Traditional ways of advertisement, though costly, did not bring about much profit for the investors. Later on, with the emergence of technology and the internet, anyone was able to monetize a business and make money online with merely a few clicks.

What is affiliate marketing? An introduction plus ways to get started
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People even tend to partner up with other brands or individuals to multiply their income. All this is nowadays happening by the help of “Affiliate Marketing”. To put into simple words, affiliate marketing is basically promoting other brands or another person or company's product and earning a commission instead.

This article provides information regarding affiliate marketing for beginners.

What is affiliate marketing?

Advertisement is the fundamental pillar of any business, online or traditional, small or expanded. Many businesses undergo large expenses of advertisement including paying to get clicks. However, the  ideal situation is to keep advertising costs limited to customers earned. Affiliate marketing offers innovative ways to minimize the costs of advertising and keep the growth at the same time. The way it works is by delegating the responsibilities which utilizes the abilities of many individuals to its peak and shares the profits evenly. In order for affiliate marketing to work, three parties must be involved: 

  • Seller and product creators
  •  The affiliate or advertiser
  • The consumer

The goal is to increase sales and create the most suitable situation for both merchant and affiliate. Overall, affiliate marketing is a low-cost and effective way of advertising products and services, increasing brand awareness, and expanding a consumer base.

Types of affiliate marketing

It wasn’t until 2009 when renowned affiliate marketer Pat Flynn came up with different types of affiliate marketing and categorized them into three groups. Understanding these types of affiliate marketing can help you better understand the different ways people make money online in this space and weigh the pros and cons.

Unattached affiliate marketing

This is a model of affiliate marketing in which there is no connection between the affiliate and the customer. The affiliate serves as an authority and does not need to know any related skills or expertise. The strategy used in this model is PPC (pay per click) with the hope that shoppers will click it and make a purchase on their own. This method does not need much commitment and is good for those who don't have the time or desire to build a relationship with their customers. Nonetheless, investing in the product or customer relationship is not something to be ignored easily. 

Related affiliate marketing

This type of affiliate marketing happens when you promote products or services you haven’t used on your own but are related to your niche and you have the authority or target audience to promote to. Your influence and expertise to generate traffic as an affiliate should be high enough to make you a trusted source for the audience. Imagine a case in which you are promoting a clothing brand you have never used to your followers on Instagram, Youtube, TikTok, etc. if you don't have enough trust or transparency among your followers, it’ll be hard for you to build a sustainable affiliate marketing business. The only risk involved in this type of affiliate marketing is that you never know how adequate or weak the product you are promoting is. Therefore, there is always a risk of recommending a bad product or service which may cost you the trust of your audience. 

Involved affiliate marketing

Contrary to related affiliate marketing, this type of marketing is when you have used a product or service and are certain about its positive effects. Consequently you’ll share your experience with others to whom it might be helpful. However, just like the previous type your reputation might be jeopardized since there is always the possibility of problems arising from the offering. This type of affiliate marketing requires more hard work and time to build credibility, but it will likely result in greater payoffs down the road.

Pros and cons of affiliate marketing

Before jumping in the big game, it is worthwhile knowing the advantages as well as the shortcomings of affiliate marketing just to know what to expect. Here are some of them listed below: 

Pros of affiliate marketing

Most affiliate programs let you join in for free. Low startup costs is what many take as an advantage in case of affiliate marketing. Costs are typically tied to how you build your audience and get referrals. When you do affiliate marketing you don't need to build your own product or service, plus the shipping costs are off your shoulder and paid by the merchant. When doing an affiliate business you don't need any extra equipment. All you need is WiFi and a decent network connection. Money earned by affiliate marketing is considered as a passive income, if set up correctly. Those who are looking for passive income ideas or ways to make money from home, can have an extra revenue source by setting up or hiring an affiliate program. 

Cons of affiliate marketing 

As  one of the most trending passive income ideas, affiliate marketing comes with a range of drawbacks. Generating traffic for referrals can be so time-consuming. Suppose that you’ve done the overwhelming process of building traffic successfully, it takes only one bad recommendation on your behalf to the merchant to ruin all your hard made reputation and customer relationship (if only you could call them your customers and not the company’s). Plus, there is always the risk of fraud on the side of the company you are promoting the product of, to go ghost and never pay you back. Anyways, if you're choosing this don't take it as granted that you’ll succeed just because many have done so. In fact, those many are actually your competitors who you’ll need to contend on your way to make money by affiliate marketing. 

A good example of affiliate marketing

Looking for effective affiliate programs? PayPax affiliate program is a legit and high-paying revenue stream. Business owners often look for low-cost and effective solutions to offer to their customers. Whether you are an entrepreneur, educator, influencer, or a creator you can develop your business and make money from PayPax affiliate program. Low and clear fees, high secured network, quick access and a variety of payment methods are some of the main features of this website, helping you make money at home. Create your own PayPax account right away and start earning money with PayPax immediately. You’ll also relieve extra referral bonuses for every new customer who signs up through your link.

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