Concept of Affiliate Marketing

Have you ever seen some ads or articles online, like home-based work/ work at home / work from home / home office / home business, passive income, career, etc? There are plenty of people selling their plans for making money online from social medias, website, google ads, etc. everyday.

The problem is, those so-called “masters”, “tutors”, “instructors”, “coach”, “ambassador”, with their fast-growing rich, get rich quick programs. The plan could be quick and easy to make money.

Affiliate marketing, is the process of earning income every time you promote someone else, like products or services.

If you generate a sale for the company, you get paid. If you don’t generate a sale, you do not get paid.

  • The seller/vendor usually request someone/ somebody to promote goods or services on their websites / blogs
  • Consumers click the link of goods/ service online which you promoted and convert
  • All of conversions are traceable 
  • When generate a sale, affiliate partners / publishers gets a commission

True Story of Insider

Amazon, one of the largest retailers and affiliate marketing platform on the internet in the United States.

They started doing since 1996.

This will bring a lot of traffics and turnover to your website (thousands of people around the world will help to promote it), waiting for many online sales staffs to earn passive income such as KOL (Key Opinion Leader, such as Youtubers, etc).

The Myth of Affiliate Marketing

Myth :

Affiliate Marketing is mostly scam and fraud, they usually offers low value traffic…….

There have a lot of Affiliate Marketing myths and illusions all over the internet world.

That’s why it is important for you all to check this topic, and read in full, which will allow you to understand about often mentioned, and some are completely wrong ideas about this business and industry.

Top 4 Myths of Affiliate Marketing

Myth 1 : Affiliate Marketing is not a long term and serious business

Nothing could be further from the truth.

This common of misconception and misinformation terms from a misunderstanding of Affiliate Marketing business model.

Like we mentioned above, affiliate marketing is a concept of promoting someone / somebody else products/ services, when someone purchase through your affiliate link, you get commission.

Because of the internet, have made it more popular nowadays.

It’s a survey of chart above (left), shown that how the bloggers are making money from their blogs. There are 83% bloggers in total are making money through affiliate marketing. And there are 57% bloggers are earning +$50K per year.

Source: GrowthBadger

World’s top websites and publishers like Business Insider, Huffington Post are earned a significant portion of their revenue with affiliate sales.

The reason is simple.

The affiliate business model is proven that to work over decades, and the top advertisers in the world realize it.

That’s why they are spending more money and promoting their products through affiliate methods, instead of traditional advertising methods. 

Forrester surveyed more than 150 advertisers of U.S. companies shown that with a minimum of 200 million in revenue, more than 150 decision makers with U.S. publishers that neither rank with top 5000 sites by traffic in the U.S., or have 300 or more followers on major social marketing platform. Found that affiliate marketing is expected to have 6.8 millions industry in the U.S. alone.

Myth 2

Affiliate Marketing is fraud and offer low-value traffic

It is simply not true, because affiliate marketing programs could simply generate high value and that’s how people make money online through affiliate marketing. It depends on the method what you are using, and how you are using.

  1. Relationship is the key

Do you know why advertisers are spending less, or not spending anything in traditional advertising way, and moving to affiliate marketing?

Because research shown that 84% customers don’t trust traditional advertising, and more likely they purchase a product because of a review and from someone they trust. Influencers are into this and giving trust, more authentic endorsements.

Source : Nogre

Marketers whom failed at affiliate marketing because they don’t usually spend time to build relationships with their audience. They always expect people to buy from them just because of a product review and share affiliate links into their contents.

To build relationship and trust with audience, you need to understand audiences’ concerns, listen to their voices and needs, and publish contents to address them.

Also, you need to respond their comments, wherever on your contents, social media, and giving them unconditional value.

2. Wrong niche selection

One of biggest reasons for failure in affiliate marketing , is the incorrect niche selection.

If you build a niche that people only seeking for free information, and don’t spend money on, even the best quality contents won’t drive any sales.

Or if you chose a niche that too narrow or board, it’s hard to drive any sales and hard to gain, you will find out.

Myth 3 : Profitable niches are already been taken

That’s another myth and rumor of affiliate marketing how it spreads everywhere. A lot of decision makers are joining affiliate marketing industry to promote their products or services through publishers nowadays as we mentioned, because affiliate marketing can generate huge revenue, and expanding the effectiveness at the same time.

The global population of internet is expanding

 

The research above, shown that there are 5.11 billion unique mobile users in the world today, up 100 million (2 percents) in the past year.

Also, there are 4.39 billion internet users in 2019, an increase of 366 million (9 percents) versus January 2018.

3.48 billion social media users in 2019, with the worldwide total growing by 288 million (9 percents) since this time last year.

3.26 billion people use social media on mobile devices in January 2019, with a growth of 297 million new users representing a year-on-year increase of more than 10 percent.

Source: Wearesocial.com

In annual growth :

Let’s see the survey in 2020 :

Source: Wearesocial.com

The number of population around the world using the internet, has grown to 4.54 billion, there has an increase of 7 percents (298 million new users) compared with January 2019.

There are 3.80 billion social media users in January 2020 worldwide, increasing by more than 9 percents (321 million new users) since last year.

In global, more than 5.19 billion people using mobile phones now, there are 124 million (2.4 percent) mobile phone users up over the past year.

With the number of internet users are growing up, new profitable niches are engaging. There are many potential customers are looking for something everyday.

Interests, hobbies, and needs of people keep changing the world with time ticking, which means there will always have new niches where you can establish yourself, as an authority and make money online with affiliate marketing.

 

Myth 4: The channel is too expensive to run

The most important myth of affiliate marketing, is the budget management. It could be a common myth, that it’s too expensive for running a channel. 

However, most affiliate channels operate on cost-per-acquisition basis (as called CPA), which is known to be lower risk than other channels, brands only pay out when a pre-determined action is performed (usually a lead or a sale).

Affiliate channels provide brands with the perfect platform to test, and adapt marketing strategies to grow their consumer base and increase revenue ultimately. Thank you to the low-risk nature.

It’s also easy to control your budget’s by keeping daily, weekly and monthly trackers of your affiliate’s performance.

Having this level of detail on hand can allow yourself to test new campaigns in a cost-effective way, with the result of finding new audiences through a controlled budget. The key metric used to measure incrementally in the channel is ROI (Return on investment calculations), which should be carefully monitored and reported on a regular basis. Commission, tenancy placement costs, and any additional fees are accounted, as part of the cost analysis, with the aim to work towards a target ROI each quarter.

Factors which can influence this metric include the number of sale active partners live on the programme, the proportion of sales being generated by the top 5 partners and how regularly you are incentivising them. Monitoring this regularly allows for testing and learning with various partners on the programme, whether this be running an increased commission as part of an incentive or paying a flat fee for onsite placements. Managing the budget with a degree of flexibility, there is the opportunity to test new ways and methods, in which you can increase your audience reach, engage with new customers and generate revenue for certain product categories.

There you go, the most common of misconceptions have been explained and busted. Whether a programme has been recently launched or has been in operation for many years, the myths have now been addressed with  clarification, paired with ideas of how it can be managed. Affiliate channel is an amazing space for collaboration, innovation, and it’s cost effective to run. If you have never thought about discovering affiliate marketing in more and in detail, now it’s the time to get in!

Is Affiliate Marketing real?

Affiliate marketing is a long-term marketing avenue for business, and it is a perfectly legitimate way for personal, publishers, brands to make money online.

Why some people think Affiliate Marketing Is A Scam?

Affiliate marketing has good reputation in general and relatively, but sometimes people get a bad reputation because there have been some actual scams are using affiliate marketing as a disguise.

Most of the scams in the affiliate marketing happened with affiliate marketing courses. There are plenty of great affiliate marketing training courses and resources on internet, there are lots of people. Yes, I meant lots, who don’t know what they’re talking about, and trying to make a quick buck by selling “training courses”.

People signed up for these courses, they don’t learn anything and they don’t make any money, and then come to the very understandable conclusion that affiliate marketing scam.

This sort of thing could get affiliate marketing in difficult way, since there are a lot of junk information to wade through. It’s also why you generally want to try to learn the fundamental skills from a well-known, successful affiliate marketer.

Get Rich Quick Scams

Perhaps you have read a lot of suggestions for the affiliate marketing plan before you are reading our article here now, that so called you can earn hundreds of thousands of dollars per month, and some of them said that you do not need to do anything ( something like ‘three clicks to get rich!’ ).

Or, they suggested that you can create your own affiliate website, then set it aside, and check your bank account regularly. 

Lastly, the reputation of affiliate marketing, to some extent, has been damaged by the prevalence of get-rich-quick scams.

If you were a kid in the 90s, you grew up watching infomercials, then you probably remember being sucked into some kind of get rich quick scam at some point.

Sell real estate, stock trading. houses flipping. Honestly, it seems like those are endless scams.

Mostly, all of these scammy programs they promised you very easy, quick money were essentially just some profiting in a short time.

The truth and unfortunate thing, is that affiliate marketing could sound like a get-rich-quick scheme sometimes. Or, more accurately.

“Work from home.”

“Make money while you sleep.”

“Earn thousands of dollars with a few simple tactics.”

If you’ve been interested in affiliate marketing for any time at all, probably seen that type of language on the programs people are trying to get you to buy.

In short, affiliate marketing can look like a skeezy infomercial, especially to an outsider doesn’t know anything about it.

Negative Press

Affiliate marketing has also received its unfair share in negative information by press.

For example, this Venture Beat article, which details how the author’s business was essentially scammed by affiliates who are tagging sales unethically (I would’t go into the details of how they were doing this, but the article is worth a read).

Based on that experience — and more importantly, because the author wasn’t at all familiar with what affiliate marketing actually is, or how it should normally work, he figured all affiliate marketing was scam.

However, unfortunately the author also writes for a major publication, and when these types of stories go out, some people really buy into it without wide thinking.

It’s worth mentioning that the author of the Venture Beat article eventually published a second article correcting his position and outlining why affiliate marketing is in fact not bad. The thing about negative information by press, though, that tends to stick even after you correct it, and affiliate marketing often feels the effects of these pieces long after they are written.

Truth in Affiliate Marketing

Affiliate marketing is nothing more than an agreement between a business and a marketer that awards the marketer money for referring a customer or potential customer.

It’s a system that has been around for a very long time, and there are many, many people make an absolute killing with affiliate marketing.

Which means, it is absolutely not something that will get you rich quick.

You will have to learn new skills. You will have to do work. You will fail quite a bit. As it is true with any business types, there’s always a risk that you would not make any money at all.

This is true for basically everybody who has ever tried affiliate marketing. Even myself.

In reality, affiliate marketing is like most other squatter businesses. Well, there always have people who can get rich quickly, and a large number of people have successfully achieved their own goals, dreams, etc.  

Of course, there still have some numbers of people that do nothing with it. The above situation is not that the affiliate marketing can generate income, but that you can make the affiliate marketing service for you and bring you benefits.

I created 3 different websites before I finally made my very first dollar from an affiliate marketing program. Some of the most successful people I’ve met in this space failed whole a lot more than that.

So yes, affiliate marketing is very real, perfectly legitimate, it will be a way for both businesses and marketers to make money for long term.

Anything we missed about affiliate marketing? Let us know your ideas!

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This Post Has 14 Comments

  1. LineCowley

    An informative article on What is affiliate marketing online, that you have written, with some very interesting statistics. There are too many programs that promise people that they can get rich quick, which is not the case. So many people expect that affiliate marketing will bring overnight success, which means they don’t put in the work that is required and then call it a scam. 

    Like with any business, affiliate marketing takes time and effort to build up, but if you put in the work, you will reap the rewards.

    1. Ling

      Hello Line, thank you for your comment. Thanks for the internet access that brings people to Affiliate Marketing online, so that makes everything easier nowsadays.There are plenty programs that promising people to get rich quick, but the truth is, you can’t do nothing and just sit and wait for your money comes, right? If there’s anything that we missed, you can let us know.

  2. Geoff

    That is an extremely interesting and informative blog.  There is so much excellent information that makes it really clear that there is money to be made in affiliate marketing.  However, I do appreciate, as you point out, it is all down to choosing the right niche.  I cannot therefore blame affiliate marketing if I choose the wrong one, or do not promote it correctly.

    Thanks again for this information, as it will certainly spur me on to get blogging and reaching all those people on the internet.

    1. Ling

      Hello Geoff, thank you for your comment. We explained as much as we can, so make our friends and audience to understand more and clear. If don’t promote it correctly and doing nothing, that’s not going to help and wait for your income, right? Also, newers can build up their websites while learning, so that it makes things more clear and easy to remember. You are always welcome to come across, and leave us comment.

  3. Nath

    Affiliate marketing is simplythe very best out here. Seeing you have explained it all in simple and understandable terms here, I value the information here and it makes a whole lot of sense. Being able to actually focus and achieve it all here through affiliate marketing without actually investing any money upfront makes it worthy to me. Thanks

    1. Ling

      Hello Nath, thank you for your comment. Affiliate marketing is the best and easiest method that people can make money online. Unlike some MLM or stock market, but it could look like as get rich quick. Because some people generates income fast, some people are slow. It really depends what you learnt, what you do.

  4. Justin

    Hello there, affiliate marketing is a great means of making some really good money online without having to invest in anything or even go with. a capital. I feel so much joy seeing how easy it is and all you’ll need to do is have a god mentor and you’ll be good to go. Cheers

    1. Ling

      Hello Justin, thank you for your comment. Affiliate marketing is the best way which to generate your income, make money online, to have flexible time working, escape 9 to 5 life, don’t need to be bossed around, because you will be your own boss. Glad to see that you have so much joy. Wish you can achieve your goals in future!

  5. Hannie

    The graphics clearify a lot, Ling. I always love graphics! And your sincere advocacy of affiliate marketing is justified. Yes, affiliate marketing is working hard and consistently on your websites, otherwise it won’t work. And no, affiliate marketing is not a get quick rich scam, far from it. No matter what some people say, who unfortunately bring a bad name around affiliate marketing.
    I love working on my websites just as much as you do. And that enthusiasm shows and is contagious.
    Great job. 🙂

    1. Ling

      Hello Hannie, thank you for your comment. Affiliate marketing is a long term method to generate passive income, and it takes time because it needs traffic to gain audience to your website. You are right, unfortunately affiliate marketing has some bad reputation through some ways like medias and user experiences on scammy companies. Recommendation of our websites are legitimate and I think that our audience will make a good choice. Glad to see that you love working on your websites and keep it going!

  6. JN

    Hello there – Thanks for this article on What is affiliate Marketing. I would consider myself as a newbie with affiliate marketing. I am learning how to make money from blogs but was shocked to see the review on “How do you make money from blog(s)” and that 83% bloggers making money through affiliate marketing. Definitely need to try and mix up my revenue sources.   

    1. Ling

      Hello JN, thank you for your comment. You are right, almost 83% of bloggers are making money online through affiliate marketing, and it’s true as posted the analyses above. It’s the easiest way to make money online and it’s proven.

  7. Beesean

    Your article ‘What Is Affiliate Marketing online?’ is really illuminating and enlightening and I think anyone who is interested in affiliate marketing and wants to learn more about it or even anyone who has heard about affiliate marketing but knows nothing about will do well to read this article. I think affiliate marketing is a great way to earn money. 

    1. Ling

      Hello Beesean, thank you for your comment. Affiliate Marketing is the trend of making money online in 21th Century. Unlike those old school methods, with internet access it’s easy to generate passive income. 

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