Lesson 1- What is Affiliate Marketing?
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Workshop Scenario:
Please think of yourself in the following scenario as you complete this workshop.
You recently signed up to be an ambassador with 24/7 Teach because you’ve heard about affiliate marketing and you know it can be incredibly lucrative. You have a job, but you want to explore affiliate marketing for some side income– especially since you’ve heard it only takes a few hours a day.
You are familiar with 24/7 Teach and believe in the value they offer, so it’s the perfect place to start. You have no marketing background, so you decided to take this training to give yourself the best chance for success.
In this lesson, you will begin to understand what affiliate marketing is, how to find the right affiliate program, and strategies for success as an affiliate marketer.
Your objective for today is:
Describe the fundamentals of affiliate marketing, including strategies, best practices, and trends.
Important Questions to Consider While Reading:
In order to be successful in this lesson, you must be able to answer these important questions.
What is a niche? What niches do you feel passionate about?
What could you promote within your desired niches?
Pre-Assessment
Please complete a short survey on your experience with Affiliate Marketing
Lesson 1: What is Affiliate Marketing?
1.1) Affiliate Marketing Explained
Affiliate marketing is a form of digital marketing in which an individual or company promotes products or services of another company and receives a commission for each sale or lead generated through their efforts. The affiliate marketer (the publisher) is essentially an online salesperson who earns a percentage of the revenue generated by the product or service they promote.
How Does it Work?
The process works like this: the affiliate marketer partners with a company or advertiser to promote their products or services through their website, blog, social media, or email list. They then use their online presence to drive traffic to the company’s website, where visitors can purchase the product or service. The affiliate marketer earns a commission on each sale made through their unique affiliate link. Typically, the affiliate marketer chooses a niche, or a specialized market segment for a particular kind of product or service, to market to and find products that will help that niche.
Average Commissions
The commissions earned by affiliate marketers can vary widely depending on the product or service being promoted and the affiliate program's terms and conditions. Typically, commissions range from 5% to 30% of the product's sale price.
Some affiliate programs also offer performance-based commissions, where the affiliate marketer earns higher commissions based on the number of sales or leads they generate. For example, an affiliate marketer may earn a 10% commission for the first 10 sales they generate, 15% for the next 10, and so on.
Affiliate programs may also offer recurring or lifetime commissions, where the affiliate marketer earns a percentage of the customer's ongoing purchases. This is common in subscription-based services like online courses or software subscriptions.
Why Affiliate Marketing?
In summary, affiliate marketing can be a lucrative way to earn passive income online, provided you have a strong online presence and can effectively promote products or services. By partnering with the right advertisers and promoting products that are relevant to your audience, you can earn commissions on each sale or lead generated through your efforts. However, it's important to carefully research and choose affiliate programs, ensuring that they align with your values and interests and that the commissions offered are fair and competitive.
1.2) Strategies for Becoming an Affiliate Marketer
As an affiliate marketer, choosing the right company to work with is crucial to your success. There are several factors to consider when becoming an affiliate, including the product value, margins, tracking, marketing material, and integrity of the company. Let’s explore these factors in detail.
How to choose a program:
Product Value: The first thing to consider when choosing a company to become an affiliate with is the value of their product. You want to promote products that are of high value and quality to your audience. Consider the price of the product, its benefits, and how it compares to other similar products in the market. You should also look for products that align with your niche and are relevant to your audience.
Margins: Margins are the amount of money you will receive as an affiliate for each sale. When choosing a company to work with, it's essential to consider the margins they offer. Look for companies that offer a high commission rate and provide you with the opportunity to earn a significant amount of money.
Marketing Material: The marketing material provided by a company is another critical factor to consider. Look for companies that offer a variety of marketing materials, including banners, ads, and email templates. These materials will help you promote the products effectively and increase your chances of making a sale.
Integrity: Finally, it's important to work with a company that has integrity. Look for companies that are transparent about their products and their affiliate program. Check reviews and testimonials from other affiliates to ensure that the company is reputable and has a good track record of paying their affiliates on time.
Becoming an affiliate with the right company can be a game-changer for your online business. By considering these five factors, you can ensure that you choose a company that offers high-quality products, fair margins, reliable tracking, effective marketing materials, and a good reputation in the industry.
1.3) Best Practices for Affiliate Marketing
As an affiliate marketer, your goal is to generate sales and leads for your partner company in exchange for a commission. In order to achieve success in this field, it is vital to follow certain best practices that can help you stand out in a crowded market.
Zoning in on a niche
In the context of marketing, a niche refers to a specific market segment or audience with particular interests, needs, or preferences. Zoning in on a niche means focusing your efforts on a specific subset of the market rather than trying to appeal to a broad audience. To zone in on a specific niche, it's important to do research and identify a market gap or unmet need that you can fill. Look for a topic or area of interest that you are passionate about and that aligns with your expertise or skills. Consider the audience you want to target and their specific needs or pain points. By narrowing your focus to a specific niche, you can become an authority in that area and build a loyal following. If you don’t find a specific audience to market to, you’ll get lost in the crowd. Your audience will be confused and won’t know whether to trust you. Remember this phrase, “If you try to be everything to everyone, you’ll end up being nothing to no one.”
Providing solutions, not selling.
One of the most effective ways to succeed as an affiliate marketer is by providing solutions to your audience's problems rather than just selling products. This means creating content that addresses your target audience's needs and preferences, and demonstrating how a particular product or service can solve their problems. For example, if you are promoting a weight loss supplement, your content should focus on the benefits of the product, how it works, and how it can help someone achieve their weight loss goals.
Creating content (Edutainment)
Creating content that is both entertaining and educational is key to building a loyal following and increasing sales. Your content should be engaging, informative, and relevant to your audience. This can include product reviews, how-to guides, tutorials, and comparisons of different products or services in the same niche. By offering valuable content to your audience, you can establish yourself as a trusted authority in your niche, which can help to boost your credibility and increase conversions.
Tracking Success
Tracking your success is crucial to understanding which strategies are working and which ones are not. You can track your success by using analytics tools to monitor your website traffic, social media engagement, and sales data. This will help you identify which products are selling well, which content drives the most traffic and engagement, and which marketing channels are most effective. Regularly monitoring and analyzing your data can optimize your campaigns and adjust your strategies to maximize your success. We’ll talk further about how to use your social media analytics in the coming lessons.
Learning Checkpoint!
Click the button below to show what you’ve learned so far about Affiliate Marketing!
True or False: Affiliate Marketing requires you to have inventory.
What is a niche?
1.4) Trends in Affiliate Marketing
What brands want:
Affiliate marketing has become an essential part of many brands' marketing strategies. Brands want to work with affiliate marketers who can deliver results and help promote their products to a wider audience. Here are some of the things that brands want from affiliate marketers:
Increased focus on video: Video content has become an increasingly popular way to engage with audiences online. Brands want to work with affiliate marketers who can create compelling video content that showcases their products in an authentic and engaging way.
SEO: Search engine optimization (SEO) is a critical component of any successful affiliate marketing campaign. Brands want to work with affiliate marketers who can optimize their content for search engines and help drive traffic to their websites. We will teach you how to become an SEO expert in this training!
Showing personality: Brands want to work with affiliate marketers who have a strong personality and can connect with their audience in a genuine and authentic way. By showing personality and being relatable, affiliate marketers can build a loyal following and increase conversions.
Tips for affiliate marketers who want to meet these expectations and deliver results for brands:
Focus on video content: Consider incorporating video into your content strategy. Create product reviews, tutorials, or demos that highlight the benefits of the brand's products.
Optimize your content for SEO: Use relevant keywords, create high-quality content, and optimize your website's structure to improve your search engine rankings. For example, if I am marketing to an audience that is trying to train their dogs I might google keywords for “How to Train your Dog” and use those keywords in my marketing campaigns.
Be authentic and show personality: Don't be afraid to inject your personality into your content. Be relatable, share your experiences, and build a connection with your audience. Consumers LOVE to hear personal stories. They will buy from someone that they can relate to, that they feel understands their struggles.
1.5) Phases of Affiliate Marketing
We’ve made it clear that this can be a highly profitable way to make money online, but it takes time and effort to build a successful affiliate marketing business. Here are the three phases of affiliate marketing and what you can expect at each stage:
Building your following: The first phase of affiliate marketing is to build your following. This involves creating high-quality content that resonates with your target audience and promoting it through various channels, such as social media, email marketing, or paid advertising. During this phase, your goal is to build an audience of engaged followers who trust your recommendations and are interested in the products you promote.
Building your income: Once you have built a following, you can start to monetize your content and earn income through affiliate marketing. This involves partnering with brands and promoting their products through your content using unique tracking links. You earn a commission on any sales generated through your affiliate links. During this phase, your goal is to optimize your affiliate marketing campaigns and increase your income by promoting the right products to your audience.
Expanding your business: The final phase of affiliate marketing is to expand your business and take it to the next level. This involves scaling your affiliate marketing campaigns, diversifying your income streams, and potentially creating your own products or services. During this phase, your goal is to leverage your existing audience and income to grow your business and create even more opportunities for passive income.
Tips for succeeding in each phase of affiliate marketing:
Building your following: Focus on creating high-quality content that provides value to your audience. Be consistent and promote your content through various channels to reach a wider audience.
Building your income: Partner with reputable brands and promote products that align with your audience's interests and needs. Track your results and optimize your campaigns to increase your income.
Expanding your business: Consider creating your own products, building an email list, or exploring new revenue streams, such as creating digital products or courses.
1.6) High-Ticket vs. Low-Ticket Affiliate Marketing
The main difference between high-ticket affiliate marketing and low-ticket affiliate marketing is the price point of the products or services being promoted. High-ticket affiliate marketing involves promoting products or services with a high price point, typically in the range of several hundred to several thousand dollars. Low-ticket affiliate marketing, on the other hand, involves promoting products or services with a lower price point, typically in the range of under $100.
High-ticket affiliate marketing can be more challenging, but also more rewarding in terms of commission payouts. The high price point means that fewer sales are needed to earn a significant amount of income. However, promoting high-ticket products requires a greater level of trust and authority with your audience, as they will need to be convinced that the product is worth the investment. This often requires more in-depth content, such as reviews or case studies, to demonstrate the value of the product. Promoting workshops and bootcamps through 24/7 Teach is an example of high-ticket affiliate marketing.
Low-ticket affiliate marketing is generally easier to promote, as the lower price point means that the barrier to entry is lower, and consumers are more likely to make a purchase without much consideration. However, the lower commission payouts mean more sales are needed to generate significant income. Promoting low-ticket products can also lead to more competition, as they are often promoted by many affiliates in the same niche. Sephora is a popular brand offering a low-ticket affiliate program, where you can market their makeup, skincare, and fragrance products, typically under $100.
High-ticket affiliate marketing and low-ticket affiliate marketing have their respective benefits and challenges. The choice between the two depends on the individual affiliate's goals, niche, and audience. It's essential to carefully consider the product, commission rate, and the target audience's purchasing behavior when deciding which type of affiliate marketing to pursue.
In conclusion:
Affiliate marketing is a lucrative digital marketing strategy where an individual or company promotes another company's products or services and earns a commission for each sale or lead generated through their efforts. As an affiliate marketer, it is important to choose the right company to partner with and consider the product value, margins, marketing material, and integrity of the company. By focusing on a specific niche and providing solutions to your audience's problems, you can become an authority in that area and build a loyal following.
Affiliate marketing can be a great source of passive income online, provided you partner with the right advertisers and promote products that are relevant to your audience. In this training, we will offer you real-life opportunities to begin your affiliate marketing business and apply the strategies you learn. Head to the next lesson to get started!
Closing Assessment:
Select the Assessment button below to answer the following questions:
Brainstorm 3 possible niches that you feel passionate about and could market to.
Google possible affiliate marketing programs within those niches. Do you see any that you’re interested in?
Discussion Question:
1. Please answer the following question in the comment section below and interact with learners from around the world.
Describe in your own words what affiliate marketing is. Include information about strategies, trends, and best practices. What excites you the most about it?
2. Please read and reply to other learners’ answers in the forum. Your replies should offer new substantiated ideas or thoughtful questions.
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Course Created by: Samantha Nally, Laura Campion, Jan Deniece de los Reyes, and Rimandeep Kaur
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