The Internet is growing day by day, anytime, anywhere, you can find almost anything on the internet market. It is an attractive piece of cake, so, where is the opportunity for business people to generate income? That is the concept of affiliate marketing questions.
What makes you more excited when you can self-control your income anywhere and anytime, even when you sleep?
1. What is affiliate marketing?
Affiliate marketing has been a popular tactic since its first appearance in the mid-90s of the last century. In 1996, Amazon put it into their Affiliate activity and it has been successful from then until now.
It is beneficial for both businesses and Affiliate Marketers to increase sales and generate significant online sales. It is one of the less expensive but extremely profitable marketing tactics.
- 81% of businesses and 84% of publishers salvage the power of the affiliate network to sell.
This number will increase as the payment for affiliate marketing gets higher and higher.
- According to research by Mediakix, Affiliate Marketing market increases by 10.1% per year.
It means that by 2020 that number will reach 6.8 billion dollars
- In 2018, content marketing – content marketing costs were estimated to account for 62% of traditional marketing programs.
At the same time, it takes the lead in traditional methods. 16% or more of online orders are under the influence of affiliate marketing.
- In March 2017, commissions for Amazon’s affiliate marketing (Amazon – one of the world’s leading brands using this method) had a few changes.
They spend 1-10% of their sales on affiliate marketers. It creates an opportunity for intermediary affiliates to significantly increase their passive income based on the category they are selling.
- Jason Stone’s affiliate marketing network, also known as Millionaire Mentor, achieved retail sales of up to $ 7 million in June and July 2017.
Affiliate marketing is the process by which a person earns a “commission” from marketing or selling products of individuals or companies.
Affiliate marketers need to find a suitable market. Then advertise the products, bring the products to consumers, they will make a profit from it. The sale is controlled through affiliate links from the website to the website.
2. How does affiliate marketing work?
This is a question that many people wonder after understanding what affiliate marketing is?
Affiliate marketing takes advantage of the creativity of many individuals to create an effective marketing strategy. Besides, the contributors will receive a profit or commission. To accomplish this task, three subjects are needed:
- -Seller and product creator
- Marketers or advertisers
- Product buyer/customer buyer
But to better understand how affiliate marketing works? We need to learn more about the relationship between the parties.
- Seller and product creator
Sellers are individuals or large businesses, suppliers, or retailers of products on the market. Products can be consumer goods or different types of services.
Sellers do not need to participate directly in marketing. However, they can also be advertisers and profit from sharing revenue through affiliate intermediaries.
- Affiliate or Publisher
Affiliates can be individuals or companies specializing in marketing products in different ways to attract customers.
It means that the affiliate will promote a certain product to consumers, convince them it is a good product, and encourage them to buy. If a customer buys the product, the affiliate will receive a share of the revenue from this affiliate marketing activity.
They just need to advertise and sell the product. Meanwhile, shipping or customer support will be responsible by the seller.
The thing to do is that affiliates need to find their market from the customer to the product segment and dominate that market.
- People who buy the product
It is an important factor for affiliate marketing to operate and a source of motivation for affiliates to work. In the beginning, the affiliate shares the products with the audience in need on social media, blogs, web,… and get a commission if they can contribute to increasing sales.
The development of affiliate networks began to change when they only cared about money and started working with product creators to advertise untrue things, or market for low-quality products.
Sometimes, customers are not interested in buying products through affiliate marketing. Because they know they rarely pay more for the product they buy.
The commission that affiliates receive is included in the retail price, or when they receive the product. There will be no additional costs through the affiliate marketing system.
3. How much money can you make as an affiliate marketer?
Affiliate marketing is a simple, fast, and effective way to make money from selling products. But if you are an affiliate marketer to “Can you make good money with affiliate marketing?”, It’s difficult to answer correctly. Consumers do not always have to buy. Depending on the affiliate’s contribution to sales, they will get paid in different ways.
- Get paid for sales
It is the basic form of affiliate marketing.
With this method, affiliates will receive a percentage of the selling price of products from the seller after consumers buy the product thanks to their marketing strategy. The strategy must be effective for consumers to buy the product before the affiliate receives the money.
- Get paid for every potential customer
A more sophisticated form is to be paid based on converting potential customers.
Affiliates must convince customers to go to the seller’s official website. At the same time encourage customers to perform the actions that the seller wants. Including leaving information, registering to try out products, sharing product information on personal social networks, …
- Get Paid for every click
This method depends on the traffic source from the affiliate marketing platform and redirects users to the seller’s website. It means that affiliates must redirect consumers from their websites to the sellers’ websites and they will get paid based on the effectiveness of website traffic.
4. How to make money on youtube with affiliate marketing
Most intermediary affiliates share general information to ensure that their audience is engaged and receptive to the promotion.
But not all affiliates have the same way to advertise their products. There are several different marketing channels they can take advantage of. One of them is through Youtube – the largest video platform today.
Most people want to experience the product with real images, rather than reading through the text to understand the product. That makes it easier to sell products through Affiliate marketing on Youtube.
First of all, it is necessary to have a Youtube channel and a certain number of viewers. Secondly, they must be the people who have a great influence on buying decisions to a large audience. They must have a lot of followers. Therefore, it is easy to direct consumers directly to the products of the seller. These people will receive a share of the profits from the seller. Finally, for the audience to become your customers – meaning buying goods through your affiliate link requires you to attach your affiliate link cleverly and naturally.
5. Tips to help you succeed with affiliate marketing on Youtube
1. Search for a customer segment
When you start selling with affiliate marketing, you’ll want to target a clear target audience. It helps you publish videos that suit for that segment. Besides, it helps you to increase conversion capabilities.
2. Choose products you know well
There will be many products you can choose to promote. However, the products that you want to advertise widely and cooperate with them to perform affiliate marketing, you need to understand that product to advertise in detail for users.
Building trust with your audience is important to affiliate marketing. The quickest way to build trust with customers is to recommend products you have used before and those who are appropriate to use them.
In particular, you must make sure that you are only recommending products but not forcing others to buy. And it is even more useful if you make quality suggestions with that product, you will attract more customers.
3. Promote many different products
Never put all your eggs in one basket.
If you promote only one product, you will be passive in earning commissions from that product. You should diversify different products but not so much with the amount of traffic that the YouTube channel brings.
It helps you be more active with the commission that the product brings.
4. Check and optimize conversion rates
Let’s say you are promoting a product with a video that has 5000 views/month with 100 clicks on your affiliate link which means a conversion rate of 2%. But if you have 200 clicks, that’s 4%. You need to optimize conversion rates to increase conversion rates by calling for action or further optimizing your video.
Advantages of affiliate marketing on Youtube
- Low cost, easy to get started, all you need a Youtube channel to be able to do it.
- Promote products directly with videos to help users experience better products.
- Earn other passive income by participating in making money with Youtube Partner program
- Do it anywhere just need an internet connection.
- It can be combined with existing businesses to earn extra income. It is the ideal job for streamers, bloggers, coaches,… and anyone who owns a YouTube channel.
Disadvantages of affiliate marketing on Youtube
- It takes time to develop a YouTube channel to create quality traffic
- A bad product introduction can affect your reputation. So be careful with every product you want to promote.
- High competition, anyone can follow you. So you need to find your market and quickly dominate that market on your own.
- Not all companies pay for the affiliate marketing effectiveness you bring.
Affiliate marketing with Youtube is one of the ideal solutions for anyone who wants to earn extra income on the online internet market.
Working in parallel with the seller, an affiliate marketer can achieve a stable income by just working from home and not having to worry about producing products.
However, to succeed, you need to create videos that appeal to viewers and keep updating new products.
Through this article, I hope to help you understand what affiliate marketing is. What to do to affiliate marketing with youtube? Thereby helping you attract customers and improve your revenue with this form.