How Affiliate Marketing Works and Is It Worth It?

how affiliate marketing works

how affiliate marketing worksHave you come across affiliate marketing before? Are you wondering how affiliate marketing works?

This guide is going to rattle through the key things you need to know about this type of digital marketing.

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From setting up your website to driving people through the funnel, we’ll give you a firm base of knowledge.

How Affiliate Marketing Works

Affiliate marketing operates on a very simple principle. You ‘push’ users from your site to an online store which operates an affiliate program.

When users make a purchase after following your link, you will be rewarded. That might be a fixed fee or a percentage fee based on the value of the goods and services they buy.

To get those users into your site in the first place, you need to acquire them via search results or digital advertising.

This is the ‘user funnel’ – the direction of travel moves them from a Google searcher, into a site visitor, into a store visitor, where they hopefully make a purchase.

Why Is Affiliate Marketing Popular?

Affiliate marketing is popular because you don’t need to maintain a physical store or warehouse to make money out of ‘selling’ online.

Instead, you use great content to push people towards certain decisions.

To be successful, you need to generate a significant volume of sales, as you’re only getting a small cut of the sale price.

This is why many affiliate marketers look after a portfolio of websites each with their own user funnel and area of focus. This diversifies their audiences, spreading out the chances of making sales into a wider group of people.

It’s worth thinking about the type of product you’re trying to push. A luxury product like jewelry for which you get a 1% share is probably worth more to you than an everyday item like a phone case where you get a 5% share.

Though this comes down to the volume of each you shift, of course.

The Future of Affiliate Marketing

Some people are asking questions. Some are asking: “Is affiliate marketing dead?

Well, nope. You just have to be better at it to succeed than in times gone by.

You used to be able to spam keywords on a website, score really highly in search engine results, and drive traffic to various places.

It’s not so easy these days.

Google and other search engines value good content, and their algorithms are constantly improving to weed out ‘black hat’ tactics like keyword stuffing.

How to Maintain an Excellent Blog

Now you know how affiliate marketing works, you need a website – and content. Content is the absolutely vital part of any successful affiliate marketing strategy.

You need to blog and write articles which are consistently great, and keep coming back for more. Not to mention, they need to effectively call people into action so that they make purchases.

If you’re looking for advice on how to maintain an excellent blog, why not check out our (dare we say it?) excellent blog. We’ll teach you how to create top content that maximizes the returns from your affiliate marketing.