Affiliate Marketing

How Affiliate Marketing Can Increase Sales

Published on: March 3, 2023

Last Updated on: April 27, 2024

Affiliate Marketing

toc impalement

Utilizing an Affiliate marketing platform provides many advantages in one.

It’s an ideal way to make money online, with plenty of ways to get creative and customize your activities. Plus, it’s simple to start and bears great potential for success.

Statistics speak for themselves: the last decade has witnessed a fivefold increase in Affiliate marketing spending, with the biggest revenues drawn in retail, telecom, media, and travel. Almost half the affiliates make over $10,000 from their marketing efforts3.

  • Phonexa’s high-tech platform will put you ahead of the competition by enabling various affiliate management and marketing tools and smoothly integrating into your lead management cycle. Whether affiliate or advertiser, you will benefit from granular analytics, timely payments, and numerous traffic-driving tricks the affiliate platform provides.

Read on to learn Affiliate marketing through and through, including how to start Affiliate marketing, make money from Affiliate marketing, and bring the process to perfection. The all-encompassing guide on Affiliate marketing for beginners has it all for you.

With no further ado, let’s start learning Affiliate marketing right now.

What Is Affiliate marketing?

Affiliate marketing

Affiliate marketing is promoting someone else’s product or service in exchange for a percentage of the sales or traffic you (the affiliate) generate.

Affiliate marketing comprises three stages:

  1. A business decides what products or services to promote and establishes partnerships with affiliates that match their needs.
  2. Every affiliate creates content and shares affiliated products or services with their audience.
  3. When a consumer clicks on the affiliate’s link and buys a product or service from the business – or completes any other target action from the affiliate agreement – the affiliate is paid a commission for their work.

In addition to being a cost-effective marketing strategy for advertisers, Affiliate marketing benefits affiliates by giving them an easy way to earn income from their online presence.

Types of Affiliate marketing

Unattached Affiliate marketingThe affiliate has no connection to the product or service they are promoting, nor they have related skills or expertise around the product.
Related Affiliate marketingThe affiliate promotes a product from their niche or industry and has enough influence and expertise to generate traffic. Likewise, their level of authority makes them a trusted source.
Involved Affiliate marketingThe affiliate deeply connects to the product or service they’re promoting. They are confident in their experiences with the product and service as trusted sources of information.
  • Pay-per-sale (PPS). PPS is a commission-based model in which affiliates are compensated only when they convert customers. The payout is based on the sale amount, usually varying from five to twenty-five percent of the sale. PPS works best with products of higher margin potential and products sold in large quantities.
  • Pay Per Click (PPC). PPS pays for each ad click, typically done through an ad platform, such as Google Ads, Bing Ads, or Facebook Ads. With PPC campaigns, the advertiser sets a budget and bids on relevant keywords or phrases to target the right audience.
  • Pay Per Lead (PPL). PPL pays for each generated lead based on the lead quality. For example, qualified leads (such as those who sign up for a demo or fill out a contact form) may be rewarded more than unqualified leads (such as those who only visit the website).
  • Cost per Acquisition (CPA). CPA pays for each acquisition. That is calculated based on the user’s actions, like signing up for a newsletter or purchasing.
  • Cost per Mille (CPM). It pays for every thousand impressions and is usually used for display or video advertising.
  • Cost per Engagement (CPE). CPE pays for a particular action, such as watching a video or completing a survey. CPE is often used by advertisers willing to measure engagement with their content.

Understanding various payment models and choosing the one that fits their needs increases your chances of making money as an affiliate marketer. Likewise, you can be sure that your affiliate partners – or you as an affiliate – get their worth on time as per the affiliate agreement.

How to Become an Affiliate in Affiliate marketing?

Become an Affiliate

Step 1 – Pick Your Niche

To start making money with Affiliate marketing, you’ll need to pick a relevant niche with a sizeable audience you can target. One way to search for potentially profitable niches is to research Google Trends for trending interest.

Step 2 – Pick Your Best Marketing Channel

Next, you’ll need to decide on a marketing channel. Besides creating a review website, you can promote your content on social media. You can use one channel that fits your target audience or opt for a multi-channel or omnichannel approach.

Step 3 – Join an Affiliate Network

Joining an affiliate network will make it easier to build relationships with merchants and increase your potential to earn affiliate commissions.

Start by researching various affiliate programs to determine which fits your goals. Look into how long the program has been running, its track record, payment model, and the tools provided. Read the agreement carefully, looking for pitfalls, small print, and other tricks. Lastly, ensure that the commission is good for the effort you are putting in.

How Can Affiliate marketing Increase Sales and Grow Your Business?

Increase Sales

1. Increase Your Profits

By offering incentives to your affiliates, such as commissions or discounts, you can encourage them to promote your products and services to their followers, thereby making even more money with Affiliate marketing.

2. Lower Your Costs

By utilizing the networks of your affiliates, you can reduce your marketing costs and increase your profits.

3. Improve Your SEO

By having your affiliates promote your products and services, you can reach a much larger audience than you can with traditional marketing methods. This can increase your visibility in search engine results and improve your SEO.

4. Save Time and Money

By partnering with affiliates, you don’t have to spend time and money creating and executing traditional marketing campaigns. You can have your affiliates promote your products and services, allowing you to focus on other aspects of your business.

5. Increase Your Visibility

By creating high-quality content that your affiliates can share and promote, you can reach more people than you can with traditional marketing methods. This can help drive more customers to your business and thus make more money with Affiliate marketing.

6. Increase Brand Loyalty

By offering rewards or discounts to affiliates for referring customers, you can encourage them to remain loyal to your brand. This can help to build customer relationships and increase customer satisfaction while driving more sales.

How to Increase Your Sales as an Affiliate?

Increase Your Sales as an Affiliate

A. Make It Clear that You’re Promoting an Affiliated Product

Disclosing your affiliate links when promoting or recommending products in exchange for a commission is essential. If your customers discover you are not disclosing your affiliate links, they may lose trust.

B. Aim for Several Affiliate Partners

You don’t want to become too reliant on one program and have them suddenly pull out or drastically reduce the commission rate, so enroll in several affiliate programs or work with several affiliates. Also, remember that periods of low revenue are inevitable, no matter how successful your affiliate program is.

C. Learn Your Products Through and Through

Make sure to thoroughly research the ins and outs of whatever offerings are in your niche. This due diligence can help you become an authority on the affiliated products and stand out from competitors.

In addition to understanding your products, consider the people who use them. What are their motivations? When someone visits your site, what are they looking for? Answering these questions can help advertise your products in the right context.

Finally, always test-drive the products yourself, even if it’s just a demo. Hands-on experience will give you a better grasp of how the product will work for your visitors.

By understanding the ins and outs of the products you recommend and their buyers, you can better curate your offerings, leading to more money made with Affiliate marketing.

D. Automate and Scale by Integrating Affiliate Software

Last but not least, maximize your Affiliate marketing performance with an automated platform for Affiliate marketing management. The latest developments across Phonexa’s performance marketing automation software provide the following features for maximizing your Affiliate marketing performance:

  • Detailed views of customer journeys.
  • Real-time reports on campaign performance.
  • The ability to adjust your strategy in real time.

Become an Affiliate Marketer Now to Start Earning Extra Money Right Away

The best time to learn Affiliate marketing is now. In very little time, you will make money while being free to choose which products, services, and marketing techniques you use. No less important., you won’t need to spend much money upfront, facing very little to no risk.

Read Also:


Arnab Dey

Arnab is a passionate blogger. He shares sentient blogs on topics like current affairs, business, lifestyle, health, etc. To get more of his contributions, follow Smart Business Daily.

Related Articles