Categories
Affiliate Marketing

Affiliate Marketing – Everything You Need To Know

Affiliate Marketing – Everything You Need To Know

What is Affiliate Marketing?

Affiliate marketing is a marketing model where a company pays third parties for promoting its products. Essentially, an affiliate marketer is a ‘digital salesman’. A company does the hard work of creating a product or service and the entire support construct behind it; and an affiliate marketer promotes the product in exchange for a fee or commission. Typically, this commission is paid when a successful sale has been made, however it can be based on other criteria.

 

Affiliate marketing started way before the introduction of the Internet, but it has now grown to become one of the most popular (and extremely rewarding) ways of earning an income online. So, let’s delve into understanding affiliate marketing in more detail and how you can get started.

Why is Affiliate Marketing So Attractive?

Affiliate marketing is important for both the underlying company and the affiliate markets.
For a company, the benefits of running an affiliate marketing program include:

Increased Sales

Affiliate marketing is a powerful magnet to create awareness which increases sales and revenues. A company that applies an affiliate marketing strategy usually partners with publishers, bloggers, online businesspersons and influencers that indirectly act as its marketing team. Affiliate marketers often engage targeted or huge audiences and they can help a company not only to boost its sales but also to exponentially scale up its online business.

Pay is Based on Performance

Affiliate marketing is in essence a type of performance marketing. Unlike traditional marketing paths, a company implementing an affiliate marketing program gives payouts based on performance, rather than mere activity. An affiliate marketer is usually paid when a successful sale is made, and not when they perform marketing activities. For any company, this is a lower-risk, cost-efficient strategy; and additionally, they get to set the commission rates.

Social Proof

Consumers generally trust brand ambassadors; this is what is known as social proof. That is, it is the idea that customers are more readily willing to trust a product which is promoted or recommended by people or companies they know. This is extremely evident with social media influencers whose followers exhibit a higher level of trust when the person they follow endorses or promotes a product. When working with affiliate marketers, a company promotes its products to an audience that they can easily ‘trust’, and this can lead to more direct sales.

Select your ‘Marketing Team’

When a company launches an affiliate marketing program, affiliates apply to join up. They can select the right candidates or networks that they feel will meet their marketing, brand and sales goals. There are many affiliate networks and programs that keep themselves very exclusive by only approving applicants that meet their specific criteria.

Boost Promotions

With an affiliate program, companies can boost any new promotions or products, quickly and effectively. Whether it is an important date, such as Black Friday or Christmas, or simply a discounted clearing sale, experienced affiliate marketers will ensure that the necessary hype is created all around.

Why You Should Consider Becoming an Affiliate Marketer

For affiliate marketers, the program is a powerful way of creating an active and passive income stream.
Here is why it is an incredibly timeless opportunity:

More than 3 billion internet users

There are over 3 billion Internet users across the globe, and it can only grow from here. As more users get connected and access the ‘internet grip’, online shopping and services will only grow; and this will continue making affiliate marketing an attractive proposition for anyone that wants to start an online business.

A global marketplace

With affiliate marketing, the world is your marketplace. The internet ensures that anyone from any corner of the world can buy your product and contribute to the bottom line. A relatively new niche and the perfect example of an affiliate marketing opportunity is cryptocurrency trading. As this market continues to grow exponentially, the potential for affiliate marketers is limitless to tap into many existing markets such as CFD traders, FX traders, investors, etc. A powerful strategy for many affiliates is to cross-sell related products and services.

No warehousing, no inventory

As mentioned above, the company essentially has to do all the work regarding its product; your work is just promoting, no other hassles such as dealing with customer support or product development etc. Whether it is a physical product that needs shipping, or a digital product delivered in any manner, you are not involved in any manner after the lead has completed the required action. For example, as a crypto affiliate marketer, once one of your leads clicks on your link and signs up with a broker and starts to trade, you will be paid.

Money never sleeps

As a digital marketer, you do not have to ‘man’ your website to allow customers in. Customers can visit at any time and from any place, as well as make purchases at any time, and you will get paid, even when you are asleep.

Work at your convenience

Work whenever, wherever and however you desire. With affiliate marketing, you generate money with the flexibility and convenience that you set for yourself.

Low start-up costs

Because you do not produce, store or deliver products, affiliate marketing is a far cheaper business to start and maintain. As well, you can sell any product you want (no obligation to promote what you hate) and have the opportunity to scale it. While some people will claim that there are no costs, this is not true. Like any business you have to make some kind of investment including your time. While starting an online business can be achieved with a tiny budget in comparison to a “brick & mortar” store, it is highly recommended to have working capital.

Who Is Involved in an Affiliate Marketing Program?

To successfully conduct an affiliate marketing program, the following four parties are involved:

1. Affiliates

Also known as publishers, affiliates are the promoters of the product. Affiliates can be individuals or companies that help spread the word about the product. They can use varied strategies, such as blogging, videos, social media or any other relevant media. As stated above, affiliates do not own the products they promote and are not in charge of any other duties (such as shipping or customer service), besides promotion. They are paid when any sale is attributed to their efforts; and their earnings can range from a few hundred dollars to millions of dollars. Their payouts also depend on the structure of the affiliate program they sign up to.

2. Merchants

Also known as creators or retailers, merchants are the owners of the product that is to be promoted using an affiliate marketing program. Merchants can range from individual entrepreneurs to big companies that seek to leverage on the power of affiliate marketing to boost their brand awareness, provide social proof and increase sales. Merchants can utilise their own internal affiliate marketing program, or partner with an affiliate network to roll out a promotional campaign.

Merchants set the payout structure to affiliates and may also provide several marketing tools, such as website banners, text widgets, landing /splash pages for the effective promotion of its products. These marketing tools may be provided by the merchant themselves or by the affiliate program or network that manages the affiliate marketing.

3. Affiliate Network

An affiliate network is an intermediary between affiliates and merchants, basically providing management services for an affiliate marketing program. An affiliate network is beneficial to both the merchant and an affiliate, as it ensures proper tracking of affiliate sales and providing detailed reward statistics to both parties. For merchants, an affiliate network ensures that an affiliate marketing program is launched quickly and efficiently to reach a wide audience, especially if it is a niche industry where the network has experience in. An example of a niche affiliate network is Algo-Affiliates which specialises in the Crypto/Forex and finance space. For affiliates, a network can provide a huge pool of products to promote with ease. In some instances, affiliates have to pass through a network in order to join an affiliate marketing program. Another benefit of working with a network is tapping into their knowledge and experience which can cut down on time spent testing and optimizing. Almost always, an account manager is assigned to an affiliate, whose role is to help their affiliates achieve, so developing this relationship is highly beneficial.

4. Consumers

This is the party that completes or rather fuels the affiliate marketing system. It is consumers that buy the product created by the merchant, who in turn will reward the affiliate(s) that promoted it. Consumers are at the core of the affiliate marketing system and due focus should be placed on them by all the other parties. Consumers do not necessarily have to know that they are part of an affiliate program (some affiliates will disclose this, others will not). And they will not pay any extra amount for the product by choosing to buy through an affiliate, because any affiliate fee is already factored in by the merchant. Always remember, “The Customer is King”.

How Does Affiliate Marketing Work?

Affiliate marketing is a performance-based activity. As discussed above, an affiliate will promote a product to the consumer, and if a successful sale (or specific action is done), he/she will be paid by the merchant. The way the affiliate program tracks which affiliate referred a customer is through unique tracking links which the program provides the affiliate. These links often look like a URL with some unique numbers or characters that are associated to a specific affiliate. When a potential customer clicks on a link, whether it be a banner, button or text link, the affiliate tracking system registers this and assigns it to the affiliate. Then, depending on the earnings model and action required to trigger a commission that affiliate tracking platform monitors and manages this. As an affiliate, you will be given a login to this platform so you can track your performance and there are also often analytical tools so that you can analyse the performance of your marketing activities.

Here are some of the major earnings models used by affiliate marketing programs:

Pay Per Click (PPC)

In this model, an affiliate will get paid for clicks generated on a merchant’s advert. It does not matter whether a sale or even a lead was generated. In terms of revenues, this is not always an attractive model for a merchant, but it can be ideal when the target is to enhance brand recognition and visibility. Overall, the merchant assumes all the majority of the risk, and there have been concerns that the model can lead to some unethical marketing practices; a reason why it is not common nowadays.

Pay Per Action (PPA)

This is a more unambiguous payment model, where a merchant will only pay the affiliate when the consumer performs certain actions. The actions could be generating a lead (CPL Cost per Lead) such as filling a form. The most common models are CPA (Cost per Action) / CPS (Cost per Sale), and this is typically reliant on the lead then making a purchase, or any other specified actions. This is the most common model, and the most efficient one for both parties. For an efficient affiliate, this is more lucrative, while for a merchant, it can be a bit more expensive, but more impactful nonetheless. A merchant gets to pay for certainty, and an affiliate is generously rewarded for conversion.

When it comes to payouts, there are different structures. Some merchants pay weekly, fortnightly, monthly, or even quarterly. As an affiliate, you can choose a payment structure that aligns with your goals. For a merchant / program, it is important to not only choose a structure that will allow for appropriate measuring of your performance metrics, but also to choose the most suitable one for accelerating your affiliate efforts.

 

How to Start Affiliate Marketing

The first step to becoming a successful affiliate marketer is to develop a business plan. Like any other business, you need to make various decisions, set goals, create a plan of action and execute the various tasks.

The first task to perform in order to develop your plan is to do research into the various niches you may wish to focus on and identify the products and programs that will meet this criterion. Here are some of the key considerations:

Select a Niche

Select a specific audience that you intend to promote to. Ideally it should be an area you are passionate about or at least have good knowledge of. A good niche is one that is profitable, has affiliate or link opportunities, and preferably a fair amount of competition. Yes, competition is good. If there is no competition, it’s probably not a very lucrative opportunity. The cryptocurrency space is an excellent example.

Choose the Best Affiliate Programs

Take time to research affiliate programs, networks and merchants to deal with in your preferred niche. This is where your income will come from, so a thorough study of your options is very prudent. You will be examining factors like market saturation, commission rates, price competitiveness, payout method and timelines, performance tracking, marketing tools, and even terms and conditions. This will allow you to only consider the best programs according to your needs.

After researching the best affiliate programs, you will still need to sign up with them. It may be straightforward with some programs, but others may demand more from their prospective affiliates.

Check out the Affiliate Platform

A merchant can decide to develop an in-house affiliate program, or to go with an affiliate network, such as Algo-Affiliates. Irrespective which direction they choose, the affiliate tracking and management software is the heart of everything and if it doesn’t track properly or provide you with user-friendly functionality your marketing efforts may be wasted.

Marketing Materials

No matter your preferred platform, it should be ready with numerous creative marketing resources that will ensure successful marketing campaigns. Take a look to see if there are text links, banners, video materials, and any other marketing tool that will make it easier to promote more effectively.

Program Management

Like any business relationship you want to be working with a program that has a solid reputation and is there to assist you. An affiliate marketing program has many issues to deal with: from affiliate recruitment and performance monitoring to payout terms and on-going quality assurance. It is advisable to build a strong relationship with your appointed account manager. Networks like Algo-Affiliates are renowned in their niches and place a huge emphasis on working closely with their affiliates, because the more their affiliates achieve, the more they achieve.

Promote and Make Money

Congratulations on becoming an affiliate, but the hard work starts here. You now have to start your marketing campaigns to get your audience to buy products. If you do not have a website, you may want to develop one and drive traffic to it. There are various strategies to drive solid traffic to your site. One of the best ways to generate quality organic traffic is by creating excellent content that in turn will assist you in achieving search engine rankings. This can be in the form of blogging, product reviews and evergreen content. Other strategies may involve paid traffic on major sites, such as Facebook and Google, email list building, and niche upselling.

You will definitely need to creatively use various resources provided by the merchant or affiliate network, such as in-text links, banners, periodic discounts, giveaways or free trials, in order to run an effective campaign.

Final Word

Affiliate marketing is an effective and powerful marketing strategy in this digital age. When executed efficiently, it can lead to huge profits for both merchants and affiliates. Your time to step into the affiliate marketing arena is now, so sign up with a reputable affiliate marketing network, such as Algo-Affiliates, and start extracting every drop of value from your online traffic.

Categories
Crypto Affiliate

Crypto Affiliate – How to Make Money with Cryptocurrency Affiliate Marketing

Crypto Affiliate - How to Make Money with Cryptocurrency Affiliate Marketing

Those familiar with the affiliate marketing industry, will understand that the landscape is always changing, with old trends dying out and new profitable trends emerging. One of the hottest new trends in affiliate marketing today are cryptocurrencies. This growing affiliate marketing niche offers great profit potential due to the ongoing hype surrounding Bitcoin and other cryptocurrencies. The numerous stories of investors who became quite wealthy trading digital currencies have quickly spread and as more countries adopt these digital coins, its popularity and value are quickly growing. As a result, this means that more people are taking an interest in cryptocurrencies, which translates into a larger target market to promote affiliate crypto campaigns that focus specifically on the cryptocurrency and forex trading category.

Different Types of Crypto Affiliate Programs

It is important to understand the difference between the two current, main types of crypto affiliate programs currently available before you dive into this affiliate marketing niche. One type of crypto affiliate program is where you drive leads to a crypto exchange, where the leads open an account and can actually purchase, store and trade digital currencies through the exchange. The other very popular option for crypto affiliates is to drive traffic to a CFD / Forex brokers where the leads can then trade cryptocurrency CFDs (Contract For Difference). With CFDs, the leads open an account with the broker, but they do not actually purchase or store cryptocurrencies but instead speculate on the price movements of the digital currencies. Crypto CFD trading has proven to be highly profitable for affiliates, especially if the affiliate marketing network or broker offers an all-inclusive service that enables the leads to sign up, trade effectively and to profit.

What are Common Categories for Crypto Affiliate Networks?

The number of crypto affiliate networks continues to grow consistently, with a focus on a variety of different product and service niches. It is important if you are looking into choosing a good crypto affiliate network program that fits your individual needs and goals, to have a firm grasp on the available niches.

Although crypto affiliate networks have the possibility of serving any niche in the consumer market, there are few specific niches and industries which crypto affiliate networks tend to target. The following are some of the most common niches for crypto affiliate networks:

  • Cryptocurrency exchanges and brokers: These financial firms offer investors online trading platforms to buy and sell various types of cryptocurrencies. The trading platforms offer other services, such as various charting and technical analysis tools aimed at assisting investors to make profitable trading decisions. Other perks may include one-on-one training, webinars, eBooks and much more. This is by far the most popular way to promote cryptocurrencies.
  • Trade signal providers: These online services provide software applications which use algorithmic bots that buy and sell cryptocurrencies automatically for traders and investors. Sometimes, cryptocurrency brokers are the trade signal providers but, in many cases,, this service is provided by a third party.
  • Online retail businesses: These are retail businesses with online storefronts which also accept cryptocurrency as payment from customers. With the increasing adoption of cryptocurrencies into the mainstream financial system, the number of these online retail businesses will only increase in the future.
  • Online gambling websites and casinos: Gambling has become a significant niche within the crypto affiliate industry.

  • Adult entertainment and dating sites: For obvious reasons, many people prefer to maintain as much anonymity as possible when purchasing adult entertainment products and services. Therefore, it was natural that websites within this niche that accept cryptocurrency payments would be quite popular.
 

 

How to Choose a Reputable Crypto Affiliate Marketing Network

There are numerous new affiliate networks being created on a regular basis. Some of these will be affiliate marketing networks which are branching out into the online trading niche. Others will be new startup networks which have decided to focus their business model solely on the cryptocurrency space.

Despite cryptocurrencies being a newer affiliate marketing niche, you should still use just as rigorous due diligence when determining which network to join as you would any other affiliate marketing category. You may want to choose a network which focuses solely on the cryptocurrency space, since that network will be putting all of its resources into creating more opportunities in this particular niche, instead of being spread out over the numerous affiliate marketing categories out there.

Also, you should perform your usual due diligence in confirming the legitimacy of the potential networks you are thinking about applying to. This is one advantage of choosing a more established affiliate marketing network, despite the network not focusing exclusively on the cryptocurrency category. If you are already a part of an affiliate marketing network, you may want to check to see if the network has already or has plans to expand into the cryptocurrency category. Another plan is to partner with an affiliate marketing network that is recognized as being a leader in the cryptocurrency space. An example of this is Algo-Affiliates that provides its affiliates with access to the top brokers and crypto service providers in the industry as well as to a wide range of effective marketing tools.

With the crypto affiliate niche still in its growth phase, now is the window of opportunity to gain experience and become a super affiliate in this niche. Algo-Affiliates have been involved in crypto for some time now and have gained extensive experience in what works, which products are in demand and how to optimize. Take the time to really learn about digital currencies and about the different brokers, services and products available in this space. This will ensure that you have the knowledge to promote trading cryptocurrencies properly, helping you to drive your traffic more effectively.

Initial Coin Offerings

An ICO (Initial Coin Offering) is a used as fund raising method by the developers of a cryptocurrency. This is a type of crowdfunding method but there are also private ICOs. An ICO can be viewed as similar to an IPO where a company offers shares in the company, however instead of receiving stocks the investor receives tokens. In order to create hype and demand for the new crypto currency, there is usually a major marketing and promotion campaign. The creators of ICOs commonly implement affiliate marketing into their business model.

Although it is quite speculative, if you happen to jump on board an affiliate marketing offer for an ICO that happens to become extremely popular, you will surely be rewarded handsomely. Essentially, you will be a beneficiary of the resources utilized to create a successful and effective ICO marketing campaign. On the other hand, if an ICO fails to gain any traction among investors, you may feel you have wasted your valuable time. Based on this, it is always a good idea to do extensive research around the ICO before beoming involved.

Be Cautious of Scams in the Crypto Affiliate Marketing Industry

It really does not make any business sense in the long run for crypto affiliate networks to scam their affiliate partners. An affiliate which is able to make consistent profit is worth much more than the short-term gains from not paying earned commission to affiliates. Some affiliate marketing networks have even put out fake offers to make a quick buck, instead of cultivating an affiliate network that would bring in much more profit in the long-term. Again, this reiterate the value of working with a reliable and reputable network like Algo-Affiliates.

The following is an overview of the three most common scams in the crypto affiliate marketing scene which you should be aware of:

  • Not paying commissions: Of course, the whole point of anybody becoming an affiliate marketer of any niche is to earn commissions from sending leads to the service or product provider. However, many unscrupulous affiliate networks in the cryptocurrency space, as well as other categories, scam their affiliates out of their earned commissions by coming up with dishonest excuses to not pay the commission owed. One common excuse is to claim that payments from your leads came from specific countries which the network claims are not acceptable (however, be sure that you didn’t target regions that were not approved). Some networks do not even bother making up an excuse; they will just simply not pay. This withholding of commissions scam is probably the most common fraudulent scheme in all of the affiliate marketing industry, not just the cryptocurrency niche.
  • Conversion rate scams: The value of cryptocurrencies can be quite volatile, with market prices fluctuating constantly. There are a number of crypto affiliate marketing networks which take advantage of this fluctuation to make more profit at the expense of their affiliates. Since the value of cryptocurrencies go up and down, some networks will wait to pay out commissions to affiliates when the market is quite low. This means if you had earned a cryptocurrency commission equivalent to $10 one day, the network may pay out the commission when that same amount of cryptocurrency is only worth $7 the next day or week. These scam networks are relying on the ignorance of their affiliates regarding trading and the cryptocurrency markets. Therefore, it is a good idea to find an affiliate marketing network which provides a fixed dollar/euro rate per lead (CPA – Cost Per Action) and not one which offers a fluctuating commission based on the rate of exchange or the value of the cryptocurrency.
  • Fly-by-night frauds: Another common scam is when the scammers create a company and then after committing their fraud, they suddenly close down and then reopen under another name. These fraudsters then run their scam a second and third time on unsuspecting affiliate marketers. Some of these scammers have no intention of paying earned commissions to affiliates, while others are just simply poorly managed and end up going bankrupt without paying affiliates the commissions that they rightfully earned.

  •  

Consider Your Target Market

It was not until recent years that Bitcoin and other cryptocurrencies have become more well-known and popular in the mainstream. This might mean that there is only a small segment of the overall population that would be interested in seeing advertisements and promotions related to cryptocurrencies. This targeted audience will have a stronger than average understanding of blockchain technology and how it functions. Generally, these people will be more proficient and knowledgeable about technology in general and will have a penchant for identifying future technological trends. Therefore, effective advertising and promotional content aimed at this audience will require significant knowledge of market psychology, financial markets and current events. Also, you will need to understand cryptocurrencies and how they can be traded profitably so that you can promote a brokerage or automated trading software effectively.

Commission model for crypto affiliate networks

Most of the existing commission model schemes will be the same for the cryptocurrency affiliate marketing niche, as with most other niches. Cost per action (CPA) or various revenue share models are the most common ways affiliate marketers in the cryptocurrency space are paid. Make sure you fully understand the payouts and the requirements before you sign up with an affiliate marketing network.

Promoting a Crypto Affiliate Marketing Campaign

There are various methods available to effectively promote your cryptocurrency marketing campaigns. Despite this, it is important to note that the available promotional avenues for affiliate marketing in the cryptocurrency niche is constantly changing. This is mainly because cryptocurrencies are extremely volatile and regulations around the world are still a grey area in many places but are always evolving.

Push Notifications

A highly effective methods of advertising is push notifications. This is when smartphone users opt-in to receive messages via an app that sends various messages which are aimed to ultimately drive traffic and conversions to your marketing campaign.

Facebook

Despite Facebook banning advertising related to cryptocurrency, social media is still a useful avenue to promote cryptocurrency-related services and products. You can still create business pages related to cryptocurrencies; you are just not allowed to buy paid advertisements on Facebook for this niche. You could post informational and promotional content with your affiliate marketing link on your business page or even on your personal page.

Twitter and Reddit

Additionally, Twitter is still a viable advertising avenue for cryptocurrency niches, even if it does not have the same amount of people on the network as Facebook. In fact, there is a significant and growing community of cryptocurrency enthusiasts on Twitter which you should definitely consider tapping into for your marketing endeavors. Reddit is another online platform which has a decent-sized community of cryptocurrency enthusiasts.

Your Own Website

Another common and viable promotional method for all affiliate marketing categories, including the cryptocurrency niche, is designing and building your own website. The content on the website should be engaging, fresh and regularly updated. You should implement SEO techniques to maximize your web traffic. Also, the content on your website should work towards increasing your credibility as an expert in cryptocurrencies. You may want to include a blog on your website for current events related to cryptocurrencies, such as upcoming ICOs or breakthroughs in adoption of cryptocurrencies by the mainstream global financial system.

Advertising

Advertising in online trade publications, which specialize in covering the cryptocurrency markets, is a great way to target those who are already looking for information about cryptocurrencies. However, the disadvantage to this promotional avenue is that it can be quite expensive. Banners on these niche web publications can be thousands of dollars per week or more.

Hard Work Pays Off – Get Started Now

Of course, just like any other legitimate affiliate marketing category, cryptocurrencies is not a get rich quick scheme. It will take plenty of hard work, research and dedication to successfully profit from your cryptocurrency affiliate marketing campaigns. If you are not already familiar with and knowledgeable about blockchain technology, you will have to make sure you educate yourself before formulating your marketing strategy aimed at the cryptocurrency category. Additionally, you will have to be consistent with posting regular fresh content. However, in the end, all of your hard work will pay off if you are committed and dedicated; just like any other affiliate offer. If you’re serious about capitalizing from this exciting and dynamic niche, then it is certainly worth connecting with the Algo-Affiliates team who have become industry leaders with their range of crypto offerings.