Affiliate marketing has become an essential part of any online entrepreneur's arsenal. If you don't understand affiliate marketing, you won't succeed online.
In this article, we'll discuss eight different kinds of affiliates. We'll cover everything you need to know about each one, so you can decide whether they're right for you.
1. Commission-Based Affiliate Programs
Commission-based affiliate programs pay commissions to affiliates for sales made by a website owner. They usually come with monthly fees ranging from $0-$20 depending on the size of the commission.
For example, Amazon Associates pays 7% of every sale generated by its site. For a small fee you can sign up to promote Amazon products on your blog. If a customer buys anything, you'll receive a commission.
There are many different types of commission-based affiliate programs. Some focus on specific niches such as fashion. Others offer broad categories like technology, health, beauty, and travel.
Generally, commission-based affiliate programs aren't the most lucrative option, but they do have the advantage of requiring relatively low effort to set up.
2. CPA Affiliate Program
CPA stands for cost per action. With a CPA affiliate program, you'll earn commissions whenever customers click on links displayed on your site and complete a certain action.
This may include signing up for services, subscribing to newsletters, downloading software, completing surveys, watching videos, or visiting websites.
A CPA affiliate program typically offers higher earnings than a standard affiliate program. However, these programs tend to be more expensive to join and often involve larger upfront costs.
3. Pay Per Lead Affiliate Program
Pay-per-lead affiliate programs work much like a pay-per-call affiliate program. Instead of receiving payment after a customer completes a transaction, though, you'll earn money whenever they buy something from a merchant on your website.
Some examples of merchants include eCommerce stores, content sites, subscription services, and affiliate networks.
You'll need to invest some time to find good quality leads for your website. Once you get started, however, you can expect to see steady revenue come in month after month.
4. Pay Per Sale Affiliate Program
With a pay per sale affiliate program, you'll be paid whenever a visitor clicks on a link and makes a purchase from a merchant on your site. Payments are generally smaller than those earned through a CPA affiliate program.
Most pay per sale affiliate programs allow you to track the number of referrals you generate for a given period. This allows you to optimize your efforts and maximize your earnings.
5. Referral Fee Affiliate Program
In a referral fee affiliate program, you'll get paid a percentage of whatever a user does once they've been referred by another member.
These programs can be complicated to set up, but they reward users who refer others to your website with cash rewards.
6. Membership Site Affiliate Program
Membership site affiliate programs are similar to referral fee affiliate programs, except that instead of paying out referral bonuses, you'll get paid commissions for promoting a membership site.
Many companies offer affiliate programs for free, allowing members of their community to promote their goods and services within their network.
7. Performance Based Affiliate Program
Performance based affiliate programs are designed to encourage affiliates to drive traffic to a website that will then convert into sales.
Once a conversion happens, the company will pay the affiliate a commission.
It's a win-win situation for everyone involved.
Because performance based affiliate programs are based on results rather than actions, they require significantly higher levels of commitment.
8. Content Sharing Affiliate Program
Content sharing affiliate programs offer exclusive deals and discounts to affiliates who create original content and share it on social media platforms like Facebook and Twitter.
They're not really affiliated programs, but they still provide an opportunity to earn some additional income.
When you sell products on your own site, you normally get a cut of the profits. But when you leverage the power of content-sharing affiliate programs, you can benefit without selling any product yourself.
So, Which Is Right for Me?
Now that you know what kind of affiliate program is best suited to your needs, you should be better equipped to choose the right type.
That said, there's no single affiliate program that fits all marketers.
Every marketer has unique goals, preferences, strengths, weaknesses, and ambitions.
Therefore, it may take some trial and error to identify the perfect fit for your business.
But before you dive into the world of affiliate marketing, try to answer the following questions to determine whether a particular affiliate program would work well for your business.
What am I trying to achieve?
Before you begin building an affiliate program, ask yourself what you want to accomplish. Do you want to build brand awareness? Drive traffic to your site? Attract potential customers? Gain subscribers? Make sales?
Knowing exactly what you hope to gain from your affiliate program helps you select the right affiliate program.
Who is my audience?
Next, think about whom you'd like to reach with your affiliate program. Are you targeting women? Teenagers? College students? The elderly? People living in rural areas? Those interested in fitness? Foodies? Travelers?
Based on your answers above, you'll be able to narrow down the field and find which affiliate programs are right for your target audience.
Which Products Does My Audience Like?
Your next step is to research the products your audience likes.
Do they prefer fast food? Grocery store brands? Specialty foods? High end brands?
Think about what people in your target audience prefer to eat and drink. Then, search Google Trends to learn what keywords people use to search for these items.
Using this data, you'll be able quickly identify popular keywords and industries that interest your audience.
Once you have a list of relevant keywords, you can start researching products related to them.
How Much Money Will I Generate?
The last thing to consider is how much money you can make from your affiliate program.
Will you only charge a few dollars? Or will you charge a lot?
Think about how much money you could potentially make if you were charging a premium price.
Also, keep in mind that if you're planning to monetize your site using ads, you shouldn't rely solely on affiliate programs.
Advertising is too costly to run if you plan on generating significant revenues from your site.
However, if you don't plan on making a profit from your site, then you can easily generate revenue by running advertising.
If you do decide to go the ad route, you'll need to figure out how many clicks or impressions you can expect per day.
This number will help you estimate how much you can spend on advertising.
You can also look at other sites that offer similar services to see how much they charge.
Can I Get Started Immediately?
Finally, you'll want to check whether you can get started immediately.
Some affiliate programs require you to wait several weeks or months before you can start earning commissions.
However, others allow you to start earning as soon as you sign up.
In addition, some affiliate programs offer free trials so you can test their service without paying anything upfront.
If you can get started immediately, it's best to choose an affiliate program that offers a free trial.
In fact, most affiliate programs offer a 30-day free trial period.
That way, you can evaluate the service and decide whether it's worth continuing with the program.
After all, you won't lose any time or money if you decide not to continue.
So, now that you know everything there is to know about affiliate marketing, it's time to get started!