Affiliate marketing is one of the most rewarding systems to market products on the internet.
It, however, requires contemplating, strategising and planning your moves. It requires patience and persistence to succeed. You need to see what works and what does not.
You can only be considered successful in affiliate marketing when you are able to maximise the number of positive outcomes.
Affiliate marketing may also be described as under:
Revenue = Customers x Conversion Rate x Commission
Revenue increases when any one of the following takes place:
Number of Customers increase AND/OR Number of potential customers/clients get converted to actual customers and buy AND/OR the rate of commission offered by the affiliate company increase.
So how does any of the above actually happen?
In order to make money from affiliate marketing, you need to convert a potential customer to a paying customer for your merchant partner(s).Building up a large customer base is in itself a huge challenge. There’s an overwhelming amount of content on the Web dedicated to this topic, and we will not dwell on it here.
This is the backbone of affiliate marketing. The number of potential customers who actually buy and become paying customers will truly decide if you are successful or not
This topic is extensive and there are innumerable strategies for increasing visibility (and eventually the conversion rate) ranging sending emails to actively advertising the products. Check out the link below :
It, however, requires contemplating, strategising and planning your moves. It requires patience and persistence to succeed. You need to see what works and what does not.
You can only be considered successful in affiliate marketing when you are able to maximise the number of positive outcomes.
Affiliate marketing may also be described as under:
Revenue = Customers x Conversion Rate x Commission
Revenue increases when any one of the following takes place:
Number of Customers increase AND/OR Number of potential customers/clients get converted to actual customers and buy AND/OR the rate of commission offered by the affiliate company increase.
So how does any of the above actually happen?
- Customers
In order to make money from affiliate marketing, you need to convert a potential customer to a paying customer for your merchant partner(s).Building up a large customer base is in itself a huge challenge. There’s an overwhelming amount of content on the Web dedicated to this topic, and we will not dwell on it here.
- Conversions
This is the backbone of affiliate marketing. The number of potential customers who actually buy and become paying customers will truly decide if you are successful or not
This topic is extensive and there are innumerable strategies for increasing visibility (and eventually the conversion rate) ranging sending emails to actively advertising the products. Check out the link below :
Part of the conversion rate depends upon picking out merchant partners and products to promote.
If you’re promoting a bad product, your chances of conversion are fairly diminished as against promoting quality products that you think may deliver value to your customers.
When choosing the right product to market one generally gravitates towards the product which offers a greater commission as against one that offers less commission. However, this may not always be a profitable option because if the higher paying product is not able to convert it will lose its significance.
Let us take an example:
Brand X offers $100 commission to affiliates and Brand Y offers $25 commission to affiliates
Assuming the conversion rate is as follows:
Brand X: 2%
Brand Y: 10%
For each customer you send to Brand X, you can expect $2.00 in commission revenue. For each customer sent to Brand Y, you can expect $2.50 in revenue.
Thus, it becomes obvious that, promoting relevant, quality products is one of the most important aspects of the affiliate marketing business.
In a nutshell we can conclude that the best way of achieving success in affiliate marketing is to be able to strike a balance between the three factors mentioned above.
If you’re promoting a bad product, your chances of conversion are fairly diminished as against promoting quality products that you think may deliver value to your customers.
- Commission and Rate of Conversion
When choosing the right product to market one generally gravitates towards the product which offers a greater commission as against one that offers less commission. However, this may not always be a profitable option because if the higher paying product is not able to convert it will lose its significance.
Let us take an example:
Brand X offers $100 commission to affiliates and Brand Y offers $25 commission to affiliates
Assuming the conversion rate is as follows:
Brand X: 2%
Brand Y: 10%
For each customer you send to Brand X, you can expect $2.00 in commission revenue. For each customer sent to Brand Y, you can expect $2.50 in revenue.
Thus, it becomes obvious that, promoting relevant, quality products is one of the most important aspects of the affiliate marketing business.
In a nutshell we can conclude that the best way of achieving success in affiliate marketing is to be able to strike a balance between the three factors mentioned above.
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