The short answer is yes, affiliate marketing is profitable.
But it also has to be done the right way.
Many of who want to start with affiliate marketing think that it can be faked and then they will be just watching the money growing.
If that were the case, we would all be millionaires by now.
Affiliate marketing is about promoting other people’s and/or companies product and earning a commission if people end up buying the product.
The commission is most often paid as a revenue share. However, some businesses also offer fixed fee or combination.
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It all starts with choosing the right product/service/business that you’ll promote and selecting the right niche.
Don’t start with something new for you, you don’t fully believe in, or you are not passionate about.
Why? Because it’s easier to promote something you’re passionate about rather than doing it just for the money. That’s not how you make affiliate marketing profitable.
Many people fail just on that – focus on money first and only after that focus on the audience.
For example, having a niche or promoting something you’re passionate about will help you to create great content for your visitors, which is vital to achieve high conversion rates.
Think of a product like it’s your product and treat it that way.
Research who you’ll promote and write down answers for the following questions
- Is the advertiser reliable?
- Does the business have a good history?
- Is the advertiser paying on time?
- Do they have a dedicated affiliate manager (or team)?
- Do they have affiliate marketing as one of their primary digital marketing tools?
If you answer all the questions above before you start promoting somebody, it will save you a (big) headache later on.
Imagine doing all the hard work but not being paid – or paid late. Not only you want to ensure you promote the right product, but also that you are getting paid on time. Your goal is to make affiliate marketing profitable.
If you don’t know where to look, these are the most popular affiliate programmes:
- Amazon Associates – Best for large content sites.
- Commission Junction – Best to start with. Primarily offers from large consumer brands.
- ShareASale – Best for B2B opportunities.
- Gaming Affiliation – Best for promoting online betting.
There are two types of people who want to start with affiliate marketing:
- People having a blog/site/database with potential customers and they want to start monetising it
- People who are looking for stable passive income and are starting from a scratch
If you fall to the first category – congratulation. Your job will be easier.
If you fall to the second category, here are some tips for you on how to start.
Many people think that the easiest way is to create a website and then start PPC ads on Google, Facebook etc. with all the money they have for affiliate marketing.
However, this can be the fastest way to frustration. Why?
For example, imagine you have a budget of 1000$, and you want to start with affiliate marketing.
You also have a good website, and you’re ready to start monetising it. Keywords are selected, PPC ads are ready, you push the green button.
After that, traffic is coming through, all seems to be running well, but then you get only five customers. So, in fact, the price per customer was 200$.
With a revenue share of 20%, you would have to sell products with a cost of 4000$ to break even.
Not very encouraging, is it? Trust me, I was there as well, and I know the feeling.
This could be for many reasons:
- Your website is not converting
- Your keywords are too expensive
- You are promoting a product for a small niche but targeting a too broad audience
So what is the key for a successful start?
- Engage with your audience
- Do the research and use the right tools
- Keep in mind there is no quick fix – it can take time to generate the right audience and make affiliate marketing profitable
How Can You Make Affiliate Marketing Profitable
The most significant advantage of affiliate marketing is that you don’t have to invest time, effort and money into creating a new product or service to sell.
You can begin selling a product that already exists, and you can leverage the effort of others promoting it.
You only need a platform to sell it on.
With that being said, there is no way of becoming rich quick. Like everything else, it takes time and effort to create a revenue stream.
It also takes time to build the right relationship with the companies you’re an affiliate for.
As a result, it gets you to better revenue share or even to exclusive deals (commission per sale, higher revenue share, fixed fee deal, lifetime revenue share – very often in the gambling industry).
So is affiliate marketing profitable?
The short answer is that you can earn anywhere between low tens of dollars to thousands of dollars a month.
The profitability depends on what your digital marketing strategy is and the cost of traffic coming to your platform.
I know affiliate marketers who are earning over 10000$ a month without any Pay-per-click advertisement or other investment.
They’ve already built their audience and are also ranking very well.
And thankfully, you CAN do it the right way as well.
Here are some tips and tricks on how to do affiliate marketing the right way.