Joining an affiliate program is a highly effective approach to generate income from your blog, particularly if you don’t offer any products or services. This enables you to obtain exclusive access to fresh content and special offers for your audience, all while increasing your earnings.
What is an affiliate program
An affiliate program is a contractual arrangement wherein a company compensates another company or influencer (‘the affiliate’) by providing a share of revenue in exchange for directing traffic and/or generating sales. This can be accomplished via various means such as web content, social media, or product integration.
Let’s take an example in order to enhance our understanding of affiliate programs. Wirecutter.com, a website owned by the New York Times company, provides shoppers with a list of recommended products. Wirecutter mainly generates income through commission from its affiliations with retailers.
The opposite is actually true – the publication’s affiliate monetization model might cause doubt about its recommendations, but it is actually legitimate.
Wirecutter’s revenue is solely generated through commissions earned when readers buy products from affiliate retailers without returning them. Consequently, Wirecutter lacks any motivation to endorse subpar products since it would result in reduced earnings and the loss of readership.
How do affiliates make money
The affiliate receives a distinct link (known as an “affiliate link”) that allows tracking of clicks, usually through the use of cookies. By using cookies, the link monitors the user’s activity to determine if a purchase is made. In the event that a purchase is made within a specified period, the affiliate will receive a commission.
Every cookie has a lifespan, referred to as “length” or “cookie life”, which determines the duration of tracking the user’s online activity. For instance, if a cookie has a life of 30 days, it is necessary for your referral to make a purchase within 30 days of clicking your affiliate link for you to receive payment. Otherwise, the lead will no longer be traceable.
If you are considering starting an affiliate program, there are various types of affiliate programs available. It is important to select the one that is most suitable for your business. Now let us explore the different types of affiliate programs.
Types of affiliate programs
When considering the promotion of products or services, there are several affiliate programs to consider. It is important to take into account the platforms or avenues where your audience primarily spends their time when selecting an affiliate program.
When conducting research on new products, does your buyer persona usually engage in activities such as reading blog posts, scrolling through Facebook, or utilizing search engines?
On the other hand, is your target audience someone who is constantly seeking bargains and would find value in a coupon site link? Or do they prefer conducting extensive research prior to making a purchase, making your promotional endeavors more effective on a review site?
To determine which questions are relevant to you, let’s explore various categories of affiliate programs. This will help you generate ideas for your marketing strategies.
Search affiliates
Marketers who have experience with SEO and want to analyze the effectiveness of different ads in generating referrals and return on investment (ROI) can use this program. They are required to use their own funds to promote affiliate offers on search results or other online advertising platforms such as Facebook Advertising. This option provides them with the opportunity to conduct A/B testing and determine the most effective advertisements.
Influencer programs
If you engage with a specific audience as a blogger or social media influencer, it would be beneficial to partner with a company that offers products that would interest them.
If you create recipe content as a food blogger or YouTube influencer, you can partner with a company that sells kitchen appliances. In exchange for featuring their product in your content and using your affiliate link, you can earn a commission for every product sold. This could potentially generate extra income if your audience is interested in the products you promote.
Review sites
Consumers often find the prospect of purchasing products online without prior knowledge to be intimidating; hence, they frequently rely on review websites to conduct research before making a purchase decision. Review websites collaborate with either individual companies or affiliate networks to assess products and services, receiving an affiliate link as compensation.
Coupon sites
Coupon sites collaborate with companies to offer discounts to buyers on products and services, just like review sites, in return for a kickback.
Email marketing
Sending out bulk emails to an audience who isn’t interested in promoted products or services is not recommended. However, if you carefully consider who will receive the email, it could be an effective method.
One way to approach this is to consider partnering with a company that sells design tools if you work for a marketing agency. By including an affiliate within the emails you send to design clients, not only can you help your clients generate better content, but also earn additional revenue for yourself.
Affiliate networks
Affiliate networks function as a marketplace and offer a wider selection of brands and offers to choose from, rather than just providing products from one company.
Beginner affiliate marketers may find this option appealing due to the fact that it requires managing fewer partnerships simultaneously. Furthermore, there are no restrictions on the number of affiliate networks one can join, hence providing limitless possibilities.
Best affiliate programs for ecommerce businesses
1. Shopify
Shopify, which is a leading ecommerce platform, provides a fast and straightforward method for you to start an ecommerce store.
Shopify offers a comprehensive package, right from the start. This package includes online store templates, payment processors, shipping partners, and even marketing solutions, all available through the Shopify App Store. For marketers targeting ecommerce entrepreneurs, Shopify’s affiliate program is an excellent choice.
Affiliate marketers who are associated with Shopify will be entitled to a full commission of 100% on the initial two payments of any subscription plan that is purchased by a referral. To illustrate, if a referral purchases a Basic Shopify plan priced at $39 per month, you will receive a payment of $39 for the first month.
If your referral chooses to continue for an additional month, you will also receive $39 during that second month, making a total of $78 in commission for that particular referral. However, if the customer decides not to continue for the second month, you will not receive any commission for that month.
Shopify provides commissions for all of its plans, which means you can recommend the following Shopify plans to any current or potential business owners in your audience.
- Basic Shopify: $39/month
- Shopify: $105/month
- Advanced Shopify: $399/month
2. Amazon associates
Amazon, which is presently the biggest online marketplace, offers a wide variety of products for sale. For bloggers or influencers, it proves to be an excellent affiliate program to incorporate into their content. By endorsing products that you believe your audience will purchase, you can earn a commission as high as 20% for any referred sales.
Jonathan Smith, the creator of CamperGuide, is an Amazon Associate who utilizes his website to assess and propose various products that will enhance the experience of campers and RVs he promotes. Due to the extensive assortment of products available on Amazon, Amazon Associates serves as an excellent affiliate program for individuals commencing their journey in affiliate marketing.
Amazon offers different commission rates for different product types, ranging from 1% to 20%. Additionally, they provide varying flat commission rates for what they refer to as “special commission income.”
3. Rakuten
Rakuten, a website that offers cashback to consumers who make purchases through its platform, is gaining popularity as a shopping site. In the second quarter of 2021, it reported revenue of $3.4 billion, showing a year-over-year increase of 15.8%. With a market share of 7.85%, it is currently the third-largest affiliate network.
Rakuten’s affiliate publisher program is linked to more than 2,500 diverse retailers, similar to Amazon Affiliates, where you can find a suitable brand to partner with as an affiliate. By joining Rakuten’s affiliate program, you can promote the brand’s products and earn three types of commission, aiming to increase your sales through your influence.
4. eBay partner network
Founded in 1995, eBay emerged as an early online marketplace that connected buyers and sellers. Even today, eBay holds immense global prominence and has expanded to include affiliate marketing collaborations. In terms of commission rates, eBay Partner Network solely provides commissions based on the profit earned from a sale, with variations depending on the product category sold.
When someone clicks on your affiliate link and purchases a PS4 on eBay for $200, eBay earns a $20 profit from that sale. According to the given table, you would receive a $10 commission for referring that purchase.
eBay’s appeal as an affiliate program is vast, as it allows for the sale of practically anything one can think of. This was exemplified in 2015 when an individual successfully sold a bag of air from a Kanye West concert for an astonishing $65,000.
