CHANNEL - 7
Why Affiliate Marketing?
- Statistics show that by 2022, the affiliate marketing industry is expected to reach an estimated worth of $12 billion.
- Based on Google Trends data, worldwide search for the keyword “affiliate marketing” has steadily increased in the past five years, peaking at 100% in June 2021.
- Statistics show that by 2022, the affiliate marketing industry is expected to reach an estimated worth of $12 billion.
- Businesses in Japan spent about $2.7 billion on affiliate marketing in 2019. By 2024, the affiliate marketing expenditure could go beyond $4.3 billion.
- 80% of the advertisers set aside about 10% of their marketing budget for affiliate marketing.
- AWIN has over 15,000 advertisers and 100,000 publishers (Case)
- ShareASale has over 4,000 merchants(1,000+ of which are exclusive). (Case)
- CJ Affiliate has over 4,000 merchants and 70,000 publishers (case)
- Amazon Associates has over 900,000 members globally (case)
- Nearly 65% of affiliate marketers worldwide generate traffic by blogging alone.
- Nearly 25 percent of all affiliate programs are in the fashion industry.
- Coming in a close second is sports and outdoors with 18 percent, followed by health and beauty with 14 percent.
- 83% of affiliate marketers also use it to increase overall brand awareness.
- Over 73% of merchants believe affiliate marketing programs meet their revenue expectations
- According to Investopedia, just about 9% of affiliate marketers today make more than $50,000 a year.
- 57.44% of affiliate marketers are based in the United States, 1.85% are based in India, while 9.71% live in Canada
What Is Affiliate Marketing?
Affiliate marketing, also known as affiliate advertising is nothing but receiving an amount of commission for promoting something. This isn’t as simple as it appears. It’s something more than an ordinary source of income. Meaning – Affiliate Marketing is a marketing procedure where a business unit or a company pays an individual or a group of persons as a commission for promoting their products or services (whatever they offer) in various sources. It may be an individual, an association of persons, or a small organization. Affiliate marketing is a tool as well as a part of the advertisement.
As per new statistics, affiliate marketing can reach a level worth $12 billion by the year 2022. Many Japanese companies have already spent around $2.7 Billion in the year 2019 and in 2024 the expenditure is expected to go beyond $4.3. Around 80% of the advertiser set aside 10% of their marketing budget only for Affiliate Marketing. Globally there are 900,000 affiliates of AMAZON.
More than 73% of the merchants say that most of their revenue is generated only because of affiliate marketing. As time has upgraded itself and the clock has changed everything. Technology has taken this world somewhere from nowhere. This generation offers us to get paid for promoting a business, a brand, or a company. In the language of marketing, it’s called ‘Affiliate Marketing. So let’s understand what it is and how it works.
Affiliate marketing consists of four important factors and they are the four components.
The four most crucial components are –
- Merchant – It refers to a person who is responsible for creating a sales tracking system and pays the promoter or publisher for accomplishing the given task.
- Affiliate – Affiliate otherwise called a promoter or publisher. It refers to an individual, a group of persons, or a company that is responsible for marketing the merchant’s articles and getting paid for them.
- Customer – It refers to the person who is going to accept the offer or proposal of the affiliate and purchase what is required.
- Network – It refers to the group of companies that works as a middleman between the affiliate and the merchant.
Affiliate Marketing - For Whom
The most prominent users of affiliate network marketing are individuals. There are a lot of types of users of affiliate marketing. Some of them are listed and shortly described.
- Social Media Influencers – These are the persons whose reach in social media platforms is higher because of their content. They can attract audiences at a better level.
- Bloggers – Bloggers refer to individuals who write blogs on different platforms. They can earn revenue through the advertisement on their website.
- Microsite Handlers – These handlers refer to those handlers who mainly work for a specific targeted audience.
- Email Marketers – This refers to the persons who are associated with marketing the products and services of a business with the help of email.
- Video Creators – Those who create videos on different social media platforms are known as video creators.
All of the above participants earn passive income with the help of affiliate marketing. They generate revenue with the help of advertisements and by promoting a business or a company. The merchants of this model contact the users of affiliate marketing for the promotion. Merchants pay some amount as commission to the users accordingly.
Since affiliate network mainly focuses on the paid promotion of products and services, it is mainly important for startups and companies.
Startups refer to small-scale businesses. As these businesses are new in the market, they need the promotion of products to create a public profile. They can reach the users of affiliate marketing with the help of social media. The company can build a name in the market by affiliating with the start-ups through the users. This helps in getting a wide range of audiences. Companies cannot go door to door to promote a product. Therefore, affiliate network marketing has been introduced.
Companies hire affiliates through the internet and the affiliates play the next part of the business. Affiliates promote a brand and get paid when the promotion and sale are done. This helps in decreasing the labor work of brands. Affiliate marketing is a process that involves individuals and companies together.
Affiliate Marketing - Importance
Cost-effective – Affiliate network doesn’t require much investment. It only involves people, groups, or affiliating companies. Affiliates can help in generating a good amount of revenue for the company by promoting on their behalf of them.
Less ongoing cost – Since the affiliate network is a commission-based marketing program, its ongoing cost is very less. The commission of the affiliates depends upon the sales they’ve made.
Less risk – Affiliate networking is a less risky policy. Since the commission will be transferred to the affiliates when the payment is received.
ROI – Most marketing strategies somehow fail because of a lack of proper marketing knowledge. Affiliates are the persons who have strong knowledge about the market and business.
Recorded Statistics - Affiliate Marketing
If you’re looking for a great way to make money online, or become one of the top affiliate marketers in the market, an affiliate network is the option worth considering. By partnering with the right companies and products, you can earn commission on sales and build a successful business.
There are many different affiliate networks that you can join, and each one will have its unique tracking ID. Once you’re a member of an affiliate network, you can start promoting products on your website or blog. When someone clicks on your affiliate link and makes a purchase, you’ll earn a commission. What better way to promote your products and make money simultaneously?
Affiliate Marketing & Other Channels
Affiliate Advertising is solely a powerful weapon on its own for businesses of any size and stature to see growth and success in a short span of time. For businesses having a constructive deadline, or needing a speed booster such a channel can support growth hacking with instant results. However, affiliate marketing when strategized with other channels has revolutionized the end game of the businesses by supporting long-term revenue with minimal investments.
Affiliate and Social Media Marketing: Most of the affiliates are constantly finding clients on social media platforms only. As social media is widely popular and is used by all age groups of people, it may prove helpful for affiliates to find targeted clients easily. Coordination of both channels is beneficial for both the members who are associated with the channels. This is a less time-consuming process and the clients can even turn into unpaid influencers by promoting our brands.
Affiliate and Mobile Marketing: Affiliates can even start their promotion with the help of Mobile Marketing. They can send messages about products and services to the targeted clients. This requires near to zero percent in capital investment and can also provide you with high ROI. The labor work will reduce if we club both of the channels.
Affiliate and Influencer Marketing: Most of the affiliates of the affiliate networks are social media influencers. Social media influencers have a broad reach and millions of followers. Influencers can promote a brand on all types of platforms. By coordinating both channels, one can easily affiliate articles throughout the world. Since influencer marketing mainly focuses on promotion and advertisement, the burden of affiliates will reduce to a minimum level.
Affiliate Marketing - How To Start
In order to start affiliate advertising, and host or become one of the best affiliate networks in the market with a top affiliate marketers team working towards your business growth, there are a few basic requirements you need to keep in mind before diving.
From A Business Point Of View
Launch a product – First, the merchant needs to launch a product in the market to find Affiliates.
Find affiliates – Then, the merchant needs to find affiliates with the help of social networking sites and set up commission rates.
Create a sales tracking system – To maintain a sales tracking system the merchant needs to record the transaction of sales.
Guide frequently – After creating a sales tracking system, the merchant needs to guide the affiliates frequently about the program.
From Affiliates Point Of View
Choose a product – An affiliate or an affiliate marketing company first has to choose a product to promote it.
Understand market scenario – Without having basic knowledge of the field of marketing, one cannot affiliate the product. So to promote a product, first, we’ve to understand the scenario of the market.
Select the type of audience – After understanding the marketing scenario, the affiliates must select the type of audience to attract them to products.
Create splendid content – Content matters the most while marketing. As the audience gets attracted by seeing the content only.
Start promoting and publishing – After completing all the above steps, the affiliates can start promoting the product.
Affiliate Marketing - Success Story
Rakuten Marketing is India’s one of best affiliate networks. They started their business from zero and now they are having annual revenue of $138.8M per year. This company has generated a huge amount of ROI by following a simple and effective affiliate advertising strategy. Their main motto is to make the internet a relevant, valuable, and enjoyable service provider for users.
12 Channels - Affiliate Marketing
The main motto of 12 channels is to offer what is best and how something can be best. Our channel is an association of departments of various channels. We mainly focus on the areas of development and provide you with the best output. We are a team of go-getters with subject experts in all fields. We provide you with numerous, best, suitable and authentic affiliate marketing strategies and develop ideas as a package or for each, individually.
To know us better, sit with us on a ride with our subject experts through the process we follow the best –
At 12 channels, every channel has a qualified subject expert team working together to reach out to you on –
- Probing your needs and requirements better.
- Strategizing and curating alternatives to serve the best.
- Building tailor-made solutions with one or more channels is necessary.
- Promoting relevant crowds & generating relevant traffic for higher conversions.
- Analyzing the performance using key metrics.
- Tracking & optimizing your business to reinforce your brand.
12 Channels team of experts mainly focuses on the optimum utilization of all the resources allocated effectively and efficiently. We offer the best affiliate networks, top affiliate marketers, marketing tips, and tactics that will affect the revenue of an enterprise. Our subject experts prepare financial strategies as per your company’s objectives. We only aim at creating customer support base content and will help you to find the best of the best clients. At our channel, you can now find accurate and updated business solutions for your business.