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The Growth of Affiliate Marketing

Affiliate marketing is also known as "Performance-Based Marketing".

It refers to publishing links, banners and information about products/services on a website or blog and then receiving a sales commission when people click on the banners/links and then make a purchase on the advertiser's website.

United States affiliate marketing spending will be increased bt 256% in 7 years.
77% of advertisers increased their affiliate marketing spend this year, while 71% expected spend to grow in the future.
  • 50% of advertisers saw a lack of respectable understanding of affiliate marketing at the level of the CEO.
  • 93% of advertisers support affiliate marketing as an effective marketing channel.
  • 25% of advertisers spent over one-fifth of their overall marketing spend on affiliate marketing.
Affiliate marketing is an exploding opportunity for many businesses. This is because it's cost effective and drives incremental revenue. It's a great way for businesses to diversify their traffic sources.

What Was Affiliate Marketing Like 10 Years Ago?

Amazon.com was one of the first companies to embrace affiliate marketing. Today, Amazon is still a big player, but many others have joined in, providing a huge variety of affiliate programs. These include 1000's of ecommerce websites that you can be affiliated with to earn commissions.
As we learn more about the way the Internet and trends work, we come to understand more about the way people make purchases.

As the industry grows, we are likely to see more networks and agencies bringing more affiliates to the table. Simply put, affiliate marketing has a ton of upside!

What About Future Affiliate Expansion?

As companies continue to seek exciting opportunities, the affiliate channel will no doubt be embraced more so over time.

This is because it is one of the most effective ways to gain website traffic and brand advocates.

Affiliates stand to benefit in the corning years. They will see better products, better offers, and better results.
  • It's important to realize that a lot of hard work is required to be a productive affiliate.
  • It'll be essential for affiliates and publishers to remain dedicated.
  • If they want to stay ahead of the curve. Content production and social media are the 2 most important areas in affiliate marketing looking forward.

It's a very exciting time to be involved in the affiliate marketing industry.

  • The affiliate industry is starting to mature as companies seek to regulate and control their affiliate channel.
  • Growth is also being driven by improved affiliate site content and more transparency within affiliate networks.
The future of affiliate marketing looks extremely bright, as more companies embrace the channel and more affiliates get into the industry.


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Types of Affiliate Marketing

Affiliate Marketing programs has never been as popular before as it is today. Why? There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of affiliate marketing have become clearer to a lot of people now than they were before.

Unattached Affiliate Marketing

These are your basic pay-per-click affiliate marketing campaigns where you have no presence and no authority in the niche of the product you’re promoting. There’s no connection between you and the end consumer, and all you’re doing is putting an affiliate link in front of someone via Google Adwords, Facebook ads, etc. in the hopes that they’ll click on your link, buy the product and you’ll earn a commission.

Related Affiliate Marketing

Another form of affiliate marketing is what I like to call related affiliate marketing. This is where you have some sort of presence online, whether it’s through a blog, a podcast, videos, or whatever—and you have affiliate links to products related to your niche, but they’re for products you don’t actually use.

Involved Affiliate Marketing

Involved affiliate marketing is where you’ve used a product or service, truly believe in it and personally recommend it to your audience. Not in a banner ad or somewhere that says “recommended resources,” but within your content, as part of your life and strategy for whatever it is you’re talking about. The product almost becomes something people “have to have,” because it’s part of the process.
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Amazon Affiliate Quick Guide

WordPress Site Setup

8 steps to help get you started with an Amazon Affiliate Site!

Niche Selection
Find a niche that gets traffic, isn't dominated and that you can curate/create content

Hosting and Domain
Where do you think you'll get most business from given your niche? Is there an exact match domain?

Amazon Affiliate Sign Up
Create your affiliate (associate) account at http://affiliate-program.amazon.com

WordPress Theme and PlugIn Selection
Find a suitable theme for affiliate sites and get the required plugins

Site Structure and Build
Be niche focused when considering your site structure and URL slugs as well as throughout the build process

Logo/Branding
Put a bit of polish on your affiliate site as it can help with conversions

Social Media Setup
Secure your social media real estate to compliment your affiliate site

Fill your Shelves
Time to find the best products from amazon for your niche and add them to your site!
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The Power of Affiliate

Engaging with Consumers

  1. Catalyst
  2. Evaluation
    1. Coupon and Deal
    2. Search
    3. Content and Community
    4. Ad Network
    5. Loyalty and Rewards
    6. Software and Technology
  3. Conversion
    1. Coupon Deal
    2. Loyalty and Rewards
  4. Post Conversion
    1. Content and Community
  5. Loyalty Loop
The Affiliate marketing channel, with its unique, high performance online publishers, has the power to influence and connect with the new consumer at critical points in their decision journey

Catalyst

A consumer decides they are in need of a product or service with a short list of brands in mind

Evaluation

The consumer adds or subtracts brands as they evaluate options and interact with online publishers

Conversion

The moment a consumer selects a particular brand and takes action at the point of conversion

Post Conversion

The consumer builds expectations based on their brand experience, influencing their next decision journey

Loyalty Loop

In today's digital world, even the most widely-recognized industry leaders must win back the well-informed consumer after every single purchase
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How to Stand Out from All the Other Affiliates with your EMAIL MARKETING

Affiliate marketing offers many attractive benefits because you can promote another company's product and receive a commission for sales without having to debelop the product, provide customers support, or hire employees to do those things for you.

However, because affiliate marketing offers these benefits you may find that it is hard to stand out among all the competition.

Here are 7 Ways to use EMAIL MARKETING to Crush your Competition and bring in consistent revenue from affiliate marketing.
  1. Write your Own EMAILS:
    1. Most affiliate programs provide ad copy and email swipe files for use in promoting their products.
    2. While you can certainly get some copy points from these materials, you don't want to fall in the trap that many affiliates do by mailing affiliate swipe to their lists.
    3. There are many reasons why mailing out affiliate 'copy and paste swipe emails can hurt your conversions. The biggest reason is that your readers expect emails from you and when you mail someone else's copy and sign your name at the bottom, you're potentially saying the same thing as all the other affiliates. That's no way to stand out. Besides, your subscribers may well notice that the wording of the affiliate swipe is different from what you normally say and that can harm your conversions by annoying your subscribers. By mailing your own email copy, even if it was written by your staff copywriter, at least your email still has a shot at standing out from all the other competitors.
  2. Add Value:
    1. At the most basic level, an affiliate promotions says "I recommend this product, you should buy it" to your subscriber. In some cases, that may be sufficient.
    2. But if all your competitors do that, you have an opportunity to stand out from the crowd by offering genuine value.
    3. For example, if you are in the fitness niche, you could use the affiliate product you are promoting and share the details of your experience. Many affiliates won't take the time to do this, so if you do your promotions will stand out. Another benefit of using the product and reviewing it is that is the most valuable form of affiliate marketing. The reason the vendor is paying you a commission is for your referral, but the power of your referral will increase if your word means a lot to your subscriber. And the best way to have your recommendation carry weight is to provide your own user experience with a product as the basis of your recommendation.
    4. In other words, never promote something you don't endorse. If you never use the product, you don't really know if you can endorse it, can you?
    5. Authenticity is at a premium and your subscribers will likely reward an honest review better than plain old affiliate swipe copy. And the trust that follows from that authenticity can lead to higher conversions.
  3. ZIG When They ZAG:
    1. As such, you want to point out benefits that the others do not (or overlook). For example, if you are an affiliate for the iPhone 6 and your competition is talking about its sleek looks, you could take a different approach.
    2. You could talk about how you used the built in camera and video recorder to tape a Vegas wedding on last minute notice.
    3. You could show clips of video and tell the story of how glad you were that you had bought the iPhone 6 because our friend dragged you to Vegas and all you had time to grab was your phone.
    4. Even though you're competing affiliates have the same phone to promote, your story could help you stand out and make the purchase more compelling to your subscribers.
  4. Add a Bonus:
    1. Many successful affiliates use added bonuses to entice subscribers to buy through their affiliate link. To continue the iPhone 6 example, you might have an ebook or video of how you shot the wedding with your iPhone.
    2. Or maybe you have 10 tips and tricks for how to get the best apps or add ons for iPhones.
    3. As long as your bonus adds value, it can be used to increase sales. Two things to remember when it comes to bonuses.
    4. They must have a high perceived value to your lab target marketing AND you should consider restricting the number of bonuses by time or quantity.
    5. By having scarcity, you can motivate your buyers to choose your link and to do it quickly instead of procrastinating.
  5. MAIL More Often:
    1. The lazy affiliate will just blast out one email and move on to the next offer. If you mail more frequently you have the potential to capture more sales, especially if the vendor is launching the product and a lot of affiliates are mailing at the same time.
    2. Mailing more often doesn't mean sending the same message more frequently. Instead, by mapping out a sequence of promotional emails for an affiliate offer, you could build an informative narrative and go deeper in your reasons why someone should buy the product through your affiliate link.
    3. For example, with the iPhone 6 you could do a series on the improvements over the previous version, how the iPhone 6 is better than the Samsung Galaxy competitor, and why the iPhone is easier to use, etc. If you focus your sequence of emails to address common objections to buying iPhones, you can do quite well with this approach because you are essentially laying a solid foundation for a buying decision. At the very least, you are going above and beyond what your competitors are doing with their promotions so once again, you stand out.
  6. Address Flaws:
    1. Let's say that you happen to know there are some things about the iPhone 6 that you don't like. Maybe the phone is so slick and sleek that it's slippery and easy to drop.
    2. Or maybe the screen is so big that you find yourself watching too many YouTube videos on it instead of working. These kinds of minor flaws do several things when you point them out.
    3. First, you build credibility because you are not just a cheerleader for the product but rather an honest consumer. Second, you allow your subscribers to imagine what it is like to own the product by sharing a real user experience. This authenticity can help them make the buying decision if they relate to what you've shared.
    4. Don't worry about spooking them from buying. The reality is they had doubts of their own, at least now they know you're an honest broker. And, it's not like you're going to be citing major flaws that would be deal breakers... otherwise you shouldn't be promoting the product.
  7. Add a Guarantee:
    1. Or maybe you could guarantee that if they return their purchase and the vendor doesn't provide a refund as promised, then YOU will give them a refund.
    2. Obviously, such guarantees are situation dependent and require that you have a high degree of trust in the vendor and their product.
    3. In certain circumstances where you really believe in a product and want to go all out, you could offer some kind of guarantee that goes over and above what the vendor offers. Maybe you'll give them one of your products if they don't like the one you are recommending.
In today's hectic world consumers are looking for help in deciding what to buy because they don't have time to personally evaluate everything and they want opinions they can trust.

Therefore there is a real niche for the affiliate email marketer who offers value over and above what the competition is doing.

Since the affiliate doesn't have product development, customer support, and many other burdens that a product vendor does, it pays to put in the extra effort to stand out from all the other affiliates.

After all, you've got to give your subscribers a reason to buy from you and not another affiliate because the product is the same.


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Finding Your Niche

You probably have some friends with personal blogs that are smorgasbords of all their interests—pictures of their kids and movie reviews and talk about their favorite sports team, and everything in between. While this is fine for a personal blog, if you want to blog professionally you should narrow your focus. 

A blog that has a clear identity is more likely to be successful than one with a broad focus. A personal blog is about you while a professional blog is about the topic. You can and should be personable and share your story, but only as it relates to the topic at hand.

Before you start doing anything else to start your blog, you should figure out your topic. Your niche will impact the domain name you choose, the design of your page, and your ideal posting schedule to appeal to the most readers in your area. 

Research the market

Picking the right market for a new blog can be tricky. You want to find a topic that is popular enough to attract interest and earn money, but one that hasn’t already been oversaturated with bloggers giving their opinions. 

Finding a new perspective on a topic, something that people aren’t already blogging about, gives you the best chance of making it in the business long-term—if it’s a field where interest exists, and the reason there are no bloggers on the topic isn’t because no one wants to read about it. The only way to know is by researching the field.

The larger the interest in a given topic, the smaller percentage of the total market share you need to capture to be successful, and the more specialized your niche will be to provide a new voice. Let’s use a food blog as an example. Food is a topic that interests a broad range of people—the overall potential readership is massive, but there are an accordingly high number of blogs already talking about food. Even if you narrow it down—say, to a blog about cooking—you’ll already find thousands of other blogs already doing that. 

The interest in the area is so high you’ll need to narrow it down again. Maybe you’re a vegan and want to share recipes for making traditional comfort food that’s vegan-friendly. You’ll probably find there are quite a few vegan bloggers out there, but the comfort food angle will make you just different enough to be a new voice in the conversation, and there are enough people interested in the topic that all of you can share the readership and be successful.

Now let’s say you have a less popular topic—we’ll use musical instrument repair as an example. Instrument repair is a practical subject that lots of people will be interested in, from professional musicians to band directors to people who play instruments for fun, but it won’t encompass quite so broad a group as cooking. 

You might do the research and find there are a lot of musical instrument review blogs, but not as many that focus on repair. Not only do you not need to break your topic down further into “wind instrument repair” or “on the fly repairs for rock musicians” but focusing on more will probably narrow your topic too much. 

There isn’t as much competition for instrument repair blogs as there is for food blogs, but the group of interested readers is also smaller, meaning you need to attract a larger percentage of interested readers to be successful.

Another way to think about this is to have a target audience size in mind numerically. Let’s say you want to reach 1,000 unique subscribers. On the surface, the larger audience seems to give you the best statistical chance of being able to find more readers. If there are 100,000 people interested in X and only 10,000 interested in Y, that might seem to give you 10 times as many opportunities to make an impression on a unique reader. 

But if 1,000 people are already blogging about X and only ten are blogging about Y that means the smaller group will nonetheless have more available readers per blogger. With X, you’d have to fight other bloggers to take away some share of their readership if you want to reach your goal; with Y, you could theoretically reach your target readership without having to share readers with any other blogger. The market may be smaller, but it’s also less saturated.

Of course, things rarely work out that cleanly in the real world, but the ultimate point remains. The best niche for a new blog in 2016 isn’t necessarily the one with the biggest following or the one that’s the most unique; the best niche is the one that allows you to be a new voice for a community that will be able to support you.

You shouldn’t assume what kind of activity exists on a given blog topic before you start doing your research. Some topics might seem like they’d be immensely popular but turn out to be relatively rare once you’ve done your research, making them perfect potential niches for you. 

Conversely, you might think you’re the only one interested in a given idea, only to find the blogosphere already overrun with people scribbling on your esoteric niche. Take notes as you do your research to kill two birds with one stone. 

Bookmark blogs you like, either because of their look or the writing style of the author, then study those for ideas once your site is set up. If the blogs are in your niche, sign up for their mailing list, pay attention to their posts, and consider commenting and become part of their community once you’ve got your blog set up. It’s never too early to start building goodwill (and good habits) in your blogging career.

Why you?

The blog itself is not the product you’re selling to the consumer. The blog page is more like the storefront. The products that are up for sale are your ideas and expertise, as conveyed through your posts. To attract readers to your blog, you need to give them a reason to listen to what you, specifically, have to say about a given topic. Why would someone want to read your blog instead of the ones already established?

For an example, let’s use the topic of professional baseball. There’s a huge target audience, but what value do you have to offer to readers? Do you have an inside connection to the players? A new method of analysis for the games? Talking about how much you like something might be fun for you, but it’s not very interesting to read.

The best bloggers have either a high level of expertise about their topic or bring a unique perspective to the table. Even if a given niche has a large potential audience and not many competing voices, you won’t attract any readers if you don’t have anything interesting to say about the topic. Before you make your final decision on which niche to delve into, ask yourself that simple question: why me? You should be able to provide a one-sentence answer that would make someone interested in reading what you have to say.

Logistics

If your blog fits naturally into your daily schedule and lifestyle, it’ll be easier for you to put in the effort of maintaining it, and you’ll be less likely to feel overwhelmed or give up due to burn-out. Make sure that the research, writing, and marketing you’ll need to do in your chosen niche is realistic for your life before you settle on a topic. If you want to write about the local music scene, you’ll have to make a point of going to a lot of shows—maybe not the best idea if you have to wake up early every day for work. 

If you want to write a financial blog, you need to be able to keep up with market trends and deliver timely advice to your readers who are counting on you to guide them through a quickly changing landscape.

The niche you choose will also have an impact on how you earn profit from your blog. If you’re writing in a larger niche, your ratio of fly-by traffic to repeat readers might be higher. You’ll get a lot of page views that would appeal to advertisers, but may have a harder time selling products.
Conversely, a blog in a small niche that has a loyal core of followers might not get as much traffic, but the per-visitor profit could be higher because those visitors buy products and services, whether they’re original to you or sold by an affiliate.

Blogging success story: Joe Gilder

Joe Gilder is the owner of HomeStudioCorner.com, a blog aimed at helping people set up home recording studios. Within six months of starting his blog, he had 500 subscribers on his e-mail list. By the time he sat down with Yaro Starak for his EJ Insider Interviews Club series, Gilder was on track to make $300,000 a year, with 13 different income streams all working for him through his blog. 

Gilder is an example of someone who’s found success by focusing in on a relatively small niche. He doesn’t have as many readers as the best-known “celebrity” blogs, but the readers he does have are more loyal. More of his income is from his product range than it is from the traditional blog revenue sources, like advertising and affiliate programs. 

He can continue to make a living through his blog even though he has less traffic than larger sites because he makes more per visitor, offering high-quality products that his readers benefit from buying.

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