Neil Patel, a leading marketing strategist, explains affiliate marketing as “the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others, and earn a piece of the profit for each sale that you make.” And with studies showing a yearly 10% increase in affiliate marketing spending in the United States, it’s projected that by next year, that spending number will reach $6.8 billion.
Affiliate Marketing: Who’s Involved
The three primary players in affiliate marketing are the businesses who have products, the affiliate marketers who are looking to promote businesses, and of course, the consumers.
- Businesses - Companies and businesses create an affiliate marketing program to drive more sales by capturing new audiences. They will tap on marketing partners or content creators (you) to help sell their products for them. Note: Work with trustworthy and transparent brands to avoid false marketing and education on products!
- Affiliates - Affiliates are brands or influencers who promote products through their website or social media. It’s crucial to provide real insight and information into the product you’re promoting. Only promote products you use to create trust between you and your followers.
- Consumers - These are the social media followers and future customers for the business. They look at your posts and listen to your product reviews when considering purchasing from a business. You want to create compelling reasons for using the product you love so much and make it easy for them to buy from each one of your posts.
Benefits of Affiliate Marketing for the Influencer
The great thing about affiliate marketing is generating income by promoting products you love! For example, TikTok creator Charli D’Amelio loves Dunkin Donuts coffee so much she managed to strike a deal with Dunkin just by consistently sharing videos of herself drinking Dunkin or complaining about there not being a close enough store when she’s in Los Angeles. Now, the uber-popular TikTok creator has a menu-item named after her–the first of many deals we’re sure. Now, we know that example might be a little bit out of reach, but still, it follows the same basic principles of affiliate marketing- making money by posting what you love. Check out the rest of its benefits:
- No face to face with customers - You’re linking the seller directly to the customer so you don’t have to worry about customer support or customer satisfaction
- Flexible goals - Your goals are what you make them, choose the products you share and the campaigns you work on
- No fees - Most affiliate programs are free and don't cost the influencer anything
- Organic traffic through SEO - Adding links and keywords can help to boost your visibility within search engines
- Creates valuable partnerships - Building your affiliate network and brands you work with can boost your engagement, place you forward-facing with other companies, and grow the relationships that you have with current retailers for more future partnerships