Even though the affiliate marketing industry has been around for quite a long time (the idea was conceptualized in 1989), it gained its popularity only about a decade ago. Below are some interesting statistics to show you how powerful of an industry it is now:
- Since 2015 revenues generated via affiliate programs grow by 10% annually, with projections showing that this trend will continue at least till 2021 (Business Insider)
- 81% of the brands are relying on affiliate marketing, owning their own affiliate programs because they can control the cost of the campaign and pay publishers based on performance (Mediakix)
- 15% of the total digital media advertising revenue is attributed to affiliate marketing (Business insider)
Affiliate marketing is a dream job for many people. People from different industries (e.g. marketing, sales, IT, logistics, etc.) hopped into the world of affiliate marketing business as freelance affiliate marketers, media buyers, or even by creating and running their own affiliate networks. If you are reading this article, you are probably considering doing the same. So, if digital marketing terms like CPA, Payout, CR, CPC and similar do not sound strange to you (and if they do, we have an article explaining them in detail), if you are creative, have basic marketing and technical skills, enjoy communicating with people from all around the world, and the reasons below resonate with you, then affiliate marketing could be a great new challenge.
Make money based on your performance
Unlike other industries, there’s no limit as to how much you can earn in the affiliate marketing. This is because you are paid whenever a specific target is reached and whether this target is reached or not largely depends on you. For example, if a sale is defined as a target by the advertiser, every time a user buys their product or service – and this user comes from your traffic source – you will receive a predefined payout or commission (usually called CPA). The longer you are in the affiliate marketing business, the more tricks you will learn to be able to create high-converting campaigns, optimize them, improve your targeting and match offers to your target audience, to name a few so that you can generate the most profit. This is the beauty of this industry – you have control over how much time and effort you put in and it will translate into your earnings.
Enter the business with little to no entry cost
Another perk of the affiliate marketing industry is that you can start a new business with almost no investment or startup cost. Many affiliate marketers entered the industry by using only a PC and generating traffic by themselves creating websites, blogs, or Facebook pages that were used to promote third party offers. This is a demanding and long way because it takes time to generate a good amount of traffic, find the right audience, and of course, see the first results. Most of the new affiliates start with media buying, which means they buy traffic from ad networks on a CPC or CPM basis. In this case, results can be seen faster, however, demand a lot of monitoring, testing, and optimization in order not to spend more budget on traffic than the actual earnings are. Either way, being able to enter the business with almost no cost is a perk that cannot be ignored. Then, as you go, and based on your needs and goals you can invest more in tools and infrastructure (e.g. tracking platform, CRM tools, employees, analytic tools, servers, etc.) and thus expand your business.
Enjoy the flexibility to work from anywhere – anytime
Who doesn’t like to have the flexibility to work from any place in the world and only work the hours that fit your needs? If you choose the freelance path, you will have the opportunity to work from anywhere in the world as long as you have a computer and a good internet connection. Affiliate platforms also provide automation tools and notification systems that help affiliate marketers stay up-to-date and control their business easier and faster. An important thing to keep in mind is that fast reaction is key to success in affiliate marketing. This means you need to stay connected with your partners and monitor your campaign performance and react fast should your KPIs drop in order not to lose money. That said, it is also quite common to work both late and early hours to be able to cater for different time zones and get some online time with your partners. This is a sacrifice that will help you get better deals and build good business relations with your partners.
Promote the types of products you like
In affiliate marketing you have the option to promote different types of products, based on your interest, market trends and profitability. You have the freedom to play around with different offers to see which ones fit your audience the most and bring the most profit for your efforts. This means that you have a huge portfolio of offers to choose from (be it mobile offers, applications, Nutra, gambling, retail products, etc.) and will never get bored promoting the same product over and over again.
Scale your business with ease
Last but not least, in affiliate marketing, there is no limitation on how much you will let your business grow and expand, as long as you have control over it. Many affiliate marketers have started being in the business as affiliates themselves, promoting retail products, and as soon as they gained experience, and built their own contact network, they went on to create their own affiliate networks, build strong synergies with publishers and advertisers, and let their revenues and profits boom. How much you will grow in the affiliate marketing business fully depends on your capabilities as well as the effort and dedication you put in, always keeping in mind this business has its risks just like any other…
On our vene dash blog, you will find more articles about affiliate marketing as well as tips and tricks on how to create your own affiliate network. If you are interested in entering this business, and you are currently searching for a tracking solution, feel free to get in touch with our team, book a demo, or try our platform for free and see for yourself how vene dash can effectively support your new endeavor.