Why Affiliates Add So Much Value


What is an Affiliate?

An affiliate is an independent marketer who sells other people’s stuff, usually for a percentage of the selling price, a commission, plain and simple. They fill a need for retailers’ in that, if it sits on their self, or in their inventory, whatever it is, it is not making money for the retailer.   Now, the retailers’ could  add more advertising campaigns to try to sell their overstocked inventory, but that is an added expense, which would not guarantee a sale, by any means. Whereas, the affiliate is not getting paid until the sale is made, which is a lot more practical, and efficient for the retailer. Because of that situation, it doesn’t cost the buyer any more money to purchase through an affiliate, and it actually could save, or make the retailer a great deal of money.

The more affiliates attempting to sell product for a particular retailer, the less the retailer has to pay for direct advertising. They only need to keep their brand, or service reputation good in the minds of consumers. So, affiliates provide a valuable service to all retailers’. The more affiliates they have working for them creates a much better situation for the retailer. They are not dependent on one affiliate which creates a situation for them where demands for commission increases don’t exist, in most cases. However, if you could determine that the volume of your sales were much higher than the average affiliate, then you could suggest that you are certainly worth more to them. That is why some affiliates make more based on their volume of business. Your ingenuity can guarantee you are at the top of the food chain, so to speak.


How Much Money Does An Affiliate Make?

As you investigate which niche you may want to market, you will find in some cases, great disparity in commission rates for the affiliates among different retailers’. There are several trains of thought to consider when determining how much one can make as an affiliate. Any profession you may decide to enter will have earning disparities depending on how good you are at what you do, and who you work for.

Earning a commission is the same as, for example, construction trades getting paid by piece work. The faster you can work, the more you can make. It’s like the merit system on steroids, but better because the rewards are immediate, and you know how much your commission rates are up front. You will notice that places like Amazon tend to pay at a lower rate. That is because they are the largest seller of products in the world. Everyone buys things from Amazon, so it is easy to get people to shop there. The only problems you would have as an Affiliate for them are, 1) the large volume of sales needed because a low commission rate. 2) And  situation of the cookies, those little internet things attached to your affiliate links that shows that it was you, through your efforts, that sent a customer to them. They only last for 24 hours for Amazon. So, if your customer doesn’t make a purchase in that time frame, they become Amazon’s or another affiliate’s customer whenever they make that, or another purchase, out of that time frame. The way to get around that is to make certain that your link is always in front of your customer. Make it easier for them to connect to Amazon through you. This is where your ingenuity would be a big factor. It would be wise to make certain that you are not violating any terms of service in your affiliate agreement with Amazon, or any retailer when attempting to keep them as a regular customer of yours.


WealthyAffiliate, Earn As You Learn


Some retailers’ have their affiliate links effective for up to a year, so you would get credit for whatever they bought for up to that period. Some customers belong to the affiliate for as long as they purchase on a regular basis, Wealthy Affiliate being one of those, whose customers are charged monthly, and you would receive a commission monthly for that same customer. As you can see you would have to balance possible volume, and price vs your particular affiliate link activity terms. Once you start making money, which is one of your first goals, it would be wise to consider all of these factors in determining which retailers’ you wish to represent in your affiliate activities. Always try to determine which situation is more profitable for your company by diversifying and determining where your efforts are most lucrative.

In another article I will provide examples of retailers, at which commission rates they pay, and how long their links are active. Just to get your attention, did you know Travigo and Price Line are affiliate marketers? Many affiliates are paid many Millions, or even Billions of dollars. Your compensation is only limited by your imagination and abilities.

Please note that you will find no better place than Wealthy Affiliate to learn every aspect of affiliate marketing.

Thank you,