So how effective is affiliate marketing? What does it take to make affiliate marketing work? Affiliate marketing is a business model which allows anyone to earn money through recommending products on the internet. By refering customers to products through an affiliate link, you can earn commissions based on your sales.

The effectiveness of affiliate marketing largely comes down to the marketer themselves. And this comes down to their ability to learn and apply various online marketing tactics.

How Effective Is Affiliate Marketing?

how effective is affiliate marketing

How effective is affiliate marketing is perhaps the wrong question. Affiliate marketing is simply a business model. It works, but how well it works depends on a number of things. These are the main things to consider if you want to learn affiliate marketing and the things which will determine your success:

  • Your training – You can only be as good as your knowledge. The depth of your understanding of an online business model plays a huge part in your success.
  • Your specific marketing strategy – Different strategies can be used according to your individual circumstances. For example, if you have a monthly advertising budget you can use paid advertising methods. If not you can choose another method like content creation.
  • The business model you choose – Not all affiliate business models are alike. Physical products, for example, tend to pay out less to affilaites than digital products do. Memberships or software access offer a means to earn monthly residual income from a single sale. Knowing the right business model for your circumstances and direction can be extremely helpful.

Automation and Global Audience

Affiliate marketing can be an incredibly effective way to grow and scale a business. Because much of the running of an online business can be automated, this makes it very scalable. Small physical businesses, by comparison, have a smaller audience for their products and services. Digital products can be accessed from anywhere globally over the internet. This makes a digital business model very scalable.

With the right business model, affiliate marketing can be an amazingly effective way to make money. Simply because it can use systems and automation to sell products over the internet. If you can learn to use the right business model and become adept at online marketing, your products can be sold on autopilot. See autopilot money making system.

This can be done through the use of paid advertising and a sales funnel from which digital products can be sold. Digital products are a good idea for a couple of reasons:

  1. They can be accessed from anywhere globally. As long as you have an internet connection and a laptop, anyone can get them.
  2. You can earn larger commissions from digital products because they typically pay out 40%+. This is because the sale of a digital products doesn’t have the same costs involved as in a physical product. They don’t carry any postage costs or storage costs.

Affiliate Marketing At Its Most Effective

The most effective affiliate marketers have developed a system whereby they promote and sell products through online advertising and a sales funnel. Everything is automated and their income goes back into their advertising to scale up further.

With a sales system like this which is automated, a range of “up-sells” from which they earn 40%-50% commissions, and scalable online advertising, they can develop an automated income system of sorts. Having up-sells means you can make larger commissions based on later sales which your referrals go on to buy. A range of products within your sales funnel means you can earn more per customer than by only having a single product to sell. This is known as a product ‘suite’.

Once everything is in place within your sales funnel, your job is simply to use advertising to grow your number of subscribers. As subscribers number grow, your sales will increase. Your automated email marketing funnel delivers emails on a regular basis to your subscribers.

At its most effective, affiliate marketing works 24 hours a day delivering advertising, growing an email list and delivering products through that list.

Beginner Affiliates

how effective is affiliate marketing

It takes time to learn and implement this knowledge though and you need to start from the beginning. Beginner affiliates first need to build their knowledge and ability as they grow their business. Most give up before they see 1000 subscribers in their email list. This is a shame because as the list grows beyond this amount, the number of sales they will get will start to grow. Once you see some traction in your business you gain confidence in it and are more able to fully commit to it.

Many beginners are cautious to spend money on paid advertising. This is sensible of course and you should always tread with care with your advertising budget. As your confidence grows in your products when you start to generate sales, you can increase your advertising budget and start to scale up. With certain advertising platforms you will need a suite of products. You will need to be able to re-coup your advertising costs and this is more easy if you have a product range.

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