See how Multilogin can help you manage multiple affiliates accounts for unparalleled growth.
The affiliate marketing industry is set to grow to $15.7 billion by 2024. It’s a global phenomenon – and yet getting started requires little more than some canny strategy, top tools, and the willingness to seize opportunities.
But what actually is affiliate marketing, and how does it work? Find out in this guide, from how to set up to picking the best affiliate programs and scaling your efforts.
What Is Affiliate Marketing and How Does It Work?
First things first: affiliate marketing is a way to monetize traffic by promoting a product or service made by a third party in return for a commission.
What causes the commission can differ, but it’s usually one of the following:
Pay per sale: When an individual purchases a product.
Pay per lead: When an individual signs up for a service.
Pay per download/install: When an individual downloads and/or installs an app or software.
For anyone looking to make money from affiliate marketing, this is the key point. Your costs are whatever it takes to generate the traffic; your revenue is the commission from the conversion – and your profit is your revenue minus your costs.
How Much Commission Do Affiliate Marketers Make?
One of the most common questions is how much you can earn through affiliate marketing. Generally, commissions range from about 5% to 30% of the sale or higher. For high-value products, such as event attendance, commissions can reach 50%.
Large marketplaces often have their own affiliate structures. For example, Amazon’s Associate Program bases commissions on product categories, ranging from 1% for personal care items to 20% for Amazon games. Similarly, Shopify data shows commissions above 30% are common in niches like business, accessories, and health products.
What Conversion Rates Can You Expect?
Starting affiliate marketing doesn’t require extensive resources, but it does take time to build traffic unless you already have a source. Over time, as you refine campaigns, conversions stabilize. According to Shopify, conversion rates vary by industry, ranging from around 3% in health verticals to nearly 10% for automotive and business niches.
How Do Affiliate Marketers Track Conversions?
Reliable tracking is essential to ensure that your efforts are properly attributed. Most programs provide an affiliate code or tracked link unique to you. These links must be used whenever directing potential customers to a product or service, ensuring the merchant recognizes your contribution.
How to Identify the Best Affiliate Programs
There isn’t one “definitive” best affiliate program. The best fit depends on sectors and products that align with your audience. For example, if you run a gaming blog, tech products might perform better than healthcare items.
If you have an established traffic source, you can directly approach brands. Without an existing audience, affiliate marketplaces like ClickBank or ConvertKit are good starting points. To spread risk, mix high-volume, low-paying programs with high-paying, lower-volume ones for a balanced portfolio.
How Can You Scale After Starting Affiliate Marketing?
Scaling means getting the most value for your efforts. If traffic and conversion rates are stable, expanding into new areas with multiple accounts can be a strategic move.
Here are some platforms to consider:
Facebook: Want to broaden your social reach and target niche audiences more effectively? Learn how to create multiple Facebook accounts and make it happen.
TikTok: Jump into creative and viral trends that resonate with your audience. Here’s how you can set up multiple TikTok accounts to unlock even greater potential.
LinkedIn: Build B2B connections and elevate your professional credibility. See how to create multiple LinkedIn accounts to target business-focused audiences.
Amazon: Ready to manage diverse product categories under one roof? Discover the steps to setting up multiple Amazon accounts.
By managing multiple accounts for different niches, you grow your reach without diluting your brand authority.
When’s the Best Time to Start Affiliate Marketing?
The best time is now! With the information provided, start exploring opportunities, building accounts, and scaling your affiliate efforts. Use tools like Multilogin to set up and manage multiple accounts efficiently.
Frequently Asked Questions (FAQs)
How Do I Choose the Right Affiliate Products to Promote?
Focus on products that align with your audience’s interests. Review the best affiliate marketplaces like ClickBank for ideas or approach brands directly.
Is Affiliate Marketing Passive Income?
While it can generate passive income over time, initial efforts require active work in content creation and traffic generation.
Do I Need a Website to Start Affiliate Marketing?
A website isn’t mandatory, but it’s a valuable asset. Alternatively, you can leverage social media platforms or email marketing.
How Can I Create Multiple Accounts for Affiliate Marketing?
To manage different niches or campaigns, you’ll need a reliable tool like Multilogin. Learn more here.
Conclusion
Affiliate marketing offers immense potential to monetize traffic, scale income, and grow across niches. By strategically choosing programs, tracking conversions effectively, and expanding through multiple accounts, you can unlock unprecedented opportunities.
