#03 (How do affiliate marketers make money)
''How Do Affiliate Marketers Make Money''
Affiliate marketing income spans a large spectrum. There are some affiliate marketers who make a few hundred dollars per month and others that make six figures a year. The larger your following, the more money you can make as an affiliate marketer.
Compensation software company Payscale reports that the average annual salary of an affiliate marketer is more than $55,000, based on over 7,000 salary profiles, with many affiliate marketers earning significantly more.
Affiliate marketing payment models
When you choose an affiliate program to promote, you’ll notice there are different payment models. Companies may also call it a price model, payout model, conversion type, or another variation.
Regardless of the name, the payment model tells you what goals you will get paid for. If you’re promoting a software product, the action could be a free trial signup. For an affiliate marketer who promotes physical products, the goal will likely be a purchase.
Many affiliate marketing programs run with last-click marketing attribution, which means the affiliate who receives the last click before purchase gets 100% credit. However, this is changing, as affiliate programs improve attribution models and reporting. For example, you could share equal credit for a sale if there were multiple affiliates in a buyer’s conversion funnel.
Five common ways affiliates get paid include:
1. Pay per sale, where you earn a commission for each sale you make. It’s a common payout model for ecommerce offers.
2. Pay per action, which earns you a commission for a specific action. Many affiliate programs use this payout model because it’s broad and can be applied to different offers: a newsletter signup, a click, contact request, form submission, etc.
3. Pay per install, where you are paid for every install generated from your website traffic. The goal of your content would be to promote mobile apps and software so that people download or install them.
4. Pay per lead, which pays you every time someone signs up for something. It's a popular payout method because companies use it for sweepstakes, lead generation, and other types of offers. Cost per lead offers are common for beginners because it’s easier to generate leads than to sell products to an audience.
5. Pay per click, a rare payout system where you earn commission on every click on your affiliate link. A pay-per-click affiliate program may be used by big merchants with a goal to build brand awareness. Customers don’t need to sign up or buy anything, just to visit the merchant’s website. 
How much you make depends on your affiliate niche. For example, research conducted by Shopify in 2021* found that the highest average commission rate ($70.99) was for business-related programs, while books and media and clothing categories earned just over $6 per commission. The maximum average commission we found was around $289.06 per sale.
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