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Home News Business

Affiliation and how to make money on it

Affiliate marketing

Ted by Ted
02/25/2020
in Business, How to, Review
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What is affiliate marketing
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How to make money on affiliate marketing?

Hello! In today’s entry, we’ll show you how you can make money on affiliation. You probably wonder, what affiliation is. We’re here to give you answers.

What is affiliation and where to begin?

Affiliation is yet another way of earning on the Internet. How does it work? You make money by advertising (recommending) products or services on behalf of a company. A good way to start is to find and join a partner program. One of the most popular ones is Amazon. As you probably already know, they have a huge variety of products (books, electronic devices, handmade objects etc.) This is an awesome opportunity to generate income.

But how to make money on it?

To start, you would need to generate an affiliate link that leads to the company’s website, where customers can find the product, recommended on your platform. You receive a commission from each activity. Then you can observe how many people clicked the link and if they made a purchase. Below you can find some ways of measuring the efficiency of the marketing actions:

  • CPC (Cost Per Click) – the cost generated through a single click on our affiliate link, even if there is no transaction.

  • CPL (Cost Per Lead) – the cost of achieving a particular goal. It could be signing up for a newsletter, downloading a free e-book, or creating an account. Actions are not connected with selling products, so this model is usually used by companies offering services.

  • CPS (Cost Per Sale) – whenever the customer buys a product using our link, we earn a commission. It is the most common way of measuring efficiency.

If your marketing efficiency is measured using the CPL or CPS model, you probably won’t get your commission immediately, as your viewers or readers can enter the link and make a required action later. It is worth to check the time of storing information about cookies for our link; usually, it’s 30 days. Using this technology, we can be up to date with the completed transactions.

Remember about the taxes

Remember about the taxes

The commission is not a regular salary, however, you would still need to pay taxes, if it is required by law in your country. If you live in the USA, you have to pay the FICA tax (for Social Security and Medicare). As this is a form of self-employment, at this moment you would need to pay a tax of 15.3%. Always check what documents you are required to file, to avoid the IRS penalty.

Why is it worth it?

Now that you do not have to type what is affiliation? in the Google search bar, you can start your journey with affiliate marketing. But why should you pick this type of generating income? Well, remember that you are your own boss and the more time and effort you invest, the more you can achieve. Furthermore, money made from affiliate links is a passive income (as you don’t have to constantly engage), and depending on the contract, you can make money long after publishing.

What could go wrong with affiliation?

As great as it is, affiliate marketing has it’s cons and there are some things that you should be careful about:

  • Remember about the links. Make sure your links are correctly placed and that they are there. If they don’t work, you are not receiving your income.

  • Stick to the subject of your blog or channel, as you the ad should be interesting to your audience in order to work. If you are a fashion blogger, recommending medical devices or sausages could be odd to your viewers.

  • Dishonest advertiser. You may have problems even with big companies. Always check the company before you start.

We hope you enjoyed today’s lesson and will use this knowledge to start your adventure with making money online. Despite the responsibilities, partner programs are the least risky way of earning, as the only things you invest are your time and effort.

If you liked our post, please don’t forget to share it with your friends and sign up for our newsletter to be up to date with new entries. Ted&Greg wish you a nice day!

Tags: affiliate marketingAffiliationAmazonearning onlineonline incomepassive income

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