An affiliate program is a program that allows you to earn commissions if you successfully invite other people to buy the promoted products.
The more products sold, the more commissions you can get. Interestingly, this job can be done flexibly so it is quite popular.
Are you one of them?
If so, check out the full review of what an affiliate program is, how it works, the benefits, and examples in this article!
What is an Affiliate Program?
The term affiliate program is used in several fields and certainly has its own definition, although in essence it is the same.
Literally, an affiliate program is an engagement that forms a partnership between two parties.
Meanwhile, in the context of marketing, an affiliate program is a marketing strategy with a scheme between the product owner and other parties outside the company who participate in marketing.
Furthermore, by registering with an affiliate program you can earn additional income through a regulated profit sharing agreement.
Make no mistake, this program can also be a lucrative business opportunity and the potential for big profits, you know.
How Affiliate Programs Work
Before discussing how affiliate programs work, it’s a good idea to first know who the parties involved are.
At least, there are three parties directly involved in the affiliate program, including:
- Product owners, which are companies, vendors, sellers, or others who issue affiliate programs.
- Affiliators, which are people who join the affiliate program. In this case, they are tasked with marketing the product to potential consumers.
- Consumers, which are buyers who buy products through affiliates.
Now, for those of you who are interested in joining an affiliate program, let’s see how it works!
1. Register for an Affiliate Program
To join the affiliate program, you must first register through the website of the company providing the affiliate program.
After that, you will get a different referral code from other affiliates. The purpose is to indicate that consumers buy products from affiliates with the registered referral code. For example, your referral code is PIGGY1234. If there are consumers who buy products and enter the PIGGY1234 referral code, then you will automatically get a commission according to the applicable provisions.
In addition to registering, not a few people are actually offered to join the affiliate program, you know. Usually, this offer is given to influencers who have large traffic and discuss many fields related to the affiliate product to be promoted.
2. Affiliate Product Promotion
To earn a lot of commissions from affiliate programs, you must promote your referral code.
There are various ways to do this. Starting from product reviews on blogs, online forums, to social media.
3. Target Market Using Referral Code
Basically, the goal of someone registering and doing affiliate marketing is for potential buyers to use your referral code.
Because, if the person buys through the referral code that you share, the consumer will get an additional discount and you as an affiliate will certainly get a commission.
However, please note that even though you get a commission from consumer purchases, it does not mean that the price of the product purchased by consumers will be higher than the normal price. The price remains the same!
4. Earn Commission
You might be wondering, when can you receive sales commissions?
Generally, the commission time of an affiliate program is after a consumer successfully purchases a product using your referral code. Well, this is where you will share profits with the product owner.
In addition, there are also some companies that provide commissions without having to wait for consumers to buy products through your referral code. At least, there are three types of commissions from affiliate programs, namely:
Per Sale, which is a common type of commission distribution applied in affiliate programs. The company will give a commission of a few percent of the sales price after the consumer buys the product through your referral code.
Per Lead, which is a type of commission distribution that is paid when potential customers successfully complete certain activities determined by the product owner. For example, filling out a form, creating an account, subscribing to a newsletter, or downloading a certain file.
Per Click, as the name suggests the commission will be paid when someone clicks on your referral code. Usually, the code will direct them to the product owner’s website.
Benefits of Affiliate Programs
Affiliate programs have many benefits, such as earning extra income with flexible working hours.
Other than that, what are the benefits of affiliate programs? Let’s find out!
1. Small Capital
Generally, companies providing affiliate programs are divided into two types, namely companies that require you to buy products first before registering for an affiliate program and companies that do not require buying products before registering.
Like the proverb ‘While diving to drink water’, if you are in need of the products offered then buying products before registering for an affiliate program can be your choice.
Meanwhile, if you don’t want to spend capital, choose a company that opens affiliate program registration without buying a product first. Just promote it so that consumers are interested in buying through your referral code.
2. Earn Passive Income
Don’t like a job that requires you to go to the office every day?
If so, joining an affiliate program can be your choice. All you have to do is sit back, relax and promote, and the money will come to you even while you sleep.
3. Work from Home
Are you a work from home team?
If so, becoming an affiliate marketer will be perfect for you. This is because you can do referral code promotions from anywhere!
All you need is a stable internet connection and a smartphone or laptop. That way, joining an affiliate program can be the perfect job for those of you who don’t like office work.
4. Flexible Working Hours
Furthermore, there is no specific contract that regulates the promotion hours of the affiliate program. Therefore, you can decide when to promote, when to relax, and so on.
Interesting, isn’t it?
5. Pure Income from Your Own Hard Work
Unlike other office workers who get the same or fixed salary every month, income from affiliate programs depends on your hard work in promotion.
This means that a person’s success in earning a large commission depends on his hard work in promotion. The more you put in the effort, the more you will earn per month.
So, before signing up, make sure you commit to yourself to always be consistent in promoting.