The last few weeks, we’ve talked about a few different ways to make money online with your website: PPC (pay per click) ads, display ads, and ad networks. The idea, of course, is not to overwhelm but show you how some of your favorite people online make money when you visit their website. This post is the last in our series.
Affiliate ads, or basically selling a product or service for a commission, is not a new idea. Many people do this in real life (think of any sort of party at which you could also buy things: cookware, jewelry, adult toys, etc.)
Online affiliates are even easier as you don’t have to clean your house or have suitcases of product to do them. Sometimes an affiliate will pay when someone clicks on a link to their site from your website, sometimes only when a purchase is made. Fees paid out can be a commission (percentage of total) or a flat fee per customer, depending on the service. There are literally thousands of affiliate programs (and if you have a unique product or service, you can set one up. More info on setting up an affiliate program here: http://lkrsocialmedia.com/2011/09/how-to-create-an-affiliate-program-that-doesnt-suck/)
The most popular online affiliate program is Amazon. When you sign up, they give you a way to make special links to products on Amazon.com. Like the new desk chair you bought? Make an affiliate link. Like the sweet and spicy tea you keep in your office? Make an affiliate link. Then you post these links places: social media, blog, website, email newsletter, etc. If someone follows your link and buys your product, you get 2-3% commission (up to 10% if you sell more).
For fun once, I made an Amazon Affiliate account and shared a couple links on Facebook (to my personal profile) over the course of a few weeks. You know, I never did get that $1 and change from Amazon…
(I guess I just felt slimy doing this, which is why it ended up being a three day experiment without much thought put into it and yielded such unimpressive results.)
But I do know plenty of bloggers who post, say, links where you can buy books they are reading or write ‘affiliate’ blog posts linking to products. It’s possible, especially if the thing you want to sell isn’t made by you (ex: You want to recommend people buy a Seth Godin book but aren’t a bookstore or Seth Godin.)
Amazon doesn’t have high profit margins so they can’t give you, say, 50% commission. But that’s where working directly with a smaller distributor makes sense. The more directly you work with the company selling the product, the higher your commission.
Let’s take another affiliate example. I am a pretty big Rupaul fan but I also know that Rupaul mentions sponsors, etc. on his/her/not-sure-the-proper-pronoun podcast. So I went to the Shop portion of the Rupaul website:
I know the writing is tiny on my screenshot but you’ll see the ‘Glamazon’ shirt can be purchased on Rupaul.com but The other items (ex: action figure) can be purchased from other websites. Tell tale sign of an affiliate, you get redirected to another website (note the URL and website design change when I click on the action figure):
Point is, affiliates let you recommend stuff and get paid, without having to process the payment, ship it, or really do any kind of customer service. You are middle manning it. That said, if you have an audience and that audience trusts you to recommend products, your middle manning is worth something.
If you want to see if a product you like has an affiliate program, simply type in “company name affiliate” into Google. Typing “Constant Contact affiliate” into Google got me to the CC affiliate page:
Affiliate marketing, when done by those who genuinely enjoy a product and want others to experience its benefits (and, let’s face it, make a buck or two in the process), is a useful marketing tool. That said, there can also be a dark side. For example, if I am a financial advisor and I sell you the IRA plan where I make commission on but there is another IRA in the world that I know is actually better for you, that’s conflict of interest territory to me. I couldn’t sleep at night doing that. But as long as you’re straight-forward about what you make money on, I think affiliates can be perfectly ethical and potentially profitable.