You're starting a business or you may have one But you don't have the money to spend on marketing
What should you do? Hey, everyone, I'm Neil Patel and today I'm going to explain what affiliate marketing is and how you can leverage it The cool part about affiliate marketing is that it's performance based marketing If someone drives you a lead or a sale, you pay them out You pay them on a cost per acquisition Acquisition can be a lead or a sale for you
You determine whatever it is And you can even determine what you want to pay people If your product sells for 500 bucks and your margin on it is 250 – in essence you're operating at a 50% margin – and if you decide: "hey I'm willing to pay someone a $100 for every sale they drive me" then you can offer affiliates "Hey for every sale you drive me, I'm going to give you a $100" And they may decide that they're going to drive these sales through SEO, Pay Per Click, Facebook advertising Whatever it may be
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And that's up to them That's what affiliate marketing is all about Now there's a few things that you to know about affiliate marketing Number one: it's really hard to recruit affiliates Where do you look for them right? You can't just go around the web to go find marketers and say "hey, you want to join my affiliate program?"
Instead, you want to join networks like Clickbankcom So when you join these affiliates networks and you talk to them, they'll tell you: "Hey here's your product Here's what you should price it at for CPA This is what you should pay people every time they drive you a sale
" And they'll make sure it's competitive and you're not losing money Because the last thing you want to do is be willing to pay someone $10 per sale when it costs them $20 Because if it costs someone $20 to drive you a sale, they're not going to take $10 That means they're going to be losing money Especially if you're making thousands of dollars
They're going to be like: "no, you gotta offer more" You have to be competitive And companies like Clickbank that offer affiliate networks will tell you what you should price your offer at There's other ones too, like another site that I use is JVZoo JVZoo is also another place that you go to recruit affiliates
In addition to that, you can also go to conferences like Affiliate Summit Affiliate Summit or Affiliate World are really big affiliate conferences where all these marketers go and they're looking for new offers to promote So go there and you'll find people who'll be willing to promote your offers and these conferences even teach you how to price your product, what to sell it for, what to give affiliates to incentivise them etc The second thing you need to do to continually optimise your own website If people are driving traffic, but those visitors aren't converting into customers, that means they're either driving irrelevant traffic, but most affiliate marketers are good at what they do
So usually the traffic sources typically qualify or it means that your web page isn't converting and your web page not converting is usually the issue So you want to run surveys You can use Quaraloocom That's a tool that I love using and you can ask people questions on your landing page such as: "What else would you like to see on this page?"
After you get 30 plus responses, you'll get a really good understanding of what's wrong and you can fix those things As you fix those things, you'll notice that your conversions will go up In essence, the more visitors coming to your website come more of them will convert into sales because you're fixing the conversion While before you may have had over a thousand visitors to your website and zero buy, and now it could be that after you fix the conversions, a thousand come and ten buy That's improving conversion rates and that's what happens
Another tool that you should use is Crazyeggcom and with Crazyegg it will show you where people scroll, what they click on It'll track the mouse movements of your visitors and that will give you insights on what you need to change so that you can maximise your conversion rate So if you do those two things, you can generate traffic through affiliate marketing And affiliate marketing is one of the most powerful marketing techniques or tactics out there
Especially for businesses that don't have a tonne of capital Because you only pay money for sales And when you're paying out the money for these sales, pay on a Net 30 basis Because sometimes you'll get refunds or credit card fraud You don't want to give out payouts for people who you're refunding
So to ensure that you're not getting ripped off by these affiliate marketers, make sure your payouts are Net 30
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