Affiliate marketing is one of the most effective ways to generate additional income. According to industry data, estimated business spending on affiliate marketing has increased from $5.4 billion in 2017 to $8.2 billion in 2022.
Given this growth, affiliate marketing is a promising field for ambitious newcomers. Yet, like any other endeavor, these efforts require the right strategy and techniques for success. To help you capitalize on this opportunity, we’ve compiled a list of the best methods to drive revenue with affiliate marketing.
What Is Affiliate Marketing?
Before diving into strategies that increase revenue with affiliate marketing, it helps to understand the basics to determine if this venture is right for you. Affiliate marketing involves recommending a product or service by sharing information about it online. The affiliate gets a commission when someone purchases through a special affiliate link in a website, blog post, or social media post.
Here are some of the reasons you should consider affiliate marketing as a side hustle:
- Low-Cost Venture: Unlike starting your own business, affiliate marketing doesn’t require a significant upfront investment. All you need to get started is a platform to promote your chosen products and service and a strong following on that platform.
- Easy to Join: Most brands have a simple onboarding process for affiliates that only involves filling out a form.
- Scalable: You can work with many companies and earn commissions for each sale, scaling your income up as you generate it from different sources. However, some brands restrict affiliates from working with direct competitors.
- Flexible: You can choose the brands you want to work with, and once you have established your platform for promotion, you can work virtually anywhere at any time.
9 Key Strategies to Drive Revenue with Affiliate Marketing
Now that you know the basics of affiliate marketing and what makes it a good side hustle, it’s time to learn the best strategies to help you increase your income through this avenue. Below are nine proven methods to help you succeed as an affiliate marketer.
1. Pick a Niche
Affiliate marketers are valuable to businesses because they cater to a specific audience that aligns with the brand’s target market. Catering to a niche will make it easier for you to build your platform, choose the best businesses to partner with, and create relevant content tailored to your audience. In the long run, this can build your credibility and authority in the field, making you a more effective affiliate marketer.
Choose a niche that matches your interests, and consider asking the following questions in your exploratory phase:
- What interest, hobby, or field do I like that’s not currently being served?
- What types of content can I create to fill this niche?
- How can I use my skill set to add a new perspective to this topic/field/interest?
2. Choose the Right Affiliate Programs
To maximize revenue with affiliate marketing, choose affiliate programs that make sense for your audience. For example, consider joining a loan affiliate program if you focus on the finance niche.
The success of your affiliate marketing efforts will depend on how well you serve the needs of your immediate audience. By offering services or products that match their needs, your audience members will view your affiliate partnerships as value-added content rather than overt advertising.
Here are some considerations that can help you decide on which programs to join:
- Choose high-quality products and services: Even if you can make commissions selling lower-quality products, doing so can hurt your credibility in the long run, especially if your audience members complain or return the products.
- Consider program perks: Some affiliate programs provide free marketing resources and apps to help you track performance. These can help you with marketing efforts and assist in evaluating the effectiveness of your current strategies.
- Choose affiliate partners with a strong web presence: Landing pages and other website elements can make or break a sale, so choose a vendor partner with a well-designed site and a clear call to action.
3. Leverage the Power of Social Media
Social media platforms are powerful tools for reaching your target audience. Before choosing which social media channels to use, research and select the platforms where your audience is most active.
Facebook is the most used social media network worldwide, with roughly 2.96 billion active users as of 2022, followed by YouTube, WhatsApp, and Instagram. You can get more people to see and engage with your content by ensuring it fits the needs of each unique platform.
4. Build an Email List
Email marketing is a great way to provide value to your audience and increase revenue with affiliate marketing. Start building your email list by creating a newsletter subscription page on your website or adding a sign-up button on your social media posts. Then, create a newsletter campaign that delivers emails to your audience about relevant updates, tips, and news related to your offerings.
For example, if you share tips about personal care, you can add your affiliate beauty products as links that direct to your vendor’s landing page. Even without technical expertise, you can accomplish this through user-friendly email marketing apps like Mailchimp and Mailerlite.
5. Create Product Reviews
According to recent industry research, 93% of customers read online reviews before purchasing. Creating product reviews can generate traffic on your chosen platform, provide value to your audience, and increase your affiliate sales.
When creating reviews, answer the following questions to give your audience the most value:
- Did the product/service live up to your expectations?
- What problems did it solve?
- Is it worth the investment?
- What are its best features?
- Do you recommend the product/service?
Ensure that your reviews are honest, accurate, and authentic, as establishing trust with your audience is the key to success in affiliate marketing.
6. Create Relevant Content
Content will set you apart from other affiliate marketers and build trust with your audience. Create evergreen content for your audience and stay updated on current trends, using that information to generate posts that feel relevant. Creating relevant content and publishing it on write-for-us sites can create value for our audience.
Most social media platforms allow you to view content under the “most popular” or “trending topics” section. You can also create content about your affiliate partnerships if they’re informative for your audience. This content can include testimonials, product reviews, or interviews with individuals from the company.
7. Add Call-To-Actions
Call-to-actions (CTA) are specific prompts that encourage audience members to take action, such as “buy now” or “sign up now.” They can come in the form of links, buttons, or images.
Whether you create blogs, Youtube videos, or social media posts, giving your audience a clear call to action is critical to inform them about what they should do next. Using CTAs can help increase your revenue with affiliate marketing as it can direct traffic to your landing page and provide information about how to make a purchase.
8. Offer Bonuses
One way to make your offer more attractive to your audience is by offering bonuses when people purchase via your affiliate link. This strategy can make your offering unique and help you stand out from the competition.
When choosing a bonus, make it something that will apply to your audience. Your bonus will also depend on your niche and expertise. Consider giving buyers something only you can offer, such as a consultation call or a free e-book about a topic in your area of expertise.
9. Track Results
Tracking your campaigns and measuring your results are crucial steps in growing your revenue with affiliate marketing. Before starting a marketing campaign, identify key performance indicators (KPIs) to help evaluate its success. KPIs are metrics that help you determine the effectiveness of your marketing efforts, such as conversion rates, click-through rates, and revenue by traffic source.
Most social media platforms provide data analytics to help you assess campaign performance. Additionally, some partner vendors provide free tracking apps to help you monitor the number of leads and estimate the revenue you’ll earn through affiliate marketing. As you discover your best-performing content, tweak your marketing strategies to enhance their effectiveness.
Affiliate marketing is one of the most lucrative opportunities for individuals who want to grow their income. In this post, we covered fundamental strategies to increase your revenue with affiliate marketing and set yourself up for success. By following the tips we’ve outlined, you’ll be able to engage your audience, convert more sales, and increase your revenue over time.