How does affiliate marketing work with Amazon
Affiliate Marketing - How To Earn Residual Income From Home
What is Affiliate Marketing?
Affiliate marketing means participating in an affiliate program and recommending certain products or services to the users on your website via affiliate links. If this results in sales, you will receive remuneration from your affiliate partner.
Today, affiliate marketing is pretty big business. But it remains an option for EVERYONE who makes money from home and wants to achieve a passive income.
All you need is one Blog and Peoplewho read it. Well! But why should you choose a blog as your content format?
Blogs are a more than helpful entry point into the world of affiliate marketing. Because if you do it right, it makes you very much authentic and you have a good chance of being found on Google. The more prominent you are shown there, the more people click on your page and the likelihood that someone will buy something increases.
Authentic blogs transform users into your regular audience and ultimately into paying customers. Success in affiliate marketing is usually only achieved when you write about products and services that interest you personally. Otherwise nothing else comes out in the end than bare things advertising out.
Now let's take a closer look at why affiliate marketing could be the right thing for you and your blogging or social media business. Let's start with the most important thing: How exactly do you now earn money with affiliate marketing?
Affiliate Marketing Commissions and Sales
Affiliate marketing works by dividing the effort of marketing a product between you and the actual seller.
Did you know that?81% of all brands and 84% of all publishers use affiliate marketing, also with blogs.
In other words, affiliate marketing is REALLY successful.
There are now three established ways in which you can generate a sale in affiliate marketing.
Let's look at it.
1. Pay per sale
This type of affiliate marketing is the most common.
The seller pays the affiliate a fixed percentage of his income if the buyer has made a purchase via the affiliate link. In other words, there must always be a purchase before the affiliate earns any commission.
Take a look at an example from our PartnerNet.
When someone buys a book on Amazon via your affiliate link, you receive 5% of the sales price as commission.
These percentages vary greatly depending on the product category.
2. Pay per lead
This system is not quite as common, perhaps because the structures are less clear.
Pay per lead means that the affiliate receives a payment based on how a lead converts on their part. The potential customer has to take a certain action on the seller's side and not just buy a product.
This can be a sign-up for a newsletter or the download of a program.
The Amazon Rewards Program is a great example of how you can get commission this way.
For example, if someone signs up for Amazon Prime via your affiliate tracking link, you will receive a fixed commission.
3. Pay per click
This is not about someone buying or subscribing to something. A mere click on the affiliate website is enough for payment to be made.
As an affiliate, you have to produce content that encourages your users to click on the affiliate website in order to increase their traffic.
This is less about really qualitative content, so this field is very competitive.
Now you can have three ways that you can make money from affiliate marketing.
Market potential: Affiliate Marketing in Europe
One thing is certain: Europe is a very segmented market with a multitude of languages and currencies. So your affiliate network should have a solid foundation in that regional market have in which you move.
If you are not sure about it or multiple markets you should choose an established and international affiliate program.
Amazon has the largest affiliate network in the European market. Its popularity is mainly explained by Amazon's enormous range of products. As an affiliate, you can advertise ANY Amazon product.
Next up is how you actually come up with a topic that will turn your blog into an affiliate marketing business.
How to find your niche in affiliate marketing
Affiliate marketing is not just about residual income for bloggers. It has also become a business model for large companies and publishers who are now creating affiliate content on a grand scale.
In other words: the competitor is very big.
Finding your own niche is therefore the basic requirement before you get into affiliate marketing.
If your content and the products you recommend form a unit, this not only strengthens your branding, but also increases the chance that your users will click through to the purchase.
As for blogging, we have a few Do’s & Don’ts collected for you.
What's a good niche?
coffee is a great example of why finding a suitable niche is so important
Because a coffee machine can look like this:
In other words, you can have a coffee maker for 5€ buy, or one for 5.000€. If you run a restaurant or café, you can be easy 50.000€ output.
From all of these machines comes a brown liquid that we call coffee. But we all know that coffee is not always coffee, right? 🙂
So what if you start a “coffee blog” just because you like coffee? That’s a bad idea.
You'd rather become the master of the beans and find yourself a small, but interesting and not too competitive niche in this wonderful world of coffee.
- Why not blog about the best mocha pots that are NOT made by Bialetti?
- Why don't you write about extraordinary cappuccino cups?
- Or the coolest milk frother?
If you cover 10 of the 20 best-selling milk frothers on Amazon with your content - then you are in business. And your blog will likely rank well on Google too.
The principle is simple: people will trust you when it comes to milk foam. Because with your detailed content you make it credible that you have really tested 10 different milk frothers.
Still, you should be careful that your blog's niche doesn't get too small. If you've made up your mind to only write about the best Arabica beans from Guatemala, you may end up missing the right products.
IMPORTANT: Not every article on your blog should have affiliate links. You should also write tutorials or purely informative content to stay credible. For example, just write about how to make the best milk foam, regardless of the device.
Would you like an example?
Take a look at this page, it's called "Little gourmet“:
This website is all about the Baby Led Weaning philosophy. Basically, it's about letting your baby decide for themselves when to eat their first solid food or what to eat in general. So this is the niche.
You can learn a LOT about Baby Led Weaning at Little Gourmet. But there are also product recommendations for baby accessories.
As you can see, these are high chairs that are particularly easy to clean. This feature seems to be quite crucial when letting your baby eat independently. 🙂
There are affiliate links to Amazon on this page. But: they only make up a small part of the whole page.
The highlight is this: Since there is so much non-commercial and useful information here, the product recommendations appear to be something completely natural.
Promote your niche on social media
Just create a website and hope for the best? That will definitely not be enough.
Instead, you should invest a lot, a lot of time in promoting your content right from the start.
The best addresses for this are of course Social media platforms like Facebook and Instagram. But you should consider email marketing with automated solutions like Mailchimp.
Take a look at this Facebook page of the well-known affiliate blog “This Is Why I'm Broke”.
This niche is pretty fun. Unconventional and sometimes simply deadly products are advertised that have never existed before. That's why this page has thousands of Facebook fans and works as an affiliate marketing platform.
How the Amazon PartnerNet works.
Our own affiliate program is called Amazon PartnerNet. Let's take a closer look.
It works two ways.
- Recommend Amazon products
- If someone buys an Amazon product on your recommendation, you will receive a referral fee.
- Promote Amazon services
- If someone registers through you for one of our Amazon services such as Prime or Audible, you will receive a fixed premium.
That's how high our referral fees are
Like most affiliate programs, we work with a fixed standard fee.
These differ depending on the product category.
If there isn't a specific percentage, most of the categories will hover around 4,0% a.
So, we have that. 👍
But how do these different sentences actually come about?
The structure of our referral fees
We have fixed percentages, but sometimes there are two different rates within a category. Most other affiliate programs work the same way.
When you've generated enough sales to get to the next level, yours will commission elevated. This is how it works with a number of percentages.
Even so, you have to keep in mind that this does not apply to all product categories.
How to Create Amazon Affiliate Links
Now it's about how you actually create affiliate links. Without them, nothing works in affiliate marketing. That's why we wrote a separate chapter about it. Let's get started!
Affiliate links lead the user from your side to the recommended product. They contain so-called tracking parameters that are stored in a cookie.
Contains a trackling link information to the browser and the Terminalthat you use. It also contains the path that will take you to the Amazon product page. This cookie can, for. B. At the end of the day at Amazon, we track exactly that the customer followed your recommendation and bought a product from us.
You should always keep in mind that each affiliate program has a different length of time Cookies stores. A cookie is stored on Amazon PartnerNet for 24 hours. Until then, you can receive compensation if someone buys the advertised product via your link. With some partners, you can even receive compensation for 30 to 90 days after clicking on the seller page from your blog.
Affiliate links are used to understand that the buyer has reached the product page from your blog. If you want to know more about this, check out this short video.
Types of affiliate links
You have several options when embedding affiliate links on your blog.
1. Text links
With a text link, you simply link the product page in your content:
In any case, the link should be on the product name. This means that it is immediately clear to the users that it is an affiliate link.
The easiest way to create Amazon affiliate links is with our SiteStripe tool. This allows you to generate links directly from the Amazon page or app via a toolbar.
Another tried and tested method for including text links is Newsletter.
2. Video links
You can also use affiliate links pretty easily in descriptions of videos or pop-ups and banners. In principle, this is also a text link.
In general, videos are very suitable for product discussions. Because your users see how you handle the product and how it works.
3. Banner advertising
Some platforms like Amazon PartnerNet also offer ready-made banners that you can integrate into your blog.
Instead of a text link, you can put links in the header or footer of your page. This format is particularly suitable for special offers or high-turnover times such as the Deals Season.
As soon as your users click on this banner, they will be taken to the Amazon product page and you will receive a payment with the purchase.
4. Influencer storefront
Would you like to write about a whole range of products and have already achieved a little notoriety? Then you can set up an influencer storefront. This is a personal page on Amazon where all your recommendations can be found. You don't need any affiliate links here, the purchases are recorded automatically.
The blogger Laura Fuentes set up such a page for her business MOMables.
Widgets allow your users to search for Amazon products directly on your site.
You will receive a commission for all qualified sales through widgets. Simply choose the widget that best suits your site and integrate it into your layout.
If you also want to know how to create partner links in detail and step by step, we recommend our detailed article on the subject of partner links.
What is affiliate tracking?
The success of affiliate marketing depends on how effective sales and traffic can be attributed to each party involved.
All side activities like Sales, Clicks or Conversions can be tracked with specialized software.
In this way, the seller can also see which affiliates generate a particularly large number of sales and where improvements can still be made
There is quite a bit of tracking software out there, but many affiliate networks use their own programs.
The Amazon PartnerNet is just one example. In any case, there are as many tracking methods as there are different types of software.
Cookies are the most common tracking method in affiliate networks. By storing a cookie in your browser or on your computer, the seller can understand whether you have previously visited an affiliate site.
As long as the cookie remains active with your user, you can receive compensation when a sale occurs.
This method is much less used. By generating a digital signature on your device, the operating system, language settings and other information of a website visitor can be read out.
This stored signature also makes it possible to identify returning users if they visit the page again with the same browser and device.
Your entry into affiliate marketing
Now you know the basics of affiliate marketing. So it's time to round things up a little.
This quote may sound extreme, but there is a grain of truth in it.
"If you don’t find a way to make money while you sleep, you will work until you die."Warren Buffett
Why the whole thing? Well, so that you are well prepared for your own affiliate marketing adventure. 🙂
Getting started and finding the right affiliate partner really isn't that difficult.
For all technical aspects of blogging, we recommend our Blogging Basics Guide.
When you've got everything ready, don't forget your blog about social media to spread and set one Newsletter for your future subscribers.
Sharing your links on Facebook or YouTube can be a good idea, especially in the first few months of your affiliate business.
Just make sure that you follow all guidelines for sharing content on social networks. Some networks such as Pinterest do not allow the use of affiliate links
If you do a good job on social media, you can improve your blog's performance significantly in the first few months. Search engines like Google or DuckDuckGo need just as long to record your content and place it in the search results.
This is exactly why so many people do affiliate marketing as a sideline. In order not to be too dependent on it, but to build up a second mainstay at some point.
Don't believe all of those affiliate marketing videos on YouTube that claim it's super easy to make $ 50,000 in a year. That's not it. Such videos are pure clickbait.
But: If your blog is SEO-optimized from the start, it will pay off for you sooner or later. If you want to know more about it, we warmly recommend our SEO guide.
Do you need more input?
We have two Bonus tips to you:
- Use joint ventures like Webinarsto open up new sales channels and expand your user base. Paid collaborations are a great way to reach new audiences.
- Once you are making money from your affiliate marketing, it is a good idea to grow with you Pay per click advertising to scale.
How to get started with Amazon PartnerNet
If you want to advertise products via the Amazon PartnerNet, simply register with your Amazon account.
You can find detailed instructions on how to register for the first time here.
Affiliate marketing is a great and inexpensive way to get into e-commerce. With our ultimate affiliate marketing guide, you now have everything you need to get started. The Amazon PartnerNet team wishes you the best of luck.
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