How to earn money with Affiliate Marketing
Before you go crazy about finding Affiliate Networks, let us first get to understand what it truly is and how it can benefit you without putting your viewers and supporters under the bus. It is easy to get lost in the idea of making money and therefore make some bad decisions.
Just because you have the opportunity to make a little money from it should not stop you from being considerate of what suits your stream and audience. If you are streaming a lot of Fortnite, then maybe the Fortnite - Support a Creator affiliation could be interesting for both you and your supporters.
How to find good Affiliate products and services
To help you get started the best way; here are some good practices of how to use Affiliate Marketing within your Content Creating branding. Here is a list of important areas to be aware of before we go a little more in-depth with it.
- Know how reliable the brand is their customers.
- Know how relevant the brand is to your audience.
- Understand how CPM, CPC, CPL, CTR and CPA works.
- For how long it the tracker active (Cookie Duration)?
- What kind of product are you promoting — and how well is the upsell implemented?
- Is the shop location relevant to your audience?
- Does it come with a CTA?
- How is the partner paying for your affiliation?
- What is the payout threshold and how often do they initiate a payout?
- When, Where and How are you allowed to promote this product/service?
- Does this product or service have an expiration date?
- How high is their conversion rate?
- How interacting is the landing page?
Can you explain that in plain english.. please?
As a newcomer this can be quite confusing. If you are not confused yet, then you probably have some knowledge of this already or just learn quickly. Let us take the most important of these, the ones that do not explain themselves right from the description.
- CPM – Cost Per Mille is usually paid by automated services like Google AdSense and is a reference how much you are paid per 1.000 views/impressions. Also known from how you calculate your YouTube Revenue.
- CPC – Cost Per Click is the simple one where you collect a fee from everytime someone clicks your banner and redirect people to the partner's website regardless if they buy anything or signup.
- CPA/CPL – Cost Per Action/Lead is to the difference the payment you receive when someone signup, subscribe to a newsletter or another specified action.
- CTR – Click-Through Ration is the percentage of people who click the advertisement. This is usually measured by how often the advertisement is shown compared to how many times people click it. This is usually only measured through banner-ads that are hosted by the Affiliate Network.
- CTA – Call-To-Action is how well they interact with their customers in order to make them buy. Maybe they have a very convincing "Buy Now" button or "Subscribe now" text.
- Conversion Rate is where you know the mathematics behind how many of their average visitors end up buying something. If their conversation ratio is 5% then you know 1 our of your 20 referrals would statistically buy something. Now combine that with your CTR and calculate if you can convert it well enough. A targeted audience can do wonders!
- Cookie Duration defines how long your referral is active. If the duration is 30 days then you will receive an affiliation revenue from everything the customer buys within that time.
Common practice (Example)
If you are browsing through various streamers channels you will find that some of them are using Affiliate Marketing with their hardware specifications. If you click the link it sends you to a place like Amazon through an Affiliate funnel and if you buy it they earn a small commission.
Now that you are wiser, let us close up with a little legal knowledge. It is illegal to do "Product Placement" or "Hidden Advertising" in most countries. Make sure you inform your viewers or supporters that you are exercising Affiliate Marketing. If they know beforehand and it does not complicate or manipulate their decision, they are usually okay with it and will not make a thing out of it.