Affiliate marketing is a low cost, easy to run strategy that can make you decent profits off a viable business. Finding the best programs however can be difficult. Our affiliate marketing agency listings connect you with the very best programs available today, so you can quickly get started in this fantastic modern business.
Affiliate marketing has become a common approach to growing all kinds of businesses today, rewarding those that promote products or services by paying them a portion of the profits from every successful referral they make. Affiliates can be bloggers, YouTubers, they may operate a website or promote your business through paid ads. They can even be other businesses who focus solely on affiliate programs to offer a range of products and services.
Whilst this approach has proven extremely successful in the digital world there are some drawbacks. It takes time to manage an affiliate program, to design a payment structure that works for everyone, and to ensure that the affiliates who represent you operate in a way that matches your own values and audience expectations.
An affiliate marketing agency will manage the entire affiliate program for you, from assessing potential affiliates to ensure only those who will represent your values and deliver successful results are involved, to managing the support structure in place to help affiliates maximise the potential of the opportunity.
If you are new to affiliate marketing, the answer is definitely yes. You wouldn't try and rewire your office yourself; you would call in a professional, and it's the same for affiliate marketing. One of the biggest issues with affiliate programs is that they seem simple, you just invite people to promote your product or service and pay them a commission for every sale they make.
But while that does sound easy, the reality is very different. A poor choice of affiliate can ruin your brand in a few weeks and will require significant investment of time and resources to rectify. Providing the materials and support they need takes time too, and if you are not used to the affiliate industry, this can become a managerial problem that soaks up far too much of your time.
An affiliate marketing agency takes care of everything for you. Because they are highly experienced in the industry, they understand the needs of affiliate marketers and provide the support and ongoing management to ensure that your program is a success.
Even for those who have already been using affiliate marketing to grow their business, hiring an affiliate marketing agency makes sense, especially as it grows. It allows you to focus on your business and let the agency ensure that the affiliate program continues to deliver.
Compared to most types of marketing, the upfront costs are low. In simple terms, you'll need a budget of around $500 to get started as an affiliate. Remember, some of the tools you use have to be paid monthly, which means that you need to reinvest part of your gross earnings every cycle.
However, with most affiliate programs offering prompt payments, one you get past that first month it is self-financing, and those tools will continue to make you money, making them a good investment. The biggest cost for you is time. It takes time to set up your promotions, and the reward for that time is the affiliate payments you get from sales that are made.
As a tangible, reputable business, affiliate marketing has the potential for good profits, and so those start up costs represent a good investment for your future. Probably better than jumping on the latest NFT hype or chasing a lotto win, anyway.
This really will depend on the affiliate program and the product or service you are promoting. For instance, there is more potential for profit from luxury watches than there is from a health supplement, and in general the affiliate program would reflect this. That is, you will earn more money per sale off a luxury watch than you would off a diet supplement.
But you would very likely also sell a much higher volume of any health supplement as you would a luxury watch, so you could earn more money overall from the program that pays less per sale. Affiliate earnings come from a number of factors, but whatever the product, you do still want to make sure that the rates are good. So, what's average? Taking into account a variety of factors, an average affiliate commission rate should be somewhere between 5% to 30%.
This is still a wide range, and it is important to not judge just on the percent. Obviously, 30% of a $20 sale is less than 5% of a $1000 sale, but an affiliate program is more than just the numbers. How in demand are the products? Who is the audience for it? What kind of support does the program offer?
All of these things influence the profitability of any affiliate program, and like choosing a phone tariff, you have to look at everything before making a choice.
The short answer is yes. Anything you are paid from affiliate marketing is an income, and like all other income, you have to pay tax on that. If that were not the case, most of the country would be working as affiliate marketers, plus that one guy still telling you to buy Bitcoin.
Affiliate marketing is a business though, so you don't simply pay tax on the money that comes to you. Like any business, affiliate marketing has expenses, so the cost of any tools you may use, like what you pay for ads, ongoing website costs and so on, can all be deducted from your income before you work out how much tax is owed.