Affiliate Marketing (AM) - What People Tell and Don't Tell You
- jkfitday
- Oct 2, 2024
- 6 min read
Here is the process that many people tell you to do. However, we will cover what people don't tell you:
The Process
1. Becoming an Affiliate Partner: So, first, imagine you find a company or a product you really like—maybe it’s a cool gadget, a clothing brand, or even an online course. That company has an affiliate program, which means they’ll pay you if you help them sell their stuff. You sign up for this program, and boom—you’re officially an affiliate partner!
2. Getting Your Special Link: After signing up, the company gives you a special link. Think of this link like a digital fingerprint that’s unique to you. When people click on it, the company knows it was you who brought them there.
3. Promoting the Product: Now it’s time to spread the word! You’ll start sharing that special link anywhere you can—on your Instagram, TikTok, YouTube, blog, or even just texting it to friends. The goal is to get people to click your link and check out the company’s product or website.
4. Tracking the Clicks: When someone clicks your link, it’s like they’re leaving a digital breadcrumb trail. The company tracks that breadcrumb (using things like cookies in their browser), so if they buy something or sign up for something, the company knows it was your link that brought them there.
5. Earning Money: Here’s the cool part—when someone actually buys something after clicking your link, you earn money! The amount you earn depends on the deal you have with the company. It might be:
A percentage of what they spend (like, you get 10% of what they buy).
You get paid just for people clicking your link.
You get paid if someone fills out a form or signs up for something.
6. Getting Paid: Once you’ve earned enough (companies usually set a minimum, like $50), they send you your money. You can get paid through bank transfer, PayPal, or sometimes even a check. And that’s it—you’ve just earned money by helping someone else sell their product!
In short, you help a company get sales, and in return, they pay you for bringing them new customers. It’s like getting paid for recommending your favorite products!
Pros & Cons
Here’s a simple table showing the pros and cons of affiliate marketing:
Pros | Cons |
Low Startup Cost: You can start without spending a lot of money. You don’t need to create your own products or hold inventory. | Income Can Be Unstable: Earnings can vary month to month, and it might take time to build a steady income stream. |
Flexible Schedule: You can work whenever and wherever you want, making it easy to fit into your lifestyle. | Dependence on Affiliates: Your success depends on the companies or products you promote. If they change their terms, it can affect your income. |
No Customer Service: Since you’re not selling your own products, you don’t have to deal with customer service issues or returns. | High Competition: Many people are in affiliate marketing, especially in popular niches, making it harder to stand out. |
Wide Range of Products: You can choose from a variety of products or services to promote, allowing you to find what aligns with your interests. | Need for Marketing Skills: You must know how to market effectively, which might require learning new skills like SEO or social media marketing. |
Potential for Passive Income: If you build effective marketing strategies, you can earn money over time even while you sleep. | Payment Delays: Depending on the affiliate program, you may face delays in receiving your commissions. Some programs have minimum payout thresholds. |
Builds Authority and Influence: Promoting products you believe in can help establish you as an authority in your niche, attracting more followers. | Risk of Being Rejected: Some affiliate programs may have strict application processes, and you could be turned down based on your website or social media presence. |
This table summarizes the main advantages and disadvantages of affiliate marketing. It offers flexibility and low startup costs but requires effective marketing skills and can be competitive.
It Can Have Hidden Agendas
Affiliate programs can vary widely in their structures and terms, and while many are legitimate, there can be hidden agendas or less transparent practices that affiliates should be aware of. Here are some common hidden agendas or issues associated with affiliate programs:
1. Low Commission Rates
Hidden Agenda: Some affiliate programs advertise high commissions, but they may have complicated structures where the actual payout is significantly lower than expected. For instance, they might offer a high commission on certain products but low commissions on others, or they may have strict conditions for higher payouts.
Impact: Affiliates may invest time and resources into promoting products, only to find that the earnings are minimal.
2. Cookie Duration Manipulation
Hidden Agenda: Many affiliate programs use cookies to track referrals, but the duration of these cookies can vary. Some programs have short cookie durations, meaning that if a customer doesn’t make a purchase immediately, the affiliate may lose out on the commission.
Impact: Affiliates may think they have more time to earn commissions, but if customers take longer to buy, they could miss out.
3. Focus on Recruitment Over Sales
Hidden Agenda: Some affiliate programs may emphasize recruitment (bringing in new affiliates) rather than actual product sales. This can lead to a pyramid-like structure where income is primarily generated from bringing in more affiliates rather than selling products.
Impact: New affiliates may struggle to make money through actual sales and may end up focusing on recruiting instead.
4. Poor Product Quality
Hidden Agenda: Programs may promote products that are not well-made or poorly received in the market. Some affiliate programs may prioritize their own profit margins over the quality of the products they offer.
Impact: Affiliates may damage their reputation by promoting low-quality products, leading to customer dissatisfaction and reduced trust.
5. Hidden Fees and Charges
Hidden Agenda: Some affiliate programs may have hidden fees, such as membership fees, transaction fees, or other costs that aren’t clearly disclosed upfront. This can eat into the affiliate’s earnings.
Impact: Affiliates may end up making less money than anticipated after accounting for these hidden costs.
6. Unclear Terms and Conditions
Hidden Agenda: Programs may have vague or complex terms and conditions regarding payouts, returns, or commission structures. This lack of transparency can lead to misunderstandings about how commissions are earned and paid.
Impact: Affiliates may find themselves in disputes with the program about unpaid commissions or unclear rules.
7. Lack of Support or Communication
Hidden Agenda: Some programs may promise support for affiliates but fail to deliver. This can include a lack of marketing resources, poor communication, or inadequate training.
Impact: Affiliates may feel abandoned and struggle to succeed without proper guidance or support.
8. Overpromising Results
Hidden Agenda: Some programs may advertise unrealistic earnings potential, leading affiliates to believe they can make significant income quickly with little effort. This can create a false sense of security and mislead affiliates.
Impact: Affiliates may invest time and money into the program only to be disappointed by their actual earnings.
9. Limited Product Choices
Hidden Agenda: Some affiliate programs may lock affiliates into promoting a narrow range of products or brands, limiting their ability to diversify and promote what they believe in.
Impact: Affiliates may feel restricted and unable to cater to their audience’s needs, which could hurt their overall sales.
Who Takes Care of What?
Affiliate’s Responsibility
Product Quality and Performance:
Affiliates promote products but do not control their quality or performance. If a consumer receives a damaged or faulty product, the affiliate may be held responsible for the consumer's dissatisfaction, even though they did not manufacture or handle the product.
Customer Trust and Reputation:
Affiliates build their brand and audience based on trust. If consumers receive poor-quality products or have negative experiences (like long shipping times), it can harm the affiliate’s reputation. This could lead to negative reviews and a loss of credibility in the eyes of their audience.
Refund and Return Handling:
In many cases, if a consumer wants a refund due to product issues, the affiliate may need to manage the return process and facilitate the refund. Although the affiliate isn’t directly responsible for the product, they are often the point of contact for the consumer, making them responsible for addressing complaints.
Marketing and Claims:
Affiliates are responsible for the claims they make in their marketing. If they exaggerate product benefits or make misleading claims, they could face legal repercussions and damage their reputation if customers feel misled.
Limited Responsibility of the Merchant/Supplier
Product Fulfillment:
The supplier or merchant is responsible for manufacturing and delivering the product. They handle the logistics and are usually responsible for ensuring the product is in good condition when it reaches the consumer.
Support for Issues:
While the affiliate may handle customer inquiries, the supplier typically provides support for product issues, such as replacements or refunds. However, the affiliate often needs to mediate between the consumer and supplier.
Overall Risk
While the supplier holds the responsibility for the product itself, the affiliate assumes significant risk regarding consumer perception and satisfaction. If consumers are unhappy, they are likely to blame the affiliate first, as they are the ones promoting and selling the product. Therefore, affiliates must choose their products and suppliers carefully to minimize the risks associated with consumer damage and dissatisfaction.