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Three Key Factors That Determine Affiliate Marketing Success

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Affiliate marketing is almost certainly one of the cheapest and quickest online ways to start making money because you don’t need to create any products or goods yourself. You just link up a seller and a buyer, and you take a commission/payment on the sale made by a seller that has been referred by you.

You are not required to sell products always to make a commission. Different affiliate programs use different payment terms for instance:

Pay per Sale

In this affiliate program, when the purchase is completed a merchant gives you a percentage of the sale cost.

Pay per Click

In this affiliate program, whether or not a sale is made, you get paid when the number of visitors from your affiliate site gets redirected to the Merchant’s site.

Pay per Lead

In this affiliate program you get paid once the referred visitors fill out a simple contact form by providing their contact information on the Merchant’s target site.
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As affiliate marketing has turned out to a multi-billion dollar industry over more than a few years, it also has become increasingly urbane. There are seemingly endless varieties of strategies for making revenue. There is a lot to the affiliate marketing industry with more offers, merchants and analytics.

Three Key Factors

Success in affiliate marketing sooner or later depends on how well you carry out these three tasks: Visitors / Traffic, Click Rate and Conversion Rate.
As Revenue = Visitors x Click Rate x Conversion Rate x Commission
The revenue on the left side of the above equation will increase by a dollar amount by improving any one of the variables on the right side. So optimizing these three factors really boil down the affiliate marketing.

Visitors / Traffic

You need to convert a visitor to your affiliate site to a paying buyer for your merchant partner so as to make money from affiliate marketing. Clearly, the more visitors you have to your affiliate site that is the greater traffic to your site provides you more chances to make an affiliate referral.
It is a huge challenge in itself to build up a large base of traffic. There is an irresistible amount of content on the net to attract visitors to your site. There is possibly not a big chance for you in affiliate marketing, if your website doesn’t have a large amount of traffic. Build some links and focus on generating high quality content and get a persistent stream of visitors to your website.
But affiliate marketing could be a coherent way to monetize, if your website is already attracting a considerable number of visitors from organic search, direct visits and referring sites.

Click Rate

As an affiliate marketer it is up to you to ensure that a visitor to your site sees the offers and affiliate links that you have on your site. This is actually where we put the marketing efforts in affiliate marketing. There is much that you can do to boost the probability that the visitors to your site click on the affiliate links and enter the front of the affiliate offer.
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For increasing visibility and eventually click rate on your affiliate links you can also incorporate links into your web content to send mails to your newsletter members.

Conversion Rate

Conversion rate is the percentage of referrals sent from your affiliate site to merchant sites that eventually purchase something and complete the desired action. This is often the overlooked area of the affiliate marketing.
Affiliate marketing involves selecting out merchant partners and goods to promote. If you are promoting a crap manufactured goods, you can almost certainly send some traffic via the affiliate link by marketing it to your viewers. They’re probably going to abandon the merchant site once they get dissatisfied in what they see.
If you are promoting quality goods/products that deliver a huge value to your audience, then they are much more predictable completing the purchase once they clicked your affiliate link.

Commission $ vs. Conversion %

There is frequently a trade-off between the commission being offered and the quality of a product. And it is enticing to incline toward the products and partners that give you the most per conversion. But it possibly will not be the best fit if those products are not likely to convert.
So don’t get blinded by merely commissions. Finding quality and relevant products to promote is one of the most significant elements of the affiliate marketing. The real revenue and success will come when all three of them are carried out successfully.

Manmohan Kumar

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