If you’re looking for a flexible work-from-home job, you might have come across affiliate marketing opportunities. It’s true – affiliate marketing offers a highly flexible, completely remote work opportunity. But how much can you really make? Keep reading to learn more about affiliate marketing and the income potential.
What Is Affiliate Marketing?
Companies are always looking for new customers. Affiliate marketing is one way they can find customers. Instead of creating advertisements and commercials themselves, the company partners with third-party affiliate marketers, also called publishers. The affiliate marketers then generate leads for the company.
Affiliate marketers can do this in a number of ways. They might create websites that funnel traffic to the companies they’ve partnered with. They might also create banner ads or use social media to find potential customers.
Affiliate marketing has thrived with the rise of the internet. According to Statista, affiliate marketing spending reached $5.4 billion in 2017. By 2022, it’s expected to reach $8.2 billion. It’s a huge industry, and many people want to know how they can get their cut of the action while working from home.
How Do Affiliate Marketers Get Paid?
Affiliate marketers earn commissions. This can work in a few different ways, depending on the company and the type of product or service they provide. Here are a few common arrangements:
- Pay per Click: The affiliate marketer earns a commission every time a person clicks on an ad or link.
- Pay per Call: The affiliate marketer earns a commission every time a person calls a phone number to learn more about a product or service.
- Pay per Lead: The affiliate marketer earns a commission every time they generate a qualified lead.
- Pay per Sale: The affiliate marketer earns a commission on sales made. For example, if someone clicks on your link to go to a retail website and then makes a purchase, you get a commission.
How Does Affiliate Marketing Produce a Passive Income?
Affiliate marketing is often described as a way to earn a passive income. It’s considered passive because you can continue to earn money even when you aren’t actually working. For example, if you set up a website that generates traffic, people will continue to find your website and click on your links, even while you’re doing other things like working another job, caring for your children, or out having fun.
This doesn’t mean that you won’t need to do any work. You will need to set up your websites, ads or social media feeds. You will also need to update these pieces as need to ensure that they remain effective. However, it’s possible to continue earning a passive income based on the work you’ve already done.
How Much Can Affiliate Marketers Earn?
Affiliate marketers are generally independent contractors. As such, they do not typically earn a flat salary or hourly wage. Instead, they earn commissions. Essentially, when you become an affiliate marketer, you are working for yourself. This can provide advantages – like freedom, flexibility and the potential for high income – but it also means that you take on responsibility and risks.
According to The Balance Small Business, affiliate marketers can earn more than five figures per month; however, not all affiliate marketers reach this level of success. To succeed, you need to be motivated and hard-working. You also need to be creative and strategic so you can find ways to generate traffic.
How much you earn as an affiliate marketer will depend on a few factors:
- Your Performance: Affiliate Marketing is a performance-based type of marketing. The pay is linked directly to performance. This means that affiliate marketers who perform well by generating a lot of leads, clicks, calls or sales can earn a lot of money. On the other hand, affiliate marketers who are unable to attract customers will not see impressive earnings.
- Your Commissions: Different companies pay different commission rates. How much you earn will depend on the size of the commission and what is required to qualify for it.
For some people, affiliate marketing is a nice side hustle that brings in extra income. For others, affiliate marketing is highly lucrative and is a main source of income. According to Investopedia, one study found that 65% of respondents say 5% to 20% of their income came from affiliate marketing, and 9% of affiliate marketers made more than $50,000 in 2016.
Are There Setup and Overhead Costs?
You know the saying – it takes money to make money. When you start a business, there are setup and overhead costs. This can be true for affiliate marketers.
First of all, you’re working from home. This means your home is your office, and it needs the right equipment. At the very least, you will need a computer and internet connection. Other expenses could include website hosting fees, paid advertising costs, and fees for other programs that you use. You will also have to pay taxes, and you may decide to set up an LLC or other business entity.
Getting Started in Affiliate Marketing
If you think you have the skills needed to succeed in affiliate marketing, you’re probably wondering how you can get started.
Many different types of companies use affiliate marketing, from retailers to insurance companies. Before you can start earning commissions, you need to find companies that are looking for affiliate marketers. To participate in the company’s affiliate program, you will need to sign an agreement that spells out how you can earn commissions.
If finding companies to partner with sounds overwhelming, consider joining a network. Affiliate networks help affiliate marketers connect with companies that pay top commissions. Networks can also provide access to the software that you’ll need to succeed and prompt payment so you never have to chase down the money you’re owed.
Looking for a New Opportunity?
Digital Market Media is looking for high-achieving publishers. Affiliate marketers who join the elite DMM affiliate network get access to industry-leading payouts, powerful tools, support from the sales and account management teams, and prompt payouts.
Learn more about our publisher partnership opportunities.
To explore other work-from-home opportunities, check out Careers with DMM.
