From the course: Affiliate Marketing Foundations

Making commissions as an affiliate marketer - Amazon Associates Tutorial

From the course: Affiliate Marketing Foundations

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Making commissions as an affiliate marketer

- [Narrator] Although there are many benefits to becoming an affiliate, it is vitally important for you to firmly understand the formula to generate in affiliate commissions successfully. The formula to generate in affiliate commissions is very similar to the formula to generate in sales online in general, and that is that traffic plus conversions equals sales. Let's break this down even further. Starting with traffic. So traffic basically equals the people visiting your website. You could have the best website in the world, you could be promoting the best affiliate product in the world, but if you have no website visitors visiting your webpage or your affiliate link, then you have no chance of actually generating any sales. You also have conversions, conversions speak to how well you convert your website visitors into tangible leads and sales for your business. So you could have a million people visiting your website, but if nobody takes any action, then you're also not going to generate any sales. Let's look at conversion rate. Conversion rate is the percentage of website visitors who buy or take action. An example of this would be if you are promoting an affiliate website and you managed to send 100 visitors to that affiliate site and 10 people bought, then that means that that affiliate site is converting for you at a rate of 10%. This is an example of my affiliate report, where some of these metrics really come to life. So for example, you can see that I have had 84 clicks to this particular affiliate program. Nine of those people have converted into conversions and actually bought. This has resulted in a payout for me of over $387. You can also see that this equates to a conversion rate or a CR of just over 10%. Now let's look at leads. So a lead is someone who hasn't yet purchased, but has shown interest in whatever it is that you are promoting by leaving their email address, phone number or postal address. This allows you to remarket to them again later on down the line. Gathering leads helps you to turn skeptical visitors into warmer prospects. It's a lot easier for you to actually market a product or a service to someone who's warmed up to the idea rather than sending someone directly to your affiliate offer, who has no relationship with you yet. Let's talk a little bit about conversion optimization. This is when you tweak your affiliate campaigns to improve sales. Some of the things you can do to optimize for conversions is to focus on high-quality traffic sources. If where you're getting your traffic from is a high-quality traffic source, then those visitors are a lot more likely to convert for you into tangible leads and sales. If your website loads fast, then it's a lot more likely that your website visitors are going to take action on that website. And you also want to be promoting an affiliate product that matches your audience. Whoever you're targeting with your advertisements or with your marketing, make sure that you're actually promoting an affiliate product that they are likely to buy. You also want to promote products that are in demand. If a product already has an existing demand and already has a buzz to it, then that product is a lot more likely to convert for you into affiliate commissions. To sum it all up, in order for you to really be successful as an affiliate marketer, you need to drive quality traffic to a high-converting landing page.

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