The multibillion-dollar affiliate marketing sector offers creative individuals interesting career options. It's quickly becoming a typical strategy e-commerce companies use to promote their goods and services.
According to Statista, more than two billion people completed online purchases in 2020, taking global e-retail sales to about $4.2 trillion. Awin's study of affiliate marketing in 2021 revealed that by April, 37% of consumers were purchasing products through affiliate links among the billions of people already making purchases online.
Here are some stats on Affiliate marketing:
2022 Affiliate Marketing Stats
- An estimated 80% of brands have affiliate programs.
- Affiliate marketing spending has been projected to grow by over 10% in the next couple of years.
- Globally, the USA has the largest market share in the affiliate industry, with over 39% share.
- Affiliate marketing accounts for over 16% of all eCommerce orders in the USA and Canada.
- Nearly 65% of affiliate marketers worldwide generate traffic by blogging alone.
- Affiliate marketing accounts for over 15% of all digital media revenue.
- Statistics reveal that 94% of publishers use multiple affiliate marketing networks.
It doesn't cost much to start because the most exemplary affiliate marketing networks frequently provide free enrollment. Additionally, you can transition from a side gig to a successful firm that generates passive revenue over time.
Are you feeling overburdened and unsure of where to begin? You'll be able to get going quickly with the aid of this beginner's tutorial.
Why Should I Start Affiliate Marketing in Nigeria?
There are many reasons why you should consider starting affiliate marketing in Nigeria. Here are a few:
- You don’t need to create your own product. Simply take other people’s products, market them and sell them.
- Affiliate Marketing is a business you can operate anywhere in the world. The world is a global village and you can do business anywhere irrespective of the location you are in.
- Less pressure and risk
- No capital. Just create social media accounts and start promoting them.
What is Affiliate Marketing?
Affiliate marketing is basically a marketing Strategy where you help someone else to promote their products and you earn a commission for every sale that comes from your promotion.
How Does Affiliate Marketing Works in 2022
In the affiliate marketing sales model, a business pays a third party to promote its goods or services. An affiliate marketing model can be through the podcast you listen to or a social media influencer using its channel or Twitter handle to advertise a product. The affiliate marketer is compensated with a commission from any sales made due to their recommendations for goods or services to their audience after they eventually purchase the product.
Once you sign up to any affiliate marketing platform or program, you'll get a unique link or code, which you can place on your site or share with your audience, enabling businesses to track every customer that made a purchase using that unique link. You receive a commission when a customer uses your link to complete a purchase.
Affiliate marketing commissions can range anywhere between 2%-75% depending on the platform. While the commission rate can be a fixed one, there are cases where you can negotiate with the owner of the products.
However, here is how the typical affiliate program operates:
- You promote Store A on your website, blog, or social network.
- One of your special links is clicked.
- They buy something from Store A.
- The business or affiliate network keeps track of every transaction.
- Store A formally acknowledges the purchase.
- An incentive is given to you.
Let’s say you partner with Amazon, if visitors to your site or audience on social media click on your link, They will be taken to Amazon, and a cookie will be saved on their computer. The cookie will continue to follow their activities even if they have to close the browser in the middle of their shopping journey to do something else.
And if they later decide to spend say $500 on a pair of shoes and complete the transaction, 10% (depending on the commission though) of that total will be donated to you.
Steps for Starting Affiliate Marketing in Nigeria
- Choose a niche
- Select a platform.
- Look for an affiliate marketing platform
- Create worthwhile content
- Develop a strategy to reach and engage with your audience
- Observe FTC guidelines
1. Choose a niche
A niche is a smaller market segment identified by its distinctive qualities. You become an expert on it, and people will remember you for it. Pet care or tiny homes are examples of affiliate marketing niches. Travel blogging is another.
Choosing a niche is a strategic business decision to cater to a specific customer group. It aids in building a devoted customer base that will select your goods over those of rivals.
Top affiliate marketing niches:
- Health and lifestyle
- Finances and insurance
- pet care
Of course, these aren't your only choices. There are a considerable number of options you can choose from. But how do you locate a lucrative niche in your area of interest? Think about the following:
- Would you like to know more about the industry? Over time, you should strive to gain expertise in your field. The only way to become an expert is to keep up with trends and constantly learn new things.
- Are you able to solve problems? Affiliate marketers frequently have specialized training or industry knowledge. They now have fresh approaches to inform audiences and assist in problem-solving.
- How profitable is that niche compared to others? Conduct a Google search to find out how popular the niche is. Analyze and collect competitors' and market data. If you found out many customers are ready to make purchases, then a busy niche isn't always a wrong choice.
Selecting a speciality that you enjoy is the objective. You won't start earning six figures right away. Operating an affiliate business requires dedication and patience. Even if you're making a lot of money at it, you'll be more motivated to keep doing it if you already enjoy it.
Missy Ward, on her website www.missyward.com where she talks about herself, Affiliate Summit and her business partner, Shawn Collins believes that it is not a get-rich-quick scheme. There is no fool-proof way of integrating affiliate marketing into your efforts. You don’t need to wait for companies or PR agencies today to approach you. You can start on your own with blog posts, product reviews, newsletters, etc,.
2. Select a platform.
The next step is deciding the platform to use to promote it. Every affiliate marketer has a unique platform and strategy.
As a newbie, you have two options to consider:
1. Niche website for product or topic reviews
For a specific demographic, these websites offer product reviews and product comparisons. To assist consumers in their purchasing selections, they can also provide buyer's guides and product tutorials.
2. Digital materials
Bloggers, social media influencers, and YouTubers are examples of content creators. They often release content that appeals to their audience to increase influence and boost clicks.
Genuineness and audience participation are two essential components of affiliate marketing. Audiences are unlikely to purchase the things you recommend if you can't establish a connection with them.
Unsure about the best platform to use?
Start with a platform that you are familiar with:
- Instagram is an excellent site to use if you like to make videos for social media.
- If you have strong writing skills, blogging can be your ideal option. You can develop content that resonates with your audience and promotes affiliate sales using already familiar platforms. You only need content writing and SEO skills to take it to next level.
3. Look for an Affiliate Marketing Platform
There are numerous affiliate marketing platforms available. 80% of businesses, according to Mediakix, employ affiliate marketing. Therefore, it's crucial to find the program that's appropriate for you.
Don't limit your search to high-paying affiliate programs; look for affiliate offers and products that will interest your target market. When picking an affiliate program, keep the following in mind:
Is the program well-known and reputable in the industry?
An affiliate marketing programs that lack credibility and trust are not the kind of partner you want to work with. Affiliate networks like ShareASale and Clickbank are trustworthy, successful companies that have their programs thoroughly reviewed, and you can work with them with no concerns.
Is the program's commission rate reasonable?
You want to get paid well for your time and effort. Many schemes offer compensation for sales that range between 10% to 75%. Pick the one that’s convenient for you.
Is the earnings per click (EPC) rate high?
The EPC, an industry-wide indicator, displays the average affiliate earnings per 100 clicks for a merchant's program. You may see this information for each merchant on networks like ShareASale. As an illustration, Modern Nursery offers a 5% commission, but since its EPC is $38.20, you might earn almost $40 every click!
Running a profitable affiliate company requires finding the correct programs. For instance, best friends and hosts Patrick Hines and Gillian Pensavalle discuss factual crime documentaries in the humorous podcast True Crime Obsessed.
Zac Johnson has been in affiliate marketing for over 22 years and has this to say…
“My best advice is to have thick skin and if you aren’t ready to put in endless hours of work for no immediate return, the world of entrepreneurship simply isn’t for you. Everyone thinks this is easy, but it’s the complete opposite. For every success story you see, there are hundreds of failures you never hear about.”
With this unique approach to a growing market, they have amassed over 70 million downloads in a single year and an Obsessed Network with six other spinoff shows.
The podcast advertises a wide range of goods and services on a page with promo codes specifically for its target audience.
Ask your favourite brands if they have an affiliate or ambassador program to locate great affiliate opportunities. In this manner, you can advertise goods you already value and like.
The following affiliate marketplaces are brands you can work with:
- Affiliate Commission Junction (CJ)
- Amazon Associates program
4. Produce Valuable content
Globally, consumers spent an average of 170 minutes online in 2019, according to Statista. However, to really stand out in the internet space, you must create highly valuable content and share it with your audience.
According to Findstack, 65% of all affiliate marketers use blogging to drive traffic to their affiliate site. At first, if you are just starting out with affiliate marketing your focus should be on providing high-quality content and establishing credibility with your audience. Many people may not discover your content through search engines at first, but with proper optimization and patience, it will yield profit.
Research and learn about SEO (SEO) if you have a blog. According to a 2020 analysis from Brightedge, SEO generates over one thousand times as much traffic as natural social media. Reaching your audience requires doing some keyword research and using SEO effectively. Another strategy for retaining website visitors' interest is through email marketing.
5. Develop a Strategy to Reach and Engage with Your Audience
You must first identify and grow your audience. You can reach out to your audience directly by building email lists. Anyone who joins your email list will receive newsletters, updates on fresh material, and exciting deals directly from you.
Consider following and tagging influencers who may be interested in your field if you primarily operate on social media. And make every effort to boost traffic to your website or social media page.
Create a strategy to draw them in and keep them interested in what you offer. You also need to establish a relationship of trust with them. Write on things that will offer value for your audience and help them connect and make a better and educated decision on their choices
Avoid trying to sell anything to your audience only to make a quick profit. They will trust you more if they sense your sincere interest in solving their problems or offering solutions in form of relevant information before pushing your affiliate product to them.
Write about topics that will benefit your audience, and help them feel connected. Educating them will help them to make wiser decisions about their options.
6. Adhere to FTC rules
The FTC protects consumers from misleading marketing techniques. Sadly, there are affiliate marketers out there who wouldn't hesitate to advertise dubious goods and services to make quick money.
To avoid this, the FTC mandates all affiliate marketers to reveal their business connections to any businesses or goods they endorse. To comply with the FTC, you must, in brief, disclose to your audience that you receive payment for supporting the products you recommend and always disclose to your audience whenever your share your link on social media channels or as a general disclosure, or as part of your website disclaimer at the footer of your page or anywhere else.
What Advantages Does Affiliate Marketing Offer?
Now that you know how affiliate marketing functions, let's examine some main advantages.
1. Opportunity to market products that you don't manufacture.
Like Amazon Associates, most public affiliate programs are bigger and don't demand you purchase any of the goods you endorse. Joining their affiliate program is all it takes; post it on your website or page after getting your link.
It's ideal when you're just getting started because you don't have to put a lot of money into tangible or intangible things right once. You can experiment to determine what goods and services are most popular with your target market.
2. It generates passive income.
You're essentially done once you lay the groundwork to maintain visitors to your website. Select the affiliate partners who will best engage your audience, and post their links will suffice. As long as you keep your unique links and codes accessible on your website, they will continue to generate recurring commissions for you.
3. High possibility for income from Products you don't own
For newbies, affiliate marketing offers six-figure income potential. Affiliate marketing can replace your 9 to 5 job, even if you don't start making that much money.
How much money can a beginner affiliate marketer expect to make?
Depending on the company you're working with, commission rates change. The commission on sales offered by the Amazon Associates program ranges from 1 per cent to 10 per cent. Some companies, including Thrive Market and ButcherBox, provide a flat $20 fee for each sale. Interserver, a hosting company gives a flat rate of $100 for every sale. Even affiliate programs with recurring commissions of up to 30% on each sale exist.
It is entirely up to you how much money you can generate with affiliate marketing. It will rely on the volume of traffic you can direct to your website(s), your ability to predict which affiliate goods and services your audience will find appealing, and the affiliate networks you choose to sign up with.
According to Statista, the US affiliate marketing business is expected to grow from its 2017 valuation of $5.4 billion to $8.2 billion by 2022.
So, the market is expanding. In fact, from 2016 to the present, interest in affiliate marketing has increased by 142%, according to Google Trends (though interest peaked in the summer of 2021, with an increase of 426 per cent).
Do You Need a Website for Affiliate Marketing?
Statista estimated global social media usage in 2020 to be 145 minutes per day on average. Therefore, the answer to whether you need a website to be an affiliate marketer is no.
Using social media to promote your content is a quick and cost-free way to reach potential customers. The pins on your various boards can be used as affiliate opportunities on websites like Pinterest.
Numerous affiliate marketers run their entire business solely through social media, such as Amit Mishra from Tryootech makes videos where he gives his reviews on the latest technologies, gadgets, and apps. He also provides insights on trends regarding blogging, digital marketing, and updates on software. He often talks about a popular website that aids in money-making online and staying motivated.
Utilize successful affiliate marketing to generate passive income.
Without question, earning money online as an affiliate in Nigeria is a wise move. Without taking on too much risk, you may develop an audience for your affiliate website and make regular dividends by putting in a little time and work upfront.
FAQ on affiliate marketing for newcomers
How can a newbie like me begin with affiliate marketing?
- Choose a speciality.
- Select a platform.
- Identify appropriate affiliate marketing programs.
- Produce informative, valuable content.
- Build and engage with your audience.
What kind of earnings should new affiliate marketers expect?
Affiliate marketers who are just starting can earn up to 30% commission on each sale.
Which affiliate marketing options are most outstanding for newbies?