How To Start Affiliate Marketing in India
Overview of affiliate marketing in india
Does the idea of earning passive income by working on your laptop or smartphone excite you? Do you want to earn smart and easy passive income sitting at your home? Are you willing to get your share of this massive $6.8 billion industry worldwide? Look no further, Affiliate marketing is all you need to know.
According to a report by Tata Strategic Management Group (TSMG), Affiliate marketing in India is poised to grow 8 times to around 835 Million USD by 2025 with a CAGR of 27%.
Hence, you cannot ignore the huge potential of affiliate marketing in India. It is one of the oldest and easiest ways to make money online or develop a source of passive income.
If you want to start affiliate marketing in India, you can start by referring people to Amazon, Flipkart, and Paytm to earn a commission for every successful referral. Let me explain how!
what is affiliate marketing
Affiliate marketing is a process where a company will collaborate with affiliates who will promote the company’s products.
If any person purchases a product referred by an affiliate, then the affiliate will receive a percentage commission from the company.
In simple terms, it is the same as a company outsourcing its sales to people not directly employed by them.
Companies collaborate with affiliates on a contract basis. The affiliate commissions are determined by the kind of action taken by the end consumer.
Let me explain how affiliate marketing works.
How does Affiliate marketing work?
Let me explain with an example.
Suppose you are an affiliate for an XYZ company. This company has an affiliate program where they pay a 30% commission to their affiliates for every sale made by them.
As an affiliate for XYZ Company, you sell one product of XYZ priced at $1000. The company will pay you 30% of the sales you have made, that is, $1000. Hence, the company will pay you $300 as an affiliate commission.
Similarly, if the price of the product you sold is $500 you will receive $150 as an affiliate commission.
Hence, if you make 10 sales per month, you will receive $3000 as your affiliate commission. Amazing, isn’t it!
Let us see different stakeholders in the Affiliate marketing landscape.
Merchant is the company that is offering the affiliate program. They decide the affiliate commission and terms of the affiliate contract.
Affiliates are people who collaborate with merchants to promote the merchant’s products in return for affiliate commission. Affiliates can be anyone; primarily they are bloggers, influencers, and marketers.
3. affiliate network
Affiliate networks are intermediaries that connect affiliates with merchants. They also facilitate affiliate analytics, commission payouts, and query resolution. Affiliate networks are not necessary for many merchants. Affiliates can directly collaborate with such merchants without getting involved with affiliate networks.
Well, there is no affiliate marketing if there are no potential customers for the products you are affiliate with.
The affiliate ecosystem consists of these four elements. The picture below better explains the affiliate-marketing process.
how to start affiliate marketing business?
Follow these four steps to start your affiliate marketing business.
step 1: Choose Your niche
Choose a niche that you understand. This will help you promote affiliate products effectively.
While choosing your niche consider the demand & interest factors. Choose a niche in which you have a clear understanding and interest. Also, ensure your chosen niche has significant consumer demand so that you can easily promote your affiliate products.
A right mix of interest and consumer demand is necessary for your choice of niche. Some of the evergreen niches are health & fitness, cosmetics among others.
step 2: Sign up for affiliate programs
Once you have chosen your niche; find the companies in your niche that are offering affiliate programs. Just type the name of the company in Google and you will get the results.
For example, you can type Amazon affiliate program, Flipkart Affiliate program, XYZ affiliate program where XYZ is the company you wish to promote.
Apply for their affiliate program with relevant details. You will have to explain to them how you will promote their products to get approved.
You at least need one source of the traffic to get approved as an affiliate in most cases.
step 3: create content
Assuming you are approved as an affiliate, you will have to create content around the products.
Simply promoting your affiliate link on social media may work but is not a sustainable long-term strategy. It is wise to create content to promote your affiliate products.
To create content you may use any of the below strategies,
These are the most widely used approaches to promote affiliate products.
step 4: Promote Your Content
Promote your content to your audience. The general mistake people do is to promote direct links to their affiliate products rather than promoting the content around their affiliate products.
If you directly promoting links to your products, you are not educating your consumer about the product. This is not a viable strategy.
Try to create content around your affiliate products to educate your consumer first and then promote the affiliate link through your content. This strategy is best if you want to make affiliate marketing your primary business.
Some of the best ways in which you can promote your content are,
These are widely used promotional tactics used by affiliates around the world. Learn these tactics and use them in your promotional strategy.
types of affiliate commissions
The merchant will pay affiliates based on the action that the end consumer takes. The most common ways in which merchants pay affiliate commissions are,
These are the most prominent commission types. However, there can be many different ways in which the commissions are paid to affiliates.
Make sure to read the affiliate terms to understand the commission structure. Now, let us see the top affiliate marketing companies in India.
top 10 affiliate marketing programs in india
These are the top 10 affiliate marketing companies in India. You can get started with any of these Indian affiliate marketing companies that suit your needs.
Click here to read a complete review of these affiliate marketing companies & their affiliate programs.
how to be successful with affiliate marketing in india?
Most of the affiliate marketers quit within one year because they simply lack patience. To ensure you are not one of those, you must stick to certain principles.
I have listed a few factors which can help you achieve success with affiliate marketing in India.
Affiliate marketing is hugely popular. India is catching up with Affiliate marketing.
So far, Affiliate marketing in India is untapped because there are very few bloggers, affiliate marketers who are doing it the right way.
One can start affiliate marketing today by using several shortcut methods but remember, these methods are not going to get you long-term benefits.
So, you must decide what you want, whether a short term gain or long term financial freedom using affiliate marketing. This, by far, is the best money-making business idea for online users.
Get started with affiliate marketing in India.