Is your small business taking advantage of the potential of affiliate links? Many businesses embed affiliate links on their website, inviting their visitors to view and purchase goods from another site.
The idea is a simple one: commercial websites need buyers, and they can get them through links on other websites, such as your own, In exchange, you earn a commission if a visitor makes a purchase.
How does this work? The link on your website contains an embedded code that tells the seller that the purchaser came from your website.
What Types of Commissions are Available?
You can place an affiliate ad on your website and earn commissions from two types of products and services. One is a single commission through the purchase of goods or services, such as buying an online e-book or any other type of ‘widget.’ The other type of income is recurring revenue, which occurs when a visitor follows your link to make a purchase of a subscription-based service, such as web hosting or a subscription to a financial services website.
The lucrative aspect of a recurring service is that you receive a commission for as long as the customer continues the service. Rather than a single commission, you get money each month. Add up a string of recurring revenues, and you have a very nice passive extra income for your small business.
Tips for Affiliate Marketing
Affiliate ads can mean great extra income, but there are a few things to consider.
Promote complementary products – If you sell homemade cleaning products, don’t place an affiliate ad for another company that does the same thing. Rather, as an example, you could promote a company that sells cleaning brushes and other tools. Or you could promote an unrelated service if you use it, such as an email newsletter service.
Don’t overload on the links – A successful single affiliate link could tempt a small business owner to throw dozens of links, banners, and ads all over his website. Avoid this temptation. Don’t let your own website become a billboard. Choose your affiliate links wisely and be particular.
You could also consider embedding affiliate links in your company’s blog, making it a more casual way of pointing customers to another business. Regardless of where you place the links, adding smart, relevant affiliate links to your own website could add lucrative passive income to your bottom line.