Day 2: Research: Affiliate Programs
An overview of researching affiliate programs.
We need to research different affiliate programs because we want to take a look at the revenue model and the profit potential of the particular niche.
Yesterday we research different niches and choose one that we think it’s popular and people are actually searching for this niche and the products but we also need to search for the profitability of the niche as we don’t know if there’s money to be made.
We need to determine whether the money is there with the affiliate program so what we do is look at the cost of products. And we also look at the commission structure of products.
Another thing that you can research for different variations of products like digital and physical products.
Now when you deal with physical products with an affiliate program, physical products have a lower commission percentage. And when it’s a lower commission percentage especially when you’re getting into using Amazon. Amazon’s commission structures are very low.
Why Amazon Commission Rate is Low?
As we all know Amazon offers a very low commission rate to its affiliates and the reason for that is Amazon doesn’t actually own all the products, so their own profit margin is slim. The reason why they make scads of money is that they have so many products that they sell on their website. If you think about it, Amazon is just a reseller.
Amazon is the world’s biggest drop shippers, so if you think about that, where there are people that get started with Amazon to sell stuff on Amazon and stick it on there, and then Amazon takes let’s say 10% of the product price. So they take the $10 for every $100 of a product. so then they have to offer an incentive, they have to offer an affiliate program for every product that they have.
That is why the commission structure of Amazon is so low is because there’s no skin in the game for them, so they have to keep the profit margin as high as they can, by offering the lowest percentage, available.
Looking at Amazon
Now for example, let’s think about products and then we’ll research for products on Amazon. we’re gonna look at leaf mulchers, electric leaf mulchers.
Product Price 179 99 Now, let’s go and do Amazon commission rates. I’m looking for is the commission structure. commission structure on Amazon is 3%. So, in this thing, we would basically earn about, $5.39.
Amazon Affiliate Commission Rates in India-October-2021
Deciding Factors while Choosing An Affiliate Program
- Amazon Choice: Product is Amazon choice. Amazon choice is basically is a contributing factor for people making a purchasing decision on Amazon. When people see Amazon choice , they assume it must be a good product. So that is factor number one when it comes to looking at products to market on your site is look at Amazon choice.
- Ratings: The second thing you want to look at is the number of ratings and the quality of ratings. So taking a look here, we can see that it has 3343 ratings. These ratings are from verified buyers. You can go through these ratings and you will find many useful tips, comments, and videos that will help you to do further research.
So if you take a look at our product, it has a variety of different reviews. Most of them are positive. It’s a good price point, it has lots of great marketing material on here.
So now quickly we need to do keyword research because we want to see how many people are searching for electric motors.
So we can see on average 139 searches a month. Pretty good QSR.
electric leaf blower mulcher 13 amp electric leaf mulcher so that’s very specific.
Works WG 430, So 40, people a month it’s relatively low. But if we take a look at. There’s another one down here that works 13 amp. So they’re combined together here because those are pretty close in terms of keywords and we would probably rank for both of those keywords. If we were to write an article. So that gives us, 104 searches a month and it’s always better to look for keywords which gets that are over 100 searches a month.
So definitely we can add this as a product that we would promote.
I am using Jaaxy and you can see there are so much data here that’s really useful for researching products, content, and so on.
Researching Private Affiliate Programs
Let’s take a look at private affiliate programs. Sometimes companies will have their own affiliate program, just like how Amazon has an affiliate program, which might offer a higher commission.
So in this case I would go to Google and search for Your product name + affiliate program.
Most probably you will find a good private affiliate program, now let’s say you can’t find an affiliate program for a particular company or brand, it would mean they probably don’t have affiliate programs, and they rely on Amazon and companies like that.
Looking at Profit Potential of Adsense
The next step is researching Google Adsense and seeing if the niche is viable in terms of popularity.
The final part with research is Adsense, like can we earn money with AdSense. So let’s look at the profit potential of AdSense and how do you determine that.
The way you earn with AdSense is you have ads on your place on your website, so Google Places ads on your website. And then on the other end of the spectrum, there are people that advertise and pay Google to advertise for their products using banners and stuff like that. And from there, ads get shown say on your website.
The revenue model of AdSense is you get paid for every time an ad is shown. And also, every time an ad is clicked, now the value of that particular click or view is based on the ad the niche, and the keyword.
But before you try Google Adsense, don’t put them on until you have at least 100 visitors a day, or 100 posts, whichever comes first. So then once you have 100 visitors a day or 100 blog posts or 100 articles. Then you can determine whether you want to put ads on or not.
Researching for affiliate programs is an important step, you need to have a monetization policy for your niche site and there are many ways you can monetize your blog.
There are many e-commerce sites like Amazon that offers different commission rate for different products, so it’s important to research if Amazon is best suits your monetization policy. It’s also important to remember that Amazon’s commission rate is quite low and you need to understand why Amazon’s Commission Rate is so low?
Then you also have different private affiliate programs. So in this article, I have also discussed how to find profitable private affiliate programs and lastly, I also discussed Adsense and how to Look at the Profit Potential of Adsense.
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Jivita is the founder of Advantage Affiliates and a full time online marketing consultant who helps people get started in the world of affiliate marketing. Read more about how Jivita helps people get started online.