More companies are going online, which is inviting more affiliate marketers to promote their products.
Right now, 81% of companies in the world are using affiliate marketing to promote their products. Which is huge..
Now the first question that comes in mind is, why do they pay commissions to someone when they can promote their product at their own?
Why are they paying such a heavy commission to the affiliates when they can save this money just by running the paid ads themselves and ranking at top themselves. I know you have this question. 😉
Before I answer this question, let me ask a simple question to you. Let’s say you created a product in 20 $ and selling it in the market in 100 $ (which most of the companies do).
Now you profit margin in 80 $ . If you put all your resources and energy and hire the best staff in the world, you would still have some limitations.
So the solution is – affiliate marketing.
Now the same company can say that I will pay 30% commission if you promote my products with affiliate marketing.
Now the company is paying 30 $ per sale, and getting 70 $ in their pocket.
Which is a decent 70 $ – 20 $ = 50 $ profit.
They made this 50 $ profit without their efforts, team, marketing, or anything.
They just paid a decent 30% commission and many affiliate marketers in the world will promote those products.
So this is affiliate marketing. and that is why most of the companies are willing to pay affiliate commission if you promote their products. I hope you understood the game now.