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Equation for affiliate marketing success

Simple Affiliate Marketing Equation.
Affiliate marketing is a great way to make money online with, but if you fail to learn just how to make money with it you will be stuck with zero income for ages. When working with affiliate marketing there are a lot of external variables that quickly comes in to play, determining if you will succeed or fail. Almost every affiliate marketer has to deal with SEO (search engine optimization), CTR (click-though rates) and affiliate advertiser royalties; and as if it wasn’t complicated enough already these variables can change over night with new search engine algorithm updates or business model modifications. Most often it is just when the new affiliate marketer starts to learn about this complicated nature of affiliate marketing that the whole business starts to become a bit too overwhelming for them, resulting in a loss of focus. Though, there are ways of simplifying the process of affiliate marketing that will help them stay in focus and earning money. This is done simply by getting a deeper understanding of the three most common variables that come in to play in this business. Even if you’re an experienced affiliate marketer it may be refreshing to hear that much of the business can be compressed in to a three-part simple equation for achieving affiliate marketing success.

The equation:
High search engine traffic + Low keyword competition + High affiliate advertiser competition = Affiliate marketing success.
Remember that even though this model simplifies the whole affiliate marketing business quite a bit, it is still a model used with great success by most marketers out there. Of course there are more variables, but these are the most important ones and the ones you should really focus on to not lose interest.

High search engine traffic.
The amount of search engine traffic you can squeeze out of the targeted market of yours is one of the easiest things to uncover when it comes to affiliate marketing. Although there are hundreds of search engine estimators out there, the best one is of course the one created by the leading search engine itself: The AdWords program by Google. The membership of this AdWords tool is free and you don’t actually have to use it for its intended purpose (For advertisers), but you can use it for your own affiliate marketing campaigns to get the most out of the search engines. It is amazing that this program is still free since it is worth thousands of dollars to any experienced affiliate trying to conquer the search engines to make money online. It is the keyword tool that comes with Google AdWords that you will want to use to uncover the keyword phrases that receives the most searches for each month. It is a crucial tool for discovering if your keyword is getting a million searches per month, or if it’s only receiving a few hundred. Even if your keyword is really similar to another keyword that receives a hundred more searches per month, it will still not generate the same amount of traffic. I think you get the point, why put all your strength on a keyword that can only deliver a thousand people a month to your website when there might be another in the same niche delivering a million visitors? There are many guides out there to fully understand this tool and you simply have to search for “Google Keyword Tool” to find it.

Low keyword competition.
Having a low keyword competition is the way to go. The words “keyword competition” is used as a variable to determine how much competition you are up for when targeting a specific keyword. The higher competition you have, the harder it will be to claim the top spots in Google’s search engine since many people will be fighting against each other with the help of SEO and other marketing strategies. This is why most of the keywords that generate a great deal of traffic have such a high competition. Since SEO is one of the best ways to find targeted traffic that are genuinely interested in what you have to offer, many affiliate marketers uses this to their advantage; and if they find a keyword that could be a potential goldmine for them, then you’d be sure that they are willing to fight for it! So if you target a keyword such as “make money online”, you will need a really good strategy to profit from it. Simply searching for the keyword you want in Google will give you an estimated amount of websites targeting that specific keyword as well. For example if you search for “how to make money” in Google.com you will get “About 87,900,000 results” as of 2011-04-30. This will give you a general idea of how much competition you are up against when trying to rank high for that specific keyword. If an affiliate marketer tries to out-rank the competition for such a keyword he will have to either spend a lot of money to get there or stay focused for years to break the competition. Most often they will end up ad page 20 of Google without any specific traffic to their website. That is why an affiliate needs to always target as low competitive keywords as possible if he wants fast success in search engines.

High affiliate advertiser competition.
To someone who just started out with affiliating this concept may sound strange, but the truth is that advertisers compete against each other as well. Instead of trying to get a good standing in search engines like Google, they focus on getting as many sales or as much recognition as possible. Most likely they are fighting to have their ads shown on your website with the help of AdSense, or they might even be selling a product that they want you to promote. This means that with higher advertiser competition some keywords will pay of more; one affiliate might be paid a lot more than another even though they have the same amount of traffic and CTR. Some keywords generate as little income as $0.01 per click on AdSense, while other keywords can generate a staggering $50 per click! This variable plays a huge part of the success and affiliate can have and it should always be one of your top concerns when trying to make money online. As mentioned before the Google AdWords tool and traffic estimator is used by advertisers to select keywords for their campaigns, and at the same time this tool can be used by affiliates to see where the advertisers are spending their money. Spending a few days analyzing keywords can be the difference of earning $1 or $3000 after 100 clicks on your ads. (Note that this is for the Google AdSense affiliate network).

Being successful in affiliate marketing might not be the easiest thing you have done in your life, but with this simple equation it will for sure be a little bit easier. A quit summary of the whole process would be something like this: At first, any affiliate marketer should focus on finding a niche where the competition is as low as possible. By doing this it will be easier to get a better standing in search engines without spending much money or working too hard promoting the website. They should also find a market where advertisers are competing against each other to get as much exposure as possible; this ensures that you will actually make profit from all of your work in the end.

Short summary: High search engine traffic + Low keyword competition + High affiliate advertiser competition = Affiliate marketing success.

Affiliate marketing can be a daunting procedure and can almost make your head explode sometimes (not literally). Though if you focus on learning this simple equation, then you can avoid those annoying headaches. Take some time, do your research and remember what you have learned to avoid future mistakes. Affiliate success can be achieved by anyone if they just focus! If you have any questions about how to make money with affiliating then be sure to leave a comment. If you want to add anything or give your own point of view on this then I would be happy to hear it as well!

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