Many people, when working on projects, never bother to learn and contemplate the underlying logic of the project. Instead, they rely solely on their own subjective consciousness within their cognitive framework to judge whether a project is viable or not. And this subjective consciousness is directly influenced by the depth of their understanding of a project.
For example…
I’ve always said that getting approved for the FlexOffers affiliate program is very difficult. However, there are indeed some students who, after building their first website, get approved for a FlexOffers account, so…
They might say, “FlexOffers is easy to get approved for; it’s not as difficult as you said.”
And with the PPJ affiliate program, I might say that the approval rate is relatively high, but some students might apply with 3 or 5 websites and not get approved for a single account, so…
They might say, “The PPJ affiliate program isn’t as easy to get approved for as you said.”
This is how each of us draws conclusions about projects based on our own execution experience.
In reality, when I talk about the approval probability of affiliate programs, I’m referring to a big data scenario, such as when 1000 websites apply, the overall approval rate might be around 50% or 70%.
However, it’s not possible to measure the probability when only a single or very few websites apply.
Some say that affiliate marketing doesn’t make money anymore, while others say it’s still very profitable. Who is right?
I believe that from their respective perspectives, they’re both right, yet both wrong.
To truly understand whether affiliate marketing is profitable or not, one must contemplate the underlying logic of the project, and the answer will naturally become apparent.
Of course, we’ve never intended to educate users; we’re just sharing our experiences with the project for those users who are willing to learn.
However…
What I find most interesting is that some people keep saying that affiliate marketing isn’t profitable anymore, yet they continue to spend time focusing on this project. To be honest, I don’t understand the behavior of these people. Their minds don’t believe it can be profitable, yet they waste a lot of time on this project.
According to my logic and consistent principles, I simply don’t pay attention to anything that can’t bring me profits because…
Time is the most important aspect of entrepreneurship, and anything that makes money requires time to accumulate.
Today’s article delves into:
how affiliate marketing makes money online
In any project, if you aim to make money, then inevitably…
someone has to pay you money, rather than profits magically appearing out of nowhere.
Since energy is conserved, so is money; you don’t just make money out of thin air. Instead, if you want to make money, someone has to pay you for something.
So, in affiliate marketing, who is paying the fees?
The answer is obvious: advertisers.
But why do advertisers pay you?
Because you help them get what they want.
Here, we’ll focus solely on CPL (Cost Per Lead) and CPS (Cost Per Sale) offers and ignore CPA/CPC/CPM.
CPL: Cost per lead.
A lead refers to a “sales lead.”
Generally calculated per lead, advertisers spend advertising fees to acquire sales leads.
Common types of offers include:
Automobiles, automobile insurance, life insurance, loans, short-term loans, home renovation, education, etc.
The purpose of advertisers purchasing sales leads is to prepare for the next step in converting users.
Advertisers are willing to pay you high sales commissions because even if 1 out of 10 customers converts, they break even on all advertising expenses.
Therefore, the authenticity of these sales lead data is crucial.
If you hypothetically provide some information to advertisers, and they later find out that they can’t reach the contacts, receive no response, or the contacts deny involvement altogether…
If you were the advertiser, would you still pay the commission?
(The issue here also involves a mixture of genuine and false data; for example, 70% of the sales leads are genuine, and 30% are fake.)
From here, you understand that the reliability of sales lead data is crucial for CPL offers if you want to successfully earn commissions.
As for where these sales leads come from, advertisers don’t care about that.
(This implies that as long as your cost of acquiring sales leads is lower than the advertiser’s commission, there’s money to be made.)
Is there a high demand for sales leads?
It’s exploding. Whether it’s domestic or foreign, there have always been plenty of advertisers willing to pay high advertising fees for sales leads.
(The commission for these sales leads can be understood as customer acquisition costs.)
CPS: Cost per sale.
This is currently the most favored promotion method for all advertisers.
You help advertisers sell products, and then you receive a commission based on the product’s sales.
Compared to leads, sales mean that the advertiser has already made money, whereas with leads, the advertiser has only purchased potential sales leads and hasn’t made any money yet.
So, you’ll notice that advertisers prefer the sales promotion method.
Therefore, it’s no surprise that in mainstream top-tier affiliate programs, CPS offers dominate, and CPL offers are much less common than before.
But many people have a question here…
In the promotion process, many users may place orders but then cancel them. In reality, they haven’t brought any sales to the advertiser. Will the advertiser still settle the order commission with us?
Here, we need to discuss the issue of error tolerance.
Some advertisers cancel your original performance as soon as a user cancels an order.
However, some advertisers only look at the big data of the website’s order cancellation rate. As long as the cancellation rate is normal, they won’t investigate which specific order came from which affiliate’s promotion, so they won’t cancel your performance and will still pay you at the time of payment.
After all…
The sales of products from a brand’s official website may come from many different marketing channels, not just affiliate marketing. It would also consume a lot of manpower and energy to trace the source of each canceled order.
In fact, from the advertiser’s perspective:
Assuming the advertising fee commission for affiliate marketing is $1 million per month, bringing $10 million in sales to advertisers, of which $2 million is profit.
Even if there’s a tiny fraction of orders that are eventually canceled, and commissions are paid out, they are still willing to advertise in the field of affiliate marketing.
Those who have done this project know that advertisers can be divided into two types within an affiliate platform: those who are long-term players and those who withdraw after their advertising budget is used up. The latter indicates that the advertiser did not profit from the affiliate platform.
Of course, what we’re analyzing here from the perspective of affiliate marketing isn’t viewed through the lens of EMU; rather, it’s from a normal perspective of affiliate marketing.
After all, you should understand that EMU’s methods are very small in the entire affiliate marketing field.
Alright, that’s about it for writing. The principles are all explained. As for…
Whether affiliate marketing is profitable or not, everyone can judge for themselves.
If you believe it can make money, then delve deeper into studying and researching.
If you believe it doesn’t make money, then turn away directly and don’t waste even a second of your time on this stuff.
