Getting Passive Income with Affiliate Marketing

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Getting Passive Income with Affiliate Marketing

In the digital era, people use their creative skills on social media to earn additional income. One example is when someone reviews a product he bought from a marketplace or e-commerce and lists a link to the sale of goods so that the audience is not difficult to find the item. Apparently, the link is not just a product link that is reviewed. The link is already connected to the social media accounts of people who review so that it can track how many people have seen or purchased the product from the person reviewing. The same is true of the use of discount vouchers or referrals from one’s account. When someone uses a voucher or referral given by us, we will get a commission that has been adjusted by the company. This is a marketing medium called affiliate marketing. Affiliate marketing is a strategy where the seller or merchant markets his product through a third-party and the third party will get a commission if there is a buyer who comes from that party. The third party in question is commonly called an affiliation, where the affiliate can increase its revenue by utilizing this affiliate marketing. Affiliate marketing can be converted based on the types of models, namely: – Pay-per-click (PPC) In this model, the affiliate will get a commission if the user clicks on the link provided by the affiliate. Generally, users do not have to buy the product advertised. Pay-per-Performance (PPP) Affiliate will earn a commission when the user makes an item purchase or account registration using a link or referral code provided by the affiliate. There are 2 (two) types of this marketing model: a. Pay-per-Sale (PPS) This model is most often in demand by merchants because it is considered the most profitable. Affiliates will earn a commission when a user purchases a product or service from a merchant. b. Pay-per-Lead (PPL) Afiliators will earn a commission when users register on a site by using the registration reference link from the affiliate or using the referral code that we or the affiliate provides. Usually, this model is used in fintech applications that aim to make users become prospects. Before becoming an affiliate, we must register first and usually this program is free of charge. At this time, there are many companies in Indonesia that implement affiliate marketing programs and commissions obtained by affiliates, as in the table below.

Company Commission (from every sale) Link E-COMMERCE AND MARKET PLACE Lazada < 10% www.lazada.co.id/lazada-affiliate-program/ Bhinneka < 5% www.bhinneka.com/Associate/Associate.aspx BliBli < 4% www.affiliate.blibli.com/affiliates/ Zalora < 6% www.zalora.co.id/partner/ Bukalapak < 5% www.bukalapak.com/affiliate ONLIEN TRAVEL AGENT (OTA) Agoda < 60% www.agoda.com/id-id/partnersignupid Booking < 40 % www.booking.com/affiliateprogram/index.id.html Tripadvisor < 50%  www.tripadvisor.co.id/Affiliates < 60% www.tiket.com/affiliate DOMAIN & HOSTING Niagahoster < 70% www.niagahoster.co.id/afiliasi DomaiNesia < 30% www.domainesia.com/afiliasi/ CloudMedia < 70% www.cloudmedia.co.id/affiliate Dewaweb < 20% www.dewaweb.com/affiliate-program/ Judging from the data that has been collected, there are already many digital companies in Indonesia that use affiliate marketing programs. With the affiliate program, all relevant parties get benefits where affiliates can bring themselves closer to customers and merchants gain trust through the products marketed. Another advantage is that affiliates do not need to spend large capital, get passive income, can work anywhere even if it is at home, flexible and can be used as personal branding.

REFERENCE

Ningsih, Desrini and Putu Hari Kurniawan. 2019. Sales Channel Selection Strategy as Implementation in The Business Affiliate Model of Non-Network Hotel Management in Batam City. Journal of Management Science Research, 4(3) 1017 – 1031.

Alhazami, Lutfi. 2020. Increase in Meruya Community Revenue through Affiliate Marketing during the Covid 19 Pandemic. Journal of Community Service, 1(2), 34 – 36.

Syilvania, Meliza. 2018. Differences in Consumer Attitudes Towards Affiliate Marketing Through Snapchat and Instagram Platforms. Management. Faculty of Economics. Sanata Dharma University: Yogyakarta

Muhamim, Ahmad. 2017. Analysis of Affiliate Marketing Strategies against Sales Levels in an Islamic Economic Perspective. Sharia economy. Faculty of Islamic Economics and Business. Raden Intan State Islamic Institute: Lampung