The links below a YouTube video or swipe-ups on Instagram Stories are ways on how influencers use affiliate marketing. When a follower makes a transaction using a code or a link, the influencer earns a commission. That process is affiliate marketing.
Influencers use affiliate marketing to earn money outside of ad revenues or sponsored posts. Sponsors are working with influencers to promote their products or services. The amount of money they make depends on their engagement, number of followers, and the industry they belong to. Also, it depends on the commission rates platforms and brands offer.
For example, some finance influencers earn decent amounts from affiliate links. Also, they work with various investing apps. According to a business directory, one influencer earned over $200,000 within a year.
How Influencers Use Affiliate Marketing
Another high-paying sector is the beauty industry. Some beauty influencers earn at least $5,000 a month from affiliate links. In addition, some brands create an affiliate program to promote their products on social media.
Some influencers even text their followers with links to products to increase sales. In addition, social media platforms, such as Instagram, tap into the space through their affiliate marketing programs.
When it comes to commissions, there are two models that retail companies can use. The first one is pay per click. The company pays the influencer for each click on the affiliate link that directs to the brand’s online shop. The second option is a cost per acquisition. The company pays the influencer for each click that leads to a purchase or sign-up.
When brands partner with influencers, they reach their target market faster. Also, they can improve brand awareness and foster credibility. Brands can increase their sales through affiliates. Influencers can act as their sales assistants. Most companies prefer cost per acquisition mode because they pay the influencer depending on sales performance.