Must-Read for Affiliate Beginners! The Reality of "How Affiliate Marketing Works" and the "Position of an Affiliate Marketer"

Hello. I am Shichau Ojisan (hereinafter referred to as "Shicha-Oji").

This time, I would like to write a somewhat revealing article.

It is about the reality of "how affiliate marketing works" and the "position of an affiliate marketer."

General affiliate marketing consists of three parties: the "ASP (Affiliate Service Provider)," the "Advertiser," and the "Affiliate Marketer."

An "ASP (Affiliate Service Provider)" refers to companies like "A8.net" or "ValueCommerce"!

To put it simply, think of them as intermediaries that bring together and connect "Advertisers" who want to promote sales by placing affiliate ads, and "Affiliate Marketers" who want to earn revenue by posting those ads on web media or mailing lists.

It is possible for an affiliate marketer to contact an advertiser directly without going through an ASP, and conversely, for an advertiser to contact an affiliate marketer directly, but generally, interactions are handled through the ASP intermediary.

This allows "Advertisers" and "Affiliate Marketers" to focus on their respective jobs without being burdened by building complicated interpersonal relationships, handling tedious administrative procedures like signing contracts, or managing daily sales that require specialized personnel or systems.

＊

Now, from the perspective of an affiliate marketer, while there is the benefit that the ASP handles advertiser management by acting as an intermediary, there is also the disadvantage that because the advertiser is not visible to the affiliate marketer, one has no choice but to blindly trust the ASP and the advertiser.

On the surface, it is said to be a "win-win-win for the advertiser, ASP, and affiliate marketer!" but in reality, the "ASP's" customer is the "Advertiser," and the structure is such that the "Advertiser" pays money to receive services from the "ASP."

Of course, the existence of the "Affiliate Marketer" is essential for the services that the "ASP" provides to the "Advertiser," but that is ultimately dependent on the "Advertiser."

As for the flow of money, it is as follows.

In other words, even though it is called a "win-win-win!" the positions are actually as follows.

This is where it gets interesting: even an affiliate marketer in the weakest position as described above can reach the following position by achieving results that stand out from the rest.

Once it reaches this point, the importance of the ASP diminishes, so while a successful affiliate marketer may use an ASP out of courtesy, they will basically move toward interacting directly with the advertisers.

The case of "Shichaoji" is exactly like this; naturally, I only chose to work with advertisers who provide reliable products and services, and who would fairly reflect my value as an affiliate in my compensation.

Since I enter into direct contracts with advertisers to promote sales without going through an ASP, my business model is actually closer to a "sales agency" than an "affiliate" in the strict sense.

By the way, the reason the above text is in the past tense is because, as I wrote in {Shichaoji's profile: {From penniless to success, life's downfall, and becoming a recluse}}, over 300 of my business domains were snatched away by an acquaintance (to whom I had entrusted their management).

After that, I moved from Tokyo to a remote village in Kyoto, dissolved (liquidated) my corporation, and for a while, I didn't feel like doing anything due to "burnout syndrome," so I had completely retired from affiliate marketing. However, this note, which I started writing exactly one year ago as a form of rehabilitation, has started to gain traction, so I decided to register under my personal name and restart my affiliate activities.

In other words, "Shichaoji," being a new registrant, falls into the category of "(4) Unsuccessful Affiliate" as described below.

From the perspective of advertisers and ASPs, though it might not be the most appropriate term, "Shichaoji" is like a water flea!

So, it was good that I immediately generated 3 conversions (about 5,000 yen in unconfirmed rewards), but unfortunately, 2 of them were cancelled by the advertiser.

In other words, 2/3 of my generated conversions were rejected.

The approval rate (confirmation rate) for affiliate conversions varies greatly depending on the nature of the product or service being listed (including the selling price) and the conversion conditions. However, based on the sales data of over 100,000 items from advertisers I have worked closely with in the past, I understand that an approval rate of around 95% is appropriate (Note: in the case of "Shichaoji").

Therefore, I assume there is some problem with a program where the approval rate falls below 90%, but having 2 out of 3 conversions cancelled is completely out of the question.

This is a common occurrence in affiliate marketing, but "(4) Unsuccessful Affiliates" tend to easily receive such cancellation processing (rejection) from "advertisers."

This is because there is a structural problem in affiliate marketing where "the approval or rejection of a conversion is decided at the sole discretion of the advertiser."

If this were a "(1) Successful Affiliate," they would not receive such rude cancellation processing unless there were significant extenuating circumstances.

This is because if an advertiser were to do that, they would invite distrust from the successful affiliate, leading to the removal of their ads and their replacement with those of a rival company.

And the bad thing about "(4) Unsuccessful Affiliates" is that when they receive such cancellation processing (rejection) from an advertiser, they for some reason keep the advertiser anonymous and vent their stress by posting things like "Please retweet!" on Twitter, and that's the end of it.

This changes nothing.

In this instance, "Shichaoji" is indeed in the state of a "(4) Unsuccessful Affiliate" who has just registered, but I inquired with the ASP about the details of this cancellation processing.

After exchanging emails with the ASP support center several times, although it took a little time, both conversions were ultimately approved as an "erroneous cancellation by the advertiser."

If you would like to know the details about this turnaround from "cancellation" to "confirmed results," please refer to the following article.

Now, if you are doing affiliate marketing honestly and with nothing to hide, you should inquire with the "ASP" or the "advertiser" if you find something strange, asking, "What does this mean?" However, the reason people cannot do this is because of strange ulterior motives, such as fearing that they will be "targeted by the ASP" or "have their partnership terminated by the advertiser."

Such people will likely remain "(4) unsuccessful affiliates" forever.

After all, even though it is called affiliate marketing, it is a legitimate business, so "interpersonal negotiation skills" are required. Perhaps it could even be called "proposal sales ability."

There are many young people who get obsessed with earning money online without ever having been out in the real world and toughened up, but I recommend that you polish your interpersonal negotiation skills by doing something like cold-calling sales.

Even when earning money online, this is where the difference will ultimately be made.

Furthermore, regarding tips for affiliate marketing, please also read the following article {Public Example of an "ASP Affiliate Strategy" by an SEO Affiliate Marketer Who Earned 7.09 Million Yen Per Month}.

The free area alone is more than enough for reference!

*

That concludes – Must-Read for Affiliate Beginners! The Reality of "How Affiliate Marketing Works" and the "Position of Affiliates" –.

...