Ok, this post is a little different than what I envisioned writing on this site. But as a digital journalist and marketer with more than 15 years of experience, I can spot a scam when I see one–and lately my TikTok feed is full of them!
I can’t seem to open up TikTok or Instagram without being served a video of a woman (no kids in sight) dancing in front of her IG-ready white shaker cabinets, claiming to be a busy mom who has unlocked the secret to work-life balance that no one is telling you about: Passive income.
Usually the “secret” in question is a tutorial about how to generate affiliate marketing codes from online retailers or earn money in some mundane way, like taking surveys. Supposedly these “online marketers” are raking in tens of thousands of dollars a week, while only working a few hours.
If it sounds too good to be true, it is. In this case income potential isn’t totally a lie. It is possible. But as someone who has overseen true revenue-driving digital strategies for some of the biggest brands in the world, I can tell you the secret to earning an income through digital marketing isn’t what these influencers are giving you for free in their TikToks or Reels. It’s a bit more nuanced than that.
What is affiliate marketing?
Affiliate marketing is by far one of the most popular “passive” side hustles out there. The idea is simple. Websites like Amazon, Target, Lulu Lemon and countless others let you sign up to generate a special code on their websites. When you post a link to that content on one of your social media profiles, websites etc. and someone makes a purchase from your link, you get a cut. When you see a TikTok like this it looks so easy, right?
Affiliate marketing isn’t really passive.
But here’s the thing, that TikTok right there 👆 is the lie. The cut an affiliate makes from any sale on amazon is 0-20%, with most items falling around 4%. (Here’s the full list of Amazon affiliate commission rates if you’re curious). That means you would have to sell more than 60 of these Amazon Echo Dots just to make $100… that you’d then be taxed on! How many people are hitting up your Pinterest page to shop?
Sure, posting a link is pretty passive, but the TikTok you see is the work. You have to get people to discover your content in the first place if you want them to buy something from you. In other words, you need an audience.
Why else would all these #sidehustle (shhhh secret) influencers be out here giving away their secrets?
Digital sales funnels-the secret weapon behind the best side hustles in 2023
You’ll notice that most influencers uploading video after video about how to earn a passive income probably also took the time to write a free ebook or newsletter that they hock in their profile.
that’s called your sales funnel. It’s a simple concept, and it looks like this.
The side hustle isn’t really about making tens of thousands of dollars selling products through affiliate links, it’s about selling the dream that you can. If you make enough people believe there is a legit digital marketing opportunity in affiliate revenue, or whatever the scheme, some of them will sign up for your free ebook. And some of those people will pay for your (not free) starter kit, or marketing course, or whatever.
The one thing all successful digital marketing strategies have in common
So, if you haven’t guessed it by now, the one thing all successful all digital marketing strategies have in common is an audience.
The rule of thumb is that only 10% of your audience will see any given social post you publish. So the idea is to drive more and more people down your funnel. This is called optimizing for conversions, and it’s where the real digital marketing comes in. There are some tried and true methods, and some great cheap and free tools to help you.
If you’d like to learn more tried and true methods for growing your audience and driving them down your conversion funnel, give this blog a follow.
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