You’ve probably heard of affiliate marketing but have no clue where to start? Or you’re probably just shaking your head or even scratching it since you have no clue.
There are people who have started their online business through affiliate marketing, and those that are earning well from it. Affiliate marketers promote other people’s products and they receive commissions from sales. And it’s highly likely that you’ve bought products this way without knowing it.
Affiliate marketing can be a very rewarding and lucrative self-employment opportunity.
If you’re curious and want to learn what is affiliate marketing, let me break it down for you in the simplest possible way. It’s best to have a good understanding before you dive into it.
Remember, if you have any questions or want to offer you own personal review or feedback, feel free to share any insights you have at the bottom of this page.
What is affiliate marketing?
When you help a company to generate sales, you get a commission from it. By promoting others’ products or services, you earn a piece of the pie for each sale that you make.
You don’t necessarily need to invest time and effort to create something to sell. As an affiliate, you can begin to make money as an affiliate as soon as you have a site to help you sell products or services.
It is a low cost business and you don’t even have to leave your current job. You can see how it plays out for your especially when you’re just starting. Just remember that success comes to those who work hard and are persistent.
Here’s what happens:
1. You recommend a product or service to people.
2. People purchase the product or service based on your recommendation.
3. You get a commission from the sale.
4. The affiliate program or network pays you for the sale.
If you do have an awesome product or service, you can definitely be both a product creator and a marketer while gaining profit from revenue sharing.
On this, you have to understand that there are four core people involved in affiliate marketing:
- The affiliate – YOU. When you sign up to be an affiliate for an affiliate network or program, it is often FREE. Be very careful of anyone who charges any type of fee. I would simply stay away if that is the case as there are so many other affiliate programs out there.
- The affiliate program or network – Remember that there’s so many to choose from. While Amazon is the most popular, there are others you can look at such as Shareasale, ClickBank, eBay and Etsy. There are also independent affiliate programs so you just need to do your research. Different affiliate networks offer different levels of commission. You can make anywhere between 4% up to 80%.
- The merchant – This is the retailer or brand. For example, in some of my social media posts, I’ve recommended the Dyson Pure Cool purifying fan. In this case, Dyson is the merchant.
- The customer – They are the ones who click your affiliate link to purchase products or services from the affiliate program or network.
Where did affiliate marketing come from?
Did you know that affiliate marketing started with PC Flowers & Gifts in 1989? William J. Tobin, founder of PC Flowers & Gifts, generated sales in excess of $6 million per year! He then developed the business model of paying a commission on sales to an affiliate network.
Due to his success, other companies followed suit. This allowed them to increase their reach and sell their products across the world.
Amazon launched their Amazon associates program in 1996 and as you probably know, its now one of the most popular affiliate programs.
Since then, affiliate marketing has greatly transformed the way business operate and it has exponentially increased the market reach and earning potential for various businesses.
Breaking it down: How does affiliate marketing work?
Wouldn’t it be wonderful to generate passive income? If done right, affiliate marketing can definitely be a game changer.
There are so many affiliate programs out there that there’s bound to be several that are relevant to the product or idea you have in mind.
And since it involves recommending products that are helpful to your target audience, I think its really important to be authentic. If you are sincere, confident and honest about the product you are promoting, you are able to build trust and the results will follow. On the flip side, if you keep thinking about the money first, you probably won’t be too happy with your results.
Here’s how affiliate marketing works:
- Find products or services that you want to promote and sign up as an affiliate.
- Get your unique affiliate link and add it to your site.
- Your website visitor clicks the link and they’re taken to the merchant’s website.
- If the website visitor buys something, you receive a commission which is based on the value of the item purchased.
I cannot stress how important it is to build a relationship with your target audience. You need to recommend products or services that are relevant to their needs. It should be something you truly believe in, and show them that it works.
If you have their best interest in mind, they will trust your recommendations.
Take it to the next level
If you want to fast track your way to being an affiliate marketer, I strongly recommend that you join Wealthy Affiliate as a starter member for FREE.
For $0, you get access to the training modules, live video classes and video walk-throughs, you can build 2 websites, get a feel of the keyword research tool, and have access to expert help. Remember, it pays to invest in yourself and learn as much as you can.
If you decide to become a premium member in the first 7 days, you will get 61% discount on your first month Premium membership (only $19)! I will also make sure that I’ll be there to support you if you have any question or if you need help.
Check it out. I’m sure you will love it.
Read about my Wealthy Affiliate Review here.
Bringing it all together
While that may be a lot to take in 10 minutes, I hope that you were able to learn what is affiliate marketing.
Simply put, when a customer does a web search and lands on your website you earn revenue if they buy products or services through your link.
As you start to build your online business, remember that it is very important to build TRUST first. You won’t have considerable success if you don’t focus on building relationships and trust with your target audience.
Help people learn as much about the product or service you are recommending, and be honest. If you do this, you’ll go a long way.
If you have any questions or any feedback, please leave them below and I will be more than happy to help. Hope you enjoyed reading this!