In this article, affiliate marketing explained, we will take a look at what affiliate marketing is and how it works.
Affiliate marketing is a huge and ever growing industry.
Even though it is relatively new in comparison to a lot of other industries, it does have a core base of established techniques and features.
So, without further delay, let’s get started.
Disclosure : Some of the links below are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
What is Affiliate Marketing?
Affiliate marketing is one of the main ways to make money online and is one of the fastest growing industries on the internet.
It is currently worth around $12 Billion a year and is growing every single year
Affiliate marketing is also used by most of the top brands in the world to drive sales to their products and services.
In a nutshell, affiliate marketing consists of the following.
A company wants to attract customers to its products or services on their website.
They either join an affiliate network or set up their own affiliate program.
An affiliate network is a company that acts as a middle party between affiliates and companies.
The affiliate network works with companies to set up their program and then adds them to their list of merchants.
The companies will usually provide banners and other marketing materials for the program so the affiliates can use them for promotion.
The company will also set a percentage rate or bounty for the affiliates commission.
The affiliate network also works on attracting as many affiliate marketers as possible into their network.
The affiliates typically have to apply and the network takes a look at their website to ensure it is of sufficient quality.
The affiliates can then gain access to the list of merchants and choose which ones they want to promote.
Usually the affiliate then has to apply to the merchant through the network platform to be approved by the individual merchant.
This is to ensure that the merchant is willing to have their brand appear on the affiliates website.
This is to protect their products from being on websites that has content that would reflect badly on their brand.
Once all the affiliate is approved, then they can start promoting the brands products and using the banners etc they provide.
A banner is a picture or a piece of code that will display a picture on a web page/blog post.
The banner will also contain a piece of code that is known as an affiliate referral url.
We will discuss that below the banner example.
Here is an example of a banner.
An affiliate referral url is a piece of code, that when clicked will send the person who clicked it to the website of the merchant the affiliate is promoting.
This code also tells the merchant/affiliate network which affiliate referred the person.
If that person ends up buying something, then the affiliate will earn a commission.
A commission can be a percentage or a fixed bounty (Sometimes known as a referral fee)
Percentages can vary greatly from a few percent and climb as high as 50% or even higher in some cases.
Typically 5-10% are the most common percentages for most major company affiliate programs, but they can go higher or lower.
The affiliate network will handle the paying of the commissions to the affiliates after the sales are approved and validated by the merchant.
Affiliate Marketing Example.
Courtney has a computer and tech related topic blog.
She joins an affiliate network and finds a merchant that offers 10% on any referred sales to their laptop website.
Courtney writes some articles on laptops and includes some product banners from the merchants affiliate program resources.
Her blog tends to get a lot of traffic from both search engine results and also social media.
At the end of the month she has referred over $20,ooo in sales via the banners and links.
The merchant validates the sales and approves payment from the affiliate network.
The affiliate network then pays Courtney 10% of $20,000.
Courtney earns $2000.
Not bad as I’m sure you will agree!
Here are some examples of well known affiliate programs
I have written an article here that goes into greater detail.
Who Can Do Affiliate Marketing?
Absolutely anyone who is willing to learn the skills and do the work needed!
There are full time and part time affiliates hard at work creating content and promoting products as you are reading this very sentence!
People from all walks of life and all aprts of teh world are affiliate marketers.
There are full time entrepreneurs who spend their day creating content and promoting it on social media.
There are stay at home moms who are looking for some extra income or have built their business up to the point where they no longer need to work a traditional job.
I have heard of students that build affiliate income online in order to help them through college.
Some retirees also take up affiliate marketing as an extra source of income during retirement.
Digital nomads (People who travel the world and live from online earnings, such as affiliate marketing, drop-shipping etc,) are a common sight in some places in the world.
Just in case you have never heard of a Digital Nomad here is a video.
Pretty much anyone you can imagine can be an affiliate marketer.
So long as you have a computer and an internet connection.
Are willing to learn the skills and put in the effort.
You can do affiliate marketing.
Can You Really Make Money Affiliate Marketing?
There are people making full time and part time livings from affiliate marketing.
You also have super affiliates…
Super affiliates are the top earners.
These people are earning hundreds of thousands of dollars per month.
Many multi millionaires have been made from affiliate marketing.
This is not a guarantee by any stretch of the imagination and is not a common result.
They do exist and are not as rare as you may imagine.
However, a more realistic expectation is to replace your job and to work full time from home on your computer or from wherever on your laptop.
There are a lot of people achieving that level of success.
There are also a lot of people making very comfortable incomes in the tens of thousands of dollars per month range.
The level you achieve really is dependent on the products you promote and also the amount of effort you put in.
How To Learn Affiliate Marketing
I have two suggestions on how to learn affiliate marketing.
You can check out the step by step guide I created that gives an overview of the basics.
It is located on this site and free to look at.
Affiliate Marketing Training Guide
Wealthy Affiliate offers step by step training right from absolute beginners to advanced cutting edge techniques.
The training is divided up into classes that are both article based and video based in a lot of cases.
More classes are added all the time.
There is a built in WordPress platform that allows you to build and host your website within the platform.
Access to over 3000 WordPress Themes for free.
A built in Keyword research tool.
A built in Social Media platform that allows members to interact and help each other.
Access to what I believe to be the best Affiliate Marketing Training on the Internet today.
Here are some stats from their homepage.
1.4 Million Members
13 Years in Business
1800 Expert Coaches
****I urge you not to miss out on the free trial, simply because I do not know if they have an end date for the offer in mind or not****
Are you interested in learning more about Affiliate Marketing?
Are you serious about making money online?
Learn the techniques crucial to your success.
It’s FREE to take a look.
I hope you enjoyed this article and please share it with your friends and followers by using the social share icons.