Affiliate Marketing 101: What it is and How to Get Started

Advertisements

What if you could make money at any time, from anywhere — even while you sleep?

Affiliate marketing is one of my favorite monetizing methods because it can feel quite passive over time when your blog is set up correctly along with the right type of content published to an audience that is interested in what you have to say.

I won’t say that making money with affiliate marketing is 100% passive because it does require a lot of upfront work especially when you’re a total beginner. Just like any other form of passive income ideas, nothing is ever fully “passive.” For example, saving money and socking that away into your investment account will require hard work at the beginning to build your army of minions and watch that income grow over the years.

This is the concept behind affiliate marketing.

Affiliate marketing is the process by which an affiliate earns a commission for marketing another person’s or company’s products. The affiliate simply searches for a product they enjoy, then promotes that product and earns a piece of the profit from each sale they make. The sales are tracked via affiliate links from one website to another.

Advertisements

Advertisements

Affiliate marketing is a great way to drive sales and generate significant online revenue. Extremely beneficial to both brands and affiliate marketers, the new push toward less traditional marketing tactics has certainly paid off.

In fact, affiliate marketing spend in the United States increased from $5.4 billion in 2017 to $8.2 billion in 2022 — which means there’s plenty of room for those looking to get a piece of the pie.

This step-by-step beginner’s guide will walk you through how to launch your affiliating marketing business and what benefits you can expect.

Advertisements

How Does Affiliate Marketing Work?

Because affiliate marketing works by spreading the responsibilities of product marketing and creation across parties, it leverages the abilities of a variety of individuals for a more effective marketing strategy while providing contributors with a share of the profit. To make this work, three different parties must be involved:

Seller and product creators.
The affiliate or advertiser.
The consumer.

Let’s delve into the complex relationship these three parties share to ensure affiliate marketing is a success:

Advertisements

Seller and product creators.

The seller, whether a solo entrepreneur or large enterprise, is a vendor, merchant, product creator or retailer with a product to market. The product can be a physical object, like household goods, or a service, like makeup tutorials.

Also known as the brand, the seller does not need to be actively involved in the marketing, but they may also be the advertiser and profit from the revenue sharing associated with affiliate marketing.

For example, the seller could be an ecommerce merchant that started a dropshipping business and wants to reach a new audience by paying affiliate sites to promote their products. Or the seller could be a SaaS company that leverages affiliates to help sell their marketing software.

Advertisements

The affiliate or publisher.

Also known as a publisher, the affiliate can be either an individual or a company that markets the seller’s product in an appealing way to potential consumers. In other words, the affiliate promotes the product to persuade consumers that it is valuable or beneficial to them and convince them to purchase the product. If the consumer does end up buying the product, the affiliate receives a portion of the revenue made.

Affiliates often have a very specific audience to whom they market, generally adhering to that audience’s interests. This creates a defined niche or personal brand that helps the affiliate attract consumers who will be most likely to act on the promotion.

Advertisements

The consumer.

Of course, for the affiliate system to work, there needs to be sales — and the consumer or customer is the one who makes them happen.

The affiliate will market the product/service to consumers through the necessary channel(s), whether it be social media, a blog or a YouTube video, and if the consumer deems the product as valuable or beneficial to them, then they can follow the affiliate link and checkout on the merchant’s website. If the customer does purchase the item, then the affiliate receives a portion of the revenue made.

However, keep in mind that the customer must be aware that you, the affiliate, are receiving a commission off the product.

According to the Federal Trade Commission, an affiliate marketer must clearly and conspicuously disclose their relationship to the retailer, thus allowing the consumer to decide how much weight to give your endorsement.

Advertisements

A disclaimer such as “The products I’m going to use in this video were given to me by Company X” gives your viewers the information they need and allows them to make an informed decision about whether or not to buy the affiliate product.

Advertisements

Check out related articles…

How Do Affiliate Marketers Get Paid?

A quick and inexpensive method of making money without the hassle of actually selling a product, affiliate marketing has an undeniable draw for those looking to increase their income online. But how does an affiliate get paid after linking the seller to the consumer?

Advertisements

The answer can get complicated.

The consumer doesn’t always need to buy the product for the affiliate to get a kickback. Depending on the program, the affiliate’s contribution to the seller’s sales will be measured differently.

The affiliate may get paid in various ways:

Pay per sale.

This is the standard affiliate marketing structure. In this program, the merchant pays the affiliate a percentage of the sale price of the product after the consumer purchases the product as a result of affiliate marketing strategies. In other words, the affiliate must actually get the investor to invest in the affiliate product before they are compensated.

Pay per lead.

A more complex system, pay per lead affiliate marketing programs compensates the affiliate based on the conversion of leads. The affiliate must persuade the consumer to visit the merchant’s website and complete the desired action — whether it’s filling out a contact form, signing up for a trial of a product, subscribing to a newsletter or downloading software or files.

Advertisements

Pay per click.

Affiliate marketing is largely about generating traffic to websites and trying to get customers to click and take action. So, the myth that affiliate marketing is all about SEO (search engine optimization) is no surprise.

However, while organic traffic is free, SEO simply can’t sustain affiliate marketers in such a saturated market — which is why some affiliate marketers utilize PPC.

PPC (pay per click) programs focus on incentivizing the affiliate to redirect consumers from their marketing platform to the merchant’s website. This means the affiliate must engage the consumer to the extent that they will move from the affiliate’s site to the merchant’s site. The affiliate is paid based on the increase in web traffic.

There are two common concepts in PPC:

Advertisements

CPA (cost-per-acquisition): With this model, the affiliate gets paid each time the seller or retailer acquires a lead, which is when an affiliate link takes the customer to the merchant’s online store and they take an action, such as subscribing to an email list or filling out a “Contact Us” form.
EPC (earnings-per-click): This is the measure for the average earnings per 100 clicks for all affiliates in a retailer’s affiliate program.

Pay per install.

In this payout system, the affiliate gets paid each time they direct a user to the merchant’s website and installs a product, generally a mobile app or software.

Advertisements

So, if a retailer budgets for a $0.10 bid for each install generated via an affiliate program, and the campaign results in 1,000 installs, then the retailer will pay ($0.10 x 1,000) = $100.

Why Be an Affiliate Marketer?

Passive income.

While any “regular” job requires you to be at work to make money, affiliate marketing offers you the ability to make money while you sleep. By investing an initial amount of time into a campaign, you will see continuous returns on that time as consumers purchase the product over the following days and weeks. You receive money for your work long after you’ve finished it. Even when you’re not in front of your computer, your marketing skills will be earning you a steady flow of income.

Advertisements

No customer support.

Individual sellers and companies offering products or services have to deal with their consumers and ensure they are satisfied with what they have purchased.

Thanks to the affiliate marketing structure, you’ll never have to be concerned with customer support or customer satisfaction. The entire job of the affiliate marketer is to link the seller with the consumer. The seller deals with any consumer complaints after you receive your commission from the sale.

Advertisements

Work from home.

If you’re someone who hates going to the office, affiliate marketing is the perfect solution. You’ll be able to launch campaigns and receive revenue from the products that sellers create while working from the comfort of your own home. This is a job you can do without ever getting out of your pajamas.

Cost-effective.

Most businesses require upfront startup fees as well as a cash flow to finance the products being sold. However, affiliate marketing can be done at a low cost, meaning you can get started quickly and without much hassle. There are no unexpected fees to worry about and no need to create a product. Beginning this line of work is relatively straightforward.

Convenient and flexible.

Since you’re essentially becoming a freelancer, you get ultimate independence in setting your own goals, redirecting your path when you feel so inclined, choosing the products that interest you and even determining your own hours. This convenience means you can diversify your portfolio if you like or focus solely on simple and straightforward campaigns. You’ll also be free from company restrictions and regulations as well as ill-performing teams.

Performance-based rewards.

With other jobs, you could work an 80-hour week and still earn the same salary. The good thing about affiliate marketing is that it is purely based on your performance. You’ll get from it what you put into it. Honing your reviewing skills and writing engaging campaigns will translate to direct improvements in your revenue. You’ll finally get paid for the outstanding work you do!

Advertisements

Common Types of Affiliate Marketing Channels

Most affiliates share common practices to ensure that their target audience is engaged and receptive to purchasing promoted products. But not all affiliates advertise the products in the same way. In fact, there are several different marketing channels they may leverage.

Influencers.

An influencer is a content creator who holds the power to impact the purchasing decisions of a large segment of the population.

This person is in a great position to benefit from affiliate marketing. They already boast an impressive following, so it’s easy for them to direct consumers to the seller’s products through social media posts, blogs and other interactions with their followers. The influencers then receive a share of the profits they helped to create.

Influencer marketing campaigns are particularly popular on Instagram, TikTok, and Pinterest where brands form partnerships with influencers who are seen as experts or authorities in their specific niches. Depending on the deal, a campaign could consist of a series of product reviews with photos, account takeovers or live videos.

While an influencer might have their own branding and aesthetic, it’s important to add elements that tie up with your brand to ensure brand recall and recognition. This can be achieved by using apps like Instasize, where you can quickly edit and customize your campaign’s creatives in a tap.

Bloggers.

With the ability to rank organically in search engine queries, bloggers excel at increasing a seller’s conversions through content marketing. The blogger samples the product or service and then writes a comprehensive review that promotes the brand in a compelling way, driving traffic back to the seller’s site.

The blogger is awarded for his or her influence spreading the word about the value of the product, helping to improve the seller’s sales.

Paid search-focused microsites.

Developing and monetizing microsites can also garner a serious amount of affiliate sales. These sites are advertised within a partner site or on the sponsored listings of a search engine. They are distinct and separate from the organization’s main site. By offering more focused, relevant content to a specific audience, microsites lead to increased conversions due to their simple and straightforward call to action.

Email lists.

Despite its older origins, email marketing is still a viable source of affiliate marketing income. Some affiliates have email lists they can use to promote the seller’s products. Others may leverage email newsletters that include hyperlinks to products, earning a commission after the consumer purchases the product.

Another method is for the affiliate to build an email list over time. They use their various campaigns to collect emails en masse, then send out emails regarding the products they are promoting.

Advertisements

Large media websites.

Designed to create a huge amount of traffic at all times, these sites focus on building an audience of millions.

These websites promote products to their massive audience through the use of banners and contextual affiliate links. This method offers superior exposure and improves conversion rates, resulting in a top-notch revenue for both the seller and the affiliate.

One of the most well known sites is the Amazon affiliate program, Amazon Associates, which boasts the largest market share of affiliate networks (46.15%).

Other big-name affiliate marketing programs include:

Or, if you prefer, you can even reach out to retailers directly and see if they offer an affiliate program. If not, they may still be willing to offer you a special coupon or discount code to share with your audience to help drive traffic to their online shop.

Advertisements

Tips to Help You Become A Successful Affiliate Marketer

Ready to try your hand at affiliate marketing? Here are our top online marketing tips to help you get started.

Develop a rapport with your audience.

When beginning your affiliate marketing career, you’ll want to cultivate an audience that has very specific interests. This allows you to tailor your affiliate campaigns to that niche, increasing the likelihood that you’ll convert. By establishing yourself as an expert in one area instead of promoting a large array of products, you’ll be able to market to the people most likely to buy the product.

Advertisements

Make it personal.

There is no shortage of products you’ll be able to promote.

You’ll have the ability to pick and choose products that you personally believe in, or even products from your favorite brands, so make sure that your campaigns center around truly valuable products that consumers will enjoy. You’ll achieve an impressive conversion rate while simultaneously establishing the reliability of your personal brand.

You’ll also want to get really good at email outreach to work with other bloggers and influencers. Use a tool like ContactOut or Voila Norbert to gather people’s contact information and send personalized emails to garner guest blogging and affiliate opportunities.

Start reviewing products and services.

Focus on reviewing products and services that fall within your niche. Then, leveraging the rapport you have created with your audience and your stance as an expert, tell your readers why they would benefit from purchasing the product or service you are promoting.

Advertisements

Almost anything sold online can be reviewed if there is an affiliate program — you can review physical products, digital software or even services booked online, like ride-sharing or travel resort booking.

It is especially effective to compare this product to others in the same category. Most importantly, make sure you are generating detailed, articulate content to improve conversions.

Use several sources.

Instead of focusing on just an email campaign, also spend time making money with a blog, creating landing pages, posting on review sites, reaching out to your audience on social media and even looking into cross-channel promotions.

Test a variety of digital marketing strategies to see which one your audience responds to the most. Make frequent use of this technique.

Advertisements

Choose campaigns with care.

No matter how good your online marketing skills are, you’ll make less money on a bad product than you will on a valuable one. Take the time to study the demand for a new product before promoting it.

Make sure to research the seller with care before teaming up. Your time is worth a lot, and you want to be sure you’re spending it on a product that is profitable and a seller you can believe in.

Stay current with trends.

There is serious competition in the affiliate marketing sphere. You’ll want to make sure you stay on top of any new trends to ensure you remain competitive.

Additionally, you’ll likely be able to benefit from at least a few of the new marketing techniques that are constantly being created.

Be sure you’re keeping up to date on all these new strategies to guarantee that your conversion rates, and therefore revenue, will be as high as possible.