What exactly is this “Affiliate Marketing” so many are banging on about? Is it still a practical option? And how could I possibly find the time to start with affiliate marketing when I’m already working full time?
When asking yourself and Google these questions, you have probably been bamboozled by the search results generated online. You are not alone. That’s why I put together a beginners guide to affiliate marketing, to help you understand the basics and how to get started.
There are many ways you can make money online these days, from selling on Amazon and eBay, creating your own YouTube channel, to managing social media content.
However, few are as flexible or as rewarding as affiliate marketing. If done right, it can be a lucrative way of earning a part-time or full-time income, whilst producing creative, helpful and valuable content. Something which a lot of other “make money online” options cannot boast.
In this article, we’ll have a look at:
- What defines affiliate marketing
- How affiliate marketing works
- Touch on some of the benefits that attract so many to the idea
- Take a look at how to start affiliate marketing for beginners
Let’s dive in…
What is Affiliate Marketing?
Since The 4-Hour Work Week hit our shelves, we witnessed an online army forming, seemingly all with the same goal. To wake up in the morning, open their laptop, and see they have made money overnight – sounds great right? But, how is that even possible?
Two words, passive income – money earned with minimal activity requiring as little daily effort as possible (from the person making it). In other words, not trading your time for money. Think of making money while you sleep, making money in different time zones, automation, you get the idea. Although in essence, affiliate marketing is not by definition passive income, for the vast majority of people, it is the starting point. The affiliate marketing business model is also an excellent way to create a very flexible lifestyle as it has no fixed hours and can be worked wherever you have the internet.
Pat Flynn defines affiliate marketing brilliantly
“Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make”.
The idea is that you as an affiliate get paid for referring customers or sales to a business. Simple right. It’s based on revenue sharing. If you have a product and want to sell more, you can offer promoters (you and me), a financial incentive through an affiliate program. If you have no product and want to make money, then you can promote a product that you feel has value and earn an income from it as an affiliate marketer. Make sense?
Companies will always want more exposure (on the internet) and they will pay you a commission for referring people to their site that take action, either by purchasing something or signing up for a free trial.
Here’s an affiliate marketing example – I refer people to Bluehost(affiliate link) and get paid a commission when somebody purchases a hosting plan from them (Bluehost). Simple right? But, here’s the thing;
You should only ever recommend products that you have either used or are very familiar with. You also need to be 100% confident the product or services you’re promoting will help your audience – I see this as a smart way to do affiliate marketing.
From my experience, far too many people refer to products and services that they have never used or for the sole reason certain products and services pay out a high commission. People will see through this and not trust these recommendations. Once you have lost the trust of the consumer, it’s game over.
The golden rule is to remember we are in the business of helping people solve their problems. Sticking a random link on your website and hoping they click is not going to cut it. You need to be providing your audience with value and showing them how a product or service can help them before you ask them to purchase or sign up.
How Does Affiliate Marketing Work?
There are 3 main players in the Affiliate Marketing process
- The Merchant
- The Affiliate
- The Consumer
THE MERCHANT – either a company or person with products to sell. The merchant will set out an affiliate agreement and have an affiliate program that you can join and leverage. Amazon is a well-known merchant that offers an affiliate program – “Amazon Associates”.
The majority of companies have an affiliate program nowadays, as it’s cost-effective for them. These companies will essentially get free marketing (upfront) from whoever joins the affiliate programs and are only required to pay the affiliates once a sale has been made.
See for yourself, Google the company’s name + “affiliate program” and (if they have one) it will be one of the top search results.
THE AFFILIATE – Thier job is to promote and generate as many leads as possible for the merchant. This is achieved by driving as much (targeted) traffic to the merchants’ sales or sign up page via a unique affiliate link. This link is how the merchant will determine who to attribute the sale too.
Different companies offer different terms and conditions surrounding affiliate links, such as percentage of sale and length of time from when the consumer clicks on the link to when it expires.
THE CONSUMER – Someone who clicks the affiliate link and takes action by either making a purchase or signing up. An important point regarding the referral process is that the consumer pays no more for a particular product as a result of using the affiliate link and in some cases will actually pay less due to special offers or discount codes.
Do you shop regularly online? Well, then you have probably clicked an affiliate link and purchased something or completed a signup process.
How Do You Get Paid From Affiliate Links?
So to recap;
- You recommend a product/service to your audience
- Your audience purchases the product/service via your affiliate link
- You get paid a commission from that sale
What Attracts So Many To Affiliate Marketing?
There are a lot of benefits to starting an affiliate marketing business as well as some drawback, but some of the main reasons affiliate marketing has been so popular are;
- You don’t need any prior knowledge or high-level education.
- Low start-up costs, therefore low risk. This is great news for anyone with very little capital.
- No need to create your own products, saving a lot of time and effort
- You don’t need to actually do any selling as the person or company who own the product will do the selling for you.
- No need to stock the product either as again all the selling, shipping and taking payments is done by the product owner.
- Your website will be online 24/7, meaning anyone anywhere in the world can make you money, at any time.
Now don’t get me wrong, there is work to be done, especially in the beginning if you’re starting from scratch. This is not a “get-rich-quick” scheme. This will take time and effort and some trial and error. Anyone not willing to put in the work should not even bother going any further with affiliate marketing, let me be clear on that.
Yes, you can speed up the learning process somewhat by investing in some high-value professional training, but this all depends on your budget and how serious you are about starting an online business in affiliate marketing.
However, regardless of where you choose to start, to be successful, there’s no doubting you need to build a smart strategy. But this is consistent when starting any business, online or offline.
Ultimately, it’s down to you to find the customers (for the products) and also to carry out the promoting/marketing, but if you get it right, then affiliate marketing can be a real winner with uncapped potential earnings and the icing on the cake, a work schedule, and lifestyle designed by you!
Think back to Passive Income.
How To Start Affiliate Marketing For Beginners
There are now (in 2019) more options for getting started than ever before when it comes to affiliate marketing. Wherever you look, you’ll find courses and training that promise all sorts of secrets and tactics in return for $197, $997, even $1997 & beyond. Whilst some of these programs and courses will have some great content and training, when you’re just getting started it can be a daunting process knowing where to start & who you can trust. At the end of the day, it’s the internet & there are a lot of SCAMS out there.
So, before giving up your day job and calculating the cost of that Lamborghini you’ve always wanted, consider the following; how serious are you about starting an online business?
If you answered something like, “I’m not sure yet”, “I have no money”, or “I want to know more”, then the best option is to find platform that offers some form of FREE training that will teach you all the basics of affiliate marketing whilst you’re still deciding if it’s for you.
The platform I found to offer the most comprehensive FREE training is at Wealthy Affiliate. The Free Starter Account at Wealthy Affiliate not only provides great affiliate marketing training for beginners but will show you how to build 2 of your own websites (all for free). This is an amazing offer that I haven’t seen matched by anyone else yet. But don’t take my word for it, have a look at the platform in the video below.
Did You Know…
To put the whole affiliate marketing idea into context, think about this for a minute. Affiliate marketing is very similar to something we all most likely do in our offline worlds through word of mouth nearly every day, but probably don’t even realise when and don’t get paid for it!
Have you given any recommendations to your family or friends recently about a specific product or item they were looking to buy? Or maybe even if someone has asked if you know a good place to eat or visit?
I’m sure you’re getting the point by now. But, imagine every time you did these things, you got paid for them! Would that be something of interest to you? At the end of the day, there is only ever one way to find out if affiliate marketing is for you, and that’s by taking action. Stop procrastinating and start doing!
If you think I may have missed an important point or have anything to add to “A Beginners Guide To Affiliate Marketing”, then please leave a reply in the comments below.