What Is Affiliate Marketing And How Does It Make Money?

What is Affiliate Marketing?

How does it make money?

Is it for real or are people that want to make money online delusional or just scammers?

The United States holds the world record of 57.44% Affiliate Marketers! [source: Affstat.com]

Have a look at this guy:

Julien David, made Six Figures in “passive income” by affiliate marketing of world`s renowned online store, Amazon.

[Image Source: ProjectDigitalRise, Julien David]

If you think probably it was his lucky month, then here`s his income a month earlier!

Are you amazed, yet?

Making money while you are sleeping! (But don’t get ahead of yourself, there is work involved…)

You might be thinking there is some magical formula.

There isn’t any magic … but there is a formula.

It`s called Internet Affiliate Marketing– One of the fastest growing online businesses.

But it`s not that simple and by no means is it “Passive Income”;

For most of people, the thought of affiliate marketing is this magical concept of making money without working for it, or just an online scam of rip off artists …

While the concept is very simple!

The execution is not so simple.

So the basic idea is you promote other people’s products, often through an affiliate network, earning a commission if people actually end up buying, thanks to your marketing.

According to [Source: NeilPatel.com]

“It’s based on revenue sharing. If you have a product and want to sell more, you can offer promoters 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”

Let`s get a bit deeper into what affiliate marketing truly is, how it works, and what you need to get started.

So, let’s dive into it, are you ready?

Here are some Definitions of Affiliate Marketing.

One of the best definitions that efficiently defines affiliate marketing is found on Pat Flynn`s Smart Passive Income:

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.

Wikipedia, defines affiliate marketing as an involvement of 4 different parties together. the merchant, the network, the publisher and the customer.

Others define it as a combination of 3;

Like this image.

So, there we have it;

Affiliate marketing is somehow the process of spreading product creation and product marketing across different parties, where each party receives a share of the revenue, per their contribution.

It`s not just a promotion – you can be both the creator and the marketer while still profit from the basic idea of sharing revenue.

[Source: NeilPatel.com]

So, here is a better picture of the process.




[Source: www.fairetail.be/what-affiliate-marketing]

Here are some cool facts about affiliate marketing.

  • U.S. affiliate marketing spend nears $5B. That is twice the economy of Belize
  • UK affiliate marketing drives ~1% of the country’s total GDP (more than industry of agriculture)
  • 40% of marketing professionals quote affiliate marketing as the most desired digital skill
  • Approximately 15% of all digital media industry’s revenue comes from affiliate marketing
  • 78% of CMOs admit affiliate marketing to be their least mastered area of digital marketing
  • Developed affiliate programs account for generating 15% to 30% of all advertiser’s online sales.
  • Over 80% of brands utilize affiliate marketing
  • 38% of marketers call affiliate marketing one of the top customer acquisition methods
  • In 2015 Amazon.com revenue surpassed $100B. Likely, its affiliates generated at least $10B of it
  • In the UK brands spend £1.3B a year on affiliate marketing and lead generation
  • As early as in 2008 Amazon’s affiliate program already had over 2 million affiliates aboard
  • Rakuten’s acquisition of Ebates for $1 billion marked largest amount paid for an affiliate
  • ShareASale affiliate network has more than 1,000,000 affiliate accounts registered
  • Over 50% of top affiliate programs fall into 4 categories: Fashion, Sports, Health & Beauty, Travel
  • Pay-per-call affiliate marketing campaigns convert at 10-15% (vs 2-3% online conversion rate)

How can you get started?

80% of all the brands utilize affiliate marketing.

You just need to sign-up at their program and follow their instructions.
If you own a Blog or personal website, that`d be the best.

Start selling their products on your website and earn some handful commission.

Here are the steps,

  1. Choose your niche.
  2. Research different affiliate programs and products.
  3. Build a site or Blog
  4. Generate excellent content.
  5. Build an audience by influencing followers.
  6. Promote your affiliate product(s).
  7. Repeat steps #4–7 on a continual basis!

[source: affilorama]

So now, you should pretty much understand how it works.

And you are motivated to get into this dream money-making act.

But hold on, is it really a piece of cake?

Does it work for everyone?

Does every affiliate make this much money while sleeping?

These questions trigger the thoughts in your mind while reading the success stories of affiliate marketers and it`s facts.

While from one side, it may seem to be a money-making machine, the other side tells a different story!

An affiliate marketing program is a lot more of work and time-consuming.

In most situations, there`s already a lot of competition so not everyone is going to make money immediately.

Only 0.6% of Affiliate Marketers make it up till the end!

You need to bring the right partner in your program, seek out better and more reliable partners, and update your content regularly to keep the stuff new and fresh.

And it all takes time, energy and efforts.

Also, sometimes it`s a lot riskier.

There are signs of caution when it comes to affiliate marketing.

In a piece, late last year, Affiliate Theft Could Be Costing You Millions, Forbes contributor Jabez LeBret wrote of unscrupulous affiliate marketers’ tactics which cost brands and businesses millions of dollars every year.

Finally, it`s clear that Affiliate Marketing is not myth but also not magic!

You need to work at it!

Yes, people are making millions by becoming affiliates- so you can too!

It’s easier. With technology advancing at an enormous pace- things are becoming simpler and faster.

Moreover, you can operate your business own pretty much your own terms, but there are still rules.

The only thing you need to keep here is Focus and determination.

Affiliates mostly find it hard to stay in it for a long period- just because they`re impatient.

Once you get into it- stay calm.

You will start making some money!

So follow this link to learn how to get going with affiliate marketing today …

To Learn From A Proven Expert To Help You Safely Navigate Through The Internet Marketing Jungle To The Riches That Are Waiting For You

… and then drop me a note and tell me WHEN you make your first online commission!