Table of Contents
- 1 What is Affiliate Marketing and How Does it Work?
- 2 The Affiliate Marketing Process – How it Works and How to Start with it.
- 3 How to Turn Your Passion Into a Successful Affiliate Marketing Business – As an Affiliate
- 4 What is Wealthy Affiliate University?
Really, what is affiliate marketing and how does it work? Read only this post if you want to get a full understanding of how this process works. You have come to the right place since you are about to find the most comprehensive answer to this question. It has come to my attention that this has been a major question on many people’s lips, hence the birth of this post.
Important Note: Make sure you check out this Wealthy Affiliate review to learn how you can turn your passion into a successful Online business.
You are here because you either want to know the meaning of affiliate marketing, how it works or simply want to start making money using this method but need to know how. I went out of my way and conducted the most in-depth research to provide you with the most comprehensive answer to this question.
What is Affiliate Marketing and How Does it Work?
Affiliate marketing is a type of marketing where an individual or company gets paid what is known as “affiliate commissions” for advertising or promoting OTHER people’s products.
Hi there and welcome to “Success with Peter Mantu”. I will attempt to explain what affiliate marketing is, how it works and how you can immediately start applying what you have learned from the information shared within this post, starting today. This is one of the shortest posts I have ever published, so rest assured that you will finish reading this within the next couple of minutes, reading at a slowest pace possible.
Who am I kidding? This post has over two thousand words and if you are serious about learning more on this subject, you must read it in its entirety. 🙂 Forgive me for wanting to help by giving you as much information as I think you deserve. Others refer to affiliate marketing as:
Before you begin to learn about affiliate marketing at its core, you need to understand its basis which strictly involves a relationship between four parties (The Advertiser, The Affiliate Network, The Publisher – also known as the Affiliate and The Customer or Product Consumer) which are explained in the following detailed process:
What is affiliate marketing and how does it work?
The Affiliate Marketing Process – How it Works and How to Start with it.
Read below to have a full understanding of how this whole affiliate marketing process works. Learn who is who in the zoo by following all the steps from step one to step five.
- The Advertiser – An Established Business or Company
This is a business or company selling services or products on their websites. These are also known as retailers or merchants. Some of these merchants include companies paying people a lot of money to test mobile apps and so forth. You would be surprised what advertisers do to get the word out about their products.
If you own any type of business and are more than willing to pay other people to assist you grow your business by helping you make more sales for your products or services; you are definitely an advertiser. What advertisers do in the affiliate marketing business is simply visit any affiliate network of their choice and place their products or services on the network’s website before publishers come into play.
- The Affiliate Network
Examples of the most commonly known affiliate networks include Amazon.com, Clickbank.com, CJ Affiliate by Conversant (formerly Commission Junction) and many others which I have not mentioned in this post.
Without an affiliate network, which is basically the heart of this whole process; affiliate marketing would not exist as this is the main hub connecting all other involved parties together. I have already given examples of affiliate networks above and you will understand why this is the heart of affiliate marketing in a few minutes. Some advertisers choose to have their own in-house affiliate program, while others choose an affiliate network to handle all of their affiliate network program.
This involves handling all the tracking technology used to facilitate the entire affiliate marketing process. The process includes the creation of affiliate links for publishers, tracking of sales and “conversions” made through publishers or affiliates’ referral links and the payment of “affiliate commissions” to publishers. Affiliate networks also handle all issues related to customer service and refund requests by customers or consumers. This would definitely take a lot of programming and a few computer geeks in the office to set up. If I was an advertiser or company looking to start an affiliate marketing program on any of my products, I would really consider letting these guys take care of all this for me.
- The Publisher or the Affiliate
You are an affiliate or publisher if you are willing to promote the advertiser’s products or services in exchange for earning revenue or affiliate commissions. The first thing you need to do is know what type of products you want to promote and simply head over to an affiliate network of your choice and search for relevant products from different advertisers. Click on any of the affiliate network links above and get a glimpse of some of the products that advertisers have placed on different affiliate networks.
Advertisers or companies would normally have a contractual agreement with the publisher or affiliate stating their consent to work with the affiliate in a partnership. This is then followed by “creatives” provided to the publisher by the advertiser (inside the affiliate network) which may include banners, links or even videos that can be used on the publisher’s medium of promotion. This can be a website or a blog. All these creatives have a uniquely coded “affiliate link” pointing the customer or consumer to the advertiser’s website before they take the final action of either clicking a link (where an affiliate gets paid per click), submitting their name and email address (an affiliate gets paid per lead) or purchase a product or service of their interest (affiliate gets paid per sale).
As illustrated in the image above, the publisher has an unlimited amount of options to use as a way of promoting the advertiser’s product or service to the customer. This can be done through sharing affiliate links on social media platforms such as Google Plus, Facebook, and Twitter. I know of a lot of people who have made hundreds of thousands of dollars Online by using the power of social media. The process of sharing can also be done through search engines like Bing, Yahoo and Google where customers or consumers will perform a search by typing what is called keywords for a product they are interested in. Other methods of sending traffic to your affiliate offers include using paid traffic sources.
To find out more about what the whole process of using keywords to search for products and services Online involves, you need to learn how you as an affiliate or publisher need to perform what is called keyword research to have your website positioned on the first page of major search engines such as Google, Yahoo and Bing in order to be found by consumers or potential customers. You can also use Google or Facebook ads to promote to potential customers.
If you don’t have a company of your own, products or services to sell, this is who you would want to be. Also, as a beginner in the Online business; affiliate marketing is one of the best ways to make money Online.
I will show you how to make money as an affiliate for free towards the end of this post. All you need is a laptop or a computer with Internet connection. Keep reading to learn how.
- The Customer or Consumer
This is an integral step which completes the whole affiliate marketing process. A customer or a consumer is anyone who will see the publisher or affiliate’s promotional ad, either by searching for it using search engines such as Google, Yahoo and Bing or when someone or the publisher shares the ad on social media platforms. This is also called website traffic which most marketers seem to be struggling with.
My favorite method of sending immediate, fast targeted website traffic is by paying for it at a cost of $0.002 per visitor. I am sure you would want the same thing if fast results are your main focus.
When the customer or consumer clicks the ad or the affiliate link, they will be redirected to the advertiser’s website where they will complete the action we normally call a conversion. The publisher or affiliate will be credited for a sale or conversion once the consumer’s action is complete. This whole process takes place inside the affiliate network since they are the ones doing all the tracking and allocation of credits and sales.
As stated in the contractual agreement between the advertiser and publisher, the affiliate network pays the publisher a commission for every sale or conversion made through their referral affiliate link.
Types of Conversions (Credits that publishers or affiliates are paid for)
Pay Per Click or PPC – this is self explanatory – affiliates get paid for all valid clicks generated through their referral link. It doesn’t matter whether the consumer made a purchase after clicking the affiliate link or not, you still get paid anyway. This should not be confused with “Pay Per Click” advertising and I won’t be going into this since these are two totally different concepts. Just stick to what I mentioned in the first sentence of this explanation.
Pay Per Sale or PPS – again, this is also self explanatory – make a qualified sale and get paid a percentage of the product cost. Most affiliate networks have advertisers willing to pay anything between 50% to 75% of the sale. Imagine making 300 sales on a $67.00 product that pays out 75% in affiliate commissions.
Let’s do the math here: 300 x 0.75 x $67.00 = $15,075.00 paid into your local bank account. If you don’t know what that looks and feels like, take a good look at the man in the picture above. 🙂
Pay Per Lead or PPL – Affiliates get paid for a completed action where a consumer submits their name and email address on the advertiser’s website. This happens when advertisers want to promote to the same person on multiple occasions. You get them the lead, they simply pay you for it. As easy as this may sound, you’d be surprised how reluctant people are at giving out the name and email address Online.
I am pretty sure that we would all love to be the man in the picture above carrying a big bag full of money. I definitely would and this is why I am prepared to share my knowledge on how to turn any passion into a successful affiliate marketing business. As I mentioned earlier, I think by now you should know that all you need to do this is a laptop or a computer with Internet connection. Are you ready? Let’s do this… 🙂
How to Turn Your Passion Into a Successful Affiliate Marketing Business – As an Affiliate
Without wasting anymore of your precious time, I am going to dive right into it.
How can you make money Online as an affiliate?
I have previously taught this method in many of the posts published in this blog but nevertheless, nothing stops me from doing it once more since you are already here. I promise to make it short this time around. This all boils down to knowing how to pick the best affiliate products to promote. Read below for more details.
Four Core Steps to Affiliate Online Success
- Step One – Pick an interest or passion – write it down NOW
You might as well stop trying to make money Online if you don’t do this as I am asking you to. Everyone has something they are passionate about and everyone has something that interests them the most. You know what you are passionate about, but you just don’t know how you can turn it into a successful Online business. I’ll show you how to do this while having the most fun doing it. This is why it’s crucial to pick something you are most passionate about as this will ensure that you never get bored and start becoming less motivated along the way. You will have fun doing what you love and get paid whilst doing it. I have explained the importance of picking an interest in one of my posts titled “How to make money blogging“. You are more than welcome to read it if you need more help in this department. Otherwise, continue reading to learn more on how you can start making money as an affiliate below.
- Step Two – Create a website or blog to market or promote products from different advertisers
Wait – this is the easiest part! I will show you where to create a website or blog in less than thirty seconds for free. Wow, I almost lost you there…stay with me please, I am here to help.
The first thing you would want to do is get a domain name for your website or blog. A domain name is simply an address for your website or blog just like any off-line business has a physical address. As you have probably noticed already, mine is “imwithpetermantu.com” and I have my own reasons for choosing it(I am with Peter Mantu). Depending on your interest or passion, choose something that you would want your potential customers to remember you by or simply brand yourself like I did.
When you are ready, head over to Hostgator.com, click on the “domains” tab at the top right of your screen and check the availability of your choice of domain name as shown in the image below.
Once you feel comfortable with your domain name, simply register it, come back to this post and join Wealthy Affiliate University NOW!
What is Wealthy Affiliate University?
Thank you for taking the time to read this long post titled: What is affiliate marketing and how does it work?. I hope you learned as much as you wanted to learn on affiliate marketing, how it works, how to start with it, and how to start becoming a publisher or an affiliate yourself. If you truly feel that this post is worth sharing with the public at large, please do so and leave your beautiful comments below.
To your affiliate marketing success,
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If you would like to know what affiliate marketing is, how it works and how to start with it, this is the only post in the entire world-wide-web you need to read.