Affiliate marketing is about a way to monetize your website by selling a product for someone else. A good example of this is by writing a review about a certain product. You write all the pros and cons about the product and provide your recommendations. Then you can provide a link to where the product can be purchased. If someone reading your review clicks on this link and buys the product, the merchant of the product pays you a commission by providing (sending) the customer to the merchant.
This is the simplest form of affiliate marketing. Very similar to leaving a review of a product on the merchant’s site, however, this only benefits the merchant. Whereas if you agree to be an affiliate for the merchant, then you can receive a commission for every customer you send to the merchant that buys a product.
Who Can Be An Affiliate?
I dare say anyone that is an adult can be an affiliate for a merchant. I am sure you must have an application to be an affiliate be approved by the merchant. Generally speaking, though, unless there is a specific stipulation preventing you from being an affiliate, most people qualify. Some affiliate networks, like Shareasale.com, are huge networks with many different businesses. You complete an application to become an affiliate for one or more of the many companies that belong to their network.
It takes anywhere from a day to a week to get approved. However, not every vendor (you) is allowed to become an affiliate for certain reasons. Each company has their own set of requirements for their affiliates. Some stipulations forbid someone to becoming an affiliate if you are new and not experienced at affiliate marketing, for example. Other requirements may be the amount of traffic your website gets. Everything is traceable so it is not wise to lie about your statistics.
There are a lot of affiliate networks and some are very large with hundreds of companies belonging to the network. The affiliates that are associated with the companies of these networks answer to the networks. Some of these more popular networks are shareasale, Rakuten LinkShare, CJ (Commission Junction), Clickbank, just to name a few.
Some of the biggest companies around were able to become large because of offering an incentive of giving affiliates a percentage of the sales by bringing customers to the merchant. Some of these companies are Apple Inc, Amazon.com, Nike Inc, AT&T, Dell Computers, Microsoft, Shopify, InfusionSoft, just to name a few.
How Do You Get Paid with Affiliate Marketing?
Affiliates advertise a product or an action to be completed by a customer. If it is a product that an affiliate is advertising the amount that they can be paid is usually always a percentage of the total amount of the sales made. If it is an action, then if the customer completes an action, for example, provide their email address, the affiliate will get paid a set amount of money, anywhere from a dollar to maybe up to fifty dollars per action.
If the affiliate is a member of an affiliate network the affiliate is paid by the network once a month, in the next month after the transaction was made. Amazon has a very popular “associate program” that their affiliates belong to. A vendor signs up with the program and 99.9% of signees are approved. The vendor can then copy and paste any link, banner or picture from Amazon.com to place on their website.
If the vendor is able to get a click from their link to Amazon, whatever the customer buys the vendor will earn a commission between 4% and 9% of the total sell. The commission will increase up to the maximum only if the vender is able to send buying customers to Amazon. What is great about this program is that your website might be advertising a book, but if the customer buys a television instead, you still earn a commission on the sale.
Can You Make Money in Affiliate Marketing?
The answer to this question is a definite yes. How do I know these things? Because I have been making money in affiliate marketing ever since 2006. I started my first online business with eBay and I have progressed each year. I no longer have an eBay store, but I really learned some very valuable lessons at eCommerce by starting with eBay. I recommend every beginner to at least try it out first to see if you have what it takes to be an entrepreneur.
You don’t have to build a website, you don’t have to market or have to buy advertising. eBay already has the website, has the traffic to the website and already does all the advertising for you. All you have to do is create a store within the website. You have the choice to sell your products at auction or buy now at a set price.
You don’t even have to furnish an inventory if you so choose. You can hire a drop-shipper to store your inventory and even ship it to your customer for you. So it provides you with immense power to create a home-based business and even become a powerseller, which rewards you with lower fees and better shipping prices.
So with the benefits of having a store at eBay, OverStock.com, or Amazon.com., there are also drawbacks to this plan. The biggest drawback are the fees involved with having a store. Unless you are constantly making sales every week, you could wind up owing more money to eBay than your actual profits.
Also comparing these costs to a real brick and mortar store don’t compare at all. Look at the differences in each:
Brick and Mortar Store:
- Costs of building or rental of store space
- Costs of inventory of merchandise
- Costs of employees
- No building or store rental
- No inventory
- No employees
- Easy to scale up
As you can see affiliate marketing is the easiest form of business to make money from. Anyone can do it: You don’t even have to have a website even though most people do. All you have to do is market your message to the world through the search engines, social media, or email.
- Retired people
- Stay at home moms
- Stay at home dads
- College students
- School dropouts
- Part time people with a job
- Full time people with a job
In conclusion to what is affiliate marketing about would be it is the most popular business model for anyone to start. You don’t have to have a college degree. You don’t even have to have an education. You can do it part time like most people do. It is also the easiest to get started with because all you need is a computer and an Internet connection. No investment necessary. To learn more about how to become an affiliate marketer, please see my report about: