In Part 2, I briefly covered what Affiliate Marketing is. With Affiliate Marketing, you are in essence selling someone else’s proven products for a commission.
If you’ve skipped Part 2, click here to go back.
Whether you just want to make some extra cash or running an online business, Affiliate Marketing can be a profitable option for you to earn money online.
It’s NOT a get-rich-quick system and has important fundamentals and facts you should learn. This Part covers the most frequently asked questions about affiliate marketing.
Affiliate marketing is a marketing structure that’s in existence for a long time. The affiliate receives a commission for the traffic that he drives to a product owner’s website and the person who lands on the website performs the required action.
For instance, the person buys the product advertised on the website, fills out a form or subscribes to a newsletter. It is a form of marketing based on performance by the affiliate.
There are four major players involved in this marketing practice, namely:
- Product owner – This is a person or business selling a product or service
- Affiliate – The person responsible for promoting the service or product
- Customer – The person buying the product or service
- Affiliate network – An intermediary between affiliates and product owner
As a reward for the affiliate’s marketing efforts, the product owner pays a commission for every successful commissionable event. The commission given to the affiliate varies from program to program but often it’s a percentage of the sale.
There are different ways having affiliates can benefit you as a product owner.
It helps you promote your product and brand to a wider audience without having to spend money on advertising. In fact, product owners experienced that having affiliates increase earnings dramatically.
As a product owner, you only have to pay a commission once a sale took place. Your cash flow will become easier to manage when you allow affiliates to promote your products because you pay commissions from the sales income.
With advertising your own products, you have to pay the advertising cost whether or not you make a sale.
Affiliates can enjoy a few benefits from this form of marketing as well.
As an affiliate, you can enjoy unlimited earning potential from using marketing methods such as email marketing, blogging, or building an affiliate niche site without developing or supporting a product.
All you have to do as an affiliate is to promote the product to your own web traffic and then send them via your affiliate link to the product owner’s site.
The better your relationship is with the people on your list and the more value you provide to them, the higher your income potential will be. There are affiliates who are 6 and 7 figure earners without having any products themselves.
You don’t need any formal qualifications for this kind of work. However, you do need knowledge and skills related to an affiliate marketing business and their application to become a successful affiliate.
Your success is dependent on how well you learn and grow in terms of those skills and expertise. Affiliate marketing is a business opportunity like any other business opportunity.
Keep in mind that product owners have the full authority to turn down or approve an application from an affiliate. Some product owners will look for evidence that indicates you are successful in this business. They will pay attention to the quality of your website and the amount of traffic you generate.
However, there are programs that approve all affiliates, such as Amazon Associates or Clickbank.
Most conventional affiliate programs will reject affiliates with sites that have violent or sexually explicit content, those that promote political or religious views, advocate discrimination, and violate international laws.
Product owners assign a personal identification code to each affiliate. They embed web cookies and tracking links in the affiliate’s links. This way the product owner can track commissions, sales, and referrals to each individual affiliate.
You simply receive a tracking URL that is a unique link provided by the product owner to you. The code embedded in that link track all your sales and you receive the commission.
I think the best answer is ‘It depends’. Too many variables are dependent on how well you run your business. So, neither the product owners nor I can answer this question or promise you anything. The ones who do are breaking the law. It’s against FTC regulations.
Some Super Affiliates are millionaires like my mentor Zach Crawford. Others make no money or barely survive. The rest fit between these two extremes.
Based on evidence from other affiliates, one can say that when done properly, earning potential is unlimited, unlike with a salary which is fixed.
Your earnings depend on learning proper techniques. Then implement them correctly. Your level of commitment and work ethic play a big role. You are truly the master of your own destiny.
Affiliate marketing is a business model that can place you in the top earner category. It’s not get-rich-quick and depends on your ability to learn and take action. Others have done it and there should be no reason why you can’t.
If you’re interested in a mentor, I’ll introduce you later to my mentor, Zach Crawford.
In Part 4, I’ll share with you the 5 common mistakes affiliate marketers make.