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How to Make Money from Affiliate Marketing

In this article, you will learn the different ways to make money from Affiliate Marketing.

As I already outlined in my earlier post – Affiliate Marketing is the process of earning a commission promoting OTHER people’s products. It’s a bit like how a real estate agent doesn’t own the houses they sell; instead they promote houses on behalf of their clients, and earn a cut of the sale price of any properties sold.

[For a quick recap on why this should be your first choice of income model, check out my article – Why Sell for Someone Else?]

Here are some more compelling reasons –

Affiliate Marketing is a long established business model, and in fact Internet based Affiliate Marketing is a billion dollar industry. The potential for profit is huge. It is not uncommon to see Internet Marketers earning a million dollars a year

Here are some more compelling reasons –

Affiliate Marketing is a long established business model, and in fact Internet based Affiliate Marketing is a billion dollar industry. The potential for profit is huge. It is not uncommon to see Internet Marketers earning a million dollars a year

  • Internet based Affiliate Marketing is open to anyone, any age, from any country, and at any time
  • Start up costs are super low. To start a regular business where you rent commercial space and stock inventory could easily set you back tens of thousands of dollars. As an affiliate marketer, you can get started for the cost of a meal for two.
  • You don’t need staff. No HR liability, and no messy payroll handling. When you get started as an affiliate you can do it all yourself, and when the time comes to grow your business it’s easy to outsource.
  • You don’t even need a product you simply have to promote products which are already for sale. Whether it’s an eBook about dog training your or a weight loss supplement – there is a product out there that you can sell as an affiliate.
  • Affiliate Marketing is not tied to a particular product (or product line). As long as you know how to get interested prospects and buyers, you can replace the back-end products or offers with any other.
  • Since you are not tied to a product, the actual product knowledge does not matter. All you need is an eager-to-learn mindset and the ability to market the right affiliate products to the right people.
  • The opportunity to work your own hours and have a more flexible life. You become your own boss – although you need to be extremely self-motivated in order to grow.
  • Once you’ve built your prospect network, you earn passive income from there on. It’s a bit like the money you earn if you buy a house and then rent it out – for as long as you own that house and are renting it out, you earn money. In a normal job you only get paid once for the work that you do, but as an affiliate you can keep making money from your buyer base – day in, day out.
  • The actual product delivery and collecting payments etc is not your headache. Shown below is a schema of how the program works. Since you get paid at the back-end i.e. you are not collecting payments from the customer yourself, but getting paid at the back-end by the merchant, there is no liability.

In fact, most modern Online Affiliate Programs are run over networks that automatically calculate the sales made through your referrals, and the ensuing commissions due to you – all you do is focus on attracting interested prospects – that’s it!

So here’s how the show works –

  1. Online Shopper Decides to Buy an Item
  2. She lands on an Affiliate site, which provides some basic guidance and education
  3. She is now redirected to the merchant’s site
  4. The shopper finally makes the purchase and the merchant rewards the affiliate for his effort

In fact there are many different permutations and combinations on how to make money from Affiliate Marketing.

At the very beginning, you could directly place Ads on Google using keywords relevant to your product, and upon clicking your ad, the buyers could be directly forwarded to the merchant site. That was the most basic manner in which money was made. As long as your inflow (commission rate times conversion rate) was higher than your cost (price paid to Google per click on your ad) you could do this stuff all day long.

Although that model is no longer valid on Google anymore, you should still learn about it in order to understand the basic process on how the marketing model works. I highly recommend you pick up the free ebook – “Google Cash” by Chris Carpenter and whizz through it once.

In today’s times you can make money from Affiliate Marketing in the following ways

  1. Set up a content website or a blog focused on a niche, and get a bunch of subscribers or readers or followers. Utilize Google Adsense on your sidebars where Google will place ads and pay you per click, or per 1000 impressions. This is the simplest, however the slowest scaling method.
  2. Get a bunch of email subscribers, by promoting an opt-in page that features a valuable give-away (like an ebook or free video training) in return for their email address. Then promote an offer to them via email marketing. This takes some learning but you can earn great commissions depending on the product you promote. Also this takes more involvement as you need to keep your email subscribers hooked with daily informative emails or a newsletter as well as promotional emails that earn you the commissions. This method is the most automate-able since you can use an autoresponder service to collect emails, as well as send promotional emails on a daily/weekly basis via a pre-set schedule. So you can work over the weekends, and set up your communication outreach for the whole of next week. If you would like to take a look at the powerful lead generation and lead management autoresponder that I use for myself, check it out here.
  3. Social Media marketing – you can set up a Business Fan Page on Facebook or a Google Plus page and promote offers to your social media audience. This is easier to learn, and I find it very exciting since I can interact with people live, however the conversion rates are lower.
  4. You can market via forums or via Videos and drive the interested audience to your Social Media or Opt-In Page.
  5. You could provide Services in the Affiliate Marketing space i.e. you could get on Fiverr or ELance and write articles for people who own large Content Websites, or create graphics for other Social Media marketers. This is a great way to make instant money, however this does not give you any passive income since you are not building your own brand name or online real estate (website, blog etc)

That’s it folks – there are many other ways to make money from Affiliate Marketing, but these are the ones you should focus on if you’re getting started.

If you would like to get started with a great stock product that’s been around for 3 years, and costs under $20 to start, please click here.

Disclosure: Please note that links to merchants mentioned within this post might be using an affiliate link which means that – at zero cost to you – I might earn a commission if you buy something through that affiliate link. That said, I never recommend anything I don’t personally use and find to be a valuable asset to my business.