Table of Contents
- What is Affiliate Marketing and How Does it Work?
- The Benefits of Affiliate Marketing
- Picking a Profitable Niche
- Affiliate Marketing Networks and Programs
- Choose a Profitable Product
- Setup Your Sales Funnel to Collect Leads
- Setup Your Traffic Sources
- Create Content
- Scale With Paid Ads
- Final Thoughts
Did you know that the affiliate marketing industry will grow to $8.2 billion by 2022? That’s just in the US, too.
Affiliate marketing is one of the absolute, best ways to earn passive income online. It has minimal expenses, and can scale like crazy, given you take time to grow.
It can however, be quite a complex endeavor. To be an effective affiliate marketer, you’ll need a variety of skills. The competition can be high, so you absolutely need to know everything.
Confused? Don’t worry. Keep reading below. We’ll cover all the important details about how to start affiliate marketing in 2020.
What is Affiliate Marketing and How Does it Work?
Affiliate marketing is basically when you promote a business’s products or services… When that business generates a sale from your endorsement, you get a percentage. You act as a salesperson for the company — an affiliate, if you will.
Affiliate marketing works by the business giving affiliates (you) a special link. This link tells them who was responsible for generating that sale.
You might feature that link in a variety of places that reach the eyes of your audience. Some examples include…
- A blog post
- Social media posts
- An email
- The description of a YouTube video
Here’s a visual example…
Affiliates don’t typically work directly with the businesses, but rather affiliate networks, which are middle men who set everything up. These networks offer programs to affiliates, which they sign up for. This is where you get the clickable links from.
Naturally, the affiliate networks also get a cut of the commission, call it a finders fee.
It also needs to be said that not all affiliate programs work or payout the same. The 3 affiliate models are…
- Pay Per Click: You are paid whenever someone clicks your affiliate link.
- Pay Per Lead: You are paid whenever someone clicks your affiliate link and commits a specific action. This may be a variety of things — an email signup, an app download, or even completing a survey.
- Pay Per Sale: You are paid whenever someone clicks your affiliate link and makes a purchase of the linked product or service.
Depending on what affiliate model and program you use, the payments might come in instantly, fortnightly, or perhaps every month. It really depends on the specifics of the network and product you are promoting.
The Benefits of Affiliate Marketing
The most obvious benefit of affiliate marketing is passive income — the ability to make income, largely independent of your time and effort… That is, making money even while you sleep!
It’s no chump change, either — Pat Flynn of Smart Passive Income made $105,619.13 in a single month.
He’s made more than $3,000,000 from affiliate marketing — 100% passive income.
The costs of affiliate marketing are extremely low compared to other forms of making money online, like e-commerce for example. You don’t have to buy products or inventory. There are no shipping costs. All you really need is an internet connection, a website, and social media accounts.
Make no mistake about it — affiliate marketing is a business model — it’s one you’re the boss of. You have to follow the rules of your affiliate network/program, but it’s not that intrusive. You largely get to have complete freedom with how you choose to operate.
The great thing about affiliate marketing is that it’s largely done online, on the internet. This means you can do it from anywhere in the world. You don’t have to go to an office, you can work from home… Or even on a tropical beach drinking pina coladas!
Picking a Profitable Niche
The truth about affiliate marketing is that it’s very competitive. You’re going up against people who’ve been at it awhile.
If you want to give yourself the best chance at succeeding, you need to pick a niche.
So, instead of targeting something generic like fitness, you could target a specific subtopic, like calisthenics.
The perfect niche will be/have…
- Problems and challenges that need answers
Focus exclusively on a niche initially, then when you’ve built up enough of an audience, you can branch out.
That’s exactly how Making Sense of Cents did it — Michelle (the owner) earns $100,000+ a month.