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.