So during this article, I’m getting to be explaining and telling you ways the affiliate marketing industry works
and exactly what is an affiliate
I will be defining terms for you and I will be boarding everything for
you right this whiteboard right here.
Affiliate marketing is a kind of jargon
filled complicated industry. They’re of these terms.
Advertiser, publisher, traffic
source, etcetera. That hasn’t any aiming for people in normal daily life. But I’m getting to attempt to break things down for
you during a way that you simply can understand. I’m going to be using multiple examples and diagrams on this whiteboard to assist you to understand this territory.
This will be especially interesting for you if you would like to urge into affiliate marketing.
It’s a very lucrative world I do
affiliate marketing myself and that I run a
multi-million dollar business. I started
earning many dollars in my young
The 20s. And you recognize hopefully this may give you an honest basis for understanding this industry So, the primary thing you want to know about affiliate
marketing is what it’s is its commission-based marketing. It’s selling products on a commission-only basis
Now, it’s extremely almost like door-to-door salesmen or salespeople selling used cars or telemarketers.
These are folks that are
calling you on the phone or that are
going door-to-door. They’re selling the
Encyclopedia Britannica 100 years ago.
Now, these salespeople would say, “Hey, you
could buy the Encyclopedia Britannica
for your family. It’s 100 bucks.” And
if they sold the Encyclopedia Britannica
to you, $100 visited the corporate and you recognize maybe they pocketed $50 or something like that Whatever it had been.
The company kept some money.
The customer paid the cash to form that happen.
Same thing with selling cars. If you purchase
a car from a salesman on tons for a
thousand dollars, maybe $800
of that’s getting to the cars lot
and $200 of that’s getting to the salesperson and you recognize it came from the customer. Now, in affiliate marketing, it’s extremely similar. It’s almost the precise same thing.
You have company, you’ve got a customer and you’ve got an affiliate. Now, the corporate gives the merchandise to the customer and therefore the customer gives the cash to the corporate.
The affiliate’s job is to attach the corporate with the customer. And reciprocally, the corporate pays the affiliates some money
and the affiliate connects the customer
with the corporate, right? So, it is a big
You know it is a scheme. it is a pyramid. Its pyramid. You know, it’s not a pyramid they might turn it and it’s different. It’s just basic commerce, okay? It’s direct response sales. Now, what we call it in affiliate marketing
is there is a company that has offered.
That’s what we call the products that
they sell. So as an example, let’s say
going back to the Encyclopedia
Britannica example. the corporate that sold Encyclopedia Britannica may need other things that the salesperson could
sell the person. they could have
Encyclopedia Britannicas. they could also be selling of tutoring services to
help people’s children learn English or
learn history. So, you recognize as an actual
service to assist people, you know, learn
more a corporation can have multiple offers.
They can have multiple products that
they offer Commission’s on. Now, generally
speaking, there are tens of thousands if
not many companies that have
affiliate programs. It gets very
complicated to seek out all of the various affiliate programs that somebody might
want to plug. So, the way it works is we
have what’s called affiliate networks. So,
what is often the case is an affiliate
is working with an affiliate network.
Now, an example of an affiliate network is
Clickbank, ShareASale, Avangate Commission Junction. Amazon is an affiliate Network.
Walmart has an affiliate Network eBay
has an affiliate Network. Target has an
affiliate network with many different
products from many different sellers
that you can earn a commission on. So, an
affiliate might login to for instance
Amazon. Amazon’s Affiliate Network and
they can find any product that they need to market beat one place. they will choose tons of various ideas of products to plug.
How to do affiliate marketing
But you will get a link and you’ll advertise that link on Facebook posts on
Snapchat on Instagram you’ll put it on, you know, send it to somebody through a text message you’ll send the link to
somebody through email. It doesn’t matter how you send the link out you’ll put it on a postcard and mail it
to somebody it doesn’t matter what matters is that somebody clicks thereon, that’s how you connect people with these
companies. Now when a customer buys a
product from one of the companies that
you recommended. as an example, they bought a product on Amazon that you simply recommended.
They bought this book. What the affiliate
network will do is that they can pay you the
money. So, the customer pays the affiliate
network. for instance 2 dollar signs. And
the affiliate network can pay you 1
dollar sign. So, they get money and you
get a number of them you get that’s your
commission for creating that connection.
Now, some samples of affiliate marketing
companies to form it dead easy in
your mind are for instance Expedia.com. If
you’ve ever booked a flight online and
you’ve used Expedia Priceline Orbitz or
any of the opposite companies that you simply can book flights through. All of those companies are affiliate marketing
companies. Expedia.com doesn’t own any
airplanes. they do not own any flight
Expedia is an affiliate you attend Expedia.com and you purchase from one among the airlines. you’re paying United or
American Airlines some money. And for
making that connection for Expedia.com
making that connection, they’re getting
a commission for connecting you thereupon flight.
To use some more examples. it’s an equivalent logic with Airbnb or Uber. These are affiliate marketing companies. Airbnb
does not own any hotels. Uber doesn’t own any cars. What they’re doing is
they’re simply connecting you with
somebody willing to hire out their place or they’re connecting you with somebody willing to drive you someplace and Uber or Airbnb is making a touch commission on making that connection again, they do not own any inventory they’re simply making that
You’ll be an affiliate marketer and everyone you would like maybe a link t make that connection and you’ll earn a touch of commission if somebody uses your service. Now, Uber doesn’t earn any money if you do not get a ride anywhere.
That makes sense, right?
If you only install the app, uber doesn’t make any money Uber only makes money if you hire a driver to drive you somewhere So
that’s what affiliate marketing is during a
Now, I hope that explains things.
It’s a little bit of a sophisticated world but
it’s very easy when it comes right down to
it. You’re just making connections and
you’re getting commissions for helping
make those purchase connections. Just
like Airbnb, a bit like Uber a bit like
hotels.com or cars.com or any of those other
companies. Expedia. it is a very simple
industry. Now, if you are looking to find out more about affiliate marketing, that’s
what my business is. I make tons of
money doing it and I have tons of friends
all over the planet doing it, it is the easiest business to urge started within the requires no technical skills, no inventory. And allows you to measure a lifetime of freedom of location of your time.