Thanks for stopping by on this post to learn about what is the affiliate marketing business model. The best part about affiliate marketing is that you can start with $0 online and gradually grow to a full time passive income. Affiliate marketing has become very popular during the last years and most people who get introduced to the idea of making money online start with affiliate marketing.
So on this post we are going to answer the question: what is the affiliate marketing business model and does it work, or is it just one of those organized scams. So let’s get started.
What Is Affiliate Marketing?
Affiliate marketing simply means earning commissions from selling products which do not belong to you. Basically, you are going to promote someone else’s products and make money from this.
Affiliate marketing has three main steps:
1. You recommend a product to someone
2. They buy the product
3. You get a percentage of the sale as a commission
How Do You Become an Affiliate Marketer
There are four steps to become an affiliate marketer:
1. Choose a niche
2. Create a website
3. Bring traffic to your website
4. Monetize your traffic
Affiliate marketing is not a pyramid scheme. Unlike multi-level-marketing, in affiliate marketing you don’t need to pay to sign up to an affiliate program. You just have to find a product you like and find out if the owner of that product is going to pay you for promoting it.
Affiliate marketing is a very lucrative business model, but it requires a lot of effort and dedication to build a successful affiliate site. To diversificate your income sources in case your affiliate sales dry up you can also earn from ads on your site or sell your own products.
Certain states require licenses to participate in affiliate marketing. Refer to the SBA’s reference to state licenses and permits to know more about how this works in your state.
The first step of affiliate marketing “choose a niche” is very important. You need to choose a niche where there are products to promote and which is not to competitive so you can prosper in that niche.
One of the advantages of affiliate marketing is that the start up costs are very low. You only need two things to get started: 1) A domain name which costs $12-13 a year and a hosting plan which can cost like $2 a month.
What is the Best Affiliate Program
Here are the highest paying affiliate programs:
- Bluehost. It is very popular in the hosting industry
- WP Engine. It has one of the highest paying affiliate programs, starting at $200+ commissions.
- Wealthy Affiliate
- Sandals Resorts
- iTunes Store
There are also some sites which contain a lot of products from different vendors that you can promote. These are called affiliate networks. Here are some of the best affiliate networks:
- Amazon Associates
Amazon is one of the biggest affiliate network where you can find products to promote in any niche. To sign up to the Amazon affiliate program go to their homepage and scroll down to the end of the page where you will find the link “Become an affiliate”, click on that and you will find information on their affiliate program.
To become an Amazon affiliate you need a website address.
The Amazon affiliate program is free to join and you are going to earn 10% of the spendings of your referrals on the Amazon site. The commissions aren’t high for low priced products, but if you sell a high priced product like a camera or a lap top you could earn a decent commission.
People find Amazon extremely convenient.
Some of the most popular niches for affiliate marketing are:
- Expenssive hobbies
- Outdoor survival
The best place to start searching for products to promote are affiliate networks like ClickBank, ShareAsale and Commission Junction. Then you can test products in different niches to find out which works best for you.
How to Be a Successful Affiliate Marketer
Before getting started in affiliate marketing you need to research the products that you plan to promote. The difficult part is building a loyal audience with your high quality content. These days it’s very easy to create a website, the challenge is to create content which sells.
There is not guarantee that you will become successful in affiliate marketing, you could make anywhere from 0 to $25,000 a month. In your first month or second month you would be luck if you made like $5, but with time and while growing your site you are going to be able to make more. Affiliate marketing can be quite profitable but it has to be done the right way.
However, affiliate marketing is not worth the effort for everyone. In fact, I would say that affiliate marketing is not worth for most people as they aren’t’t willing to do the kind of work that it requires.
Wealthy Affiliate is the best place to learn affiliate marketing. It doesn’t promise their affiliates to make money instantly, but this is the reason that their training is legit and works. It teaches affiliates the proper way to achieve long term success.
Building a successful online business takes time. You also shouldn’t join Wealthy Affiliate if you don’t enjoy the community, as it is a big part of it.
There are several aspects of affiliate marketing like search engine optimization, social media marketing, email marketing etc.
To become a successful affiliate marketer you need to find only a handful of successful products to promote, so that your audience is going to trust you that you only recommend them products that work and you don’t just try to sell them. Traffic is important too, which search engine traffic is the most converting, you need to build multiple sources of traffic to your site.
To be successful you also need to continue sly learn the new trends, not only about which products are the most demanded in your niche, but also you need to stay up to date with the changes is the field of online marketing as it is constantly changing.
How Can I Create an Affiliate Marketing Program
Finally, if you have a product that you have created and you need help to sell it, you could use affiliate marketing. Affiliates can apply to your program and help you sell it, while you give them a commission for every sale. To create a successful affiliate marketing program, try to choose a specific niche market, don’t try to sell everything to everyone. You can register your affiliate program on big affiliate networks like ClickBank and ShareAsale. Affiliates can find you there and apply for your affiliate program.
On average affiliate programs pay a 5% to 30% commission, but I have seen affiliate programs which pay from 1% to 200%. There are a number of factors which affect this.