What Is Affiliate Marketing?
That’s what affiliate marketing is all about.
Affiliate marketing has opened the doors to a new generation of home-based entrepreneurs who are changing the entire world marketplace and how people by goods and services.
The affiliate model makes it possible to earn unlimited passive income from the comfort of your own home.
Affiliate Marketing Definition
I’ve seen many definitions put forth including ‘a marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.’*
Or another definition is ‘the art of doing a merchant’s marketing better than they can, and profiting from it.’ – Chris Sanderson.
When a sale is made, the product owner delivers the order to the buyer then pays you a percentage of the profits.
What makes this money making model so attractive is that:
- You don’t have to create your own products or services
- You never have buy or store inventory
- You do not ship or deliver any goods
- You don’t perform customer service
Affiliate marketing is your ticket to a home-based business that gives you the opportunity to earn unlimited income.
Is It Easy To Get Started In Affiliate Marketing?
Yes, it is.
- You don’t need any experience to get started
- You do not need any technical skills to get started
- You don’t need any sales skills to make money online in this model
- You do no need a large sum of money to get started in affiliate marketing
Table of Contents
- What Is Affiliate Marketing?
- Affiliate Marketing Definition
- How Does Affiliate Marketing Work?
- The Benefits Of Affiliate Marketing
- Best Affiliate Marketing Models
- Affiliate Commission Models:
- 5 Steps To Becoming An Online Affiliate Marketer
- How To Get Started
- The Future Of Affiliate Marketing
- Affiliate Marketing Trends
- What’s Trending Now In Affiliate Marketing?
- Potential Affiliate Niches To Watch Going Forward
- Affiliate Marketing Vertical Market Trends To Watch:
- The Threats To Affiliate Marketing
How Does Affiliate Marketing Work?
The 4 Primary Players:
The company that creates or provides the affiliate product and offers the affiliate marketing program
The Affiliate Network
The affiliate network lists offers and pays commissions from the company (merchant) to each individual affiliate marketer. However, many companies provide and manage their own affilaite program run in-house on their own platform.
The Affiliate Marketer
The affiliate marketer is the person who promotes the affiliate programs to third party buyers.
The customer is the one who ultimately buys the product online through the affiliate marketers link.
Once a sale is made, the affiliate link attributes the sale to the individual affiliate and they are credited and paid a commission.
Commission rates vary depending upon the value of the offer promoted and the company that creates it. Commission rates can range from a fraction of a percent to up to 100%.
The Benefits Of Affiliate Marketing
- The affiliate model allows you to earn a passive income each and every month in the area of interest or expertise of your choosing. There are an endless possibilities online and there is absolutely no limit on the amount of money you can earn
- You can work from the comfort and convenience of your own home or anywhere you have internet access. You are your own boss so you can work when you want and on the projects of your choosing
- As an affiliate, you’re earning a commission for selling somebody else’s product or service. As I mentioned above, you don’t have to do any product fulfillment, customer service, billing, or product creation because the vendor does all of that for you
- The playing field on the internet is still level meaning that a beginner can directly compete with, and often out-perform, large companies. You may not believe this now; but it’s true
- Once you get rolling, you can make money around the clock – even when you’re not working. The systems you’ll set up are automated to earn you money 24/7/365
- You get to pick which companies to partner with and there are a ton of affiliate networks and programs out there for you to choose from. They all offer a different product, payout, angle and experience. This gives you plenty of flexibility in setting up and running your business
- You can outsource most of the tasks involved in internet marketing if you prefer to do less work yourself
- This business model is super easy to scale up. Once you find a winning market and product or service you can build your income very quickly
- Affiliate automation tools exist to help expedite nearly every task involved in your online business
- The barrier to entry in the affiliate marketing game is low since it takes a surprisingly small amount of money to get started
- Digital marketing has a very bright outlook. Internet marketing is forecasted to grow into a $335+ billion dollar industry by the year 2021. All you need to do is grab your small piece of this enormous pie to make a large income. There are endless marketing channels to choose from
- You do not need to create your own product or offer a service to make money in this business. But if you do decide to make your own product or service you can recruit other affiliate marketers to help do the selling for you
- Internet marketing often leads to bigger and better business ventures. As you grow your online business, other companies and marketers will begin to notice and you will likely get invited to participate in seminars, masterminds, joint ventures, startup opportunities and more. This business model promotes the entrepreneurial spirit and this industry is made up of individual tight relationships
Best Affiliate Marketing Models
There are many marketing channels available for you to earn income using the affiliate model.
Below are just a few of the most commonly used models. In reality there are dozens of types of affiliate models to choose from.
Publishing: Most affiliate marketers are involved to some degree in online publishing – a website, blog, newsletter, directory, ezine or review site. Affiliates place links or ads on their sites that promote a product or service and are rewarded when a visitor clicks on those links and buys at the company’s home site. The publishing model is sometimes referred to as content marketing.
Sales and conversions are generally tracked when you (the publisher) use a link with a unique code provided by the affiliate network or company that enables the advertiser to track where the conversions come from (usually with cookies). If you don’t know what cookies are don’t worry since you’ll have plenty of time to learn the technical aspects of how this all works later on.
Email Marketing: Selling through email is one of the most cost effective and lucrative models in internet marketing. This model requires you to build an email list using automated software.
Video Marketing: The explosion of social media video platforms has made video marketing a great choice if you prefer making videos to writing and publishing.
Social Media Marketing: The number of social media platforms these days is staggering. There are ways to earn income online directly from these platforms.
Affiliate Marketing Without A Website: You don’t have to have a website or even use social media to make income online these days. There are models available that allow you to send traffic directly to an affiliate offer without needing a website at all.
Affiliate Commission Models:
– Pay Per Sale (PPS) – This model of affiliate sales is the primarily focus here at High Paying Affiliate Programs.
– Pay Per Click (PPC)
– Pay Per Lead (PPL)
– Pay Per Impression (PPM)
– Pay Per Action (PPA) Also called Cost Per Action (CPA) – lemonads affiliate network is a great example.
– Pay Per Order (PPO)
– Revenue Sharing Model
5 Steps To Becoming An Online Affiliate Marketer
Becoming an online marketer is so easy that anyone can do it.
You can start earning income online as a marketing affiliate without any experience, technical skills or any large upfront investment.
Here are the five simple steps to get you started:
Step 1: Choose a niche market
Step 2: Create your own website
Step 3: Start building an email list
Step 4: Start driving traffic
Step 5: Scale your business
How To Get Started
I have created for a free simple step-by-step guide to getting started with affiliate marketing..
The lessons are divided into seven easy-to-complete daily tasks that will keep you on track and motivated to follow it to completion.
You don’t need any experience or technical knowledge to follow this guide successfully.
I will show you step-by-step how to get your own internet business up and running on a shoestring budget. In fact, the only investment you need to make is in a cheap web hosting account and domain name. I’ll walk you through how to get started if you click on the blue button below.
In the course of a week you’ll learn what market to enter, how to join an affiliate program, how to choose a domain name, how to build your own website, how to pick your first affiliate product, how to generate traffic to your site and how to start earning income.
If you follow my lessons, you can be making affiliate sales within the first 30 days from when you get started.
The Future Of Affiliate Marketing
So far, 2020 has been a challenging year to say the least.
In the middle of last year, few of us could have imagined we would get swept up in a global pandemic that would change the way most of us live. Maybe some things forever.
Marketing is about change too. Things are always evolving.
Nobody knows for sure the exact future of online. But there are some clues.
- Buying single-word domain names back in the late 1980’s when they first were available
- Purchasing Microsoft stock in 1986 following the initial public offering
- Investing in gold when in late 2000 when it less than $400 per ounce
- Mining Bitcoin during its genesis in 2009
Any one of these things would have made you a millionaire many times over.
Unfortunately, unless you have a time machine like Bill & Ted had, you can’t get rich this way. But you can get in early on the next ‘big thing’.
Let’s dig a little deeper into what’s coming.
Affiliate Marketing Trends
In the late 1990’s I had a buddy in the mortgage business that persuaded me to jump into that market because business was booming. Real estate values were increasing at record levels and interest rates were reaching all-time lows. It was a perfect storm to make big bucks in a hot market.
As a loan officer I could hardly keep up with all of the demand. I had an endless stream of paying clients without ever having to pick up the phone to solicit new business. Nearly every person I knew working in that industry – including title insurance companies, real estate appraisers, banks, private lenders, and investors was making a six figure income almost effortlessly. Things continued like this for over a decade with seemingly no end in sight.
Then, almost literally overnight, the party was over.
The real estate market had ballooned to unsustainable levels and when it popped, like every inflated market bubble eventually does, it took down the entire industry.
It was a red hot market trend. But like most other trends, it came to an abrupt end.
What’s Trending Now In Affiliate Marketing?
- Longer Authoritative Content
- Voice Search Optimization
- Mobile-First Technology
- Push Notification
- Marketing Bots
If you are an early adapter of an affiliate marketing trend, as I was in the mortgage industry, you can make a killing online.
Take for example the white-hot CBD market right now. Many of the early adopters in this field, who knew how to effectively market those products online, made huge profits fast.
You want to get rich online?
Follow the money.
Or, look for current opportunities and follow the demand.
For example, look for commercial robotics to take off in the coming years. The global pandemic has exposed the impact on the work force when people start to get sick on a mass scale.
Robots don’t get sick and they don’t take time off to avoid getting sick.
Potential Affiliate Niches To Watch Going ForwardMy advice to new internet marketers has always been to choose an online niche that’s already generating income rather than trying to tap into a new one. The reason for this is simple: it eliminates the lengthy and often expensive process of testing whether or not money can be made in that niche online.
When you enter an established market you already know that money is being made in that space today.
But what if you are a risk-taker or an established and experienced internet marketer looking to get in early on the next big thing?
After all, that’s often where the really big bucks are made.
If you’re prepared, and can afford to take some risks here is a list of industries to watch that will likely boom in the next decade:
Affiliate Marketing Vertical Market Trends To Watch:
Artificial Intelligence (AI) And Robotics:
Robotics technology is advancing rapidly and is expected to do the majority of manual labor tasks in the near-future that are now done by people. When AI and robotics are integrated, our world will never be the same again. This market is a game-changer.
The Internet Of Things (IOT):
Internet of Things is a network of physical objects that are connected to the internet. These objects such as sensors, circuits, smartphones, wearables and electronics will transmit data via “the internet” to the cloud providing a “smarter” service or experience for the user. As an example, the streetlight in front of your house, when integrated to the IOT, will send a message to your city’s maintenance department alerting it when it’s bulb burns out.
This kind of “smart technology” is already being used and will become prevalent in the next decade.
The future of virtual reality will include not only gaming but filmmaking, exploring, and other entertainment-related content. Facebook’s CEO Mark Zuckerberg believes that Virtual Reality may become our next computing platform.
Commercial drones will not only be used for product deliveries but for a myriad of other applications including construction, real estate, ranching, etc. Also search and rescue. Drones are perfect for finding lost hikers in the wilderness where it’s difficult and time consuming for rescuers to find them. It can also carry a rescue ‘kit’ with food, water, first aid supplies and a radio that can help lost hikers survive until help arrives.
Amazon.com is working on a small drone fleet right now that can deliver goods purchased on their website. This will allow you to cash in using their affiliate program: Amazon Associates.
Future affiliate opportunities in genomics are primarily speculative at this point. But the possibilities in such a vast field of health-related topics is exciting.
Renewable energy sources provide energy in four primary areas:
- Air & water cooling and heating
- Electricity generation
- Off-grid energy
There will likely be some massive advances in wearable tech that will continue to rock our world.
This will completely revolutionize the entire shopping process and open up numerous opportunities.
The Threats To Affiliate Marketing
Have you ever thought about what might happen to affiliate marketing when A.I. and bots become more advanced? How about other high tech, not even invented yet, that may impact the future of affiliate marketing?
Will it kill influencer marketing as we presently know it? Will building personal relationships online become obsolete? Will it create unbelievable new opportunities for savvy marketers?
How About Today’s Landscape?
No business model lasts forever. Look what happened to the newspaper industry since the birth of the internet. How about the quick death of the retail video rental stores like Blockbuster.
Nobody knows exactly how the coming tech invasion will affect affiliate marketing.
But if you pay close attention to the trends you will be able to spot both future problems and opportunities that lie ahead.
The Impact Of COVID-19 On Affiliate Marketing
It should come as no surprise that this year’s global pandemic COVID-19, and the resulting limitations on in-person shopping and travel, has shifted a large percentage of buying goods and services to eCommerce.
The numbers are out that prove this.
New data compiled from IBM’s U.S. Retail Index* shows that the global pandemic has accelerated the growth of eCommerce in 2020 by a whopping 20% – or a growth rate roughly equal to five ‘normal’ years.
More proof from other independent sources:
- Consumers spent $211.5 billion during the second quarter on e-commerce, up 31.8% quarter over quarter, according to data published Tuesday by the U.S. Census Bureau – CNBC
- Ecommerce is Booming. Here’s How to Take Advantage – Entrepreneur
- Ecommerce and content: How retailers have shifted strategies during the COVID-19 pandemic – DigitalCommerce360
- Fast growth leads to challenges as pandemic drives eCommerce to an all-time high – BetaNews
This has been a year of loss, delays, inconvenience and disbelief.
The COVID-19 pandemic has turned most of our lives upside down. Most of the disorder in our lives will be temporary, yet it seems like other things may change forever.
That includes how people buy goods.
Right now, buyer behavior has changed and new habits are being formed. Almost everybody is ordering goods and services online.
Even those people who never ordered much online before COVID-19.
Millions of consumers worldwide will likely continue their increased online shopping after the pandemic finally runs its course.
I listed some data at the beginning of this post. Here’s more:
Right now in both the United States & United Kingdom:
- Half of consumers are doing more than 75% of all their shopping online
- One quarter of consumers are doing more than 90% of their shopping online
- Less than 30% of shoppers are comfortable going to stores while the pandemic is still in play
Most trend experts believe that the shift to eCommerce with continue in the coming years beyond 2020 even when the pandemic is just a bad memory.
I believe this will happen too. The online marketing industry is poised for continued growth.
New habits are being formed and many consumers are discovering all of the wonderful conveniences of online shopping.
There has never been a better time to become an affiliate. Make sure you don’t miss your window:
Affiliate Marketing Q&A
What does an affiliate marketer do?
The role of the marketing affiliate is to promote products & services, created by a third party company, to consumers online. As a digital marketer, you’ll earn a commission for each sale you refer.
Is affiliate marketing easy?
Affiliate marketing is a simple model that anyone can do – even without experience or technical skills. There is no product creation, fulfillment or shipping required. Plus the product creator handles all customer service and billing issues.
How much money can I make as an affiliate marketer?
There is no limit to the amount of money you can make in digital marketing. It all depends upon the time and effort you put into your online business.
How do I become an online affiliate?
It’s simple. Choose a product or service through an affiliate network such as Amazon Associates, ClickBank and Commission Junction. Or find an independent affiliate program that you would like to promote then sign up to market it. There may or may not be a short application involved to determine your qualifications. Usually its a very simple and quick approval process.
Do I need a website to be an affiliate marketer?
The most common method to earn income on the internet is through a website. But there are other models available as well. I wrote a recent blog post on how to make income online without a website.
What are the biggest problems with affiliate marketing?
The most common problem I see is the false belief that this is a get-rich-quick business model. Nothing could be further than the truth. Making consistent money online requires treating it like a real business, because that’s what it is. It takes a lot of work, especially in the beginning, to start making life-changing money.
Does affiliate model have a bad name?
No. But like any other system, there are players who cheat, scheme and scam others out of money. Fortunately those who do so are quickly exposed and either driven out of business or prosecuted. You can find several case studies on these fraudsters.
What are landing pages?
A landing page is a static page on a websites used for lead generation through sign ups or direct online sales.
How do I choose an affiliate program?
There are two ways to choose an affiliate program.
- Sign up with an affiliate marketing network and select the affiliate program from the list of programs they offer that you would like to join.
- Find a company you would like to promote that offers an in-house affiliate program and sign up with them to promote it.