What is Affiliate Marketing & How it Works?

Published by Vijay Kumar || Listed Under: ,

Affiliate Marketing in simple terms is selling other people's products and getting commissions for each sale. This is one of the very popular way to make money online.

Here is an illustration I prepared for you!

Affiliate Marketing Concept

Majority of the websites, blogs, YouTube channels that do product/service reviews related content are making money through affiliate marketing only.

Amazon is a great example of affiliate marketing program. When you sign up with their affiliate marketing program they will give you a unique URL to every product you want to promote. When someone purchases a product using your unique URL you will get small percentage of commission on that product price. This is anywhere between 5% to 20% on product price or entire cart value.

This is the only case with amazon.

But some companies offer commissions from 50% per sale to 80%. Those products can be found on sites like Clickbank, Shareasale etc. Most of the products on Clickbank are digital products. For this exact reason they will have commissions up to 80%.

Another type of affiliate programs are service based such as selling webhosting, email marketing software, anti virus software etc. On these services also they will give up to 50% commission per each sale.

You might think isn't the companies loosing money?

Yes,

But companies get profit on next renewal of those services.

So it's a win win situation for both parties.

Here is the list of few popular affiliate marketing websites. You can signup on these websites and start promoting products from those websites.

  1. Amazon Affiliates
  2. Click Bank
  3. Commission Junction
  4. ShareASale
  5. Rakuten Linkshare
  6. JVZoo

And the list goes on...

To be successful in affiliate marketing you need to be very consistent and well planned.

One of the biggest challenge in succeeding affiliate marketing is getting targeted traffic to your affiliate links. You cannot directly promote on advertising networks like Google Ads or Facebooks ads. Instead you can create a landing page of your own on that product to collect email address and only then you can start promoting the affiliate links.

Today almost all the marketplaces and big companies offering affiliate program. So you can find programs in almost any industry you want. If you are a beginner you can start with amazon affiliates then later you can switch more premium affiliate networks.

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