An Introduction to Affiliate Marketing for Beginners

What is Affiliate Marketing: An Introduction to Affiliate Marketing for Beginners

Posted 2 years ago by Max Komonov

Affiliate marketing is听a听growing trend that has benefits for听merchants 补苍诲听marketers alike. If听you are unfamiliar with the听term 聯affiliate marketing聰, you likely are familiar with the听concept. Affiliate marketing is听extremely widespread, with roughly worldwide being generated from affiliate marketing. Companies of听all types are participating in听affiliate marketing programs. Some of听the听biggest names in听ecommerce, including 补苍诲听, have joined in听by听creating their own affiliate marketing programs. The rise of听affiliate marketing has changed the听way many companies think about branding online.

With so听much buzz around affiliate marketing, it听is听a听concept that every ecommerce entrepreneur should be听familiar with. Affiliate marketing benefits businesses as听well as听individuals looking to听capitalize on听their online platforms. It鈥檚 a听great opportunity for听anyone to听get involved 补苍诲听earn extra cash. So听what is听affiliate marketing 补苍诲听how does it听work? Continue reading to听learn how affiliate marketing works, 补苍诲听how to听make money with affiliate marketing.

What is听Affiliate Marketing?

Affiliate marketing is听a听marketing process in听which an听online publisher agrees to听promote a听product or听service to听their audience in听exchange for听a听commission. Affiliate marketing is听commonly associated with podcasts, blogs, social media pages, or听other creator websites. For instance, a听podcast sharing a听promotional link for听a听product or听service to听their listeners is听a听form of听affiliate marketing.

In听affiliate marketing programs, the听website or听content creator (affiliate) receives a听commission based on听any听sales generated from their promotional link. Programs have several ways to听keep track of听traffic 补苍诲听pay their affiliates, which we听will discuss later. However, one constant in听affiliate marketing is听that affiliates receive pay based on听commission for听how much of听a听product or听service they sell.

Brief History of听Affiliate Marketing

Online affiliate marketing has taken off in听recent years, 补苍诲听this is听what most people think of听when they hear the听term 聯affiliate marketing.聰 But affiliate marketing has existed in听other forms for听decades, 补苍诲听even pre-dates 迟丑别听颈苍迟别谤苍别迟.

For example, a听small business offering referral discounts to听customers is听a听form of听affiliate marketing. Another common form of听affiliate marketing we听all encounter offline is听insurance sales. An听insurance agent gets paid a听commission by听the听insurance company to听sell an听insurance plan. But insurance agents are rarely employed by听the听company directly.

Online affiliate marketing as听we听know it听began in听the听late 聯90s with companies like 补苍诲听 (formerly Commission Junction). In听the听early days of听the听internet, the听first affiliate marketing programs were established to听let small companies reach a听wider market. Over the听next two decades, people began to听spend more time 补苍诲听money online. As听ecommerce boomed, affiliate marketing grew along with it. In听recent years, the听rise of听content marketing 补苍诲听online influencers have further incentivized the听use of听affiliate marketing programs. The version of听affiliate marketing we听know today quickly became a听mainstream form of听marketing because it听offers high visibility in听a听crowded, but lucrative, marketplace.

Businesses usually have to听pay for听marketing in听some form. The best marketing is听free or听low-cost marketing. Affiliate marketing is听not strictly 聭free聮 for听companies, but the听upfront costs are usually minimal 补苍诲听often commission-based. This means companies only end up听paying marketing fees which are directly tied to听sales, meaning they always profit. As听a听result, affiliate marketing is听now one of听the听most widely-used marketing strategies for听online businesses.

Affiliate Marketing for听Beginners: Who鈥檚 Involved?

To听get a听deeper understanding of听how affiliate marketing works, it听can be听broken down into a听few individual components. There are three main parties involved in听any听affiliate marketing program: the听company or听advertiser, the听affiliate, 补苍诲听the听consumer. Here鈥檚 a听quick breakdown of听the听role each plays, 补苍诲听how affiliate marketing benefits each of听them.

Companies

At听the听top of听the听affiliate marketing chain are the听businesses. These businesses are the听product manufacturers or听service providers who are being promoted. Without them, there would be听no听products for听affiliates to听sell or听consumers to听purchase. Companies benefit from affiliate marketing because it听is听a听low cost, low risk marketing plan with great ROI.

Companies need to听pay a听small fee to听use affiliate marketing software. But beyond that, the听only costs they pay are commission fees to听the听affiliates. The cost of听an听affiliate marketing program is听largely dependent on听the听revenue generated for听the听company. When done right, affiliate marketing is听a听highly visible marketing platform requiring no听labor 补苍诲听minimal financial investment.

There are a听couple of听minor risks involved in听affiliate marketing programs for听companies. First, because affiliates are not directly employed by听the听company, it听is听possible that their content might not always align with the听company鈥檚 brand image. However, most companies mitigate this risk by听providing content guidelines for听affiliates who market their products.

Second, there is听some risk of听fraudulent activity on听affiliate links to听generate a听higher commission for听some affiliates. However, most affiliate marketing software has security measures in听place to听prevent this from happening.

Affiliates

It鈥檚 probably redundant to听say that you can鈥檛 have affiliate marketing without the听affiliates. Needless to听say, affiliates play a听very important role here. Affiliates are responsible for听sharing links 补苍诲听promoting a听company鈥檚 products or听services.

Anyone can become an听affiliate. But the听most successful affiliate marketers are individuals with a听prominent online following. This is听why bloggers, podcasts, influencers, 补苍诲听content creators often use affiliate marketing as听a听way to听make money. These individuals can leverage their existing audiences to听generate traffic to听their affiliate links. For many of听them, the听products 补苍诲听services they advertise are tied to听their niche. This means that the听affiliate鈥檚 audience is听likely to听have interest in听the听product, 补苍诲听thus is听more likely to听make a听purchase.

Affiliates benefit from affiliate marketing by听getting paid a听commission. Commissions are typically tracked by听assigning unique affiliate links to听affiliates. The more traffic generated by听an听affiliate鈥檚 link, the听more they can get paid. Commissions might be听based on听sales, views, subscriptions, or听other metrics depending on听the听specific product or听service.

For affiliates, there are some small risks as听well. First, affiliate marketing is听not always successful 补苍诲听can take some time. Income from affiliate marketing varies, with most affiliates making less than $20,000听annually, while top earners make six figures.

There is听also a听risk of听losing the听trust or听attention of听your audience if听you share too much affiliate marketing content. Affiliate marketing is听only valuable if听people are interested in听what is听being sold. People do听not like being sold to听all the听time. As听such, most individuals will be听more receptive to听occasional marketing content rather than constant marketing. Affiliate marketers need to听strike a听balance between organic 补苍诲听marketing content, while also picking the听right items to听promote.

Consumers

The last party involved in听affiliate marketing is听the听consumers. Without consumers, there is听nobody to听buy products or听subscribe to听services. Consumers can benefit in听a听number of听ways from affiliate marketing. First 补苍诲听foremost, they can discover new products or听services which they love. In听addition, some affiliate marketing programs also offer discounts for听products 补苍诲听services. This could be听done at听the听discretion of听the听company or听the听affiliate. For instance, an听affiliate might offer their own incentives to听followers who click on听an听affiliate link. Or, the听company might offer a听discount on听purchases made through a听participating affiliate link.

Consumers complete the听cycle of听affiliate marketing, 补苍诲听for听them there is听little to听no听risk involved. Nobody is听required to听make any听purchases or听spend any听money. The worst that can happen is听that a听consumer spends money on听something they are not satisfied with. But, in听most cases, they either pay for听something they enjoy, or听do听not spend any听money at听all.

Types of听Affiliate Marketing

Affiliate marketing is听usually broken up听into three main categories for听affiliate marketers. Those categories are: unattached, related, 补苍诲听involved affiliate marketing.

Unattached Affiliate Marketing

Unattached affiliate marketing is听when the听affiliate has no听direct involvement or听authority with the听product being marketed. In听other words, there is听no听discernible link between the听affiliate鈥檚 niche 补苍诲听the听product being marketed.

This model of听affiliate marketing comes with some obvious downsides. There is听less assurance that the听affiliate鈥檚 audience will have interest in听the听product they are marketing. If听the听audience is听not predisposed to听liking the听product, there is听a听lower chance of听them interacting with affiliate links.

Additionally, the听affiliate鈥檚 promotion of听the听product will likely seem less genuine or听authentic. This can cause people to听lose interest in听the听content or听ignore the听marketing altogether. This is听not only bad for听immediate success, but can hurt in听the听long-term as听well. If听an听affiliate loses the听trust or听attention of听their audience, it听will be听harder for听them to听earn commissions in听the听future. Maintaining a听strong following is听one of听the听keys to听stable 补苍诲听successful affiliate marketing.

However, some people still prefer this method because it听requires minimal effort. While the听payouts are typically smaller, it听can still earn a听small amount of听money for听very little work.

Related Affiliate Marketing

Related affiliate marketing is听when an听affiliate promotes a听product which is听relevant to听their niche, but that they may not have direct experience with. This is听preferable to听unattached marketing because the听affiliate鈥檚 audience is听expected to听have interest in听the听product. And because it听is听a听relevant product, the听affiliate may be听seen as听a听credible source 补苍诲听advocate for听it.

Related affiliate marketing is听very common because it听is听typically more successful than unattached, while requiring a听similar amount of听work. In听many cases, related affiliate marketing can turn into related affiliate marketing over time as听well.

Involved Affiliate Marketing

Involved affiliate marketing represents the听strongest attachment between the听affiliate 补苍诲听product. In听this model, the听affiliate promotes an听item which they are both familiar with 补苍诲听confident about. Often, the听product will be听directly relevant to听the听affiliate鈥檚 niche. Involved affiliate marketing is听ideal for听affiliates because it听lets them speak honestly 补苍诲听passionately about a听product they use. This helps to听keep their content fresh 补苍诲听lessens the听risk of听losing the听audience鈥檚 attention.

Involved affiliate marketing is听also the听most likely model to听be听relevant to听the听consumers. If听the听affiliate uses the听product or听service, it听is听likely relevant to听their niche, which is听also of听interest to听their audience. As听a听result, the听affiliate鈥檚 followers are more predisposed to听purchase the听product. When combined with a听more compelling sales pitch, this can is听often the听most successful form of听affiliate marketing.

Related affiliate marketing can also turn into involved affiliate marketing if听an听affiliate tests out the听products themselves. This can also be听ideal because the听audience can see the听affiliate鈥檚 familiarity with the听product grow over time.

Involved affiliate marketing is听ideal for听everyone involved. While it听can be听difficult to听find products that an听affiliate is听passionate about, the听payoff is听often great.

Affiliate Marketing Basics for听Brands: How to听Track Sales

Affiliates make money based on听the听level of听engagement with their promotional content. But that does not explain exactly how companies keep track of听affiliate sales. This may seem like the听most confusing part of听affiliate marketing from the听outside. But it鈥檚 actually relatively simple. An听affiliate鈥檚 commissions are tracked through the听use of听.

What Are Affiliate Links?

When an听affiliate signs up听for听an听affiliate program, they are assigned a听unique affiliate link on听the听company鈥檚 website. This link is听a听specific URL designated to听the听affiliate, often containing their username or听another identifying tag.

Companies are able to听use cookies to听measure traffic on听these URLs. So听any听time a听customer clicks on听an听affiliate link, there is听a听chance for听the听affiliate to听earn a听commission. Some programs do听pay affiliates simply based on听page views. However, it听is听more common for听commissions to听be听tied to听sales (for products) or听subscriptions (for services).

Affiliate links serve a听couple of听key purposes.

First 补苍诲听foremost, they make it听possible for听affiliates to听receive payments for听their work. Without affiliate links, it听would be听incredibly difficult for听companies to听know how much they owe affiliates. This brings us听to听another key function of听affiliate links.

They also enable companies to听measure the听success of听their affiliate marketing programs. Companies need to听be听able to听quantify the听value of听any听marketing strategy to听know whether or听not it鈥檚 successful. Without affiliate links, companies would have to听rely on听blind estimates. But affiliate links provide a听direct 补苍诲听object measurement of听the听success of听an听affiliate marketing program.

Furthermore, they allow companies to听see which affiliates are the听most successful. This can open up听new marketing opportunities or听provide greater insights into a听product鈥檚 market.

There is听some slight risk involved with affiliate links, as听mentioned previously. It听is听possible in听some cases for听individuals to听artificially inflate traffic for听affiliate links, leading to听a听higher commission. But this is听rare, 补苍诲听many leading software programs have security measures in听place to听prevent it.

Pros 补苍诲听Cons of听Affiliate Marketing Programs

Effective marketing always has benefits for听the听companies involved. However, most marketing strategies also come with some risk. Affiliate marketing is听no听exception to听this principle. Here are some of听the听pros 补苍诲听cons of听affiliate marketing for听both the听company 补苍诲听the听affiliate involved.

Pro听鈥� Minimal involvement

For both parties, affiliate marketing is听relatively low stakes when it听comes to听time 补苍诲听energy investment. For the听company, there is听almost no听work at听all. They simply participate in听an听affiliate program, provide affiliate links, 补苍诲听wait for听shoppers to听roll in. For affiliates, the听work is听also fairly light. They don鈥檛 need to听worry about products, order fulfillment, or听anything on听the听back end. They simply promote the听item 补苍诲听share their affiliate link. When done right, affiliate marketing can be听one of听the听best ways to听earn passive income online.

Pro听鈥� Wide audience

This one is听specific to听the听companies that use affiliate marketing. When companies use affiliate marketing programs, they have an听opportunity to听reach an听extremely wide audience. This becomes more applicable as听more 补苍诲听more affiliate marketers promote their products. Affiliate marketing can be听a听tremendous way for听companies to听reach an听extremely wide range of听demographics with relatively little investment.

Pro听鈥� Highly scalable

Affiliates usually earn a听commission based on听the听number of听sales generated through their affiliate links. This means their revenue has the听chance to听increase with every marketing opportunity. Affiliate marketing revenue also grows along with the听affiliate鈥檚 own audience. The same scalability applies for听companies participating in听affiliate marketing programs. As听their products reach a听wider audience, they have more opportunities to听sell their products.

Pro听鈥� Discover new products or听services

Sometimes, even affiliates themselves can discover 补苍诲听fall in听love with the听products they sell. This is听the听best of听both worlds for听an听affiliate. On听the听one hand, they get to听enjoy 补苍诲听make use of听a听new product or听service. On听the听other, they then have a听great marketing opportunity to听promote a听product which they are passionate about.

Con听鈥� Can take time

Affiliate marketing does not always pay off immediately, especially for听affiliates. It听may take time to听build a听wide enough audience to听generate real revenue through affiliate marketing. It听may also take time for听affiliates to听find products or听companies whose services are most appealing to听their audience.

Con听鈥� Limited options

Affiliates who sign up听for听an听affiliate marketing program are limited to听the听products available through that program. This can present some challenges, as听it听may be听difficult to听match with companies that are relevant to听the听affiliate鈥檚 niche.

Con听鈥� Can come across as听inauthentic

In听the听case of听unattached affiliate marketing, some consumers can be听dissuaded by听marketing that does not seem genuine. If听a听product or听service has no听relevance to听the听person marketing it, modern consumers can quickly lose interest 补苍诲听tune out the听advertisement. This can be听damaging to听the听affiliate鈥檚 reputation while also contributing no听sales for听the听marketed product.

How to听Start Affiliate Marketing as听an听Affiliate

Before starting with affiliate marketing, affiliates 补苍诲听companies should conduct some research 补苍诲听devise a听plan. Like all types of听marketing, the听success of听an听affiliate marketing program will depend largely on听having a听marketing plan. Both parties should identify niches 补苍诲听products that go听well together. For affiliates, choosing products that will appeal to听their audience will generate the听most revenue. Likewise, companies will generate more sales if听their affiliates聰 audiences are interested in听their products.

As听for听how to听become an听affiliate marketer, affiliates must sign up听for听an听affiliate marketing program. There are a听ton of听affiliate marketing programs online that affiliates can join. Some of听the听best affiliate marketing programs are hosted by听familiar, big-name companies. is听perhaps the听best-known affiliate marketing program. This program allows its members to听share links to听Amazon product pages with their audiences for听a听commission on听sales. Only 聯qualified websites聰 are allowed to听participate in听the听Amazon Associates program, so听it听is听not open to听everybody.

This is听not the听only affiliate marketing program available to听an听affiliate marketer, of听course. A听few other examples include , , 补苍诲听.

Make Money Through Affiliate Marketing 补苍诲听More

Becoming an听affiliate marketer is听a听great way to听add a听revenue stream to听your website. But there are plenty of听other ways to听make money online by听starting your own ecommerce website. To听learn more, read about the听benefits of听working with 51视频鈥檚 .

听

About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

51视频