Affiliate marketing is a common way people make money online. For me, affiliate marketing is my largest income stream. It’s also my favorite income stream because it gives me the most freedom and flexibility. I have written repeatedly about affiliate marketing in the past. This post puts it all in one place.
Affiliate marketing for beginners
Whether you are brand new to affiliate marketing, find the name intimidating or can’t wrap your brain around the concept, this chapter is for you!
But first things first…
Affiliate marketing is about making money. Whenever you make money online (via ads, ecourses, ebooks, sponsored posts, etc.) or offline, there’s selling involved. You’re either
- Selling your own stuff.
- Selling / promoting someone else’s stuff and getting paid for doing so.
What is affiliate marketing?
Affiliate marketing is “recommending a product or service“to people you know, and earning a commission when they purchase it (or complete some other action associated with it).
How does affiliate marketing work? 3 basic steps:
- You recommend a product or service to your followers or people you know.
- Some of those people purchase the product or service based on your recommendation.
- You get paid a commission for those sales.
An example of affiliate marketing
Let’s say I have a blog about home improvement projects. And let’s say I often talk about my favorite drill.
I can partner with the company who sells that drill as an affiliate. They’ll give me a special link to the drill tagged with my own, unique affiliate ID. Every time I use that link in a blog post and someone clicks it, my affiliate ID follows them for a time. If they buy the drill in that time, I will earn a commission.
Who is involved in affiliate marketing?
There are 3 main parties involved in affiliate marketing. Each one has multiple names:
- Advertiser / Merchant / Seller – A company or an individual selling a product or service.
- Publisher / Affiliate / Affiliate Marketer / Associate / Partner – They spread the word about and promote the product or service. (In this post, I will be talking about affiliate marketing from the perspective of the Publisher.)
- Customer / Consumer – They are buying the product or service.