Ever wonder how some people set up impressive passive income sources?
You don’t have to look too far.
Some invest money in developing high-end products.
Others are affiliate marketers. They don’t own products; they sell them for a commission.
If you are wondering how you can do this with no money down, read to the end. We crafted an Affiliate Marketing Guide for Beginners. You’ll learn everything you need to know about affiliate marketing.
What is Affiliate Marketing?
Affiliate marketing is a way to earn commissions by recommending other people’s products or services.
As an affiliate marketer, you earn a commission when you refer a customer to the promoting’s affiliate product.
Affiliate marketing is one of the most lucrative passive income hustles you can do. Statistics show that affiliate marketing as a global industry is worth $12 billion and rapidly growing by 10% each year.
Affiliate marketing allows you to earn money passively with little or no down investment.
In a nutshell, here’s how affiliate marketing works.
The whole process involves three parties:
- A product owner or seller, or merchant who creates a product
- An affiliate marketer who promotes or markets the product
- A customer who buys the product.
In this co-dependent cycle, each person gets what they want. The product owner sells his product, the customer buys a product they need, and the affiliate marketer earns a commission for linking the buyer with the seller.
A win-win for everyone involved.
How Do I Make Money With Affiliate Marketing?
Here’s how you make money with affiliate marketing in four simple steps.
1) Sign up on an affiliate marketing platform. Many affiliate programs sign up with such as Clickbank, JVZOO, Amazon Associates, Maxbounty, etc.
2) Choose an affiliate product to promote. There are different niches to choose from – health, SaaS, fitness and wellness, business, education, etc. You’ll get an individualized affiliate link when you select an offer to promote. (A typical affiliate link consists of a random series of numbers and letters, your username, or other means of identification)
3) Promote your affiliate offer. You’ll do this using different marketing strategies such as blogging, PPC, social media marketing, etc.
4) A consumer clicks on the affiliate link and buys the product, you earn a share of the sale.
Affiliate marketing commissions differ depending on the affiliate product you choose to promote. Some affiliate programs payout up to 50% of each sale, while others payout less than 10%.
So How Much Money do Affiliate Marketers Make?
Here’s the thing you need to understand.
With affiliate marketing, there’s no cap on how much you can earn. Affiliate marketing commissions are performance-based. This means – the more effort you put in, the more money you make.
Here’s what we mean.
As we’ve discussed, affiliate marketing commissions vary. Some affiliate programs offer commissions of up to 100%. This means that as the affiliate marketer, you take home all the money generated from the sale of the product.
But don’t get too excited.
The average affiliate commission is usually between 5%-30%. And this depends on certain factors. These factors determine how much you make as an affiliate marketer.
Such factors are:
- The industry
- The product
- The value of the affiliate offer
Here’s how these factors affect how much you can make as an affiliate marketer.
Industries such as SaaS, online business, finance, and health generally offer high commission rates to affiliate marketers. The commissions vary between 7%-50%. While other industries – beauty, cosmetics, and natural health product commission rates usually range between 5%-15%.
Ideally, you’ll look to promote high ticket affiliate offers. As high-ticket industries command a profitable commission.
On the other hand, although affiliate marketing has a low entry barrier, finding customers for certain products can be tedious. It is often easier to drive traffic for a lower commission ticket than a higher ticket product from our experience. However, this depends on your skill as a marketer.
With that said, having the right marketing training plays a crucial role in how much money you’ll make as an affiliate marketer, regardless of the vertical you promote. It’s a good idea to look up reviews on affiliate marketing courses and choose one that works for you. Just make sure it’s legitimate and has positive reviews.
Affiliate marketing commissions count heavily on your effort as well as marketing strategies. They will also depend on the product you choose to promote and the marketing you sell to. A high specific niche market can deliver more commission than a large, popular but generic market in some cases.
Affiliate Marketing Platforms
As an affiliate marketer, you can actively seek out merchants and offer to promote their products. This works, but it’s tricky. Not to mention – it is time-consuming and takes a lot of effort and persuasion to get accepted.
At the same time, affiliate marketing platforms such as Clickbank, JVZOO, Amazon Associates, Max bounty, etc. help you find merchants and products to promote.
Affiliate marketing networks connect affiliate marketers with merchants. They act as the middleman between merchants and affiliate marketers.
Here’s how it works.
Both merchants and affiliate marketers are required to sign up to the affiliate network. Once they are accepted, merchants can offer up their products to affiliates. And affiliate marketers can find product and promotional materials to promote.
Your best bet for finding tonnes of affiliate offers is by joining an affiliate program as an affiliate marketer. Once you sign up and are accepted, you can choose from various niches and affiliate products to promote. After choosing a product to promote, you’ll be assigned a unique affiliate ID for the product you’ve chosen. This ID is used to track your sales made for each product on the affiliate network.
The affiliate network provides you with a dashboard on the affiliate network for tracking your affiliate commissions and sales.
Choosing a Niche
For most beginners, choosing a niche is the most taxing part of affiliate marketing. It’s easy to understand why.
The popular advice from an expert is to choose a niche that matches your skills and knowledge. But as apt as this advice may be, it fails to address some fundamental concerns.
What if you can’t find customers in your niche?
What if there’s stiff competition in your niche?
Or what if the niche just isn’t lucrative?
The truth is – some verticals are more profitable than others. Since you are here to make money, it’s important to choose a niche that promises a high return for your efforts.
Also, although it is much easier to find customers for products in certain niches, the competition among affiliate marketers in that niche may discourage you.
Choosing the best product is vital to your affiliate marketing success.
A great product offers a great solution in the market. This means a large number of people need the product. Such products are generally easy to promote and often worth your effort as well.
So how do you go About Promoting your Affiliate Product?
Promoting your affiliate product can be tedious, especially if you are a beginner. However, once you get started, you’ll become a pro in no time.
But like any business, you need time and effort to get the ball rolling.
Here are some of the popular ways to promote your affiliate offers:
- Blogging and Search engine optimization (SEO)
- Social media campaigns
- Email marketing
- Create useful and informational videos
- Offer discounts, coupons, incentives, or loyalty rewards
- PPC and paid traffic
If you got all the way here, you are probably considering getting into affiliate marketing. Here are a few things you should know:
You can get started as an affiliate with minimal investment. And even so, little or no risk on your investment. With thousands of products in the marketplace to promote, it’s easy to setup. And more than this, there’s no cap on the money you can make.
On the other side, since affiliate marketing has a low barrier to entry, beating your competition means – you have to put in a ton of effort, time, and patience.
Nevertheless, affiliate marketing is a great way to earn passive income. Virtually anyone can make money with affiliate marketing. If done right, affiliate marketing can be your source of passive income for years to come. You can find out more about the best affiliate programs for beginners here.
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