I started my affiliate marketing journey back in 2013.
I’d grown an audience who trusted me, I’d made some great connections with some awesome course creators, and I wanted to bring the two together.
Moving forward a few years affiliate marketing has been a fantastic route to make money and grow my network at the same time!
The challenge with affiliate marketing is that many people view it as an easy route into the make money online niche, but as with all business models, it takes time, commitment and unrelenting focus.
And if you think it’s just for the young kids, think again. Affiliate marketing is a perfect ‘assetless’ model as we get older and don’t want to spend the time or the money to create and sell our own products.
Let’s break down the steps so you know what it is, how to make money from it and how to get started affiliate marketing for beginners!
What is Affiliate Marketing and How Does it Work?
Affiliate marketing is a digital marketing approach where individuals or companies (affiliates) promote products or services of other businesses (merchants) and earn a commission for each sale, lead, or click generated through their unique affiliate link.
Since the early days of industrial mass production, product owners have paid commission to salespeople who can make a sale for them.
It’s a win-win for the product owner. Advertising and marketing cost a lot of money, so a large salesforce that gets paid only for results makes a lot of sense.
Affiliate marketing is a natural progression from the old-time traveling salesman, updated and refined for our online interconnected world.
You will usually find several parties involved in affiliate marketing.
The Product Owner. The person or organisation who manufacture or own the sales rights of the product or service on sale. They want to make more sales without directly investing in sales or marketing.
The Affiliate Network. A middleman organisation that manages the process of finding and paying affiliates for the product owner. (Sometimes the product owner will manage their affiliate program themselves).
The Affiliate Marketer. You! Someone who creates content, builds an audience, and recommends the audience purchases the product or service—sometimes called ‘the publisher’ by affiliate networks.
The Buyer. Because without a paying customer, affiliate marketing would not be possible!
The Mechanics of Affiliate Marketing for Beginners
Let’s break down the key components and processes involved.
- The affiliate joins a program and receives a unique link or code.
- The affiliate promotes products or services using this link across various channels.
- A potential customer clicks on the affiliate link.
- If the customer makes a purchase or completes a desired action, the affiliate earns a commission.
- The merchant tracks these actions through cookies and affiliate software.
Key Players: Merchants, Affiliates, and Customers
1. Merchants (also called advertisers or brands):
- Provide the products or services
- Set up and manage affiliate programs
- Determine commission rates and payment terms
2. Affiliates (also called publishers or partners):
- Promote the merchant’s products or services
- Create content and drive traffic to merchant sites
- Earn commissions based on performance
3. Customers:
- The end-users who purchase products or services
- May or may not be aware they’re using an affiliate link
Types of Affiliate Programs
1. Pay-per-sale (PPS):
- Most common type
- Affiliate earns a percentage of the sale amount
2. Pay-per-lead (PPL):
- Commission paid for qualified leads (e.g., sign-ups, form submissions)
- Often used in industries like insurance or education
3. Pay-per-click (PPC):
- Affiliate paid for each click-through to the merchant’s site
- Less common due to potential for fraud
4. Two-tier affiliate programs:
- Affiliates earn commissions on their own sales and on sales made by sub-affiliates they recruit
5. Recurring commission programs:
- Common in subscription-based services
- Affiliate earns ongoing commissions for as long as the customer remains active
How Much Can You Earn as an Affiliate Marketer?
You can earn zero, a little, an excellent living, or more money than you ever thought possible. It’s all down to you.
Becoming an affiliate marketer has a low barrier to entry, which often means high competition. So, as a result, you’ll need to work hard. And, ultimately, you get out of affiliate marketing what you put in.
When you start, it’s not uncommon for your affiliate earnings to be small amounts that appear insufficient reward for your level of effort.
But everyone has to go through this initial start-up phase. Don’t quit early – you have to keep on working through this stage to make it successful.
One of the most successful affiliate marketers I’ve ever seen in action is a guy called Jason Fladlien.
Jason taught himself through years of trial and error how to expertly sell via webinars. He then put a support group and training together for Amazon sellers and sold the Amazing Amazon training course every time it launched with the bonus of joining his group.
I don’t know the exact numbers but he made hundreds of millions on a product he didn’t create himself.
However he’s the anomaly, most people don’t have or aren’t willing to learn his kind of sales skills.
A more relatable example is Pat Flynn who runs the Smart Passive Income website. Pat Flynn began his affiliate journey back in 2008 after losing his job in the global turndown.
At the start, to make himself accountable, he reported his monthly affiliate income. He kept up this practice for the next nine years; below is the final report he made public in December 2017.
Over $105,000 of earnings from affiliate marketing in a single month!
Many people would be thrilled to earn $100,000 per year as an affiliate, and in fact in 2023 I generated $85,679 in revenue, from a mix of affiliate sales and sponsorship on my website (with no social media and no email list), before the hand of Google decimated my traffic.
If I can do it, there’s no reason you can’t do it too, no matter your age.
So let’s get started!
Affiliate Marketing for Beginners – A Step by Step Guide
1. Choosing Your Affiliate Niche
Selecting a niche is the first crucial step in your affiliate marketing journey.
A niche is a specialized sub-section of a broader topic. For example, instead of “fitness,” you might choose “yoga for seniors” as your niche.
- Start with your interests: Think about topics you enjoy or have experience in. Your passion will fuel your content creation and help you connect with your audience. Ask yourself: What do I love talking about? What skills do I have?
- Check if there’s demand: Use free tools like Google Trends to see if people are interested in your potential niche. Type in some keywords related to your niche ideas. Are the trends steady or growing? This indicates a healthy interest in the topic.
- Look at the competition: Search for your niche ideas on Google. Are there other websites covering this topic? Some competition is good – it means there’s a market. But look for ways you can offer something unique or better.
- Consider the money-making potential: Search for “[your niche] + affiliate program” to see what products you could promote. Check the commission rates. Are there enough products to promote? Remember, you need to balance your interest in the topic with its potential to earn income.
- Narrow it down: If your niche feels too broad, try to narrow it further. Instead of “dog training,” you might choose “puppy training for apartment dwellers.” The more specific you are, the easier it is to target your audience.
Remember, choosing a niche isn’t a lifetime commitment. You can always pivot or expand later. The key is to start with something you’re genuinely interested in and that has potential for growth.
For more guidance on niche selection, checkout my guide on how to choose a niche using AI to help.
2. Identifying Profitable Products or Services
Once you’ve chosen your niche, it’s time to find products or services to promote.
Here’s how to identify offerings that could be profitable for your affiliate marketing efforts:
- Spot what’s trending: Check out Amazon’s Best Sellers list for your niche if you want to promote physical products, or look at affiliate marketplaces like Clickbank, Impact, or Partnerstack for recommended programs . This gives you a quick idea of what’s popular right now. Also, keep an eye on industry news or blogs to spot new products or services that are gaining traction. What’s everyone in your niche talking about?
- Look at what you already use: Think about the products or services you currently use or have used in your niche. Do you have a favorite tool, app, or product that you genuinely love? These can be great starting points for affiliate promotion. Check if they have an affiliate program by visiting their website and looking for an “Affiliates” or “Partners” link, often found in the footer. You can also simply search “[product name] + affiliate program” on Google. Promoting products you personally use has several advantages:
- You can speak authentically about their benefits and features
- You’re already familiar with the product, making content creation easier
- Your personal experience can provide unique insights that other affiliates might miss
- You can honestly answer questions from your audience about the product
- Don’t limit yourself to digital products. Physical products, services, or even local businesses in your niche might have affiliate programs. For example, if your niche is home fitness, you might already use workout equipment, fitness apps, or nutritional supplements that offer affiliate partnerships. Remember, even if a product you love doesn’t have an official affiliate program, you could reach out to the company directly. Some businesses, especially smaller ones, might be open to setting up a custom affiliate arrangement with you.
- Look at the commission details: When you find interesting products, check how much you could earn by promoting them. Some programs offer a percentage of the sale, while others give a flat rate. Higher commissions are great, but also con