What is a Marketing Affiliate and how to earn money Affiliate Marketing online

Chances are you are reading this because you have heard that Affiliate Marketing can make you money, even whilst you sleep?! Whilst this is true, first of all we need to really learn what is Affiliate Marketing.

What Is Affiliate Marketing And Does It Work?

Affiliate Marketing according to the Oxford Dictionary: “a marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.”

Put simply, webmasters, bloggers, social influencers etc advertise a product or service and are paid a commission for any successful sales.

There are four aspects to Affiliate Marketing:

1) A Merchant – that is a company or retailer who have products or services to sell online.
2) Affiliate Network – an intermediary between the Merchant and Affiliate that tracks purchases.
3) Affiliates – also known as a ‘partner’ or ‘publisher’ who advertise / promote online.
4) The Consumer – people who make purchases online.

Take a look at this flow diagram which illustrates the process from beginning to end in terms of an affiliate:

Affiliate Marketing process

Does it work? Of course! The key is funnelling the correct product or service to a suitable audience. For example, there is no point in writing a blog about the best dog food, and then promoting links to an online furniture store! If you have a blog about dog food, you need to be promoting links the best dog food retailers.

Sounds easy, show me the money!

Woooa, hold on there, not so fast let’s look at this in a little more detail first. The Affiliate Marketing process is simple, you promote a product online, someone clicks the link, you get paid. Easy! Anyone can do this. However, no blog, website, social media page is any use without TRAFFIC.

If no one is visiting your blog / website / social media page then who is going to click on the link? Oh you have traffic? I have bad news, conversion rates.

What is a conversion rate in marketing? A conversion rate is the percentage of visitors to your blog, website, social media page that successfully purchase your promoted product or service as a direct result of your page.

Typically, the average conversion rate is just a mere 2%! Let’s look at an example.

1) Let’s say your website advertises a product for $50, and you will be paid 5% commission on each item sold.
2) You website gets 10 visits per day / 3,650 per year.
3) 2% of 3,650 would be 73 sales per year.
4) Each sale is worth $2.50.
5) Therefore 73 sales x $2.50 = $182.50 per year

$182.50 per year, not exactly going to pay for your mortgage right? Let’s increase the traffic to your website a little…

1) Your website gets 100 visits per day / 36,500 per year.
2) 2% of 36,500 would be 730 sales per year.
3) Therefore 730 sales x $2.50 = $1,825 per year.

$1,825 per year, from one page, one relatively cheap product.

Now let’s increase things a little more…

1) You have a popular website that specializes in hot tubs. Average price for a hot tub is $4000, with a commission of 10%.
2) Your website gets 500 visits per day / 182,500 per year
3) 5% conversion would be 9,125 sales per year.
4) Each sale is worth an average of $400.
5) Therefore 9125 sales x $400 = $3,650,000 per year

Wow, that should cover the mortgage! $3.6m may seem unrealistic, but it is totally achievable!

How to get website traffic, for free!

Of course, one option to drive traffic to your hot tub website is to advertise, but this can be incredibly expensive and totally detrimental to what you are trying to achieve. So let’s dismiss that option immediately. We need to drive traffic to your website for free.

I have mentioned this fact in another article, 95% of Internet users will not look beyond page 1 of web search results! Your hot tub website needs to be on page 1 of Google, Yahoo, Bing etc else it simply will not yield the results you’re looking for.

Take a look at this article I wrote about Jaaxy, a free and most powerful tool for promoting your website Using such a tool is key to being able to target search traffic to your website.

Can I start Affiliate Marketing?

Of course, anyone can! Don’t know where to start? This very article you’re reading right now is a direct result of my training with an online training academy Wealthy Affiliate. Here you can sign-up, for free, to learn just about anything there is to know about Affiliate Marketing. There are easy to follow video guides, virtual classrooms, and a community of like-minded people who are available to help you 24/7.

When you sign up, your account is free of charge. However, should you wish to upgrade to the Premium Membership which you’re not obliged to do, you have 7 days to sign up at a heavily discounted rate. Here’s my advice though, work through the first phase of training within the 7 days, get a real feel for it, talk to other people. After 7 days, you may think it’s not for you, or you may wish to continue using the free package, or you may want to progress even further with the Premium Membership.

Can you do me a favour please…

I hope you have enjoyed reading this article. If there is one thing I could ask you to do, and that is to leave me a comment at the bottom of this page – good, bad, or perhaps you have a question.

Thanks for reading!




4 Replies to “What is a Marketing Affiliate and how to earn money Affiliate Marketing online”

  1. Affiliate marketing is great business this is why so many people are turning their attention to this line of work especially when you think of the benefits which are involved,

    Wealthy Affiliate has a history of helping people to have good success in this line of work with their training. The tools, the community, and the training is so good and I would encourage anyone to become a part of this community.

    1. Thanks for the comment Norman. That’s absolutely true, as online retail sales continue to soar globally it’s an increasing opportunity for like-minded individuals to take advantage of this. Even with no previous experience individuals can leverage the training and community at Wealthy Affiliate. Don’t get me wrong, it’s no fast buck – but put in the work and you will be rewarded. Iain.

  2. Hi Iain

    For anyone who isn’t sure if affiliate marketing works you give great examples to set them straight. But you also let them know it doesn’t just happen got to be able to get traffic.

    You give access to a great tool that will help them do just that which is Jaaxy which I use myself with great results.

    Also I like how you let an inspiring affiliate marketer know that there is no better place to get started and trained than with Wealthy Affiliate.

    Great post!


    1. Hey Eric,

      Many thanks for the positive feedback! You’re right, I want everyone to know who may be interested in Affiliate Marketing that great results are very achievable. However, it does require the knowledge which can be learnt from Wealthy Affiliate, the right tools such as Jaaxy, and of course the work and determination to succeed.


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