Understanding how to make money affiliate marketing in 2018 is a huge. This is the age of technology, and making money through the internet can be very lucrative. Did you realize you could be missing out on thousands of dollars in revenue per month? That’s exactly the change it’s made for me. It’s time for Affiliate Marketing 101: “What is affiliate marketing and does it work?”
When I found the training and mentoring community I’m still a part of I knew nothing about affiliate marketing. Less than a year later I made $4k in one month! Affiliate marketing is a $6 BILLION/YEAR industry and it’s only GROWING MORE!
Consider this article a “how to make money with affiliate marketing for beginners” training. You can now master how to make money affiliate marketing & earn thousands per month doing it.
Grab a pen, take notes, and prepare to feel like you’ve just found your golden ticket.
How to Make Money Affiliate Marketing 2018- What is Affiliate Marketing and Does It Work?
Watch the following video to understand all the basics of affiliate marketing. You’ll understand how affiliate marketing works, how much money you can make with affiliate marketing. How fast can you make money with affiliate marketing? Watch and find out.
Affiliate marketing allows you, the affiliate, to be able to earn a commission on products or services you promote through your website for companies, or merchants. Just about every single one of the tens of thousands of merchants you’ve shopped with online has an affiliate program.
Let’s use an extremely popular merchant like Amazon.com as an example. You can buy just about anything on Amazon. As a result, no matter how unique the product, you can make money promoting it through an affiliate program.
Does Affiliate Marketing Really Work?
Let’s take a look at how to do affiliate marketing step by step. When was the last time you bought something online and researched it before buying it? We all do this. Understanding how to make money affiliate marketing means realizing that there is a HUGE demand here. Let me explain how affiliate marketing works.
You find a review you like that thoroughly explains all the bells and whistles for this lens. It goes through the pros and cons, and gives you the specs you’re looking for. Finally at the end of the review you see a link that will take you to Amazon so you can make this purchase.
You click the link, buy your lens from Amazon, and a few days later, it’s in your hands. This is the process we’ve all gone through a hundred times, right?
Well did you know that the link you clicked on in that review is an affiliate link? That reviewer actually received a commission for connecting you to that product you were looking for. He didn’t have to ship it to you and doesn’t have to carry any inventory. He simply connected you to the product you were already looking for through his review and that is exactly what affiliate marketing is all about.
Different merchants have different affiliate commission rates. In this example, amazon pays a 6% base commission with additional performance incentives based on volume for this type of product. (Update: As of March 1st, 2017 Amazon has made changes to its rates. Read my article here detailing Amazon’s new affiliate commission rates and why you benefit.)
In this case, the lens retails on amazon for $131.95, so a 6% commission would be $7.92. If you’re the reviewer and you wrote that article, you’d have a cool $7.92 in your pocket.
Wait, you’re not excited about $7.92?
Well don’t write off affiliate programs just yet. Let’s say you also did a review on this Samsung curved 88 inch 4K Ultra HD television.
Just for me, right now, take a wild guess at how much you think an 88 inch television might cost and then click that link above and prepare to have your mind blown before we move on. (Do it).
Because of its hefty price tag, your 6% commission for this sale would be $1,379.94!
Not bad for writing a review and referring your traffic to the merchant.
How much can you make with affiliate marketing?
This is where knowing the basics of affiliate marketing goes hand in hand with knowing how to get traffic. The higher your traffic, the more commission potential you have.
Increasing your website’s traffic comes from a combination of creating relevant content for your site, and making the user experience a great one.
What if there was a tool that studied Google’s search data and told you exactly what your target audience was searching for? There is, and once you read this article on Jaaxy you’ll never leave home without it.
Knowing what your target audience is looking for is one of many factors you need to understand to build consistent traffic. It will also create a better user experience. And with consistent traffic, your opportunity to succeed with affiliate marketing presents itself.
Now, let’s work out some conservative numbers
Let’s say you’ve followed your training correctly, and have built a website that gets 1000 unique clicks per month, just a little over 30 per day, which is actually very realistic when you build your site right.
Out of those 1000 you have a 20% click-thru rate on your affiliate links. Click-thru rate (CTR) is the percentage of people who are actually clicking on your affiliate link which takes them to the buy page. A 20% CTR on 1000 clicks is 200 clicks per month. Don’t go buying that new ‘vette just yet, because not everyone who clicks the link actually buys the product.
Out of those 200 who click your affiliate links, we’ll say 1 out of 50 makes a purchase. This is very conservative.
That’s 4 sales in a month, and if those 4 sales were for that crazy expensive television, that’d be almost $5000 in commissions! (hurry go get the ‘vette!). But a more typical commission is closer to $25 -$30, or anywhere from $100-$120/month for those 4 sales.
Those are monthly commissions working for you even while you sleep, 24 hours a day, 365 days a year. This is that “working smarter, not harder” concept you halfway heard while you halfway slept through that one class way back when.
Just How Lucrative Can Affiliate Marketing Be?
Let’s bump up the traffic just a bit shall we?
From the conservative 1000 clicks/month let’s ramp up to a steady 3000 clicks/month. And from the conservative $25-$30 affiliate commission, let’s go up to the very nice round number of $100 per sale.
There are many products out there offering this high of a commission that you can earn repeatedly.
Read my review here for my #1 recommendation which not only offers great training on affiliate marketing and building massive traffic, but also has an affiliate program that meets and exceeds that average of $100 per customer after retention.
So, at 3000 clicks/month, keeping the same 20% CTR, this is 600 people clicking through your affiliate links every single month. And from the 1 out of 50 conservative scenario we had earlier for customers who actually buy, let’s also ramp up to a very doable 1 out of 20.
That would lead to 30 purchases/month, and if you’re promoting something that returns a $100/sale commission, that would be $3000/month!
Especially relevant is the fact that there is no ceiling to how much you can make with affiliate marketing. Some have even boasted of over $1000/day consistently.
And now that you understand it and finally know what that little “affiliate” link at the bottom of every merchant’s site leads to, it’s time for the obvious next step: partnering with merchants.
What are the Top Paying Affiliate Programs?
There are literally tens of thousands of affiliate programs out there. But if you’re thinking of a top 5, the most popular affiliate programs are:
- Commission Junction
- Affiliate Window
- Rakuten Affiliate Network (formerly Linkshare)
These affiliate programs have a huge number of merchants within their catalogue. When searching out a merchant to partner with, don’t be surprised to find them within one of these affiliate programs listed above.
You don’t have to partner with the big guys though. No matter what niche you’re in, you can find a wide variety of affiliate programs that may be smaller but still offer great commissions. Try doing a google search of “(Your niche) + affiliate programs” to find some that fit your needs.
While some affiliate programs require you to have a certain amount of traffic to your site, others will accept you even if you’re just starting out.
How to Make Money Affiliate Marketing 2018 – Conclusion
Understanding and mastering how to make money affiliate marketing will be very lucrative to you with the right training. Build your site right, and you can be on top of a huge pile of commissions relatively quickly.
The training community I’m a part of is the best mentoring community you’ll find online for building a successful affiliate marketing business. Take the training for a test drive first to see if the training is a good fit for you. I’ve had nothing but positives and I think you will too.
Still have questions on how to make money affiliate marketing? What products do you love and use regularly? Don’t think there’s an affiliate program in your niche? Think again. Share your ideas and questions! Leave me a comment below. Ask away.
Found an even higher consistent affiliate commission you’d like to share? Leave me a success story! Understanding how to capitalize on the internet is a dynamic process.
In conclusion, I hope this information on affiliate marketing helps you. Take the right steps, and you’ll be well on your way to financial and time freedom and a very successful online business.