Part 1: Affiliate Marketing 101
Welcome! Let me first congratulate you on starting this course. If you’re here, it’s because you have a real interest in how to make money online. In January of 2017, I started my own journey to understand how affiliate marketing works.
I’m someone who is addicted to travel, and I wanted to find a way to build a business that could travel with me. I’m proud to say that 11 months later, I’ve built a website that is earning me $4k per month, and I want to share with you my exact earning methods.
It’s not about getting lucky, it’s all about understanding how affiliate marketing works, how to attract visitors to your website or blog, and how to structure your content so it ranks high in search engine results to keep that traffic coming.
And with that traffic comes the opportunity for revenue, and that’s what this is all about. Affiliate marketing is a 6 billion dollar per year industry, and it’s only getting bigger.
But first, we need to cover exactly what affiliate marketing is, right?
- Do you need your own products or services to offer?
- How can you partner with major merchants like the ones shown in the picture above?
- How do those merchants pay you when you connect your audience with their products?
- How much money can you make with affiliate marketing?
These questions and more are answered in the video below. This is a video I put together for a post on my website explaining affiliate marketing and I feel it’s a perfect fit for this course.
This is affiliate marketing 101. During the video, if you hear me refer to links to an online training community, don’t worry about that just yet. Your first step in this course is understanding exactly how the process works.
What This Course Covers
By the end of this course you’ll have a full understanding of how affiliate marketing works and how you can start earning revenue with this lucrative industry. I’ll give you the tools necessary to accomplish your goals, and I’ll connect you with the best training and mentoring community you’ll find online so you can have step by step guidance.
- Part 1: Affiliate Marketing 101
- Part 2: The Power of Keywords & the Best Keyword Research Tool You’ll Find Online
- Part 3: On-Page SEO: How to Structure Your Content to Get Massive Traffic & Conversions
First things first, here’s your affiliate marketing 101 video.
Find a comfy, quiet spot where you can stay focused. Turn off your cell or put it on vibrate if you can, and do everything you can to be present. These steps you’re taking now can mean the difference in thousands of dollars per month down the road.
Where were you financially 11 months ago? Where do you want to be financially 11 months from now? I want to do everything I can to help you find the success I’ve found so that in a few short months you can find yourself earning thousands more than you’re earning now.
Watch the video below & let’s get started!
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.
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? I don’t mean to be a tease, but that’s exactly what you’re going to learn about in Part 2 of this course!
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.
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. And don’t worry if the idea of partnering with a merchant seems daunting to you! The training community I’m going to connect you with at the end of this course will walk you step-by-step through the whole process and make it EASY!
This is just the overview, remember? Baby steps! 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.
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.
Part 2 of this course is going to take you into the next step which is understanding how to build consistent traffic that gets eyes on your posts. You ever wonder how bloggers get so many subscribers and so many shares of their content? It all starts with keyword research and getting your point of view to the masses!