Affiliate Marketing is a fast-growing business opportunity that is increasing every year.
It is not a new concept.
The first Affiliate Marketing Program was set-up in 1989 and Amazon started their Affiliate Program (known as the Amazon Associates Program) back in 1996.
This is good news for you and I because it means we can learn from the many people that have walked this road before us. There is plenty of information to help people who are new to this environment.
One bad thing though, is that scam-artists also use the same concept to promote and sell their scams. You still have to be careful when looking for Affiliate Programs and make sure that you are selling a legitimate product.
Don’t let this worry you because if you stick with me you will be guided to finding some of the legitimate programs and you will soon learn to recognize the scams.
What exactly is Affiliate Marketing?
To put it in a nutshell: Affiliate Marketing is where ordinary people (you and I) advertise a product or service on behalf of a company and then get paid a percentage of the sale if a customer buys from them.
Some companies, like Amazon, call it an advertising fee.
That is all it really is.
In it’s simplest form, there are 3 role players:
- the seller (or merchant)
- the buyer (or consumer)
- the affiliate (or advertiser)
Let’s explain this with an example.
- We have a buyer, John, who is wanting a new pair of hiking boots.
- He searches online for information about hiking boots so that he can decide what to get.
- Through his search he comes to a website about various types of boots that has been created by Jane.
- Jane also enjoys hiking and has a website on the topic.
- On this hiking website she compares various hiking boots and makes recommendations.
- She is an affiliate for a company that sells hiking boots and will earn a commission if anyone buys a pair through a link on her website.
- John likes a pair of boots that he has read about on Jane’s website so he clicks on the link to buy the boots.
- The seller processes his purchase and sends him the boots.
- The seller knows that the sale came from Jane’s website because she used her affiliate code in the link to the seller’s site.
- Jane earns a commission on the sale of the boots.
It is important to note that there is no increase in the price whether a product is bought through an affiliate website or directly from the seller. The price to the customer stays the same and they are not charged more for buying through an affiliate link.
Take a look at the blog that Kyle from Wealthy Affiliate recently wrote about Affiliate Marketing in 2017. It has a lot of information and really is a worthwhile read if you are even slightly interested in the topic.
We will be exploring this topic in a lot more depth so that you can get to understand it better. There will be more detail about how it works and explanations of some of the terminology used. I will also explain how to find programs for the products that you want to promote.
Online shopping is a billion-dollar industry and you want your piece of it.
Many online businesses have adopted the affiliate marketing model and use affiliates to increase their reach into the market and this also increases their sales. There are many people who are earning a full-time income from affiliate marketing and some even earn 5 and 6-figure incomes.
Just think about online shopping and how that is growing every year. This means that more people are buying products online every year.
This, in turn, means more opportunity for us to have those online shoppers buy through our websites and advertising links and we get to earn some of what they spend.
The opportunity is huge and growing.
Do you agree that there is a lot of opportunity for new people starting out in affiliate marketing?
Share you thoughts and questions by leaving a comment below.
Take a look at my #1 recommendation for learning about affiliate marketing and starting your own online business.