Affiliate Marketing 101
Affiliate Marketing A-Z
1. Affiliate Marketing A-Z
Estimated time: 10:55 minutes
(Completed)2. Affiliate Marketing 101
Estimated time: 14:53 minutes
(Completed) (Completed) (Completed) (Completed)3. Get Started in Affiliate Marketing
Estimated time: 11:23 minutes
(Completed)4. Choosing Products and Services to Promote
Estimated time: 13:16 minutes
(Completed) (Completed)5. Build Your Web Presence and Create Valuable Content
Estimated time: 14:37 minutes
(Completed) (Completed) (Completed)6. Conclusion and Next Steps
Estimated time: 08:55 minutes
Module 1 – Affiliate Marketing 101
On paper, affiliate marketing is straightforward: A business (the merchant) pays an individual or company (the affiliate) a commission based on sales, clicks, or visits they generate. However, in practice, there is a bit more to it. In this module you will learn about the key players, the basics of how affiliate marketing works, the myths and misconceptions, how you can make money, and if you or your existing business are suited to the 'affiliate life'.
The Key Players
The affiliate relationship consists of four key players.
The Affiliate
An affiliate is a person or company that markets a product or service on behalf of a merchant, earning a commission for each click, lead, or sale. You'll also see the affiliate referred to as a publisher because they publish content that contains affiliate links to products and services.
Affiliates operate independently, with no sales targets or minimums – they earn a commission based on how much they sell, how many people they refer, or how many people click their link. For some publishers, affiliate marketing is their primary income, and they have a strong web presence which may include a website, blog, or social media following. Others use affiliate marketing to ---------- their primary business income with targeted product recommendations sent to their email list, YouTube, or other social media following.
The Merchant (Advertiser, Retailer, Brand)
The merchant (also called the advertiser, retailer, or brand) is the business that sells a product or service and wants to promote it to a wider audience. The merchant can be part of a network of companies with offers on an affiliate marketing platform, or they can have their own in-house affiliate program, either by using their own software (e.g. iDevAffiliate) or through built-in affiliate options in their shopping cart (e.g. ThriveCart), or both.
The Network
An affiliate network connects merchants and affiliates and coordinates payments between them. Affiliates can browse affiliate programs that feature products and services that complement their content and appeal to their audience. Merchants, in turn, gain access to a wider pool of potential affiliates. Some examples of affiliate marketing networks include: AWIN, ShareASale, ClickBank, JVZoo, Hotmart, Perform[cb], CJAffiliate, and the Amazon Affiliate Program.
The Customer
The customer is the individual who purchases the product or service and is arguably the most important part of this equation. Without the customer, there are no sales, leads, or commissions.
How Affiliates Earn Commissions
Depending on the terms set out by the merchant, there are a number of ways an affiliate can get paid. The following are the most common commission structures.
Cost Per Sale (CPS): Merchants pay affiliates a commission for every sale. This is the most popular compensation method.
Cost Per Action/Acquisition (CPA): Merchants pay a commission for a specific action. This includes prospects filling out forms or surveys, calls, installs, downloads, free 30-minute consultation, and more.
Cost Per Lead (CPL): Merchants pay a commission for a sign-up or any kind of lead that provides them with a prospect's contact information.
How Conversions are Tracked
Affiliates receive a commission based on either CPA, CPL, or CPS commission structures – but how are these actions tracked?
It all comes down to the all-important affiliate link. Once affiliates are accepted into an affiliate program, they are provided with a tracking link that contains a unique ID. When any visitors click on that link, they are directed to the merchant's website. At the same time, a cookie is placed in their browser on their computer or mobile device. This cookie is what enables you to earn a commission. The visitor doesn't have to convert right away. If they purchase, a make an inquiry, or perform an action later, you will still get a commission.
Cookie Time Limits
How long that cookie is valid is determined by the merchant, so read the fine print of your terms. For example, the merchant can set a 30-day cookie length. So, once a visitor clicks the link, they have 30 days to purchase or inquire or perform whatever action the merchant wants them to take. If they do so, you will receive a commission. A benefit of this is that older content, including posts and reviews, can still earn you commission well into the future. The clock starts ticking only from the moment the visitor clicks the link. The disadvantage is that if they decide to purchase on day 31, you won't get the commission – even if the only reason they know about the product is because they found your link.
Another potential issue is if your visitor decides to clear their cookies and site data to free up space on their device. Once they do that, the ability to track their purchase has also been cleared.
The Affiliate Life
Nothing in business is ever truly passive. Passive income is the dream that many people chase, but behind the most successful 'passive income' stories are hours of dedication and hard work.
What Makes a Successful Affiliate Marketer
Being an affiliate marketer requires minimal startup costs and you can do it from home, mostly by yourself. But there are some key traits that will help you become a successful affiliate marketer and make the experience more rewarding, lucrative, and stress-free.
The ability to connect with your audience
People don't want to feel like they are being pitched by an expert salesperson. You need to make them feel like they are receiving valuable recommendations from a respected and trusted friend. You can't just push out links and wait for the commissions to roll in.
Perseverance
Getting to understand your niche, your target audience, and the products they want takes time and involves a lot of trial and error. Many experts recommend building a 'catalog' of content before you ever share an affiliate link. You need to be patient and establish a trusting relationship with your audience.
Adaptability
Audiences, products, technology, online marketing, demand for a product, and solutions are never static. You need to be able to quickly recognize when something isn't delivering results and adapt your approach.
Organization
On top of the actual work of affiliate marketing (consistent content creation, SEO, list building, etc.), affiliates need to keep on top of basic administration and communications. Depending on how large their audience is and how many programs they join, this could take up a few hours of their week. These small but important tasks include tracking payments, merchant relations, monitoring direct communications on social media, and more. This takes organization, planning, and prioritizing.
Should You Incorporate Affiliate Marketing into Your Existing Business?
Many small businesses or independent freelancers are looking for new ways to increase sales. Affiliate marketing may be the key to branching out and diversifying your income streams. You will be able to start generating clicks and conversions faster than somebody starting from scratch because you have already built a relationship with your audience. This is the step that usually takes the longest, and you will already be ahead of the game.
When You Should Avoid Affiliate Marketing
Some businesses do not lend themselves to affiliate marketing. The incorporation of an affiliate link may be intrusive, unwelcome, or unprofessional in some industries. Consider the following points and decide if you should build on your existing business and list, or if you should create an affiliate marketing website or web presence from scratch as a sideline to your existing business.
Will Affiliate Links Jeopardize Your Credibility?
If adding an affiliate link in your content has even the remote possibility of affecting your credibility, don't include it. If you have a traditional, formal, or professional service (e.g., law, medicine, accounting), affiliate links may be off-putting to your audience.
Are Your Existing Skillsets Compatible?
If your business is hands-on, or you have developed a specialized skill completely outside of the realm of marketing, then creating content, adding affiliate links, and building a relationship with your audience may not be worth the time and effort it would take to get up to speed, and could potentially shift the focus from your primary business. On the other hand, if you have a marketing, public relations, or advertising freelancing business and you have already created content, adding affiliate links to existing copy is an easy, natural progression.
Are You Restless and Looking for Something New?
If you have been operating your business for a long time and want to diversify and explore other interests, then affiliate marketing within your existing niche may not be a good idea. To be a successful affiliate marketer, you need to be passionate, creating a lot of content around a particular subject matter. If you are experiencing burn out within your existing niche, affiliate marketing will become a burden instead of something challenging and exciting.
Now that you better understand how the affiliate relationship works, how you earn your commission, and if you and your business are suited to affiliate marketing, you are ready to learn the hands-on steps you need to take to get started in affiliate marketing.
Action Steps:
⦁ Find examples of affiliate marketing in your everyday life and note these down in your Action Guide. Personal experiences and examples help us to cement our knowledge. Think about websites, social media accounts, and blogs that you interact with regularly:
⦁ Can you think of blogs or sites you regularly visit that you now realize are affiliates and are marketing to you? List 5.
⦁ Find 10 examples of links that motivate you to click and purchase. Consider looking on social media accounts, blogs, or review sites.
⦁ Does the person who is sharing the affiliate link influence your decision to click the link? If so, why?
⦁ Think about your work style. Is it compatible with affiliate marketing? What do you need to work on to improve your chances of success (e.g., organization)? List tools that can help. (e.g., productivity apps like ⦁ Serene that help break down tasks and include features like a website blocker and session timers).
⦁ Brainstorm which 'affiliate marketing path' would work best for you, and your skillset: starting from scratch or building on an existing business, email list, or network. Write down the pros and cons for each in your Action Guide.
On paper, affiliate marketing is straightforward: A business (the merchant) pays an individual or company (the affiliate) a commission based on sales, clicks, or visits they generate. However, in practice, there is a bit more to it. In this module you will learn about the key players, the basics of how affiliate marketing works, the myths and misconceptions, how you can make money, and if you or your existing business are suited to the 'affiliate life'.
The Key Players
The affiliate relationship consists of four key players.
The Affiliate
An affiliate is a person or company that markets a product or service on behalf of a merchant, earning a commission for each click, lead, or sale. You'll also see the affiliate referred to as a publisher because they publish content that contains affiliate links to products and services.
Affiliates operate independently, with no sales targets or minimums – they earn a commission based on how much they sell, how many people they refer, or how many people click their link. For some publishers, affiliate marketing is their primary income, and they have a strong web presence which may include a website, blog, or social media following. Others use affiliate marketing to ---------- their primary business income with targeted product recommendations sent to their email list, YouTube, or other social media following.
The Merchant (Advertiser, Retailer, Brand)
The merchant (also called the advertiser, retailer, or brand) is the business that sells a product or service and wants to promote it to a wider audience. The merchant can be part of a network of companies with offers on an affiliate marketing platform, or they can have their own in-house affiliate program, either by using their own software (e.g. iDevAffiliate) or through built-in affiliate options in their shopping cart (e.g. ThriveCart), or both.
The Network
An affiliate network connects merchants and affiliates and coordinates payments between them. Affiliates can browse affiliate programs that feature products and services that complement their content and appeal to their audience. Merchants, in turn, gain access to a wider pool of potential affiliates. Some examples of affiliate marketing networks include: AWIN, ShareASale, ClickBank, JVZoo, Hotmart, Perform[cb], CJAffiliate, and the Amazon Affiliate Program.
The Customer
The customer is the individual who purchases the product or service and is arguably the most important part of this equation. Without the customer, there are no sales, leads, or commissions.
How Affiliates Earn Commissions
Depending on the terms set out by the merchant, there are a number of ways an affiliate can get paid. The following are the most common commission structures.
Cost Per Sale (CPS): Merchants pay affiliates a commission for every sale. This is the most popular compensation method.
Cost Per Action/Acquisition (CPA): Merchants pay a commission for a specific action. This includes prospects filling out forms or surveys, calls, installs, downloads, free 30-minute consultation, and more.
Cost Per Lead (CPL): Merchants pay a commission for a sign-up or any kind of lead that provides them with a prospect's contact information.
How Conversions are Tracked
Affiliates receive a commission based on either CPA, CPL, or CPS commission structures – but how are these actions tracked?
It all comes down to the all-important affiliate link. Once affiliates are accepted into an affiliate program, they are provided with a tracking link that contains a unique ID. When any visitors click on that link, they are directed to the merchant's website. At the same time, a cookie is placed in their browser on their computer or mobile device. This cookie is what enables you to earn a commission. The visitor doesn't have to convert right away. If they purchase, a make an inquiry, or perform an action later, you will still get a commission.
Cookie Time Limits
How long that cookie is valid is determined by the merchant, so read the fine print of your terms. For example, the merchant can set a 30-day cookie length. So, once a visitor clicks the link, they have 30 days to purchase or inquire or perform whatever action the merchant wants them to take. If they do so, you will receive a commission. A benefit of this is that older content, including posts and reviews, can still earn you commission well into the future. The clock starts ticking only from the moment the visitor clicks the link. The disadvantage is that if they decide to purchase on day 31, you won't get the commission – even if the only reason they know about the product is because they found your link.
Another potential issue is if your visitor decides to clear their cookies and site data to free up space on their device. Once they do that, the ability to track their purchase has also been cleared.
The Affiliate Life
Nothing in business is ever truly passive. Passive income is the dream that many people chase, but behind the most successful 'passive income' stories are hours of dedication and hard work.
What Makes a Successful Affiliate Marketer
Being an affiliate marketer requires minimal startup costs and you can do it from home, mostly by yourself. But there are some key traits that will help you become a successful affiliate marketer and make the experience more rewarding, lucrative, and stress-free.
The ability to connect with your audience
People don't want to feel like they are being pitched by an expert salesperson. You need to make them feel like they are receiving valuable recommendations from a respected and trusted friend. You can't just push out links and wait for the commissions to roll in.
Perseverance
Getting to understand your niche, your target audience, and the products they want takes time and involves a lot of trial and error. Many experts recommend building a 'catalog' of content before you ever share an affiliate link. You need to be patient and establish a trusting relationship with your audience.
Adaptability
Audiences, products, technology, online marketing, demand for a product, and solutions are never static. You need to be able to quickly recognize when something isn't delivering results and adapt your approach.
Organization
On top of the actual work of affiliate marketing (consistent content creation, SEO, list building, etc.), affiliates need to keep on top of basic administration and communications. Depending on how large their audience is and how many programs they join, this could take up a few hours of their week. These small but important tasks include tracking payments, merchant relations, monitoring direct communications on social media, and more. This takes organization, planning, and prioritizing.
Should You Incorporate Affiliate Marketing into Your Existing Business?
Many small businesses or independent freelancers are looking for new ways to increase sales. Affiliate marketing may be the key to branching out and diversifying your income streams. You will be able to start generating clicks and conversions faster than somebody starting from scratch because you have already built a relationship with your audience. This is the step that usually takes the longest, and you will already be ahead of the game.
When You Should Avoid Affiliate Marketing
Some businesses do not lend themselves to affiliate marketing. The incorporation of an affiliate link may be intrusive, unwelcome, or unprofessional in some industries. Consider the following points and decide if you should build on your existing business and list, or if you should create an affiliate marketing website or web presence from scratch as a sideline to your existing business.
Will Affiliate Links Jeopardize Your Credibility?
If adding an affiliate link in your content has even the remote possibility of affecting your credibility, don't include it. If you have a traditional, formal, or professional service (e.g., law, medicine, accounting), affiliate links may be off-putting to your audience.
Are Your Existing Skillsets Compatible?
If your business is hands-on, or you have developed a specialized skill completely outside of the realm of marketing, then creating content, adding affiliate links, and building a relationship with your audience may not be worth the time and effort it would take to get up to speed, and could potentially shift the focus from your primary business. On the other hand, if you have a marketing, public relations, or advertising freelancing business and you have already created content, adding affiliate links to existing copy is an easy, natural progression.
Are You Restless and Looking for Something New?
If you have been operating your business for a long time and want to diversify and explore other interests, then affiliate marketing within your existing niche may not be a good idea. To be a successful affiliate marketer, you need to be passionate, creating a lot of content around a particular subject matter. If you are experiencing burn out within your existing niche, affiliate marketing will become a burden instead of something challenging and exciting.
Now that you better understand how the affiliate relationship works, how you earn your commission, and if you and your business are suited to affiliate marketing, you are ready to learn the hands-on steps you need to take to get started in affiliate marketing.
Action Steps:
⦁ Find examples of affiliate marketing in your everyday life and note these down in your Action Guide. Personal experiences and examples help us to cement our knowledge. Think about websites, social media accounts, and blogs that you interact with regularly:
⦁ Can you think of blogs or sites you regularly visit that you now realize are affiliates and are marketing to you? List 5.
⦁ Find 10 examples of links that motivate you to click and purchase. Consider looking on social media accounts, blogs, or review sites.
⦁ Does the person who is sharing the affiliate link influence your decision to click the link? If so, why?
⦁ Think about your work style. Is it compatible with affiliate marketing? What do you need to work on to improve your chances of success (e.g., organization)? List tools that can help. (e.g., productivity apps like ⦁ Serene that help break down tasks and include features like a website blocker and session timers).
⦁ Brainstorm which 'affiliate marketing path' would work best for you, and your skillset: starting from scratch or building on an existing business, email list, or network. Write down the pros and cons for each in your Action Guide.
