What Is Affiliate Marketing?

Affiliate marketing can be a powerful way for people to make money working from home. All you really need is a computer with access to the internet.

Affiliate marketing is simply promoting someone else’s products for a commission. The most common set up is getting a commission whenever a sale is made. For example, maybe you promote a weight loss supplement that costs $49 and you receive a 10% commission on every sale made through your unique affiliate link.

Another popular version of affiliate marketing is known as cost per action or CPA. This can include a commission for a sale but more commonly refers to some other type of action, such as filling out a survey, or even simply an email address.

Companies that know their marketing numbers very well, such as how much a new customer is worth in future revenue are willing to pay for leads instead of sales. If the company knows that every new lead will generate $3 in revenue, they are willing to pay anything less than $3 to acquire that lead.

Probably the biggest name in affiliate marketing would be Amazon with their Amazon Associates program. You can sign up for free. You can then create unique URL’s to any products on Amazon and anyone who clicks on those links and buys something at Amazon in the next 24 hours will net you a commission on the sale.

Most companies online nowadays have some sort of affiliate program available. Some have their own program and others can be found on affiliate sites like Shareasale.com, CJ.com (Commission Junction) or Clickbank.com (which promotes mostly digital information products).

One great thing about digital products is the commission. Most digital products on Clickbank pay a commission of 50% to 75%.

If you sign up with companies like Shareasale.com, you can fund thousands of different products and companies to promote, and you’ll receive one check for those commissions.

Affiliate marketing can be a fantastic way to make money from home but it’s not as easy as some people make it out to be. And those people are usually selling a product on affiliate marketing!

One of the big problems with affiliate marketing, even after you’re generating traffic and making money from your affiliate offers, is a simple fact that you are building someone else’s business.

Let’s say you have a fitness web site and you make money by having affiliate links on your site to things like home exercise equipment, workout videos, and bodybuilding supplements.

It sounds great. But once those visitors buy, they are now customers of that business. You’re helping to build someone else’s business.

So one of the most important things you can do with your affiliate marketing business, that many affiliate marketers don’t think about, is to build your own email list of potential customers.

Instead of creating good content on your fitness site and generating traffic to send away to buy other people’s products, you offer them something for free, related to the content on the site, and you give it to them in exchange for their email address.

Now you are building an email list of people that you can send offers to over and over again. Even if they buy a product through your affiliate link, you still can contact them via email.

The most important part of your own successful affiliate marketing business is to build your own email list of people interested in what you are selling. Without a list, you don’t really have a business. You’re just generating traffic for other businesses.

If you keep this in mind, you can create a profitable long term business model from home, using affiliate marketing.

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