What Is Affiliate Marketing - How Does it Work For Beginners

What Is Affiliate marketing is the process of earning a commission by promoting other people's Or Websites products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make.

What Is Affiliate Marketing - How Does it Work For Beginners

What affiliate marketing And how does it really work Stay tuned. I can give you guys an actual click by click, step-by-step on how affiliate marketing works and what it is. 

Alright so we have transported inside of my computer using a little technology called Magic. And now I'm going to show you guys step-by-step some real-world examples of how affiliate marketing works and how it is used in the real world. 

But just to get things started, a basic description at its core of affiliate is that it is just referrals, okay. So affiliate marketing it’s kind of a fancy term for just referrals. It's basically referring people to products and services of companies that are not your own and then receiving a commission if those people sign up or take action upon your referral. Usually through a link. 

So just to give you guy’s quick, quick example. So this is my Article. It's a review of a very popular headphone called the Audio-Technical ATH-M50x, which I actually have right here. 

7 BEST Affiliate Marketing Programs

what is an affiliate Marketing link 

if You Don't Know About How To Start Affiliate Marketing Read The Article Ahrefs How To Start Affiliate Marketing.

What Is An Affiliate link In This Paragraph we tell About Amazon Associates if I just go right here, it is Amazon's affiliate program. Let's just log out of that real quick. So Amazon Associates are Amazon’s affiliate program. And as you guys can see, earn up to 10% of advertising fees with a trusted e-commerce leader. So if you join Amazon Associates which you guys can do today. It's completely free but you might need to have a website in order to get approved. Some people are able to without it. But I would have a website just in case. 

Alright, guys so if you log in and then you just look up products for Amazon Associates that you can promote. As you can see here we have the M50x. And all you have to do is click here, and then get a link which basically is the personalized tracking link that you can include in your videos, on your website, on your landing page. And then this link is personalized to your account. Now what that means is it has a tracking code through cookies. Where if somebody clicks that link it's gone be tracked back to you. 

And for Amazon Associates at least, if somebody buys anything from Amazon, not just the product which is the headphones. If they buy anything within 24 hours, you receive a percentage of the commission. Now, the commission ranges. It definitely ranges based on the product category. It can range from 4 to 10%. So if I just look up Amazon Associates rates then we can actually see each specific product category and how much they pay. 

So let's just look down. If we scroll down here you guys can see there are a fixed rate for each product on that you sell. So if you sell something from let’s say in the PC category. So this could be computers, laptops, DVDs, Blu-ray, et cetera. You get 2.5% of that sale. 

So if you sell a laptop for $1,000, you will receive 25 bucks basically. So basically 2.5% right there. So that's how it works at its core. Amazon Associates is the largest in terms of affiliate programs because it just has the widest range of products. But there are many sorts of affiliate networks that have more exclusive offers with the companies and with the products that may yield you a higher percentage of commission. So this is just a quick example right here of how people do it on YouTube. I'm gone move on to the next example which is blogs. 

And my favourite affiliate marketing blog is smartpassiveincome.com. It's created by a guy named Pat Flynn who is awesome. He has an awesome podcast that you guys should check out. But basically, Pat's been crushing it with affiliate marketing for as long as I've been in the game basically. And if you look at this, this is his income reports. And as you can see two mills during the last 12 months. It's insane. 

These numbers are crazy. Six figures a month. Six figures a month when a lot of people are trying to strive for six figures a year, this guy's making six figures every single month. And it's just insane. But basically, if you scroll down. If I just choose the latest income report. So we'll do August 2017. 

I just scroll down and I'll show you guys that he actually is transparent enough to share his affiliate marketing earnings broken down by the company. So as you guys can just scroll down here you see Amazon. He made about 600 bucks, not too bad. But if you scroll down to some of these other companies like Blue host, you see $19,470 from a single source of affiliate marketing. So from posting links guys. 

Again, it's that simple, it's that easy. It's a completely passive income. Which is one of the reasons why I believe it is the best online business that anyone can take up today? So just to give you guys little more detail into how this works. Blue host right here, they are a web hosting company and it’s obvious they have an affiliate program. Because he's earning close to 20 grand from it. Now if we go to Blue host’s website. 

You guys can see right here bluehost.com. It's web hosting. For anyone who wants to create a website, you can sign up for Blue host right here. With WordPress or whatever. But if you scroll down to the very bottom. And now this works for most companies that have affiliate programs. You will see affiliates at the bottom footer. Now if you click that it will take you right into their affiliate program. 

And you guys can actually see over five million paid in commissions last year alone. So as you guys can see this isn't some sort of scam or anything. Definitely do not confuse affiliate marketing with network marketing, which is multi-level marketing, which is pyramid schemes. Affiliate marketing is not a pyramid scheme at all. It is legit sales and commissions. 

So basically you're salesman for real companies. You're not selling energy drinks and driving around base three series. This is a real business right here. This right here I mean look at this right now. Blue host is a legit company. They also have affiliate programs for companies like HostGator, Go Daddy. You've heard of these companies. 

You've seen them on TV, you’ve seen them on ads. These are real companies that were talking about. So anyway getting back into Bluehost's affiliate program. If you scroll down, as you guys can see, free to join as with most affiliate programs.

You guys can see how it works. Basically, you have custom banners and links just like Amazon Associates for every visitor who clicks your link and signs up within I believe a 30 day period. 

Now Amazon's is only 24 hours. But for most affiliate programs it's usually around a 30-day tracking cookie. It's between 14 days to 30 days. 60 days, sometimes 90 days. But 30 is the industry average for tracking links. And Blue host, they will give you $65 a pop for everyone who signs up through your Blue host link.

Completely free to join just like Amazon Associates. Again, this is affiliate marketing. It's very simple, it's very basic. But I figured I'd just peel back the kimono and show you guys how people are really making money online behind the scenes. 

Now I'll give you one more example. This is Instagram. One of my favourite YouTubers slash people that I follow on Instagram is Maxx Chewing. Been following him since the first few days back when he started doing the Full Day of Eating videos. Those were my favourite. Basically here is an ad.

This is for MVMT watches. And this is a little different because the thing is with affiliate marketing is you usually have links right. But another way that you can do this, now some people call this sponsorship, it's all the same thing to me. Basically is providing coupon codes. So as you guys can see, Maxx has his own coupon codes. It's personalized, says, "MAXX15". 

You get $15 off your order at MVMT. And basically what is happening here is if you use Maxx's link, yes you get $15 off but he also gets attribution for your sale, and therefore he gets a kickback or commission. Now I don't know how much he makes off the sale. I'm not an MVMT affiliate, I cannot speak on that. But it's probably somewhere around 10, 15 bucks per sale. Which is a very nice extra source of income considering how passive it is.

He just has to post one photo like this or make one video and he can continue to earn money off every single sale from that video. And as you guys can see, the power of the internet, the power of scale. This has over 10,000 likes. And you can bet that of those 10,000 likes, the chances of a few people buying a watch using his code are pretty high. Let's be honest. It's just math at the end of the day. Marketing is a numbers game. And if you're getting 10,000 likes, you're getting 10,000 views, you're getting 10,000 clicks. Chances are someone's buying something and you're gone be making a commission. So basically those are all my big examples. It's very simple.

I hope I can show you guys behind the scenes of how affiliate marketing actually works in the real world. And how people are using it to generate large sources of side income that is different. And it's more effective than just doing Google AdSense. Which is just showing ads. Just, for example, YouTube only pays two bucks for every thousand views in my experience.

Now, this changes depending on your niche or your industry. But just to put things in perspective. If Maxx sells one of these and he makes $15, just think about the number of views he would have to get to make that same amount of money from one sale of selling one watch. So really less is more. 

You don't have to sell as much. You don't have to get as many views. But if you get sales you get more commission than getting thousands upon thousands of views. But obviously, if you have both then it's a win-win for everybody. Multiple streams of income always the way to go. Alright, 

I Hope You Know All About Affiliate Marketing And How Does Work So Share On Social Media good Bye.