How does affiliate marketing work, and how do people make money from it?

Question by Syed A: How does affiliate work, and how do people make money from it?
Could somebody please explain how does affiliate work, and how do people make money from it.
P.S: I need only answers no links to join some groups and thereby asking to pay certain amount to proceed. Thanks.

Best answer:

Answer by Jay
Typically, you’re asked to sell a certain amount of product. In additional, you’re suppose to recruit others to do selling. For those you recruit, you get a cut.

That’s one kind of “affiliate ” and is the “bad” kind because it’s a pyramid scheme. There are alternatives that do fancy things so as not to be labeled as such, but they all have the problem that those that at the bottom end up losing because there’s no one else to recruit.

The other kind is where you sell a product for a company, such as cell phones or satellite dish services. This allows the primary company to expand their sales force, without actually having people on the payroll. You get by the sale. The other benefit to the company is that they aren’t responsible for the sales tactics of the affiliate. Sometimes, an affiliate will make promises to a that the main company will need keep. By the that the the finds out, the affiliate is either gone or simply says “not my problem.”

This isn’t to say all affiliate marketers are dishonest, of course. And if you work hard to market your product, you can make nice . But it’s up to you to sell. In some markets, there is an over saturation.

What do you think? Answer below!

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111 Responses to “How does affiliate marketing work, and how do people make money from it?”

  1. guacha Says:

    Here explain very well http://seodeblog.blogspot.com/2010/07/cursos-de-adsense-y-shoemoney-system.html

  2. jus me Says:

    There are various types of affiliate marketing “techniques” to make money, but the most common way is to join a company’s affiliate program and start getting people to go to their website through link you may have on either a basic website, blog, or social media site etc… The links that you provide for people click on to go to an affiliate company’s site tell the affiliate vendor’s what web site sent them the customer and will track how much commission the affiliate marketer will get (which usually based on sales) and will send payment to the affiliate who directed the customer to them.
    Many affiliates who are profitable at this business will use their websites to harvest emails “legitimately” first. They do this by providing good content on their sites that readers are interested in. They then will ask for an email address to which they might send a free e-book, have a newsletter to subscribe too, or perhaps have a very educational video that can be watched. Many good marketers will then send good legitimate content to their potential customers that is useful to them, then “soft sell” sell them a product that will give them a commission for sending their buyer to the seller’s site.
    The Super Basic Steps of Affiliate marketing in 5 steps:
    1. Put up a website
    2. Sign up for an affiliate program that you feel has products that you have the ability to promote well
    3. Add the affiliate links that are provided from the affiliate program you signed up with to your website.
    4. Continuously work to Optimize your site to be found in the major search engines and get visitors
    5. Find more products and keep promoting and building your site

    Affiliate marketing is a REAL business. If you take it seriously and work hard at it, I honestly feel anyone can succeed. It’s hard work, but well worth it. I heard that 99% who attempt internet business of people never make any money, and it’s mostly because they quit too soon.

    There are many books you can get at local libraries that can get you educated on the subject. I recommend watching YouTube videos by lisa3876, my wife says she was the easiest for her to understand the concepts and really excited her to try and get started.

    By the way, when doing your research, be warned that affiliate marketing “educational” websites are usually trying to sell you something and can be VERY persuasive. Try not to buy anything if you can help it unless you are 100% ready to proceed and the seller has a minimum of a 30 day return policy so you have ample time to really review it. I’ve spent thousands on my education to build my affiliate business and can tell you that if you work at it consistently, it can be done.

    Good luck!

  3. Jonathan Baker Says:

    I will recommend you a perfect ebook on it which is completely free too.

    Download Link:
    http://www.mediafire.com/download.php?67tdee86cowcd6k

  4. Rogier Says:

    Hey there, thanks for the question. My view is that affiliate marketing really works, me and my brother are doing it together and were getting money rolling in.

    Affiliate marketing means you sell other people’s products where you gain a hefty commission, LoL that’s cool! We are always posting our links on forums and stuff so that it directs to our website and blog.

    The website we often use help us is the one below, I found out how to make affiliate buttons and links and how to direct your links ect.

    But more importantly I learned a lot of stuff which ordinary affiliates don’t know.

    I really hope this helps, Rogier.

  5. Jake Says:

    To keep it basic, in affiliate marketing you promote another vendors product for a commission. To do this you need to have a website to promote the product, I suggest using a blog because it is free and a traditional website is not this helps to keep costs low. You need to sign up at the affiliate program sites so that you can choose a product to promote. These sites either deal in physical products, digital products or services. I can’t tell you specifically which sites to go to because yahoo answers won’t allow me to say unless it’s a site owned by yahoo so you’ll have to research it.

    How it works is that you have a website and at the affiliate sites that you sign up for provide you with a code specifically set up to identify your site as the one who sent the customer to the vendor with the product this way when a customer makes a purchase of that product or any other products while there you receive a commission for the sale(s).

    How you make money at it is that you have to market the product. Part of this is done by your content on your website. You need to promote by telling people why this product is something they need or why it is so good, for example if you promote tennis balls then you want to say why your brand of tennis ball is better than the other brands and so on. The other part is to get inbound links to your site to get traffic, if no one knows your there then your site doesn’t exist and you will have zero traffic. To get links you need to write articles (leaving your URL in the resource box) that are informative that make people want to visit your site, they can’t be junk articles, this will not impress anyone and they will not visit your site as a result. You can also go to forums to get your site visible by leaving inbound link to your site when you get involved in a discussion. You can also get involve with video social sites and create your own short video about your product again with a link to your site. It’s all about marketing and presentation.

    It’s a lot of work and you have to be dedicated to it. If you are not the type of person to keep on with it then you may want to do something else. If you are then start researching it more and get involved. I suggest you put in at least 2 hours a day in that way you can get something done without burning yourself out, if you feel you can do more then that’s fine also just keep at it.

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  8. Jenn Says:

    Hi Syed,

    You selected Jay’s response as the best one. I feel he had some good basic thoughts on this. However, coming from a marketing background, I see things a bit differently.

    Sales, whether affiliate or otherwise are all part of what is known as “The Marketing Mix” (see http://www.netmba.com/marketing/mix/) or The 4 P’s of Marketing. Sales is part of “Promotion”. How affiliate marketing differs from traditional sales is the “Place”. Place is the distribution aspect. In affiliate marketing the Place is the Internet. Since the “Product” is really just data bits streaming over the Net, some people become automatically suspicious, even though the do not find other sources of online education to be suspect.

    Here are a few points for your consideration.

    1. Sales is a very lucrative profession to be in. In general, your pay is proportionate to the amount of work you put in. Accepting that Affiliate Marketing is simply sales of information instead of a hard product.

    2. When you do affiliate marketing you can solicit for others to sell under you if you choose. However, I’ve never seen that as any kind of requirement.

    3. Is affiliate marketing a pyramid scheme? No. It cannot be.

    Since no one pays anything to become an affiliate, affiliate marketing cannot be a pyramid scheme, first because you do not pay anything to become an affiliate (anyone can sign up at ClickBank), and second because you make money only when you sell the product.

    The following definition provided by Princeton spells out what a pyramid scheme is. (See http://wordnetweb.princeton.edu/perl/webwn?s=pyramid%20scheme).

    “a fraudulent scheme in which people are recruited to make payments to the person who recruited them while expecting to receive payments from the persons they recruit; when the number of new recruits fails to sustain the hierarchical payment structure the scheme collapses with most of the participants losing the money they put in.”

    4. Regarding Jay’s concerns over the ethics of the affiliate you sell for, I would advise to always know who you are committing yourself to. There are unethical people in all aspects of business. Stay away from them whether you choose affiliate marketing or a hard product.

    Bear in mind also, if you select items such as Jay mentions, “cell phones or satellite dish services, while a hard product is involved it is really the service you are selling. Are you confident that the service is reliable? If not, then the hardware is worthless to the buyer.

    I suggest that if you decide to try affiliate marketing, make sure that you work through a service such as ClickBank. While some people may want to make only a 30-day guarantee, if they are selling a ClickBank product the guarantee is a minimum of 60-days. You can get a full refund within that time period without even going to the company. Just go to Help from ClickBank’s front page and follow the process. They will refund your full purchase price generally within 48 hours of when you submit your request. I’ve done it several times.

    This not only protects you when you make a purchase, but also anyone you sell one of their products to. You can sell these products knowing that if the person decides later that they made a mistake and do not want it, they can get a full refund with very little effort. Can you say that for other products such as cell phones or satellite service?

    I am selective who I choose to promote. The system I am currently working with and promoting is jam-packed with far more product that I could even begin to comprehend when I signed up. It’s great. But what is even greater is that the owner of this product gives a 100% refund no matter when you request it, even if you are 6 months to a year into his program. In fact, if you are the least bit disappointed, he wants you get your money back.

    If you decide to try affiliate marketing, there is one more step to take. Check them out first on http://www.IMReportCard.com.

    I hope this helps.

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  35. Rhonda G. Says:

    Affiliate Marketing is all about promoting either digital or tangible products. I want to state that I have seen so many folks out there trying to get this right but are getting the wrong information on it. There are systems and strategic planning that should go into your marketing efforts.

    If you are new to affiliate marketing, please put the two words in the right mindset.

    Affiliate = You are affiliated with a manufacturer of products as a commissioned independent contractor.
    Marketing= You are MARKETING and PROMOTING products for someone else.

    The way the money is made at this is through creating promotions for the products you are marketing.
    If you are just sticking banners on your site without a plan behind it, you really just doing a bit of hope marketing.

    I challenge all newer affiliate marketers to get educated in the marketing part of this. Learn how to get visitors with intent to buy, click or opt in while they are on your site. If you are using a free wordpress site, you are leaving money on the table.

    Get your own domain with a targeted niche name in the actual domain name.
    Get your own hosting account.
    Use wordpress as the platform so you can create relevant content on it that the search engines will pick up on.

    Use the right plug ins and themes for SEO.

    Use FACEBOOK to its fullest potential along with Youtube and Twitter.

    There are a few different ways to make money at it. Physical products, digital products and CPA offers.

    Physical products that are shipped are founds in Commission Junction, LinkShare and even through the manufacturer directly.

    Digital downloadable products are found in those two mentioned above as well but Clickbank is king when it comes to downloads and making huge profits from it.

    CPA aka… Cost Per Action is very good money if you are more seasoned at marketing. It is harder to get approval with cpa offers. Neverblue and Peerfly are my two favorites to use for CPA.

    Adsense: When looking at making money with Google Adsense you need to keep up on all the rules and changes they have. You also need to have a privacy policy on your site or they may not pay you.

    Affiliate Marketing is the easiest way to start out making money online but it is also a very serious business if you are looking to make real income from it.

    Learn how to do it the right way guys….

    Hope this helps:)

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