Have you ever wondered how do affiliate marketing programs work? I bet you do.
If you want to read more about affiliate marketing programs, here’s a good article to start with: What is an affiliate marketing program?
What you need to know (as a start) is that affiliate marketing is a great way to start making money. And I seriously mean a massive amount of money!
To give you an idea on how much you can probably earn, here’s a screenshot of my earnings with a company I am currently working with:
Now, that’s a good amount of passive income, isn’t it?
If you are wondering how you can make money through affiliate marketing, here are some quick tips:
- Find a niche
- Leverage social media accounts
- Start a blog (even if you hate it)
- Write posts and upload videos
- Constantly perform marketing on social media
Yes, that’s really simple. You can also sign up for my free affiliate marketing course where I go deep into affiliate marketing and the steps you can take (right now) to make money from it. Sign up here (it’s 100% free)!
How does affiliate marketing programs work?
Let’s put it in a very simple explanation. Brands engage in affiliate marketing simply because they can:
- Reduce manpower
- Increase sales
- Have a wider range of ‘influencers’
Now let’s take an example of buying a GoPro (these are purely assumptions but they are important for you to understand the concept).
- Selling price of one GoPro: USD $100
- Commission for affiliate marketers (like you) upon successful sale: USD 15
- Nett profit for the brand: USD 85 (100 minus 15)
- Nett profit for the affiliate marketer: USD 15
Now, take a moment to think about this. From the standpoint of the brand, a fee of USD 15 is relatively small to pay a seller simply because there is no fixed cost. The brand does not need to pay the influencer monthly just like a full-time salesperson. Instead, they are only required to pay once a sale is completed.
How about the affiliate marketer point of view? It is also a win-win situation because he or she would probably just need to spend a few minutes a day (or in a week) and have a good chance of closing a sale.
You might think that USD 15 is a relatively small profit for the marketer but do your math with the assumption that the marketer is able to sell 100 pieces of GoPro in a month. Not only that the affiliate marketer is able to make USD 1,500 easily, the company may even increase his commission rate!
If you are a blogger or looking for some work-from-home opportunities, affiliate marketing is the best way you can earn some decent money legitly.
Want to learn more about affiliate marketing? For a limited time only, you can participate in my ultimate affiliate marketing course for free by clicking on this link.