How Do Affiliate Marketing Programs Work?

How Do Affiliate Marketing Programs Work?

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. [thrive_2step id=’6496′]Sign up here (it’s 100% free)![/thrive_2step]

 

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!

 

Summary

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.

2 thoughts on “How Do Affiliate Marketing Programs Work?”

  1. Hello Reginald,
    I like the positive comments on affiliate marketing that you post. Through my experience most affiliate marketers are sucked into paying for solo ads or other means of paid ads for the products they are trying to sell. I fear most simply trade dollar for dollar paying for most ads while selling the products for other companies and people. I have come across far too many who don’t teach about social media or blogging to promote to so called hot traffic.
    With the raising cost of ads affiliate marketers find themselves in trouble while losing money or simply paying for ads. Most get stuck not knowing they must have a front end offer or two to break even and offer higher end offers to make their profits.
    Glenn Shepard and Dean Holland my two mentors quickly taught me the truth that yes paid traffic to your offers are important but you must have what is called free traffic which usually can bring your longer term and loyal customers into your business because of the relationship built through blogging and giving free help and content.
    Your blog gives me trust in you and the products you promote because of the great free posts and your wonderful way of building relationships with your visitors. Thanks for the great ethical honesty you give.
    I hope to be as trust worthy and honest as you as I continue down my path of being a blogger.
    Thank you,
    Cody Bertagnoli

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