Affiliate Marketing 101

A few things to understand before we get going.  As an affiliate marketer you are a commission based sales representative which means you only get paid when you make a sale. Do Not let this scare you!

Let us examine exactly how you get paid.

Affiliate links or Affiliate Codes – This is a special link that sets a “cookie” on a browser that the product creator can use to track the sales that you have sent them. This may sound complicated but it’s really not. Let’s take a look at it in more detail. The code we will be looking at came from an affiliate network called Click Bank. Click Bank is a very well known affiliate network in the industry. There are tons of affiliate networks out there but for the sake of this website we will just be looking at Click Bank for now.

Lets look at what an affiliate link looks like in the image below.

Click Bank Affiliate Example

This is what you are given to promote an affiliate product from Click Bank. You can post this link on all kinds of social media outlets and if someone clicks on it and purchases through your affiliate link than you earn a commission. Now lets look at the right way of doing things and also the wrong way. This diagram should help you to understand the correct way. ​​​

As you can see from the image below there are two ways to do this. One is how new marketer’s usually do it. They get so excited at the prospect of making money from home that they just jump right in and send traffic directly to the affiliate product page. This is a huge mistake! They are leaving so much money on the table in model #1. We will focus on model #2. This is the correct way to market. Let’s break this down.​​​​​​​

Affiliate Model 1

​​​​​​​This diagram is pretty self explanatory but let us go through the motions anyhow. Following model #2 we can see that we start off with a potential buyer(traffic). We then send that buyer to our “squeeze page” also known as “Opt In” page. This is where you will have previously created a free booklet with some information about whatever your niche topic is and you will be giving it away for free. In reality you are actually trading that e-book or whatever you chose to create for the customers email and the right to be able to market to them in the future.

Now as you can see once they enter their name and email a few things happen automatically. Firstly, your autoresponder sends out the free e-book to your customer. The second thing that happens simultaneously is that they are now added to your email list. Thirdly, the customer is now redirected to an affiliate offer where they have the opportunity to make a purchase. If the customer does make a purchase then you just made the company you are selling for money but you also just made a commission because you made that company money.

In the event that the customer does not buy from that offer we still win because now they are on our list and we can market to them over and over again. (Making sure not to spam them and providing them with value consistently will go a long way to building a trust with your list.) This is the proper way to market.

The other way as you can see is a direct link to the affiliate product and if they don’t buy then you lost a potential client forever. This is a Big no no! You always want to be capturing the leads first and then marketing to them.

By now you should be starting to see that you can profit very fast if you do this correctly. Some things to understand about affiliate marketing that I personally find extremely amazing are listed below so you can see why I believe this is a great way to start your business.

#1. The ability to profit quickly (In a day once you get good at it)

#2. You do not have to worry about support for the products that you promote. Everything is handled through the company that you are promoting for. I find this part particularly amazing because you don’t have to worry about the stress of trying to keep up with any issues that may arise. The company already has people in place to handle all of the support needed.

#3. You can scale your affiliate marketing business so quickly and with very little effort and make it as large as you like. Bare in mind, you do not want to bite off more than you can chew so take it slow and understand the entire process first. Then and only then do I recommend you scale it up.

#4. You can create multiple streams of income – Ever hear the phrase “Don’t put all your eggs in one basket?” Once you have your first product on “Auto Pilot” you can then do the whole process over again with yet another product. Thus you can have as many streams of income at one time as you can manage. We will discuss the “delegation factors” of business as well.

Delegation Factors

So as you get more experienced and you start to upscale your business you are going to have less and less time to manage all of the back end stuff. This is where the delegation factors come in. You may wish to find yourself a good VA (Virtual Assistant) that can help you take care of things that you would normally be doing but now your far to busy creating websites or maybe you just wanted to go to Fiji with your wife for a week. Whatever the reason, you will at some point need to delegate. I would suggest you check out a place called Upwork.com or just google “Virtual Assistant” you will see tons of results because this is yet another way to make money online. I will of course only be covering affiliate marketing on this website.

Now, there will be some terms that you will read or hear throughout your studies as an affiliate marketer. We are going to discuss them now so that you will understand exactly what each phrase is and how it correlates to affiliate marketing.

​​​​​​​​​​​​​​#1. Conversion – How many people convert from lookers to buyers. If you have 100 people come to your offer and 10 of them opt in (Buy) then you have a 1% conversion rate.

#2. Gravity – This refers to the amount of affiliates promoting a product at any one time on an older but still very lucrative website called Clickbank.com

​​​​​​​#3. PPC – Pay Per Click – How much you are willing to pay for an add you create to be advertised on popular websites and clicked on. You get to choose where and how your ad will be displayed. We will discuss this in more depth in another section of this website at a later time.*

#4. CPC – Cost Per Click – This is how much you are willing to pay for the clicks on the ads that are mentioned above.

#5. CPM – Cost Per Thousand Impressions – (M stands for roman numeral one thousand) This means that you do not pay per click with this situation, instead you are paying for placement in a certain spot of a website. Here the difference is usually a lower quality ad but you can have as many or in some cases as few people as you want click on it and still pay one price. So instead of paying per click, it does not matter how many people click on it you still pay the same price.

#6. CTR – Click Through Rate – This one is pretty self explanatory.. Out of 100 people that see your ad, 10 opt in. That means you have a 1% Click Through Rate.

#7. Lead / Opt-In / Subscriber – They all mean the exact same thing. If someone subscribes to your news letter or e-mail list they are called one of the three.  A lead, an Opt-in or a subscriber. Simple

#8. Creative – This is just another name for the ad that you create and then people see.

#9. Squeeze Page – You have seen thousands of these. A web form where you will put in your name and email and then you click submit. You will usually receive a follow up email almost as soon as you do this. This is a Squeeze Page or an Opt-In page. We will cover this in more depth on another page of this site.​​​​​​​​​​​​​​​​

#10. Drop Ship – The ability to purchase an item online for a low price then mark that price up, charge the client the difference and have the company ship it to the client. You make a commission basically for connecting the client to the product.

​​​​​​​#11. Digital Information Product – Anything that can be downloaded from the internet. Videos,  audio , ebook / pdf,  webinars, membership sites or anything else you can think of that can be downloaded from the internet. (The commissions on these products are usually way higher. Ranging from 75% to 100% in some cases. This is because there is very little overhead and these products can be easily copied and reproduced without spending a ton of money on them and there is no shipping cost.)

#12. Tangible Products – Anything that you can hold in your hands is a tangible object and you can more that likely sell it as an affiliate and make money selling these items. (The commissions on these products are usually a much lower percentage rate because of the overhead, shipping, cost to manufacture ect ect..)

#13. Affiliate Network – An affiliate network acts as the bridge for product creators and internet marketers like you and I that promote products for a commission.

Love the content? Why not share it with the world?
>