Exactly What Is Affiliate Marketing?Posted at April 29, 2013 by Christopher Mollo on category Affiliate Marketing Tips, Internet Marketing Tips
For those of you who have been Internet Marketers for some time, this article will be very basic to you. However, “What is affiliate marketing?” is a question I am asked by new subscribers to my list almost daily. When it comes to going into business online, one of the easiest and most lucrative methods is definitely affiliate marketing. This is because becoming an affiliate marketer requires no experience, & no website, and it employs simple promotional techniques that will convert prospective buyers into paying customers.
The concept of affiliate marketing is a variation on the outside sales position except that it all happens on the internet, and there is no door-to-door component. Think of yourself as the salesman for a specific product or service and you’ve already mastered the basics of what it is to be an affiliate. You must first understand that people have all kinds of products and services that they want to sell online and part of the process to become successful is to have a large amount of web traffic that is interested in what they have to offer. The way that businesses can accomplish this is by having salespeople or “affiliates” promote their products.
When a sale is made, the company shares the earnings with their affiliates/salespeople (that’s you) through commissions. Successful affiliates can make a great living by promoting products and services of other vendors in order to make that commission.
For the purposes of this article, I will focus on one of the easiest affiliate networks to get started – ClickBank. Once you learn how an affiliate network like ClickBank works, you will be able to expand those principles to other networks that have a myriad of different products and services that are commissionable.
ClickBank is one of the largest, oldest affiliate networks on the World Wide Web. They list only digital products in their marketplace, are extremely user-friendly and have a ton of vendors just waiting to snap up a good affiliate. There is no waiting time to become a part of the ClickBank affiliate network, and the commissions are much higher than most other networks, with some commissions going as high as 75%.
Through ClickBank, products and services are bought and sold, accounting goes on within the network and commissions are calculated per product sold. Before I go any further, let’s look at what you can potentially earn from one product.
For example: You promote and sell a ClickBank product called “IM John Chow“. It’s the latest product from super successful blogger John Chow. It sounds like a pretty decent product, right? Well, it has one of the better payouts of any Top 10 ClickBank Product and it’s one of the best sellers in the marketplace for the “E-business & E-marketing” category. It pays out at a 50% commission level. When you look at it’s pitch, or sales page, you’ll see it has great graphics and a catchy video. As an affiliate, you will earn approximately 50% of the price tag.
One of the statistics that is provided to you in the marketplace is the average amount affiliates are making per sale. In the case of this particular product that is $27.76. So, that means that for every person who lands on the page and purchases the product through your affiliate link, you will be paid roughly $27.76!
What do you think would happen if you stuck with promoting this product and were able to make 25 sales per month? You’d make about $694 per month for promoting only this one product! Are you beginning to see how lucrative affiliate marketing can be?
Think about how much you could make if you found 10 awesome products like this one? This is not only possible, but not that hard to accomplish if you know how.
The first thing you should do is look on ClickBank and find 3 products that you think you might want to promote. It’s even better if you can purchase the products yourself before promoting them, but most new affiliates are trying to make money and not spend it. It’s not necessary to buy the products you want to promote, but it does give you the upper hand to have “inside” knowledge about how the product works, etc.
You should get yourself a notebook or start a new Word file and document your experience as an affiliate marketer. Whenever you learn something new or discover a method that sells products, make note of it because later on you might want to create your own product and recruit others to promote it for you!