What is Affiliate Marketing?
What is affiliate marketing? Let me make it real simple, affiliate marketing is selling other people’s stuff. That’s all it really is. Affiliate marketing involves a vendor paying a commission to other online entities, known as affiliates, for referring new business to the merchant’s website. Affiliate marketing is performance based, which signifies affiliates only get paid when their promotional efforts actually result in a transaction.
How Affiliate Marketing Works
On one hand you have a merchant and that merchant can sell any type of product. It could be physical goods, it could be digital goods, it could be a membership site, or it could be a subscription.
The Gap sells clothing. The Gap says if you have a website you can sign up for their affiliate program. What happens next is you put links on your site (usually banner ads) and if a visitor to your site clicks that ad, goes to the Gap and makes a purchase, the Gap will pay you a commission on that purchase.
It’s that simple.
When you’re talking physical goods, places like Macy’s, Target, JCPenney, Amazon, Gap, Old Navy, Best Buy and the list goes on and on. There’s hundreds, if not thousands of merchants that have affiliate programs that they want you to sell their stuff. And you can earn money by selling their stuff.
Then you have other sites that offer digital goods. A good place to get digital products such as eBooks and software is Clickbank. In fact, there’s hundreds of products which you could instantly promote with a special link and then get a commission based on every sale.
I’m a real big fan of selling digital products because the overhead is so low and the commission’s are usually very high. For example, there’s a product selling on Clickbank right now which sells for $516.99 and you can earn a 50% commission on each sale. You get the picture.
Then there are others that have a subscription model. For example, the Wall Street Journal or USA Today. If you sign up for their affiliate programs and then a visitor to your site makes that purchase, you then earn a commission. Some membership sites and subscription-based programs actually pay monthly recurring commissions. These are also favorites of mine.
So affiliate marketing is really just selling other people’s stuff and getting paid a commission when you do. And if you have a website then you can do this and you can make money online. If you don’t have a website, you can download this free report which shows you how to make money online direct to your PayPal account.