Here's a quick affiliate marketing guide for those who want to know what affiliate marketing is and how it works. This time I've tried to make it more pictorial. This series will be mostly aimed at PPV affiliate marketing. I've made $1,000's via this method but you can pretty much make money through any Affiliate Marketing Method.
In a nutshell an 'affiliate marketer' promotes products and services of other companies or 'merchant's and receives a commission in return once a sale/lead is made'. Basically an online, 'commission/performance based' salesman.
This works as follows...,
Traffic Source+ Affiliate Network + Sale = Commission
I'm sure some of the below companies will look VERY familiar. These companies allow you to make 'ad units', which they will then display all around the world for you. you are charged for every person that clicks your ad, hence the term 'pay-per-click' affiliate marketing.
I'm sure you've seen 1000's of the above. Basically paid advertisements will appear at the top search results when you search for something in Goolge/Bing/7Search or on the right hand side if you're on FaceBook. These are paid advertisements by companies or affiliates like me. The company/affiliate pays Google/Bing/7Search money EACH time one of their ads are clicked.
Another type of advertising commonly referred to as 'in-text' ads are shown above above. You may be familiar with these when browsing around the internet and noticing a clickable link which pops open a small window promoting a product. Yes, that's an ad as well
These guys are the middle men, kind of like Real Estate agents. They find companies that allow 'affiliate's to promote their product/service and will display their product on their website/network so affiliates like me don't have to chase down companies and can go straight here and browse a list of products/services to promote. Example of this list is given below, (Picture is from MaxBounty).
I suggest you sign up with Maxbounty as it's free and they have some VERY helpful staff. I make $1000's per month for them and they've paid me through PayPal so they're definitely legit.
Now the part where you make money....
1) Some Guy on the other side of the world sees your add and clicks on it.
2) He will be taken to the website you've sent him to, if he likes what he sees and buys it you get paid.
You get paid a certain % for the sale. In this case it's an Amazon product. Amazon pays around 6% per sale. You've just pocketed $123.00 x 6% = $7.38. Your expenses are around $1.50 for the ad, (This varies depending on a lot of things), since this guy clicked it, assuming the 'Cost Per Click' is $1.50. Therefore you've PROFITED $5.88. Now imagine this happening all around the world at the same time = $$$$
That's the bare basics of how it works. In many cases it's not as simple as this. Not every person that clicks on your ad will purchase your product so you have to 'test' to see how many people on average will click that ad before you make a sale. This is where tracking comes into play. The only solution to this is testing heaps and heaps of different items until you find ones that make you profit. The formula below is where success in this industry lies.
Knowledge/Research + RELENTLESS ACTION = Success
Below is what differentiates a 'knowledge based task' with an 'action based task'. Make sure you're doing ample amounts of the latter.
Tasks that work on 'knowledge/Research'
• Reading about affiliate marketing on popular forums. (Check my helpful resources for some good reads).
• Reading Case Studies, Success Stories, Tips and Tricks. Watching videos on YouTube about affiliate marketing.
• If you want to get serious and want to make this your career, I suggest you join a 'paid forum'. This is where reps from all the companies above hang out giving tips, helping out newbies and sharing HEAPS of golden nuggets. I made my first dollar the DAY I joined Affplaybook. I've managed to get a $20 Off Discount Code from David if you join through here.
Tasks that include 'action'
• After watching tutorials and reading, start to PHYSICALLY ATTEMPT to do this yourself. This may mean downloading Gimp and playing around with some basic landing page designing. Sign up with a webhost and try build your own mini website – whatever that may mean to you. Actually DO something, (This does NOT include reading/watching tutorial videos).
Often we get paralyzed with information overload and fail to take action. I really want to stress the point that if you're just going to read read read and not actually do anything then stop right now. This industry is not for you. Yes, you will most likely lose money at the start. That's how it works. Once you know what to do, you'll start making money but till then don't be afraid to invest your own $$ to learn trying.
• Once you get the hang of it then repetitiously build campaigns. A 'campaign' basically consists of an offer you have decided to promote and thus have set up an ad which is up and running, (live). You can build heaps of campaigns meaning promote heaps of products since all you're doing is essentially picking a product and setting up an ad. Once that part is done it runs on autopilot. This is the beauty of affiliate marketing, there is no 'physical face-to-face selling'.