What’s Affiliate Marketing and How Does It Work?

Do you know what’s affiliate marketing and how does it work?

If not, you’re missing out one of the most profitable business models online. Affiliate marketing is a commission based system of promoting products.

If you ever read any product reviews on the internet, it’s very likely that the review is written by an affiliate marketer.

In this article, you’ll learn what’s affiliate marketing and how it can make money for you.

What’s Affiliate Marketing?

On Wikipedia, it states:

“Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts”.

It means that an affiliate is paid a commission for every sale referred to the company.

You don’t get a fixed compensation for your marketing efforts. Companies have no cost but share the profit with you when you make a sale for them.

It’s simple and fair. But the next question is, why people are willing to be an affiliate? Is affiliate marketing a lucrative business model?

Why affiliate marketing is a profitable business model?

Affiliate marketing is the easiest way to make money online. Because you don’t need to develop products, buy inventory, provide after-sale service. You have nearly zero start-up cost.

Also, the products you can choose to market are limitless. Most companies have affiliate programs that anyone can join and start earning commissions. The Amazon Associate Program is an example. By joining it, you have millions of products on amazon to market.

Another cool thing is that you can make passive income with affiliate marketing. After creating content on your website that drives traffic, you can choose to take vacations and money will flow in automatically. You can work wherever and whenever you want.

How does affiliate marketing work?

When you join an affiliate program in your chosen niche, you will be given an affiliate link. That link has your specific ID attached for tracking referrals from you.

You can then place these links on your website. When someone clicks that link and buy, you’ll earn a commission from the product supplier.

The amount of commission is usually a percentage of the product price. And customers do not pay extra because of this.  If the product you promote is high-ticket, you can earn a lot of commission. If the product is on subscription basis, you can even earn recurring commission for every sale.

It’s true that many affiliate marketers can make 6 or 7 figures per year through affiliate marketing.

According to the Business Insider Intelligence, around 15% of all digital media industry’s revenue comes from affiliate marketing.

Here are the four steps for starting an affiliate marketing business:

  1. Set up a website.
  2. Select a product and join its affiliate program
  3. Write some content about the product on your website
  4. Promote your website to get visitors and convert them into customers

Affiliate marketing is a simple and highly profitable business model.

But it requires knowledge, work and time to succeed.

If you want to learn affiliate marketing and build a business from scratch, Wealthy Affiliate is my #1 recommendation.  It’s an all-in-one platform that takes you by hand.

You’ll learn how to build your affiliate marketing business.

Learn More About Wealthy Affiliate

If you have any questions, please feel free to leave a comment below and I’ll respond to you as soon as possible.


2 thoughts on “What’s Affiliate Marketing and How Does It Work?”

  1. I joined Wealthy Affiliate and I was amazed by how considerate and detailed their training is. No wonder it’s the most popular platform for affiliate marketing. Newbies can really learn everything and host websites securely there.

    • Hi Andy, thanks for your comment. Yes, it’s true that Wealthy Affiliate is the best platform for people to build an online business. It’s particularly good for newbies as the training is step-by-step and the technical stuff has been simplified as well.


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