What Is Affiliate Marketing? Absolute Beginner Guide

what is affiliate marketing/ how do you start affiliate marketing, newbie affiliate marketing guide.

If you’re ever interested in making money online you would’ve heard of the term “Affiliate Marketing” at least once. It’s a popular way for both, as normal people just like you as well as seasoned online marketers to start out making money online with a computer.

Then by now, you might be asking to yourself “What is Affiliate Marketing?!” if you’re a newbie in this tremendously potential industry. So I will a little speed up getting into what is Affiliate Marketing right now!


General Understanding – What Is Affiliate Marketing?

what is affiliate marketing. Why need affiliate marketers. cost effective marketing

Let’s first see it in companies’ (Advertisers) perspective. It’s simply a means of companies’ marketing strategy aimed for increasing their brand awareness faster and more cost effectively than by other traditional marketing methods. The way how they market their brand or products with Affiliate Marketing is actively cooperating with online marketers worldwide. Online marketers as an affiliate for a company play a key role to spread their word about the company brand and their products over the area in which they are influential, usually places like Social Media, Websites, Blogs, Internet Forums or through E-Mail Marketing or even offline communities that they influence in.

That’s really great deal and cost effective in consideration of company’s position since they can DRAMATICALLY reduce their costs for other costly promotional methods like media placement(TV, Radio, News Paper etc) or other expensive advertising agencies for their promotion, all thanks to their independent marketers with viral influence. And the so-called independent marketer, also known as Affiliate would be your role that you perform to make money online by helping out that businesses with their promotion online.


How It Works For You As An Affiliate (Promoter) – What Is Affiliate Marketing?

What is affiliate marketing, how it works, how to make money in affiliate marketing

This section is crucially important to you as an affiliate marketer and earner in order to see how it works and how you earn money out of this game.

As briefly mentioned earlier about what’s your job as an affiliate marketer, your main role would be to promote products of a company you’d like to. In this affiliate game, your main aim for this would be, of course, to earn commissions out of the sales or other specific leads acquired by your promotion.

All sales that are made by your affiliate links are considered as your sales in general and the commission rates are, in average, 10% up to 80%, depending on each company/product/service you’re promoting with. So if anyone visits to a merchant site through your affiliate link you placed on somewhere online and finally get to purchase something there for $100, then you will get paid $50 if the commission rate of the product you sold is 50%.

Thus the link usually called “Affiliate Link” provided to you as an affiliate is to play an essentially fatal role for your affiliate revenue. Where you place it, distribute it, and how great it exposures to people in need particularly, how great contents you offer with your affiliate link attached and how much traffic(how many visitors) you can attract through your link, is the most important aspect you should always attempt to develop as part of your affiliate strategy.


How To Become An Affiliate Marketer – What Is Affiliate Marketing?

what is affiliate marketing - how to apply to be an affiliate
                                           Example site – ShareaSale Affiliate Network

It’s actually a matter of minutes once you find a good company or product you want to promote. Most of businesses that are internet(online) based, have their affiliate program that online marketers can participate in.

The qualification to be an affiliate marketer for a company is generally at easy level that they allow almost anybody to promote their products and get commission from it, except some of few special cases.

While some companies(merchants) require a website or blog of their online marketers, it’s still easy to find companies that don’t specify certain requirement, just allowing anyone who has just a social media account such as Facebook, Twitter, Pinterest, Google Plus etc.

Not too long ago, I too have some experiences working in Affiliate Marketing world without a website or anything else other than just an account of my Facebook. I usually use Facebook groups to place my link on, my own Facebook page and group I ran, and also hundreds of other public groups out there for my link distribution. It worked pretty okay and I could get some sales and leads out of my social media based affiliate marketing.

Back to the point of How To Become An Affiliate Marketer – What Is Affiliate Marketing?

There’re mainly 2 ways of how to become an affiliate marketer.

  1. Directly Reaching Out to Companies

    Almost every companies have their affiliate or sponsor program which is usually seen somewhere around the bottom area on their home page. Simply click on there and you will be instructed what they require you to be or to have, to be their affiliate marketer and how to apply for it. Almost more than half of companies just get you a fast/instant approval to assign you as an affiliate of theirs. It’s simple and fast process like as easy as signing up on Gmail or Facebook.

    As one of the upsides this way, you can have almost no limit of range to choose which company you would go work with. Because you can always have a visit to any wanted company on the internet and apply for their program directly. But one thing you should also consider is that it can get a little messy in your vendor management if you have too many multiple companies you work with, separately here and there at the same time.

  2. Using Affiliate Networks

    What’s Affiliate Networks? The answer is.. they are marketplaces that connect producers(vendors,merchants) and promoters(affiliate) for their collaboration. Vendors post their affiliate deals on an affiliate network site, and individual marketers also called “Affiliates” join up with their affiliate program that a merchant offers to start working with them through the network.

    Every process including affiliation participation for every company you join in, performance report and tracking for your sales, leads or any acquisitions within the network, is reported in real time. So it’s a handy place you can overview all factors and situations that take place in your marketing all in one place. Easier for your affiliate marketing management. (You can also collect every payout from different companies into your one single account in an affiliate network. That’s way convenient managing your revenue collection.)

    Despite of that convenient side which is one of the upsides using Affiliate Networks, there’s one downside too there: kind of limited companies you can choose to work with. For example, you’re using an affiliate network and particularly looking for a company or product you specifically wish to promote. But if there’s none of that particular registered in that network, then you would have no chance for your affiliate connection with that company within the network.

    Refer to Best 10 Affiliate Networks List & Review



Affiliate Marketing Payment Models – What Is Affiliate Marketing?

Generally, the three types of compensation models below are applied in Affiliate Marketing. Payment type for you will differ from each different company you work with.

  1. PPS (Pay Per Sale): Merchant pays you when a sale is made. It’s also known as CPS as short for Cost Per Sale.
  2. CPA (Cost Per Action): Merchant pays you every time a required action is made such as a sign-up or E-mail submission or installation by the traffic you refer to the site.
  3. CPL (Cost Per Lead): Quite similar to CPA. Merchant pays you when you lead a person to sign up on the site.


Affiliate Marketing Revenue Models – What Is Affiliate Marketing?

Few different revenue share models that companies in affiliate marketing offer for marketers.

  1. One-Time Payment: Commission only paid once per sale, lead or any specific acquisition.
  2. Recurring Payment: Commission paid continuously every new month. It’s usually for when you sold an online service or digital software that recurs a bill every month. This is specially considerable for building passive income stream.
  3. Multi Tier System: For some of companies, they have multi-tier marketing structure. It’s also called “Multi Level Structure” where your earnings also come from people in your downline. Be cautious that there’re many scams around this although not all of them. 



Personal Thoughts – What Is Affiliate Marketing?

What is affiliate marketing

Affiliate marketing is a great way to start earning money online. There’s no harsh requirement for newbies at entry level. Like all you need is just a computer with internet connection and social media account. That also means it’s a flexible job you can do anywhere as long as connected on the internet. And you will earn giant commission out of your affiliate sales or leads or whatsoever the type would be. It even earns you while you’re sleeping because your affiliate links are kept out there online 24/7, appealing to thousands of shoppers worldwide to purchase through your links!

Wow,, all sounds fantastic,, right? Yeah that sounds fantastic and an easy way to make money from home right?! By now, you might be just happy dreaming of making millions $$ and an open top luxury car or luxury cruise tour in your head. Yeah that might come true and you could make glamorous review out of your affiliate marketing.

BUT the bitter truth is… that extra hardly happens, especially to newbies.

I know some people who earn over than  $5,000 a month only with affiliate marketing. But they all have the common point that they have long and long years of experience in affiliate marketing and surely are aware how to get traffic online. They have firm traffic sources and strong sales funnels that attract traffic consistently. They get very specified quality traffic based on the niche leading it to great conversion into purchases. The cool guys keep earning almost like $5,000 a month stably and that’s almost like a full time monthly income of somebody or even higher than some people’s.

Yeah I guess this is my bottom line – “Success doesn’t come overnight”.

It really needs time and effort to build up your base in affiliate marketing. It needs a lot of followers that love the products you promote in that specific niche or lots of subscribers in Youtube, or else a website/blog with great amount of traffic. The all are not to happen just in a day. It definitely needs time getting through some trials and errors and struggles while building your affiliate empire. That’s what the guys of $5,000 monthly affiliate earnings have gone through too, long way to that point.

If you ,as a beginner, are expecting to earn like $1,000 just in today with affiliate marketing, then you are in the WRONG place now, I guess.


Step by step guide for beginners in affiliate marketing
: Read it here

About Live Money Online 52 Articles
Live Money Online is a blog sharing actionable tips, hacks, and guides to making money online in a variety of ways that anyone can try with their computer connected to the internet.

1 Comment

  1. I had done Affiliate Marketing course, I had gained a lot and also earned a lot of money. After reading your blog, I got a lot of information in my affiliate market. Thank you

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