Affiliate Marketing – Keys To Success #1

how does affiliate marketing work

How does affiliate marketing work?

Does the idea of not doing no more work other than help product creators sell their products and be rewarded by keeping 75% of the profits appeal? If so – welcome to affiliate marketing.

For most people it seems ideal – a no-brainer – because, well, all the hard work has been done for you!

This is why affiliate marketing is the easiest route into earning an income from your online business and it’s not surprising that most new marketers start off this way.

Look at it this way…

…you’ve no need to create products or handle manufacturing (in the case of physical goods), you don’t have to maintain a factory, office premises or even employ anybody, with all the costs that those entail.

Your business can literally be run from a laptop computer and from anywhere in the world that has an internet connection!

Intrigued? OK, then let’s look at what Affiliate Marketing involves…

What is Affiliate Marketing?

Affiliate marketing is based on the concept that you earn money by selling someone else’s product. That in turn means that your income is effectively commission based. The creator of the product you are promoting simply agrees to share their profits with you in exchange for you promoting their product.

What’s so great about affiliate marketing is that many affiliate platforms will actually pay you between 50% and 75% – sometimes even more – of the selling price. That means that you make more money from each sale than the product creators do themselves!

You might be wondering why a product creator would decide to be stupid enough to pay you more than themselves. What’s the catch?

The answer is that there is no catch!

Look at it this way: product creators build their products and then attempt to sell them through their own websites. They typically spend a fortune on advertising to get prospects to their sales page. Yes, they make 100% of the selling price, but you have to deduct the cost of advertising and promotion to calculate the true profits.

Now here’s the key – if they also have affiliates helping to sell their product, they are now making extra money from all these sales on top of their own. They don’t lose anything from this – they only gain.

Even if they only get 25 to 50% of the profit from those sales, these are still sales on top of what they were already earning. And the more commission they offer, the more marketers will want to sell their product.

Having multiple affiliates selling a product for you and getting 25% from all of them is a lot more profitable than having just yourself getting the full price less the costs of advertising.

If a product creator sets up a good affiliate scheme, they can potentially gain an army of affiliates all helping to drive more sales of their product than they could ever have achieved on their own.

And, of course, the more popular and talked about a product becomes, the more sales it gains and the more profit everyone, including the affiliates, makes.

From your perspective, then, affiliate marketing offers a host of benefits. For starters, it means that you can start selling a product immediately without having to put time or money into creating your own. This means that you have minimal overheads and can get into profit immensely quickly.

Proven success

As an affiliate you can also look at what’s already selling well. Just a little bit of research can show you what is popular and what isn’t.

Instead of picking something that no one has heard of and that nobody wants to buy, you can look at the products that are attractive, that already have a history of selling very well and you can simply start selling them too. This not only reduces the risk to you, but you also know that the product’s a ‘good ‘un’ before you start promoting it.

Most product creators will even go as far as to supply promotional materials for their affiliates, such as images, ad banners, suitable emails and review text and more. Usually these are marketing materials that have already been proven to work.

If that sounds too good to be true then remember that the product creator is benefiting from providing all this – they really want you to succeed as an affiliate and find new routes to market for their product. In the end it means more sales, and therefore more profit, for them as well as benefits for you.

This all sounds great, doesn’t it? It’s literally a copy and paste business model. You take the marketing materials and products that someone else has already created, and worked out to be attractive, and you fit them into your sales system. It’s a practically foolproof way to generate income and really looks super-simple.

In that case, you may be asking, why isn’t everybody doing affiliate marketing? And why aren’t all affiliates super-rich?

The answer is that, in reality, it all looks too simple. And that’s where so many new affiliate marketers go wrong.

I’ll explain why in my next post. Look out for it.

About the Author Peter Comeau

Hi, I'm an award winning hi-fi designer and journalist. I've achieved success by doing things differently and following my own path. Now I want to help others achieve success by reaching for their own dreams. Reach out to me by messaging me on Facebook

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