What is affiliate marketing

What is affiliate marketing

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. (wikipedia.org, 2013) When people ask me what I do, I tell them, affiliate marketing and the first thing (most of time) comes out their mouth is, “you don’t be ripping people off, do you?”  That comment gets me so frustrated but I try not to let it show because whether they know it or not, that comment gives me all the information I need. It saves me so much time and energy when trying to recruit new people. With that comment alone I know they have no idea what affiliate marketing is or what affiliate marketing is about.

The only thing I can do at this point is try to explain with an example. The example usually goes something like this. Suppose you know somebody that is selling a used car (2006 Nissan Maxima SE for this example) for $10,000. You both have made an agreement where he is willing to pay you 50% of the asking price if you helped him sell it! With that in mind, one day you are over a friend’s house and your friend tells you they are looking for a new car. Your friend begins to tell you he really wants a Nissan Maxima but he doesn't know if he can afford it. You asked him how much is he trying to spend and he said, $10,000! Bingo, you just became an affiliate marketer and you just made $5,000!

Money in the eyes picture

Do you get the picture?

But wait… it gets even better. Suppose the same person you made the agreement with tells you he has 9 more. Six weeks go pass and you sell all 9! That’s a total of 10 cars, totaling $100,000. You do the math, P of $100,000… That’s $50,000! It takes some people 12 months to make $50,000, some 24.

This example was more of an offline referral marketing deal, but you get the picture, right? I use cars for this example because most people can relate to buying a car. If it was online it would go something like this.

Company ABC is an online store that sells electronics. They have an affiliate program that pays you 50% of the purchase price every time somebody buys something after clicking your affiliate link. An affiliate link is it's a special URL that contains the ID or username of the affiliate. This URL is used by the advertiser to track all traffic the affiliate sends to the advertiser's site as a part of the affiliate program. (webopedia.com)

This time you are on facebook chatting with one of your buddies and he tells you his TV just broke but he doesn't have time to go to the store because he is leaving town on a business trip for a week. In addition, he said, he wished he knew of an electronics store that could deliver the same time he plans to arrive back home.  Bingo, all you have to do is send him your affiliate link and wait for your commission check or deposit in your PayPal account.

This is just an example, now of days you can get just about anything you want from Walmart.com but what other job can you get paid for setting behind your computer, chatting to people, sending and posting links. Even the company in this example has to work harder than you do. They have to take the order, physically package and ship the product. Most affiliate products online are downloadable (eBook, video, etc…) so you don’t have to worry about inventory but you still need some tools that will help you make more money.

You are going to need an email autoresponder and website at the bare minimum. An email autoresponder is a computer program that automatically answers e-mail sent to it. (wikipedia.org, 2013) An email autoresponder also saves you tons of time by sending follow up emails automatically. I’m not going to get into why this is important but if you want to know why, you can read my blog post titled What is an auto responder.

GVO autoresponder logo

In addition, to an email autoresponder you are going to need a website of your very own. The reason is, so you can post all your affiliate links on it and promote them all with your website link. For example, go to paidfiveways.com. This site is what you get when you sign up for Stone Evans's FREE 30 Days to Success affiliate program. All you have to do is sign up; follow his directions get not 1, not 2 but 5 checks in the mail!

When starting out, there is one thing you must remember. Your friends are not all just going to beating down your door to buy whatever it is your selling and not all of them are going to be interested in what you have to say. You are going to have to search for them.

One of the quickest ways I found to do this is placing ads using targeted keywords. Ads can be free or paid but placing ads is the quickest way. Facebook PPC is a great place to start. You can set your budget as low as $2 per day and you can get clicks as low as $.01! You have to know a little something to get your clicks down to $.01 but it not so hard that you can't figure it out. There are several Facebook PPC course floating around.

safe swaps solo ad banner

If you have about $50 to $100 and you can buy solo ads form safe-swaps.com and build an email list overnight! This strategy is explained in my blog post called How to build a email list.

GVO affiliate hosting banner

To sum it all up, affiliate marketing is the best way to start out making money online.  If you are thinking about getting started in affiliate marketing I would highly recommend GVO. GVO gives you just about everything you need to get up and running TODAY and GVO has one of the best affiliate programs online! As an affiliate, if you sign up 5 people within a week, you get a bonus of $100! Once you have more than 100 direct signups, they will be pay you $500 each month and once you have more than 200, they will pay you $1000 each month and so on. All you have to do is click the link.