What Is Affiliate Marketing And How It Works

What Is Affiliate Marketing And How It Works

Affiliate marketing is one of the most popular ways to make money online. It’s such a good way to earn money that I started doing it myself, and for the past few years, it has been my main source of income. I dropped out of college and dedicated my time to something that I’m passionate about. But in all of this, what is affiliate marketing and how does it work?

What Is Affiliate Marketing?

Affiliate marketing is a type of performance-based marketing that compensates affiliates for each visitor or customer brought by their own efforts. In other words, you make money by promoting someone else’s product or service.

What Is Affiliate Marketing And How It Works
Affiliate marketing is the process of earning a commission by promoting someone else’s products or services on your blog, website, email list, and/or social media channels. You earn a commission every time one of your visitors clicks on an affiliate link and purchase something from that link.

An affiliate marketing program is a way for businesses to earn commissions from the sales of products or services generated by other businesses. It’s important to note that affiliate marketing is completely different from advertising. A company will not pay you if they like your blog post or read it on social media. The only way they can pay you is if an individual clicks on your link and make a purchase.

How Does It Work?

The simple answer is that you promote products and services for companies and get paid when people buy them. This can happen in a couple of different ways:


  • You promote a product or service, and the company pays you a commission when someone buys it through your link.
  • You get paid a percentage of each sale (aka “CPA” or “Cost Per Action”).
  • You get paid a fixed amount for each sale (aka “CPL” or “Cost Per Lead”).

Affiliate marketing is a great way to monetize your website, and you can use it on any niche or topic. However, if you’re just getting started with this method of online marketing, here are some tips to help you get started:

1. Pick a niche that appeals to your audience. If you’re going to promote a product in your niche, make sure that the audience for that product is similar to yours. For example, if you sell dog beds and want to promote cat toys, the dog owners who went to your website for dog beds will most likely be confused with seeing cat toys on a dog bed related website.

2. Know what type of content people want from you on your site. Do they want videos about how to do things? Or maybe they want articles explaining why you think something is “important.” Once you know what type of content will appeal most to them and why they need it, then start building out those types of pages (and links) on your site

How To Start Affiliate Marketing?

what is affiliate marketing and how does it work

Now that you have a basic understanding of what is affiliate marketing and how does it work, you might be wondering how to get started. If so, great! I’m here to help. Here are the basic steps:

Writing an article is one of the easiest ways to get your name out there and make affiliate sales.

The first step is to create a blog. A blog is a regularly updated website that can be viewed online or on mobile devices.

Next, get a domain name and hosting for your blog. A domain name is the address that shows up in Google search results so make sure you choose something that’s easy to remember and easy to spell. Once you have chosen a domain name, you will need to purchase hosting services with which to store your website files and run it on the internet.

Next, write content for your site! Write about whatever interests you but make sure it’s quality content because once you begin promoting affiliate products on your site, people will want to come back and read more about what you have written about previously! When writing articles, always include links back to the products you are promoting as well as relevant graphics (images). You should also keep track of what articles get high traffic so you can mimic that same strategy with future blog posts.

Psst! You Can Do All Of This And So Much More With Wealthy Affiliate! Sign Up For A Free Account Right Now is!

How To Make Money With Affiliate Marketing?

More on “what is affiliate marketing and how it works”: Let’s say you’re a dog enthusiast. You love dogs, and you have a blog devoted to them. Your blog is pretty popular and gets around 100 visitors per day.

What Is Affiliate Marketing And How It Works
If you promote an affiliate product related to dogs on your site, then every time someone clicks through from your site, you get paid a commission by the company that sells the product (called an affiliate program). The value of this commission can range anywhere from $0.50 – $100 per sale, or even more, depending on which products you promote and how well they convert into sales for the merchant (you won’t make money if no one buys anything!).

If enough people click through from your site over time, that could add up to some serious cash!!

How Much Money Can You Make With Affiliate Marketing?

The answer to that question is: it depends.

That’s because there are many factors that influence how much money you can make with affiliate marketing.

These include:

  • Your niche – what you’re promoting (for example, do you sell dog food or weight-loss supplements?)
  • The commission rates you choose – if your product has lower commissions, then it’s going to take more sales for you to make as much money (but if your product has higher commissions, then less sales will earn more for you)
  • How many products per sale – is the buyer buying just one thing or multiple things?
  • How well is your site doing on Google? – are you ranking in the first page?

Affiliate Marketing Is A Great Way To Earn A Decent Passive Income. It Takes Some Time, But The End Results Are Definitely Worth It.

Now that we’re clear on what is affiliate marketing and how it works, we can conclude that affiliate marketing is a great way to earn a decent passive income. It takes some time, but the end results are definitely worth it. There are many different ways that you can make money with affiliate marketing, so don’t be afraid to try different strategies until something works for you!

Wealthy Affiliate has been my go-to platform for learning all about affiliate marketing, building my website, creating content, and generating income. Try it for yourself risk free, no credit card needed!

⇨ Related: Affiliate Marketing Vs MLM

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  1. I do love how honest you are in this post.  Affiliate marketing is so fun and it’s great to make money form a blog you are working on, but it’s not a get rich quick scheme, and the fact that you pointed out that it depends on several different factors shows that you are not trying to fool people into believing something that just isn’t true.  Thank you for posting this and I highly recommend affiliate marketing to anyone who is interested.

    1. Thank you for your kind words and input. Having people know what affiliate marketing is can be a fun ride, but why fool people over something that can be a positive thing in their life instead of foreshadowing what no body talks about therefore making this a disappointing experience. Honesty is always key. 

  2. You have summed up affiliate marketing really well. There are many more details one should know before trying it out but what I can say from my own experience is that affiliate marketing is one of the easier ways of starting an online business even though not the only one. And as you suggested WA has so much value that for me is the best way to start in this difficult venture.

    1. Thank you for your input. It’s true! There is so much more about affiliate marketing that it’s impossible to just cover it in one post. I’ll be looking forwards seeing what else I can bring to the table to start this conversation. I’m also so glad that Wealthy Affiliate has helped you in your business career as well. 

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