What Is Affiliate Marketing?

Affiliate marketing is a model of advertising where a company pays third-party affiliates (that’s you!) to promote their products or services. Simply put, you’re the virtual middleman. If someone clicks on the affiliate links you put out and buys the product or subscribes to the service, you get a commission.

Companies like this arrangement because it’s performance-based. If the affiliate campaign doesn’t succeed, they don’t pour a lot of money down the drain. Affiliates like it also because it’s performance-based. The more people they can convince to buy through their link, the more they earn.

Why Affiliate Marketing – Reasons to Become an Affiliate Marketer

Why not affiliate marketing? It’s a great choice if you have a talent for selling and promoting stuff but don’t have the patience and attention to detail to manage a physical store. Let’s take a look at some of the best perks of affiliate marketing.

Low Risk

When you manage a physical store, you need to deal with things like inventory, expiring products, and supply chain issues. Things going unsold can burn a big hole in your pocket, but you’ll find no such cases of that in affiliate marketing.

The risk of inventory fiascos in affiliate marketing is near-nonexistent because that’s your partner’s concern. All you gotta do is promote and sell products. In addition to the lower risk, that means you can solely focus on promoting your products instead of splitting your attention between inventory and promotion.

This is somewhat of a point of contention, though. Some people say that because affiliates don’t have any stake in the products they’re selling, they’re more willing to shill subpar products because they’d be fine if the product is bad. To that, I say that the cream always rises to the top. Affiliate marketers who sell bad products usually don’t earn customer trust, meaning they’ll eventually fade away, while affiliate marketers who constantly promote high-quality goods usually end up on top.

Low Costs

With a physical store, you have to purchase inventory, pay for storage, and cover a dozen different expenses, which will dig into your bottom line. For affiliate marketing, you don’t need a lot. Sometimes, all it takes to begin is a computer, a camera, and a dream. Of course, depending on how you market your products, you may need to pay for online ads, web hosting, and tracking software. But the point still stands that these costs are super low compared to setting up your own store.

Flexibility

Another factor that makes affiliate marketing appealing to people is its flexibility. Being lazy is probably still a bad idea, but as an affiliate marketer, you can set your own hours. Want to grind for the first three days of the week and have a four-day weekend? That works. Want to keep a regular 9-5 schedule? By all means.

This is a double-edged sword because you need to have good discipline, but the flexibility of affiliate marketing means you can build your work around your life and not the other way around. Some people even take advantage of this by becoming digital nomads, traveling and seeing the world while they keep up with their affiliate marketer efforts.

High Earning Potential

This is probably why most people are attracted to affiliate marketing: the high earning potential. If your content makes it big, you can rake in the big bucks as people flock to click on your affiliate links. Of course, this isn’t as easy as it may sound, but it’s a distinct possibility.

Affiliate WP reports that 81.2% of affiliate marketers earn $20,000 annually. The one-percenters in affiliate marketing earn even more, attaining a six or even seven-figure monthly income.

Step-By-Step Guide to Starting Your Affiliate Marketing Journey

You’ve learned what affiliate marketing is and why it’s appealed to so many people. Your next question might be, “How do I actually do this?”

Like there are many roads to Rome, there are a lot of ways to excel in affiliate marketing. But the general roadmap usually looks like this:

1. Choose a Niche

Your affiliate marketing journey usually starts with a big decision: What products to promote. Whether you want to be the Internet’s number one authority on organic baby products or the best Crossfit equipment reviewer on YouTube, pick a niche that you either know, love, or both. This way, you won’t give yourself burnout making content about products you neither know nor care about.

As an extra note, make sure that people are interested in this niche so you don’t end up screaming into the void.

2. Join an Affiliate Network

Affiliate networks are like your matchmakers. They connect you, the affiliate, with the merchants. Most networks offer access to multiple brands and products, so you don’t have to knock on every single company’s door pitching an affiliate partnership.

Naturally, you need to do your research here. Find networks that have fair terms and good reviews so you don’t end up partnering with a scammy or scummy affiliate network.

3. Promote Your Link

With an affiliate link in hand, it’s time to shout about them from the rooftops (well, maybe not literally, but if it works for you, by all means). You can promote your links however you like. Blog posts, YouTube videos, social media, and paid ads are some of the most popular methods.

When promoting your link, make sure to follow all relevant disclosure terms and regulations. Some sites don’t allow you to post links without disclosure, and some places may not allow you to post links at all.

4. Profit! (But don’t forget to learn and scale)

Your job isn’t finished when the money comes rolling in. Once you’ve got the affiliate marketing engine running, keep an eye on your metrics and see what you can improve. Test promotional methods, refine your approach, and, most importantly, stay adaptable. If you’re looking to scale, reinvest some of your earnings to pay for paid ads, outsource some of the process, and other things to expand your reach.

But as you scale, don’t forget that what makes your efforts worth it is your audience. Always strive for credibility and relatability to ensure your audience doesn’t unsubscribe when they feel like you’re “selling out.”

Affiliate Marketing Tools

Tools make things easier; that’s just how humans have worked for millennia. Affiliate marketing is no different, save for the tools being digital. When you’re starting out, these tools can be a boon in making your process more efficient, saving you hours.

You can read my complete guide to affiliate marketing tools, but here are some to get you started:

Canva – Easy-to-Learn Design Tool

Canva is a web-based design tool that’s free to use (with a paid version for extra features) and very easy to learn. It’s a great way to design your social media posts, blog graphics, YouTube thumbnails, and more.

You don’t need to be a pro graphic designer to be good with Canva. Just watch a couple of YouTube tutorials to get a good handle on the basics, and you’re off to the races!

Bluehost – Beginner-Friendly Web Hosting

If you’re running an affiliate blog, you need a place to host it. Bluehost is a good, affordable web hosting service that’s very beginner-friendly. It features easy setup and special prices for your first year. That means you get a bit of extra runway to make money before the regular pricing kicks in.

Google Keyword Planner – Free Keyword Insights

Keyword searching is essential if you’re running Google Ads campaigns because you want keywords that people actually use. The Google Keyword Planner is a free, robust way to do that. It can also estimate the cost-per-click of ads to help you budget.

Choosing Your Affiliate Marketing Niche

Check the product categories on Amazon. That’s how many niches there are in affiliate marketing. In fact, there might be even more. Affiliate marketing niches are spread out like a buffet, so all you need to do is pick and choose which one to take. While it’s probably a good idea to just pick one niche at a time, you can pick multiple if you can handle it. I don’t recommend that for beginners, though, because balancing them might be tough.

That said, picking the correct niche can be confusing with all the options. First, let’s take a look at the examples of available niches. This isn’t an exhaustive list, but it’s a start for you to understand what kind of niches are available.

• Technology (e.g., gadget reviews, software, gaming)
• Finance (e.g., credit cards, personal finance tools)
• Health and Fitness (e.g., workout programs, supplements)
• Fashion and Beauty (e.g., makeup, clothing, accessories)
• Online Education and Lifestyle
• Hobby (e.g., woodworking, painting, crochet)
• Pet Care (e.g., specialty treats, grooming tools)
• Travel (e.g., luggage, travel insurance)
• Home and Kitchen (e.g., small appliances, smart home devices)
• Bed and Bath (e.g., mattresses, bedding accessories)
• Outdoor (e.g., camping gear, hiking boots)
• Sports Equipment
• Business (e.g., software solutions, productivity tools)
• Medical (e.g., telehealth services, specialized equipment)
• Legal (e.g., legal tech, contract templates)
• Food and Beverages (e.g., meal delivery services, cooking tools)
• Culinary (specialty ingredients, recipe books)
• Security and Survival (e.g., home security systems, prepper gear)
• Non-profit and Charity (promoting campaigns with charity partnerships)

Wow, that’s a lot of choices. How do you pick a niche? A good way to pick is by asking yourself these questions:

• How competitive is the niche? Niches like fitness and fashion are big and have lots of potential customers. But that proverbial pond might have hundreds of other people fishing in it, meaning it’s an uphill battle to be noticed. There is a way around it, though. You can carve out a more specific niche, like “fitness equipment for people over 50,” that has a smaller potential customer base but still a decent amount of people to attract. Think of it as choosing a smaller pond with fewer people fishing there.

• How well do you know this niche? Knowing your niche helps you create better content faster because you likely don’t have to put as much effort into research due to interest and personal experience.

• Do you have authority in this niche? Having authority in a niche is a great way to boost your credibility. If you’re a former restaurant cook selling a set of kitchen knives, people are more likely to listen.

• Would you spend time learning about this niche? It’s okay not to be an expert in your niche, but you still need to know about it to sell things well. As long as you’re willing to learn about the products you’re selling, you’ll be okay.

Authenticity is important in whichever niche you end up selling in. The audience can smell if you’re not being genuine with your recommendations, and they’ll be much less inclined to click through your affiliate links that way. Plus, if you’re not clicking with what you’re selling, creating content day after day for that product can become a slog that leads to burnout.

Affiliate Networks and Programs to Consider Joining and How to Find the Best One for You

Which affiliate marketing network or program should you join? That’s a question only you can answer because each offers different terms and perks.

But generally, here are a couple of things you should consider when picking an affiliate program or network:

• Niche
• Commission rates and structures
• Platform reputation

I have a dedicated guide to affiliate networks and programs, but I’ll give you a quick rundown of the more prominent networks and programs on the market today.

Amazon Associates

This is easily one of the biggest and most well-known affiliate programs, boasting millions and millions of products. It’s a straightforward and beginner-friendly program with one of the biggest brands in the world, which is why it’s very popular among affiliate marketers.

However, the commission rates can be lower. That said, Amazon’s big name and the potentially high conversion volume you can get might make up for that.

ShareASale

ShareASale features lots of merchants, big and small, across multiple product categories, which means you have a lot to choose from. It also features a user-friendly dashboard and simple sign-up. Payment cycles and minimum thresholds vary from merchant to merchant, so make sure to do your research.

CJ Affiliate

CJ Affiliate boasts many high-profile merchants, making it good for marketers who seek stable, proven partner programs. This also means CJ Affiliate payments are usually reliable, so you don’t have to worry about not receiving the money you’re owed. Since CJ Affiliate is relatively more high-profile, they can be a bit pickier with their applications, so it’s better to build a platform first before aiming for this one.

Affiliate Marketing Strategies for Beginners

Affiliate marketing is a bit of a choose-your-own-adventure game because you have so many avenues to success. Your main objective is to get people to click on your link and buy the product. The how? That’s for you to decide.

Let’s take a look at a few tried-and-true, beginner-friendly affiliate marketing strategies. You can also check my comprehensive guide on the topic for more information.

YouTube Channels

YouTube channels are probably the first thing you think about when people talk about affiliate marketers. If you like making content, then you’ll be right at home with an affiliate YouTube channel. It will probably take more work to produce videos and build an audience, but having a loyal following can help you if you decide to explore other affiliate marketing strategies.

There’s also an extra benefit to having a YouTube channel for your affiliate marketing efforts: AdSense revenue. If your videos do well, you’ll earn both from AdSense and commissions.

Native Ads

Native ads are ads that blend into the content of a website as if it were part of the site itself. Ever seen those sponsored recommendations that go “You might also like…”? That’s what a native ad often looks like. These subtle ads can be effective in attracting clicks because they feel like they’re part of the site.

That said, the use of native ads is somewhat controversial because they’re borderline deceptive. You can make them more ethical by labeling them more appropriately to show that they’re affiliate ads and not part of the site.

Google Ads

Putting up Google Ads is a good way to drive traffic to your affiliate links or landing pages. Its greatest strength is the ability to target search intent. People search on Google to buy something or solve a problem, and seeing your ad in their search results can lead them to click on it.

It’s a good idea to go for lower-competition, high-intent keywords that are more specific for the most bang for your buck. You should also keep an eye on your cost-per-click so you don’t spend too much.

Launch Jacking

Ever felt the hype of waiting for a new product launch, like a brand-new smartphone or the next generation of a game console? Then you know people can rave about them for days on days, which makes it perfect for affiliate marketing. You can create review content or videos that answer the question of “Is [product name] any good?” and “Should I buy [product name]?” because loads of people will be searching for those.

Ideally, the best way to jack a product launch is by getting the actual product through early access and providing a genuine review. But if you don’t have that, you can do a video compiling early impressions and other useful information that your audience will find useful.

Which Affiliate Marketing Metrics Should Beginners Measure?

Doing affiliate marketing without metrics is like driving a car without a dashboard. You know that you’re moving, but you don’t know how fast you’re going, how much fuel you have left, and how far you’ve gone. But having too many metrics is like placing a plane’s instrument panel on your car. There are so many things to keep track of that you get distracted and might end up in an accident.

I’d say moderation is best. Instead of measuring no metrics or measuring all the metrics, I suggest measuring just the essential metrics. This way, you have your finger on the pulse without being bombarded by information.

I have an all-in guide to affiliate marketing metrics for you to sink your teeth into. But as an appetizer, here are the metrics I recommend you to keep an eye on:

Click-Through Rate (CTR)

Your CTR is a percentage of how many people click your affiliate link versus who sees it. It’s a common measure of affiliate success because a high CTR means your audience is compelled to click on the link. Conversely, a low CTR means your call-to-action or content isn’t hooking their attention.

Conversion Rate

Conversion rate measures the percentage of visitors who complete the desired action after clicking the link. Essentially, it’s a measure of how much of your audience actually helps you get money. High CTR but low conversion rates mean there might be a mismatch between what you promised in the content and the product or service itself. It can also mean you’re not targeting the right audience.

Earnings Per Click (EPC)

Your EPC measures the average amount of money you get every time someone clicks your link. It’s an easy way to compare different products or offers. If an offer has a higher EPC, that’s probably the one more popular with your audience, and you should commit more resources to it.

Average Order Value (AOV)

AOVs measure the average total of each transaction your referral completes. This value increases the more a customer spends on each purchase. High AOVs can offset low traffic or conversion rates. It’s like the difference between a fisherman catching a dozen smaller fish and another catching one massive fish. The one who caught the smaller fish got more, but they both “earned” roughly the same amount of fish.

Lifetime Value (LTV)

Every customer’s LTV represents how much value they generate during their entire relationship with a brand. This measure is usually important for subscription or membership-based services because they’re more likely to generate recurring income from individual customers. If you have lots of customers with high LTVs, that means you’re good at fostering customer loyalty.

Return on Investment (ROI)

Your ROI represents how much you spend on promoting products versus how much you earn. Low ROI means you’re losing money. However, your ROI may be low at first because the customers haven’t rolled in yet. Measure your ROI with the context of time in mind so you don’t stress over it too much.

Impressions

Impressions measure how many times your content or ad is shown to somebody. Impressions alone don’t pay the bills because it’s just how many people see your content, but it can be merged with CTR to create a larger context. For instance, if your impressions are high but CTR is low, then people aren’t clicking your ads, and you need to revamp them.

Bounce Rate

Ever seen people walk into a store and walk back out without purchasing anything, not even looking around? That’s what bounce rate measures. It’s shows how many people visit your site and leave without taking any action. A high bounce rate means you have a problem with your site, whether it’s subpar content or an unfriendly website interface.

Staying Compliant in Affiliate Marketing for Beginners

Navigating the legalities of affiliate marketing can be daunting, and that’s for good reason. If you break any of these regulations, you might be facing fines or worse legal consequences. The last thing you want is the FTC (or insert your local regulatory body here) knocking on your door because you unknowingly broke a rule.

That might be why staying legal and compliant in affiliate marketing feels like walking through a minefield. One wrong step, and everything blows up in your face.

The good news is that I have the minesweeper for you! You can go read my affiliate marketing compliance guide for a complete rundown, but here are some simple tips you can follow first:

Disclose Your Partnerships

Almost all regulatory bodies require you to disclose that you’re promoting a product as part of a partnership. In a blog, you can write a small tidbit mentioning your affiliate partnership, like “If you purchase this product from my link, I’ll earn a commission at no extra cost to you.” In a video, you can say, “This video contains affiliate links. If you click on one of them, I’ll get a commission at no cost to you.”

Properly disclosing your affiliate relationship also helps the audience trust you better.

Promote Honestly

If a customer buys a product you hyped up to be the next best thing since sliced bread, and it turns out to just be another regular thing in a sea of thousands, they’ll probably unsubscribe from your channel before you can finish saying your affiliate disclosure.

The key here is to set customer expectations appropriately. If you hype a so-so product as the absolute best, they’ll think you’re a paid shill who says that because you get money every time someone buys it. But if you take the time and care to properly review the product, giving reliable feedback on its strengths and weaknesses, the audience will trust you better because you’ll sound more credible.

Choose Reputable Networks and Programs

If you see unknown affiliate programs offering high commissions with terms that seem too good to be true, run the other way as fast as you can. What sounds too good to be true usually is. Partnering with shady affiliate networks that overpromise and underdeliver is a great way to torpedo your credibility and give your audience trust issues.

Conclusion

Whew, that was a lot. But you’ve learned so much throughout this article, right? Let’s recap what we’ve covered:

• The basics of affiliate marketing and why people are enamored by it.
• Top affiliate marketing networks to join and how you can see which one is best for you.
• Beginner-friendly affiliate marketing strategies and tools.
• Key affiliate marketing metrics to keep an eye on.

Your journey in affiliate marketing can be as unique as you are, so don’t be afraid to explore, experiment, and even fail a few times. Each misstep is a lesson, and every small win is a stepping stone to bigger results.

I’ll leave you with some homework: If you haven’t started with affiliate marketing but want to try, look for a niche that fits you and find programs or networks that cater to that niche. If you’re already embarking on your affiliate marketing journey, try implementing a small tweak to your content or website that you think can increase conversions.