Affiliate Marketing is an internet marketing channel in which advertisers (or companies who offer a product or service) pay publishers on a pay-for-performance basis. So unlike Google AdSense you don’t earn anything for clicks. You’re only paid for results which could be a sale or a lead (user fill a form and complete registration).
Affiliate Marketing is An Internet-based system where you (as an affiliate) get paid for referring sales or customers to another business.
It’s a bit like how a real estate agent doesn’t own the houses they sell; instead they promote houses on behalf of their clients, and earn a cut of the sale price of any properties sold.
You can repeat that process over and over again to scale up your income to a huge extent. So it’s pretty much a dream job in many ways.
But how likely are you to succeed? What does this job actually entail on a day-to-day basis? How much can you realistically expect to earn and what kind of person makes a good affiliate marketer? Let’s take a look…
Affiliate Marketing – The Reality
We’ve painted a pretty nice picture of affiliate marketing so far as a job anyone can do and that can generate big income. And it’s certainly true – a lot of people making a huge amount of money marketing this way and it’s the very best way to make a living if your key goal is fast and straightforward income.
But will you be able to pack in your job tomorrow? Most likely not. Of course there are still challenges when it comes to being an affiliate marketer and there’s still a fair amount of work and smarts involved – otherwise everyone would be doing it.
As a marketer you really have two options. One is to market through advertising – using Facebook Ads and Google AdWords in order to reach a highly targeted audience. The other is to build your own audience over time who will trust what you have to say.
The latter is the preference because it allows you to build a stable income selling repeatedly to the same group. It also means that you don’t have to pay for advertising. But unfortunately, this strategy is also a lot more slow going and it takes a lot of time to build up the kind of trust and authority you need to begin making money. If you choose to go the advertising route though, then you need to invest money into those ad campaigns in order to get money out. In theory, you should always earn money back and get a good ROI for your efforts – you’ll be paying a few cents per click so if you are targeting the right people you should make a few sales before your overheads exceed your profits. But this takes time and effort to get right and that in turn means that you might lose a little money before you hit upon the perfect ‘formula’ to start generating cash. There’s an element of luck here too as you need to happen across the right product and the right advertising campaign to maximize your income.
Most affiliate marketers will use a combination of these strategies – they will advertise while at the same time building a mailing list and running a blog. For these reasons, you certainly shouldn’t hand in your notice tomorrow and it will take time to start seeing BIG income.