The affiliate marketing industry, worth billions, offers exciting career opportunities for creators and is quickly becoming a popular method for ecommerce brands to promote their products and services. Ecommerce sales are set to hit $6 trillion worldwide in 2023. Studies indicate that about 80% of marketers use affiliate marketing to boost ecommerce sales and engage customers effectively.
Many of the top affiliate marketing programs are free to join, making it affordable to begin. You might even turn a side project into a profitable business that earns passive income over time.
Feeling overwhelmed and unsure about starting? This beginner's guide to affiliate marketing will set you on the right path quickly. Discover how to choose an affiliate program, understand how affiliate links work, and begin making money as an affiliate
How affiliate marketing works
Affiliate marketing is a sales strategy where companies pay individuals to sell their products or services. You might have heard a podcast host or seen a social media influencer promoting certain items; they could be affiliate marketers. They earn commissions by recommending products or services to their followers through an affiliate program.
When you join an affiliate marketing program, you'll get a unique link or code to track the customers you refer. If someone buys a product using your link, you earn a commission. You can join affiliate programs directly from companies or through affiliate networks like ShareASale. Here's a typical process for how it works:
- Promote Store A on your website, blog, or social media.
- A customer clicks your unique link.
- The customer makes a purchase at Store A.
- The company or affiliate network logs the sale.
- Store A confirms the purchase.
- You get paid a commission.
How to start affiliate marketing
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- Decide on a niche: A niche is a specialized segment within a larger market, defined by its unique needs and preferences. It's your area of expertise and what you'll be known for, like travel blogging, pet care, or tiny homes. Top affiliate marketing niches include technology, wealth building, health and fitness, fashion and beauty, and lifestyle. To find a profitable and interesting niche, consider if you're eager to learn about it, can solve problems within it, and its market potential. Remember, choose something you enjoy for long-term success.
- Choose your affiliate platform: Your platform is where you'll build your business. Different affiliates succeed on various platforms, whether it's a blog, Instagram, or TikTok. Beginners can start with:
- Niche topic or product review sites: These websites focus on reviewing and comparing products for a specific audience, often featuring buyer's guides and tutorials. Think of The New York Times' Wirecutter as an example.
- Digital content: This includes bloggers, social media influencers, and YouTubers who create content to engage their audience and promote affiliate products. Authenticity and audience engagement are crucial; your followers need to trust and relate to you to follow your recommendations. Start on a platform you're comfortable with, where you can naturally connect with your audience and drive affiliate sales. Whether it's video creation for Instagram or blogging, choose what suits your skills and interests.
- Find a relevant affiliate marketing program: Selecting the right affiliate program is crucial. Look beyond just high-paying options; choose offers and products that resonate with your audience.
Consider these factors when picking an affiliate program:
Market reputation: Partner with programs known for reliability and trustworthiness. Many affiliate networks vet programs and list trustworthy, profitable merchants.
Commission rate: Look for programs with favorable commission rates. A good rate rewards your time and effort, with many programs offering 10% to 20% or more.
Earnings per click (EPC): EPC is a common metric indicating the average earnings affiliates make per 100 clicks. It helps gauge a program's profitability. Check affiliate networks like ShareASale for EPC rates of various merchants. Choose a program that aligns with your audience's interests and offers a balance of reputable partners, strong commission rates, and high EPC for the best results.
To discover quality affiliate opportunities, consider reaching out to brands you already like and ask if they have an ambassador or affiliate program. This allows you to promote products you genuinely enjoy and believe in.
Additionally, you can explore the following affiliate marketplaces to find products and brands to partner with:
- CJ (Commission Junction)
- ClickBank
- FlexOffers
- ShareASale
- Awin
- Amazon Associates
These platforms offer a variety of options across different industries, making it easier to find a match that resonates with your interests and audience.
- Create valuable content: With people spending an average of six hours and 35 minutes online daily, content consumption is at an all-time high. But it's not enough just to create content; it needs to be valuable and engaging for your audience.
Blogging is a powerful tool. According to Findstack, 65% of affiliate marketers drive traffic primarily through blogs. Kelly Marohl from The Greenspring Home suggests new affiliates should focus on publishing high-quality content to build a highly engaged audience for long-term benefits.
Social media is another vital platform, with people spending an average of 151 minutes daily on it. You don't need a website to be an affiliate marketer; you can promote affiliate links directly on social media. Platforms like Pinterest even offer affiliate opportunities with pins.
Many affiliate marketers successfully operate solely through social media channels. For instance, @taylerfit has garnered over 375,000 followers on TikTok by creating fitness content and earns by promoting brands through affiliate marketing. Whether through blogging, social media, or both, the key is to produce content that is both engaging and valuable to your audience.
- Build an audience: To cultivate an audience, you first need to connect with them. Email lists are a great way to directly communicate with your audience through newsletters, content updates, and special offers to those who subscribe.
For those primarily using social media, engage by following and tagging influencers in your niche. The goal is to increase traffic to your website or social media pages through strategic networking and content sharing.
However, attracting an audience is just the beginning. It's crucial to establish trust to ensure they return. Avoid promoting products solely for profit; focus on offering genuine value. Your audience's trust grows when they sense your sincerity and commitment to quality, leading to a loyal and engaged following.
- Follow FTC regulations: The Federal Trade Commission (FTC) aims to protect consumers from misleading marketing practices. As an affiliate marketer, it's essential to disclose any financial relationship you have with the brands or products you promote. This means informing your audience that you're compensated for the products you endorse and clearly identifying affiliate links to comply with FTC rules.
For example, blogs like “It's Always Autumn” include disclaimers to notify readers of affiliate links. Being transparent not only adheres to legal requirements but also builds trust with your audience.
Remember, regulations vary by country. If you're outside the US, familiarize yourself with the affiliate marketing laws and guidelines specific to your location to ensure compliance. Consulting resources like the FTC’s Endorsement Guides and definitive guides on FTC disclosure can provide further insight and help you navigate these regulations effectively.
Affiliate marketing offers several key benefits, making it an attractive venture for many:
No need to own products: One of the main advantages is that you don't need to own the products you promote. Most public affiliate programs, like Amazon Associates, don't require you to purchase any products. Instead, you join their program, use the provided link, and promote it on your page or website. This approach is particularly beneficial when starting out as it minimizes initial investment and allows you to experiment with various products and services to see what resonates most with your audience.
Passive income source: Affiliate marketing can become a significant source of passive income. Once you've laid the foundation and driven consistent traffic to your site, much of the work is done. Selecting the right affiliate partners and maintaining visibility of your unique links or codes on your site can lead to ongoing commission earnings. This setup means you can continue to earn from work done previously, making it an efficient and potentially lucrative income stream.
As a new affiliate marketer, your earnings can vary widely based on several factors, including the companies you partner with and how effectively you market their products. Commission rates can range from as low as 1% to as high as 20% with programs like Amazon Associates, while others like ButcherBox may offer up to $20 per sale or Thrive Market between $5 and $30 per commission. Some affiliate programs even offer recurring commissions of up to 30% per sale.
Your income potential depends on your ability to drive traffic to your site, select affiliate products that resonate with your audience, and choose the right affiliate programs. The affiliate marketing industry is robust and growing, reaching $8.2 billion in the US in 2022, a significant increase from $5.4 billion in 2017, as reported by Statista. Google Trends also shows a rising interest in affiliate marketing, indicating its growing popularity and potential as a lucrative market. With dedication and strategy, your earnings as a new affiliate marketer can range from a modest supplemental income to a substantial revenue stream.
Earning passive income through successful affiliate marketing is indeed a savvy way to make money online. By investing a bit of time and effort initially, you can cultivate an audience and achieve consistent earnings via your affiliate site. This method allows for a steady income stream without assuming significant risk. With the right approach and persistence, affiliate marketing can become a reliable and rewarding source of passive income.
Main Points
Starting affiliate marketing as a beginner involves several key steps:
- Decide on a niche: Identify a specialized area that interests you and has a demand in the market.
- Choose your platform: Select where you will promote products, such as a blog, social media, or a YouTube channel.
- Find relevant affiliate marketing programs: Join programs through affiliate networks like CJ, ClickBank, FlexOffers, ShareASale, or Awin.
- Create valuable content: Produce engaging and informative content to attract and retain your audience.
- Build an audience: Grow your following through consistent content creation and engagement strategies.
- Follow FTC regulations: Ensure you disclose your affiliate relationships to maintain transparency and trust.
As for earnings, beginner affiliate marketers typically earn from 1% to 30% commission per sale. While the average annual income for all affiliate marketers is around $59,060, many report earning less than $10,000, especially when starting out. Your initial earnings will likely be at the lower end as you establish your business.
The best affiliate marketing opportunities for beginners align with their niche, offer higher commission rates, and are related to trending topics or popular search terms. Utilize affiliate networks or marketplaces such as CJ, ClickBank, FlexOffers, ShareASale, and Awin to find these programs.
Affiliate marketing is worthwhile for beginners because it doesn't require an initial investment. You can start promoting products on free platforms like TikTok and Instagram and grow your audience without upfront costs, making it an accessible and potentially lucrative venture.