What is Affiliate Marketing?
According to Bing, the definition of 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”.
Affiliate Marketing offers several huge advantages over the traditional brick and mortar store:
- You do not have to deal with the actual product or service that you are selling, unless it’s your own product
- You can use the merchant’s marketing tools to market the products
- You will receive a commission from the merchant if you sell any products you are marketing on their behalf
Affiliate marketing will NOT make you rich overnight, however it is one of the most profitable home business ideas available today.
So How Can I Make Money?
Let’s cut right to the chase! There are basically two ways that you can make money using Wealthy Affiliate.
1. Refer People to Wealthy Affiliate
As a Wealthy Affiliate member, whether you are a starter member or a premium member, you can make money by referring new members to Wealthy Affiliate. The commission scales are shown below.
As you can see, premium members get paid twice as much for each premium referral as do starter members. As well, notice that as a premium member, you will also get an extra $1 when your referral sets up their account with a picture and a profile description. The initial $19 offer that you see above refers to someone who signs up as a premium member within the first seven days of joining Wealthy Affiliate. So instead of paying $47, you get the first month at $19 but that offer is only available for the referral’s first month as a premium member.
Want Your Premium Membership Paid For
Every premium member pays $47 per month and that includes you as well (if you signed up as a premium member). Did you know that you could get your monthly premium fee paid for and still come out with a profit, if you simply refer three people to Wealthy Affiliate and they sign up as premium members. Let’s do the math.
By having three people sign up as premium members, this would give you a total commission of $67.50 per month. Subtract your $47.00 per month and that would leave you with a profit of $20.50 per month. Obviously, this amount would fluctuate depending on the number of referrals that signed up as premium members.
As a starter member you can also make money. Let’s look at the math again.
With three Premium monthly referrals paying you a total commission of $33.75 every month, and since you don’t pay anything as a starter member, that gives you an extra $33.75 in your pocket. Again, this amount will fluctuate depending on the number of referrals you get above 3 that sign up as premium members. It’s not a lot of money, but it’s a start.
This is the difference between MLM’s or pyramid schemes and Wealthy Affiliate. The person that referred you to Wealthy Affiliate doesn’t make any money on any of your referrals, just the commission from you signing up. That’s why Wealthy Affiliate is a legitimate online business and has no negative reviews!
Let’s check out the second method now.
2. Sign Up to Various Affiliate Programs
Once you have your own website created (refer to my link on how to build your own website and watch the video at the bottom of the page), you can begin the process of applying to various companies that offer affiliate programs.
It is important that you have your website finished before you start applying to affiliate programs. A list of the top affiliate networks that you may want to consider joining can be found here. These are a number of networks who act as middlemen between the merchants of the products or services and you, the affiliate marketer.
Most of these merchants do not charge a fee to join, but you will normally have to complete an application prior to joining them. They want to be able to review your website and make sure you would be a good representative for their products or services.
It may take a few days to get approved to be an affiliate, but once you are approved, you will be given an affiliate ID and you will have access to the merchant’s banners and product links that you will be placing on your website. These are called affiliate links and this is how you will earn money.
Every time a customer is directed to the merchant’s page from your website, the special html code that you place on your website tells the merchant where the customer came from, and if a purchase is made, you will make a percentage of the sale and the merchant will know which affiliate to pay the commission to.
This is how affiliate marketing works in a nutshell. I hope this makes sense to you. If not, please leave a question below and I will do my best to answer it for you.