What Is Affiliate Marketing?

I don’t work, and yet I earn more money than my firmer Boss, all thanks to affiliate marketing.

Last year, right after COVID-19, when the first wave of layoffs in tech began, I was petrified.

Although I survived, I was in no way to predict if I would survive the second, third, or the one coming after.

To my dismay, I was fired in the third wave of tech layoffs, but I had a business that I built from scratch. Right now, I am generating money from my bedroom, doing literally nothing. I hardly work and you will often find me catching flights and offering consultation to other people who want to quit.

If you are tired of your 9-5 job and want to quit? You are not the only one. More than 70% of the employees want to quit their 9-5 and the rest are just beginners or too tired to go home.

Most people start looking for ways to earn money on the side, but we all know that only a good business will help you sustain the profit; otherwise, you will soon run out of profit.

With affiliate marketing, you do not need to own a business, you will not have a product of your own, or you don’t have to invest in manufacturing anything. With just a few suggestions, inserting the links, and owning your site, you will be able to earn a commission at every purchase.

Are you overthinking about the business capital, investment, and policies?

Trust me when I tell you that you just need a laptop, some basic SEO tools, like SEMRush for niche research, and a reliable internet connection, like Optimum Internet. Moreover, there is no age limit or skillset required to start it.

How Affiliate Marketing Works?

Now that you know what affiliate marketing is, you also need to know how it works.

As we already mentioned, you don’t need a product but you still need a website. By using this website, you need to market the product that is offered by the vendor. For each sale that occurs via your platform, you will get a commission.

To understand this further, imagine your friend opening a café. You love coffee so you often visit the café. Your friend tells you to bring along a few friends and refer the café to people in your family. For every sale that your friend makes via your referred client, you will get a certain percentage of profit.

You do not own the café, you never invested in it, you don’t know how to make coffee or even do not know how to sell it, but you still get a good chunk of profit.

Seems like a dream come true.

This is an affiliate marketing model. Since affiliate marketing is all about spreading news, offering products, and giving reviews, you don’t have to own anything.

Moreover, by building a credible site within your niche, you will be offering a comparison of different products and services. No matter what your customer selects, you will earn the commission.

Within affiliate marketing, there are three stakeholders:

• Affiliate or Adviser (You)
• Seller or Product Create (Vendor)
• Consumer (The Person Who Will Buy the Product/s)

Types of Affiliate Marketing

Most people think that affiliate marketing types are categorized based on the channel you choose or the type of marketing you conduct i.e. Pay Per Click(PPC) or Pay Per Sale(PPS). However, affiliate marketing cannot just be limited to these few things.

Here are three main types of affiliate marketing that you need to know about:

1. Unattached

Unattached affiliate marketing is a style where you will have no direct connection with the product directly. You will not be taking sides because you are not professional in the niche, and best of all, you will not be held accountable.

A simple example is that you can offer daily supplements for people or just help them choose the best gym gear, kitchen appliances, or internet. If anything goes wrong, you will not be asked about it. Most people, in this case, opt for paid ads, specifically Pay Per Click or Pay Per Sale.

2. Related

For this kind of affiliate marketing, you should have a relevant audience, but no experience. For related affiliate marketing, the chosen product is generic that is used by all, so there is no need to be an expert in the field. This type of marketing doesn't come with tall claims.

Most YouTubers endorse fashion brands with this strategy. They are not considered experts but they have a good audience who are either fashion-conscious or want fashion advice. This is quite same for the fashion bloggers as well.

3. Involved

 In this case, you need to be expert or directly involved. You can be a user or should at least know about the product. Most skin care product videos that you binge-watch and then pressure yourself into buying are all included within this category.

Of course, you will not be held accountable if anything goes wrong, but your credibility is at stake. A simple example is that influencers with medical domain are generally chosen for medical equipment because of their association with the product.

Is The Golden Period Of Affiliate Marketing Over?

This has been a very long-standing debate. Most experts believe that the golden days are over, while others believe that, just like any other business, it is only over for people who lack creativity or rely heavily on automation.

For affiliate marketing, the tools you use and the way you research things are very important. A golden niche will help you earn a hefty commission even if you end up selling just 2-3 products per month. On the contrary, some niches have very low commissions, and they offer you just a few cents for every sale.

Rather than jumping head first, invest your time in niche selection, build a solid keyword plan, and then curate a template that can help you stand out from the rest. These simple steps might take longer, but they will guarantee your success.

Wrap Up

Affiliate marketing is a great side hustle, especially if you aiming to leave your job. However, keep in mind that it requires a lot of technical training if you want to continue making progress. Especially if you lack SEO knowledge, try some online free courses and explore more about the niche before starting something. In case you do not like the niche or do not find it affordable, it is always better to switch your niche or tweak your strategy.