Affiliate Marketing 101

The Basics of Affiliate Marketing

There’s no better way to start than at the genesis of it all.  Affiliate Marketing in it’s basic form works like this.  Company A has a product and needs to get to  the consumer the fastest and in the largest form of a campaign as possible.  In order to do that, they “hire” affiliate marketers (like us) to promote, review and recruit consumers (it’s cheaper than hiring 1,000 sales people you have to pay regardless if they make a sale).  We as the marketers, get a HUGE commission from Company A (usually 50-100%…yes many times 100% of that first sale goes to US!) for bringing in the consumer and selling that product.

Visually it looks like this:

Now I know you’re saying “Dan…how can the seller give you 100% commissions on a sale, they  need to make money right?!”  Absolutely, and if you didn’t ask that question, I would’ve been surprised.

So here’s what happens…..we (the marketer) are getting up to 100% of the sales price for the initial purchase, say $40 for example, and Company A is going to make money for things called “upsells”, these are enhancements to the product (makes things easier), which makes it sexier for the consumer.

Think of the product as a bicycle…..When you buy it, it’s a basic bicycle, and it works great, but what if you could make it better or a more attractive product without doing all the work?  Let’s say……add a bell, put a basket on it, instead of 3 speeds, give it 5 or 10….that’s where Company A makes their money.  We (the marketer) make our money on the front end and Company A makes their money on the back end.  Company A is so confident that consumers are going to want their upsells, they just need us (the marketer) to get the consumer “in the door” so to speak.

So from this……..

 

To this…..

Personally, I have purchased MANY up sells as it really does help in your learning curve and give you a great shortcut most times (my personal experience).  Hope that explanation helps kick start your successful journey!