Most affiliate networks are known to have various payout models but the two most popular ones are Cost-Per-Sale and Cost-Per-Action. The former payout model usually pays a particular commission to an affiliate marketer after they refer a lead which converts to a sale. Most marketers like this model because they will only pay a small percentage after they are paid by the buying customer. Cost-Per-Action, on the other hand, pays affiliates after a specific action has been taken by the lead or referral. This payout model does not necessarily entail a direct sale and some of the most popular actions include opt-ins, registrations, sign-ups, impressions, form submissions or clicks.
Affiliate marketing has grown quickly since its inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in 2006 was £2.16 billion in the United Kingdom alone. The estimates were £1.35 billion in sales in 2005.[19] MarketingSherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs.[20]
Master & Dynamic is an electronics brand selling headphones and speakers. They recently partnered with Audible to offer their customers 2 free audiobooks with purchase. While it doesn’t explicitly say this, Master & Dynamic may be an Amazon affiliate promoting a relevant offer to their customers. If you’re looking to make a second stream of income through affiliate commissions while promoting your products, this could be a clever way of doing it. An audiobook may be an enticing offer for those who are buying headphones which may help compel them into purchase. You could find relevant offers which would help promote your products while making a commission off your purchase. You would need to disclose affiliate links to your customers to ensure transparency.
Let’s start with the first scenario above. Suppose an affiliate is generating $100,000 in monthly revenue for a merchant, and getting $25,000 in monthly commissions. In this case, the network between the two may be taking $10,000 a month for its part in the process. In this case, the merchant may attempt to go around the network and set up a direct relationship with the affiliate–perhaps with a 30% commission.
ShareASale is also one of the biggest U.S. affiliate networks and it currently has more than 3,900 merchant programs and a staggering 700,000 affiliates being part of the network. This network is based out of Chicago and has been operating for close to two decades with a great reputation for honest and fair business. This is the right affiliate marketing network if you are looking to venture into affiliate marketing for purposes of promoting physical products.
Of course, this is a generalization, and there are some programs that have made themselves exceptions to the rule. For example, I’ve seen many affiliate programs that offer low commission rates on products that are worth very little. I’ve also seen a few programs with items priced into the hundreds or thousands of dollars that offer commission rates of 20-30%.
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Yeah, that’s just kind of another way if you want to look at this a bit deeper. So that’s the magic guys. That’s what I shared this weekend, the affiliate bootcamp. If you guys are, if you listen to this right away, you will find this video. If you listen to it 5 years from now it will be hard. But I did Facebook Live it, so if you go to my Facebook page, which is facebook.com/russellbrunsonhq there is a video, we Facebook Lived the presentation, so you can see it there too if you want. See me trying to get these tired, non-excited affiliates as excited as humanly possible by walking them through this process.
Start by thinking about your audience. What kinds of products or services are they most interested in? Which products or services are you currently using that you would feel comfortable recommending to your readers? You can add links to any affiliate program to your site, but if you want to market them with authenticity, it’s best to stick to companies with which you already have some kind of connection.
According to AM Navigator, in the United Kingdom, affiliate marketing has an ROI that amounts to $15 for every $1 spent. PRWeb states that at one point approximately 40% of Amazon’s revenue came from affiliates showcasing the power affiliate marketing can have on a brand. Retailers have noticed a conversion rate of 5% from visitors directed by affiliate links. The hardest part of building an affiliate program is finding affiliates who can drive converting traffic to your store. Yet store owners have a powerful ally in their loyal customers who can be rewarded for their referrals. Store owners can also reach out to affiliate marketers to cast a wider net of affiliates for their program.

Find a program — As we discussed earlier, many affiliate marketers find their merchants, vendors, or brands through affiliate programs. It’s important you determine your niche prior to finding a program, as some programs are geared toward certain types of products. If you’re interested in a particular affiliate program, look into what kinds of products it offers and whether it has any data on the success of its affiliates.
While an affiliate marketer will easily be able to join a specific affiliate network without paying, merchants typically have to pay some small fee to join the network. Most affiliate networks normally charge a setup fee for every merchant and this is subsequently followed by a recurring membership fee. It is also common for affiliate networks to charge the merchants a certain percentage of the commissions paid out to the affiliates. This percentage is referred to as over-ride and is usually paid on top of affiliate commissions. Even if you are looking for a giant bean bag chair, there is an affiliate network that can offer you anything, even a giant beanbag chair.
What the chart above doesn’t show is the role of the affiliate marketing network (e.g., Commission Junction or LinkShare). From the publisher’s point of view, the affiliate network is involved very early on in the process, generally supplying the ad creative and affiliate links used to refer traffic. They’re also involved at the last (and most important) step in the process: a portion of the commission earned by the affiliate goes to the network who matches them up with merchants and handles the various administrative functions.

Website conversion is also a big issue. Affiliates often determine how much effort they will devote to promoting your product based on the Earnings per Click (EPC) that the merchant generates for them. This calculation is based on their commission rate and the conversion rate of your website. If you have a website that converts really well (gets people to make the purchase), you may be able to offer lower commission.
Upselling is a sales technique where the salesperson encourages a more expensive purchase by a customer by persuading them to get an upgraded version of an item or to purchase add-ons. Remember our food processor example? That food processor could probably be best used with a book of recipes, which also can be purchased at the same company’s website.
Master & Dynamic is an electronics brand selling headphones and speakers. They recently partnered with Audible to offer their customers 2 free audiobooks with purchase. While it doesn’t explicitly say this, Master & Dynamic may be an Amazon affiliate promoting a relevant offer to their customers. If you’re looking to make a second stream of income through affiliate commissions while promoting your products, this could be a clever way of doing it. An audiobook may be an enticing offer for those who are buying headphones which may help compel them into purchase. You could find relevant offers which would help promote your products while making a commission off your purchase. You would need to disclose affiliate links to your customers to ensure transparency.
So Worth Loving created a Campus Rep program to recruit students as their affiliates. The campus rep promotes the brand at his or her school. Instead of promoting the products, they use an indirect approach of promoting the positive message the brand wants to share. They use it as a public relations angle. However, over time, it can help grow sales and brand awareness. Students are a great resource for promoting brands as they usually have bigger networks of people.

Thanks for a nice job. I am currently promoting some of the affiliate programs listed here and making a few dollars from them. But I must say that making money from affiliate programs is not rocket science; it requires hard work and perseverance. Affiliate marketing keeps evolving daily and any serious affiliate should be ready to change tactics and invest time and money in order to beat the competition.
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