If you know how to make money with affiliate marketing, your efforts will always be worthwhile. It’s a business strategy that can help you leverage your expertise in your industry, attract a bigger audience, and establish a stream of recurring income.
But before you get into the affiliate marketing business, you’ve got to understand what it is and how it works. This model differs from the typical style of business where you’re promoting your own products and services.
Believe it or not, you’ll probably never earn a dime directly from a sale through affiliate marketing. If that sounds confusing, just continue reading. We’ll explain how this model enables you to earn commissions based on consumer actions.
How the Affiliate Marketing Business Works
While entrepreneurs have been compensated for referring customers to other businesses for centuries, this reciprocal model became trickier with the advent of ecommerce. For example, if a consumer purchased a bird feeder from BirdBrainBirdFeeders.com, how would the owner of that online shop know what had prompted the purchase? It’s not like they could have a brief chat at the cash register, as you might get in a brick-and-mortar.
Serial inventor William J. Tobin provided a solution in 1994. He created tech that could track a customer’s journey, so you’d know if they’d reached your website by clicking a link created by another entrepreneur. In other words, if someone affiliated with your business created a promotion that prompted a customer to click through to your website, you could give them a kickback for their actions. Incentivizing referrals in this way creates arrangements where both parties are motivated to help one another.
Perhaps you’re familiar with Amazon Associates. With hundreds of thousands of participants around the globe, the program has…