Part 2: Understanding How Affiliate Marketing Works And Make Money



Welcome to Part 2: Understanding How Affiliate Marketing Works And Make Money.

If you are reading this, chances are that your desire is to build a website that will eventually bring you a source of income.

Affiliate Marketing is a very attractive method to use in order to bring in that much-coveted income. As stated in Part 1: Online Marketing, 40% of Marketing Professionals consider Affiliate Marketing as THE most desirable of all digital skills to have.

As stated in Part 1: Online Marketing:  40% of Marketing Professionals consider Affiliate Marketing as THE most desirable of all digital skills to have.

So why is that? What makes it so attractive? Well first, let’s learn what it is.

In a nutshell, Affiliate Marketing is where a website owner (YOU) promote a product or service on your site via a variety of ways such as banners, ads, links, reviews etc. As a result, if visitors on your site click on one of those ads or banners and ends up making a purchase then you will receive a pre-set compensation or commission.

Find below an example of a banner (It is linked to my Wealthy Affiliate Review page and will open in a new page):


It is important to understand that ORIGINAL CONTENT will be your key to success online, a banner will help redirect the visitor once a decision has been made but if your content is not useful or outdated then a banner won’t help much. Even worse, if your content is copied from someone else, that is a big no-no and Google will penalize your website.

A more detailed explanation would be that Affiliate Programs work by assigning you a unique user ID and then will use ‘cookies’ to track visitors sent by you.  If they buy, you make money.

After signup, you will have access to links, ads, banners by logging into their website and get the HTML codes needed. Within that code will be your unique id/code and that is what is tracked. Your code will be inserted into the link or banner that is then added to your website.

Here is an example of the HTML code:

<a href=”“><img src=”” border=”0″ /></a>

In this instance, the part bolded would be your unique code used for tracking.

Therefore, any person who uses your link to make a purchase will contribute to you making money.

The most difficult part of using an affiliate program is finding a good one that will actually produce results for you. This is where due diligence comes in.

The work you put in now will you over and over later.

What Program Works Best?

There is a plethora of Affiliate Programs online and you must be diligent in selecting the one that works for you. Be sure that you understand the following:

  • How much it pays per sale
  • If the customer buys again later, do I still get compensated?
  • How long is my cookie? (How long will the program allow you to have ‘set visitor’ considered your referral. For example, Amazon have daily cookies that expire after 24 hours while other like Wealthy Affiliate have a lifetime, huge difference. Just make sure you understand it.
  • Do I need to reach a minimum amount before they will pay you? That is very common, for example, you will be paid once you acquire $25 worth of commissions. The levels vary greatly.
  • Do I need to have an online store or are simple banners and links ok?
  • Is it Pay Per Click? Pay Per Sale? Pay Per Lead? The Pay Per … topic will be covered in Part 3: Pay Per Click
  • Make sure you read and understand the Terms and Conditions, The Privacy Policy and all (if any) exceptions or requirements dictated in their Affiliate T&C.
  • Does geography become an issue? E.G: Becoming an Affiliate with but you live in Canada, the UK, Australia etc, make sure you understand the implications, by no means is this difficult but my goal is simply to ensure that you do understand it.

Important Points

I wanted to state that, while nothing is guaranteed, having passion is a key component, I once tried to sell insurance but was not good at it as I had no passion, I had the knowledge, I understood it but people could see that I was no passionate about insurance. It is not the product that will make or break you, it is your approach to it. Hence why there are plenty of great insurance salesperson, I am just not one of them

I repeat, choose something you have a passion for, it is hard work to succeed online but if you love what you do, believe in your product, it makes the whole journey that much easier.

I don’t like Zucchinis, never have, never will so even if the best Affiliate Program in the world was about Zucchinis, I would fail because I have no passion for it. I MUST believe in what I am doing in order to succeed. Seems fair don’t you agree?

You have heard me talk over and over again about Wealthy Affiliate, I have a real passion for it. The community is vibrant, the training is second to none and I also strongly believe that the owners, Kyle and Carson, are kind, genuine people who really want what is best for you. Not a day goes by where I don’t see them involved in a conversation or sending encouragement, advice, whatever. They don’t take the money and run. They are in the trenches with you, ready to help at a moments notice. Wealthy Affiliate is unlike any other, it is a community whose goal is to help you build a successful online business.

So try to find all that when you are choosing your affiliate program.

Before selecting the one for you, make sure they meet what you are looking for, it’s not just money, it is the right fit. For example:

  • Trust the company you are dealing with.
  • Trust the product/service you are selling.
  • Make sure your ‘theme’ matches what you are selling, perfect example is this site is talking about online marketing so if I put links that are completely irrelevant to online marketing, then it won’t work.
  • Check online for reviews/feedback about the program, online reason why I like Wealthy Affiliate so much is that I did not find anything negative on the web, that is hard to do.

I hope you found Part 2 helpful, now it’s on to Part 3: Pay Per Click & Social Media

Lastly, remember….

No False promises, No get rich schemes, No scam…..


Feel free to drop me a comment below if you are unsure of anything or you have a question 

or you can contact me via my Profile Page  at Wealthy Affiliate.

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