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Affiliate Marketing What Is It And Why Use It?


Affiliate Marketing is having Affiliates do your Marketing for you. What I mean by Affiliate is someone who tells people about your product/service and you pay them for a desired response, such as a purchase.

Affiliate Marketing is one of the best ways to get the word out about your product/service.

The best way to pay Affiliates is pay per sale. This means that you only have to pay your Affiliates when they actually make a sale. This reduces your advertising costs dramatically. your Affiliates take on all the risks so you don't have to worry about wasting your money on advertising which may not produce any results.

Using Affiliate is a very cheap way to advertise, however it is very effective. The software required to start up your own Affiliate program can cost only about $50 per month.

Then after that just wait for people to start promoting your product/service for you.

Please remember that 5% of your Affiliates will do 95% of the selling. What I mean by this is that most of your Affiliates will just sit there and do nothing. This can be countered if you teach them what to do, exactly how to do it and providing everything for them so they have to do as little work as possible.

To find out about teaching your Affiliates please see the "How To Super Charge Your Affiliates" article

You don't have to use this form of advertising just to sell your product or service. You can also use it to grow your opt-in mailing list. This is discussed in another article.

How Much Should You Pay Your Affiliates

How much you pay your Affiliates really depends on how much your product/service costs, its profit margin, how much you're willing to give up and what action you want to take place.

Lets say that your product is priced at $100. Lets also assume that it cost you $10 to make it. This leaves you with $90 profit.

How much of this do you want to give away to the person that made this sale possible?

Personally, I believe that you should give a rather high percentage of the profits back to the affiliate (Depending on how many sales they regularly generate), because without them, you wouldn't have made that particular sale at all, so reward them for it.

A fairly decent reward is about 50% of the revenue generated. Your product is priced at $100 so a $50 commission is quite generous. It really depends on your other costs (such as a mortgage) you have, which would help decide on a fair commission to both you and the Affiliate.

Another factor which plays a part is how much additional advertising you do, such as pay per click. For example, if you rely solely on your Affiliates to Market for you, then you may want to reduce the commission you pay to them to help you survive. However, you may want to pay them more, to encourage them to send more sales you way. It really is a judgment call.

On the other hand, if you advertise in other ways effectively, then you can afford to pay higher commissions, because you're not putting all your eggs in one basket.

In the end it's all down to how greedy or generous you are. The best advice I can give you is to pay the affiliate what you think he/she deserves. Hopefully that way everyone is happy and earning their fair share.

That is the key to a successful affiliate program.

By Stephen Warren, the creator of http://www.marketershandbook.com, the completely FREE guide to marketing online, with useful articles and links.


Todays News by officejax surplus outletMORE AFFILIATE REVENUE RESOURCES updated Sat. February / 27 / 2021

‘We’ve barely scratched the surface’: How publishers are thinking about affiliate commerce in 2021 - Digiday
‘We’ve barely scratched the surface’: How publishers are thinking about affiliate commerce in 2021  Digiday

ViacomCBS Reports Q4 and Full Year 2020 Earnings Results - Business Wire
ViacomCBS Reports Q4 and Full Year 2020 Earnings Results  Business Wire

AMC Networks Inc (AMCX) Q4 2020 Earnings Call Transcript - Motley Fool
AMC Networks Inc (AMCX) Q4 2020 Earnings Call Transcript  Motley Fool

ViacomCBS Reports Q4 Results Above Forecasts As Curtain-Raiser To Streaming Showcase - Deadline
ViacomCBS Reports Q4 Results Above Forecasts As Curtain-Raiser To Streaming Showcase  Deadline

ViacomCBS's Q4 revenue rises to nearly $7 billion - MarketWatch
ViacomCBS's Q4 revenue rises to nearly $7 billion  MarketWatch

Pennexx's Your Social Offers Has Joined Affiliate Networks to Bring Access to Tens of Thousands of Coupons from Big Brands Like Amazon, BestBuy, Dell, Rakuten, Groupon, TigerDirect, and Many Others to Its YourSocialOffers.com Users - GlobeNewswire
Pennexx's Your Social Offers Has Joined Affiliate Networks to Bring Access to Tens of Thousands of Coupons from Big Brands Like Amazon, BestBuy, Dell, Rakuten, Groupon, TigerDirect, and Many Others to Its YourSocialOffers.com Users  GlobeNewswire

What Is Affiliate Marketing? A Guide To Success - Built In
What Is Affiliate Marketing? A Guide To Success  Built In

M&A activity leads to revenue and profit growth at Better Collective - iGaming Business
M&A activity leads to revenue and profit growth at Better Collective  iGaming Business

SoftSwiss affiliate platform Affilka expands to sports betting - iGaming Business
SoftSwiss affiliate platform Affilka expands to sports betting  iGaming Business

Affiliate Software Market to Achieve Record Revenue Levels by Foremost Industry Players – Affise, Circlewise, Impact Tech, LeadDyno, Omnistar Interactive, Quality Unit, Refersion, Tapfiliate, TUNE, Vene International – KSU | The Sentinel Newspaper - KSU | The Sentinel Newspaper
Affiliate Software Market to Achieve Record Revenue Levels by Foremost Industry Players – Affise, Circlewise, Impact Tech, LeadDyno, Omnistar Interactive, Quality Unit, Refersion, Tapfiliate, TUNE, Vene International – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

Edited Transcript of CARS.N earnings conference call or presentation 25-Feb-21 3:00pm GMT - Yahoo Finance
Edited Transcript of CARS.N earnings conference call or presentation 25-Feb-21 3:00pm GMT  Yahoo Finance

ViacomCBS (VIAC) Q4 Earnings Top Estimates, Revenues Rise Y/Y - Nasdaq
ViacomCBS (VIAC) Q4 Earnings Top Estimates, Revenues Rise Y/Y  Nasdaq

What To Expect From ViacomCBS Stock After Its 9% Rally In A Week? - Nasdaq
What To Expect From ViacomCBS Stock After Its 9% Rally In A Week?  Nasdaq

7 Ways To Make Money on Twitch in 2021 - GOBankingRates
7 Ways To Make Money on Twitch in 2021  GOBankingRates

Affiliate Frenemy Amazon Tests the Loyalty of Its Faithful Partners - MarTech Series
Affiliate Frenemy Amazon Tests the Loyalty of Its Faithful Partners  MarTech Series

Affiliate Marketing Platform Market to Receive Overwhelming Hike in Revenues by 2026 with Top Companies: ConvertKit, Tapgerine, eBay, Shopify, MaxBounty, Clickbank, ShareASale – KSU | The Sentinel Newspaper - KSU | The Sentinel Newspaper
Affiliate Marketing Platform Market to Receive Overwhelming Hike in Revenues by 2026 with Top Companies: ConvertKit, Tapgerine, eBay, Shopify, MaxBounty, Clickbank, ShareASale – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

National Storage Affiliates Trust (NSA) Q4 2020 Earnings Call Transcript - Motley Fool
National Storage Affiliates Trust (NSA) Q4 2020 Earnings Call Transcript  Motley Fool

Affiliate Marketing Platform Market Revenue Status, Growth Forecast of Key Players – ConvertKit, Tapgerine, eBay, Shopify, MaxBounty, Clickbank, ShareASale, Amazon, JD, CJ Affiliate, Leadpages, Taobao, MaxBounty, StudioPress, Google, Chitika, Bluehost, Rakuten, AWIN, Tradedoubler - The Bisouv Network
Affiliate Marketing Platform Market Revenue Status, Growth Forecast of Key Players – ConvertKit, Tapgerine, eBay, Shopify, MaxBounty, Clickbank, ShareASale, Amazon, JD, CJ Affiliate, Leadpages, Taobao, MaxBounty, StudioPress, Google, Chitika, Bluehost, Rakuten, AWIN, Tradedoubler  The Bisouv Network

Last Minute Thought: Buy or Sell Nvidia Before Earnings? - Nasdaq
Last Minute Thought: Buy or Sell Nvidia Before Earnings?  Nasdaq

Affiliate Market Size 2021 | Global Opportunities, Regional Overview, Top Leaders, Revenue and Forecast up to 2027 - NY Market Reports
Affiliate Market Size 2021 | Global Opportunities, Regional Overview, Top Leaders, Revenue and Forecast up to 2027  NY Market Reports

CARS Reports Fourth Quarter and Full Year 2020 Results - Cars.com
CARS Reports Fourth Quarter and Full Year 2020 Results  Cars.com

DistroKid teams with Twitch to help indie artists earn money from live streams via Twitch Affiliate Program - Music Business Worldwide
DistroKid teams with Twitch to help indie artists earn money from live streams via Twitch Affiliate Program  Music Business Worldwide

Race For TV News Viewers Tightens 02/25/2021 - MediaPost Communications
Race For TV News Viewers Tightens 02/25/2021  MediaPost Communications

7 Ways To Make a Profit on TikTok: Here's How - GOBankingRates
7 Ways To Make a Profit on TikTok: Here's How  GOBankingRates

2Checkout's Affiliate Network Leading mThink Blue Book in Digital Goods Seven Years Running - GlobeNewswire
2Checkout's Affiliate Network Leading mThink Blue Book in Digital Goods Seven Years Running  GlobeNewswire

Disney+ Is Gaining on Netflix - Nasdaq
Disney+ Is Gaining on Netflix  Nasdaq

NBCUniversal Moves TV Stations, Regional Sports Networks To Impression-Based Ad Deals 02/24/2021 - MediaPost Communications
NBCUniversal Moves TV Stations, Regional Sports Networks To Impression-Based Ad Deals 02/24/2021  MediaPost Communications

Global Affiliate Marketing Tracking Software market big changes to have big impact 2025 | Everflow, LinkTrust, AffTrack, Hitpath – FLA News - FLA News
Global Affiliate Marketing Tracking Software market big changes to have big impact 2025 | Everflow, LinkTrust, AffTrack, Hitpath – FLA News  FLA News

Affiliate Marketing Tracking Software Market 2021: Global Trends, Business Overview, Challenges, Opportunities Analysis and Forecast to 2027 - NY Market Reports
Affiliate Marketing Tracking Software Market 2021: Global Trends, Business Overview, Challenges, Opportunities Analysis and Forecast to 2027  NY Market Reports

Global Affiliate Marketing Tracking Software Market 2025: Everflow, LinkTrust, AffTrack, Hitpath, Impact Radius, Click Inc, HasOffers, Voluum, CAKE, Post Affiliate Pro - The Bisouv Network
Global Affiliate Marketing Tracking Software Market 2025: Everflow, LinkTrust, AffTrack, Hitpath, Impact Radius, Click Inc, HasOffers, Voluum, CAKE, Post Affiliate Pro  The Bisouv Network

Cars.com Inc. (CARS) Q4 2020 Earnings Call Transcript - Motley Fool
Cars.com Inc. (CARS) Q4 2020 Earnings Call Transcript  Motley Fool

Bet365, Betway and Betfair are the industry's leading affiliate advertisers in the Americas in winter 20/21 - EGR Global
Bet365, Betway and Betfair are the industry's leading affiliate advertisers in the Americas in winter 20/21  EGR Global

Affiliate Market 2021 Present Scenario on Growth Analysis and High Demand to 2025 – KSU | The Sentinel Newspaper - KSU | The Sentinel Newspaper
Affiliate Market 2021 Present Scenario on Growth Analysis and High Demand to 2025 – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

NFL Looking For Massive Hikes In TV Rights Fees 02/23/2021 - MediaPost Communications
NFL Looking For Massive Hikes In TV Rights Fees 02/23/2021  MediaPost Communications

Affiliate Software Market Size 2021 | Global Opportunities, Regional Overview, Top Leaders, Revenue and Forecast up to 2027 - NY Market Reports
Affiliate Software Market Size 2021 | Global Opportunities, Regional Overview, Top Leaders, Revenue and Forecast up to 2027  NY Market Reports

Edited Transcript of BETCO.ST earnings conference call or presentation 24-Feb-21 9:00am GMT - Yahoo Finance
Edited Transcript of BETCO.ST earnings conference call or presentation 24-Feb-21 9:00am GMT  Yahoo Finance

Annual Digital Marketing Report Reveals Brands Grew Retail Sales by 40% With Affiliate Marketing in 2020 - MarTech Series
Annual Digital Marketing Report Reveals Brands Grew Retail Sales by 40% With Affiliate Marketing in 2020  MarTech Series

College of Charleston, SC -- Moody's assigns A1 rating to College of Charleston's (SC) 2021A bonds; outlook stable - Yahoo Finance
College of Charleston, SC -- Moody's assigns A1 rating to College of Charleston's (SC) 2021A bonds; outlook stable  Yahoo Finance

‘We shouldn’t have to go on so many first dates’: How Bustle Digital Group is wooing advertisers - Digiday
‘We shouldn’t have to go on so many first dates’: How Bustle Digital Group is wooing advertisers  Digiday

Report: Partnerize Issues Key Findings From Global Partnership Growth Index - MarTech Series
Report: Partnerize Issues Key Findings From Global Partnership Growth Index  MarTech Series

Man City vs West Ham FREE: Live stream, TV channel, kick-off time, team news for TODAY’S Premier League c - The Sun
Man City vs West Ham FREE: Live stream, TV channel, kick-off time, team news for TODAY’S Premier League c  The Sun

MDC plans global expansion through affiliate program - Campaign US
MDC plans global expansion through affiliate program  Campaign US

NANOBIOTIX 2020 Q4 and Annual Revenues - StreetInsider.com
NANOBIOTIX 2020 Q4 and Annual Revenues  StreetInsider.com

The New York Times' Digital-Only Subscription Revenue Outpaces Print Revenue in 2020 - Subscription Insider
The New York Times' Digital-Only Subscription Revenue Outpaces Print Revenue in 2020  Subscription Insider

The New York Times wants to test Wirecutter as a subscription product - Nieman Journalism Lab at Harvard
The New York Times wants to test Wirecutter as a subscription product  Nieman Journalism Lab at Harvard

After pulling in around $80 million last year in revenue, LA’s StackCommerce is acquired by TPG’s Integrated Media Company - TechCrunch
After pulling in around $80 million last year in revenue, LA’s StackCommerce is acquired by TPG’s Integrated Media Company  TechCrunch

Casino and US growth balance Catena's European and sports headwinds in 2020 - iGaming Business
Casino and US growth balance Catena's European and sports headwinds in 2020  iGaming Business

The Walt Disney Company Reports First Quarter Earnings for Fiscal 2021 - Business Wire
The Walt Disney Company Reports First Quarter Earnings for Fiscal 2021  Business Wire

Affilka by SoftSwiss launches new module for sportsbook - iGaming Business
Affilka by SoftSwiss launches new module for sportsbook  iGaming Business

AOP Fails to Recognise Affiliate and Performance Marketing in Their Own Categories in Latest Report - PerformanceIN
AOP Fails to Recognise Affiliate and Performance Marketing in Their Own Categories in Latest Report  PerformanceIN

Why Shares of ViacomCBS Rose 30.2% in January - The Motley Fool
Why Shares of ViacomCBS Rose 30.2% in January  The Motley Fool

Smart Ways to Negotiate Your Salary in an Uncertain Economy - Nasdaq
Smart Ways to Negotiate Your Salary in an Uncertain Economy  Nasdaq

Button and CJ Affiliate Partner to Transform Affiliate Into an App Acquisition Channel - PerformanceIN
Button and CJ Affiliate Partner to Transform Affiliate Into an App Acquisition Channel  PerformanceIN

Is Fox News Ditching Trump? - Bloomberg
Is Fox News Ditching Trump?  Bloomberg

Electronic Arts Acquiring GluMobile for $2.4 Billion - Nasdaq
Electronic Arts Acquiring GluMobile for $2.4 Billion  Nasdaq

Moody's expect India's fiscal position to remain challenging in 2021; Affiliate ICRA projects real GDP at 10.5% by FY22 - Indiainfoline
Moody's expect India's fiscal position to remain challenging in 2021; Affiliate ICRA projects real GDP at 10.5% by FY22  Indiainfoline

Edited Transcript of ETM.N earnings conference call or presentation 24-Feb-21 3:00pm GMT - Yahoo Finance
Edited Transcript of ETM.N earnings conference call or presentation 24-Feb-21 3:00pm GMT  Yahoo Finance

Scripps reports fourth-quarter 2020 results | Ohio | news-herald.com - News-Herald.com
Scripps reports fourth-quarter 2020 results | Ohio | news-herald.com  News-Herald.com

Walt Disney (DIS) Q1 2021 Earnings Call Transcript - The Motley Fool
Walt Disney (DIS) Q1 2021 Earnings Call Transcript  The Motley Fool

Powerball $106M drawing Saturday: Time, important details to know - CNET
Powerball $106M drawing Saturday: Time, important details to know  CNET

VIACOMCBS : Management's Discussion and Analysis of Results of Operations and Financial Condition. (Tabular dollars in millions, except per share amounts) (form 10-K) - marketscreener.com
VIACOMCBS : Management's Discussion and Analysis of Results of Operations and Financial Condition. (Tabular dollars in millions, except per share amounts) (form 10-K)  marketscreener.com

Affiliate Market Size : Technological Advancement and Growth Analysis with Forecast to 2025 – NeighborWebSJ - NeighborWebSJ
Affiliate Market Size : Technological Advancement and Growth Analysis with Forecast to 2025 – NeighborWebSJ  NeighborWebSJ

Univision Joins Addressable Ad Group Project OAR 02/03/2021 - MediaPost Communications
Univision Joins Addressable Ad Group Project OAR 02/03/2021  MediaPost Communications

Acquisitions drive revenue up at Raketech in 2020 - iGaming Business
Acquisitions drive revenue up at Raketech in 2020  iGaming Business

RE/MAX Holdings Inc (RMAX) Q4 2020 Earnings Call Transcript - Motley Fool
RE/MAX Holdings Inc (RMAX) Q4 2020 Earnings Call Transcript  Motley Fool

Ben raises $2.5M seed to fix employee benefits for SMEs - TechCrunch
Ben raises $2.5M seed to fix employee benefits for SMEs  TechCrunch

02/25/21: Tegna launching female-focused Twist - cynopsis.com
02/25/21: Tegna launching female-focused Twist  cynopsis.com

Entercom Communications' (ETM) CEO David Field on Q4 2020 Results - Earnings Call Transcript - Seeking Alpha
Entercom Communications' (ETM) CEO David Field on Q4 2020 Results - Earnings Call Transcript  Seeking Alpha

Global Affiliate Tracking Software Market Volume Analysis, Size, Share and Key Trends 2021-2028 – KSU | The Sentinel Newspaper - KSU | The Sentinel Newspaper
Global Affiliate Tracking Software Market Volume Analysis, Size, Share and Key Trends 2021-2028 – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

GiG cuts losses as revenue climbs 34.8% in 2020 - iGaming Business
GiG cuts losses as revenue climbs 34.8% in 2020  iGaming Business

MSG Networks, Inc. (MSGN) CEO Andrea Greenberg on Q2 2021 Results - Earnings Call Transcript - Seeking Alpha
MSG Networks, Inc. (MSGN) CEO Andrea Greenberg on Q2 2021 Results - Earnings Call Transcript  Seeking Alpha

Live Streaming Can Drive Affiliate Revenue - Practical Ecommerce
Live Streaming Can Drive Affiliate Revenue  Practical Ecommerce

Affiliated Managers Group (AMG) Q4 2020 Earnings Call Transcript - Motley Fool
Affiliated Managers Group (AMG) Q4 2020 Earnings Call Transcript  Motley Fool

US Cable Network Affiliate Revenue Down For The First Time In Q2 08/19/2020 - MediaPost Communications
US Cable Network Affiliate Revenue Down For The First Time In Q2 08/19/2020  MediaPost Communications

Publishers see higher traffic to commerce sections, but also face affiliate fee cuts - Digiday
Publishers see higher traffic to commerce sections, but also face affiliate fee cuts  Digiday

Affiliate Marketing Merchants: How to Generate More Profit - G2
Affiliate Marketing Merchants: How to Generate More Profit  G2

Amazon slashes commission rates for program that gives publishers a cut of sales - CNBC
Amazon slashes commission rates for program that gives publishers a cut of sales  CNBC

How Affiliate Marketing Can Boost Your Tech Startup's Revenue - Forbes
How Affiliate Marketing Can Boost Your Tech Startup's Revenue  Forbes

Fox's revenue rises on advertising, affiliate fees - MarketWatch
Fox's revenue rises on advertising, affiliate fees  MarketWatch

How Wired leveraged Cyber Week readers to increase subscription revenue - Digiday
How Wired leveraged Cyber Week readers to increase subscription revenue  Digiday

Publishers Look Beyond the Buy Button to Capitalize on Affiliate Revenue – Folio: - Folio Magazine
Publishers Look Beyond the Buy Button to Capitalize on Affiliate Revenue – Folio:  Folio Magazine

For Influencers, Affiliate Revenue Is Next to Disappear - The Business of Fashion
For Influencers, Affiliate Revenue Is Next to Disappear  The Business of Fashion

Cheniere Partners Reports Fourth Quarter and Full Year 2020 Results and Reconfirms Full Year 2021 Distribution Guidance - Business Wire
Cheniere Partners Reports Fourth Quarter and Full Year 2020 Results and Reconfirms Full Year 2021 Distribution Guidance  Business Wire

First Ever Affiliate Marketing Guide For Marketers Now Available - GlobeNewswire
First Ever Affiliate Marketing Guide For Marketers Now Available  GlobeNewswire

As Amazon Slashes Affiliate Referral Rates, Publishers Consider Alternatives - Forbes
As Amazon Slashes Affiliate Referral Rates, Publishers Consider Alternatives  Forbes

As Amazon soars during the pandemic, publishers that rely on it now feel left behind - CNBC
As Amazon soars during the pandemic, publishers that rely on it now feel left behind  CNBC

Do affiliate links undermine the marketing value of holiday gift guides? – RetailWire - RetailWire
Do affiliate links undermine the marketing value of holiday gift guides? – RetailWire  RetailWire

Here’s A Look At The Impact Of Coronavirus (COVID-19) On The Affiliate Marketing Industry - Forbes
Here’s A Look At The Impact Of Coronavirus (COVID-19) On The Affiliate Marketing Industry  Forbes

We Are Living In An Affiliate World - Forbes
We Are Living In An Affiliate World  Forbes

How 2020 Will Shape Future Affiliate Growth - PerformanceIN
How 2020 Will Shape Future Affiliate Growth  PerformanceIN

Bookshop, a new startup, is offering publications bigger kickbacks than Amazon (and the thrill of battling Bezos) - Nieman Journalism Lab at Harvard
Bookshop, a new startup, is offering publications bigger kickbacks than Amazon (and the thrill of battling Bezos)  Nieman Journalism Lab at Harvard

Beyond the boom and bust cycle: How The Sun grew and stabilized its e-commerce revenue haul - Digiday
Beyond the boom and bust cycle: How The Sun grew and stabilized its e-commerce revenue haul  Digiday

Using Affiliate Marketing to Increase Sales. How Does it Work? - Business 2 Community
Using Affiliate Marketing to Increase Sales. How Does it Work?  Business 2 Community

‘Marketing at maximum intensity’: Publishers ready for rocketing ad spending from streamers in 2021 - Digiday
‘Marketing at maximum intensity’: Publishers ready for rocketing ad spending from streamers in 2021  Digiday

Publishers love getting affiliate revenue from their reviews. So is it okay for Amazon to pay to get more of those reviews upfront? - Nieman Journalism Lab at Harvard
Publishers love getting affiliate revenue from their reviews. So is it okay for Amazon to pay to get more of those reviews upfront?  Nieman Journalism Lab at Harvard

Spared for now, large publishers live in fear of Amazon commission cuts - Digiday
Spared for now, large publishers live in fear of Amazon commission cuts  Digiday

BuzzFeed Starts Selling Products Directly to Consumers - The Wall Street Journal
BuzzFeed Starts Selling Products Directly to Consumers  The Wall Street Journal

Affiliates, Amazon's Forgotten Marketing Channel - Marketplace Pulse
Affiliates, Amazon's Forgotten Marketing Channel  Marketplace Pulse

Connexity Buys Skimlinks, Adding An Affiliate Network To Its Retail Marketing Toolkit - AdExchanger
Connexity Buys Skimlinks, Adding An Affiliate Network To Its Retail Marketing Toolkit  AdExchanger

Better Collective Q3 revenue up as non-affiliate income offsets low margins - iGaming Business
Better Collective Q3 revenue up as non-affiliate income offsets low margins  iGaming Business

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