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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. May / 08 / 2021

AMC Networks U.S. Ad Revenue Drops 7 Percent - Hollywood Reporter
  1. AMC Networks U.S. Ad Revenue Drops 7 Percent  Hollywood Reporter
  2. AMC Networks grows streaming revenue by 14% in Q1  FierceVideo
  3. AMC Networks Misses Q1 Revenue Estimates as US Ad Sales Drop 7%  TheWrap
  4. AMC Records Sinking Ad, Distribution Revenues In Q1 05/10/2021  MediaPost Communications
  5. AMC Networks revenue sinks |  Advanced Television
  6. View Full Coverage on Google News

ViacomCBS (VIAC) Q1 Earnings Top Estimates, Revenues Rise Y/Y - Yahoo Finance
  1. ViacomCBS (VIAC) Q1 Earnings Top Estimates, Revenues Rise Y/Y  Yahoo Finance
  2. ViacomCBS Adds 6M Global Streaming Subs in Quarter, Driven by Paramount+, to Reach 36M  Hollywood Reporter
  3. ViacomCBS streaming revenue up 65% |  Advanced Television
  4. ViacomCBS Adds 6M Streaming Subs In Q1, Streaming Ad Revenue Up 62% YoY 05/06/2021  MediaPost Communications
  5. Paramount+ expects to debut new original film every week starting in 2022  Screen International
  6. View Full Coverage on Google News

5 Ways to Boost Revenue on Your Membership Site - Business 2 Community
5 Ways to Boost Revenue on Your Membership Site  Business 2 Community

Bojoko urges fairness as report uncovers affiliate revenue share as low as 8% - iGaming Business
Bojoko urges fairness as report uncovers affiliate revenue share as low as 8%  iGaming Business

ViacomCBS Reports Q1 2021 Earnings Results - StreetInsider.com
ViacomCBS Reports Q1 2021 Earnings Results  StreetInsider.com

Wirecutter Debuts New Sections, Styles and Trends, to Capitalize on Ecommerce Boom - Adweek
Wirecutter Debuts New Sections, Styles and Trends, to Capitalize on Ecommerce Boom  Adweek

Roku's Ad Business Up Sharply, 2.4M Active Accounts Added To Total 53.6M 05/07/2021 - MediaPost Communications
Roku's Ad Business Up Sharply, 2.4M Active Accounts Added To Total 53.6M 05/07/2021  MediaPost Communications

05/07/21: HGTV takes "Two Steps Home" - Cynopsis - cynopsis.com
05/07/21: HGTV takes "Two Steps Home" - Cynopsis  cynopsis.com

Fox Reports Third Quarter Fiscal 2021 Net Income of $582 Million, Earnings per Share of $0.96 - PRNewswire
Fox Reports Third Quarter Fiscal 2021 Net Income of $582 Million, Earnings per Share of $0.96  PRNewswire

MultiBrief: How the changes in Amazon's affiliate program impact businesses - MultiBriefs Exclusive
MultiBrief: How the changes in Amazon's affiliate program impact businesses  MultiBriefs Exclusive

Gannett Announces First Quarter 2021 Results - Business Wire
Gannett Announces First Quarter 2021 Results  Business Wire

How much money finance influencers make from affiliate marketing - Business Insider
How much money finance influencers make from affiliate marketing  Business Insider

Vice is finally entering the affiliate space, but is drawing a firm line between edit and commerce - Digiday
Vice is finally entering the affiliate space, but is drawing a firm line between edit and commerce  Digiday

Cars.com Inc. (CARS) Q1 2021 Earnings Call Transcript - Motley Fool
Cars.com Inc. (CARS) Q1 2021 Earnings Call Transcript  Motley Fool

Better Collective buys Action Network for $240 million in a bid - Awful Announcing
Better Collective buys Action Network for $240 million in a bid  Awful Announcing

Publishers and Commerce 2021 - Insider Intelligence Trends, Forecasts & Statistics - eMarketer
Publishers and Commerce 2021 - Insider Intelligence Trends, Forecasts & Statistics  eMarketer

Affiliate Software Market Growth 2021 Size, Share, Analysis and Prediction by Leading Players, Its Application and Types with Region By 2028 – KSU | The Sentinel Newspaper - KSU | The Sentinel Newspaper
Affiliate Software Market Growth 2021 Size, Share, Analysis and Prediction by Leading Players, Its Application and Types with Region By 2028 – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

How content publishers can leverage the affiliate channel - Business Insider
How content publishers can leverage the affiliate channel  Business Insider

House Lawmaker To Convene Privacy Roundtables 05/07/2021 - MediaPost Communications
House Lawmaker To Convene Privacy Roundtables 05/07/2021  MediaPost Communications

Sugar Land Skeeters' first season as Houston Astros' Triple-A affiliate expected to boost local economy - Community Impact Newspaper
Sugar Land Skeeters' first season as Houston Astros' Triple-A affiliate expected to boost local economy  Community Impact Newspaper

Next Level Marketing Dives into Google's Algorithm Update on Benefits of Product Reviews in Rankings - Big News Network
Next Level Marketing Dives into Google's Algorithm Update on Benefits of Product Reviews in Rankings  Big News Network

The Power of Optimising Your Affiliate Onboarding Process - PerformanceIN
The Power of Optimising Your Affiliate Onboarding Process  PerformanceIN

Nu Skin Reports $677 Million in Revenue for First Quarter of 2021 - Direct Selling News
Nu Skin Reports $677 Million in Revenue for First Quarter of 2021  Direct Selling News

Owner for fitness location at Herndon's Worldgate files for bankruptcy - Washington Business Journal - Washington Business Journal
Owner for fitness location at Herndon's Worldgate files for bankruptcy - Washington Business Journal  Washington Business Journal

Hemisphere Media Group Announces First Quarter 2021 Financial Results - PRNewswire
Hemisphere Media Group Announces First Quarter 2021 Financial Results  PRNewswire

SUNOCO LP : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q) - marketscreener.com
SUNOCO LP : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)  marketscreener.com

Oversight Board Punts Final Trump Ban Decision Back To Facebook, Upholds Initial Access Block 05/05/2021 - MediaPost Communications
Oversight Board Punts Final Trump Ban Decision Back To Facebook, Upholds Initial Access Block 05/05/2021  MediaPost Communications

display, the Social That Pays, Announces 'displayFest' to Kick Off Consumer Launch with a Month of Free Live Concerts and $2 Million in Trivia Cash Prizes - PRNewswire
display, the Social That Pays, Announces 'displayFest' to Kick Off Consumer Launch with a Month of Free Live Concerts and $2 Million in Trivia Cash Prizes  PRNewswire

Oddspedia Widgets, a new way to increase the revenue of sports betting affiliates and publishers - AffiliateINSIDER - AffiliateINSIDER
Oddspedia Widgets, a new way to increase the revenue of sports betting affiliates and publishers - AffiliateINSIDER  AffiliateINSIDER

Alliant Energy Announces First Quarter 2021 Results - StreetInsider.com
Alliant Energy Announces First Quarter 2021 Results  StreetInsider.com

MDC Adds LATAM Affiliates 05/03/2021 - MediaPost Communications
MDC Adds LATAM Affiliates 05/03/2021  MediaPost Communications

Zuckerberg To Content Creators: Quit Your Lousy Day Job 04/30/2021 - MediaPost Communications
Zuckerberg To Content Creators: Quit Your Lousy Day Job 04/30/2021  MediaPost Communications

Affiliated Managers Group (AMG) Q1 2021 Earnings Call Transcript - The Motley Fool
Affiliated Managers Group (AMG) Q1 2021 Earnings Call Transcript  The Motley Fool

Bojoko Asserts 'Contractual Security A Must' In Study On Fees Applied To Affiliates - Inkedin
Bojoko Asserts 'Contractual Security A Must' In Study On Fees Applied To Affiliates  Inkedin

Affiliate Tracking Software Market Share, Trends, Growth, Sales, Demand, Revenue, Size, Forecast and COVID-19 Impacts to 2014-2027 – KSU | The Sentinel Newspaper - KSU | The Sentinel Newspaper
Affiliate Tracking Software Market Share, Trends, Growth, Sales, Demand, Revenue, Size, Forecast and COVID-19 Impacts to 2014-2027 – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

Nu Skin Enterprises Inc (NUS) Q1 2021 Earnings Call Transcript - Motley Fool
Nu Skin Enterprises Inc (NUS) Q1 2021 Earnings Call Transcript  Motley Fool

Affiliate Software Market Technological Innovations and Future Opportunities by Top Companies: QualityUnit, Tipalti, LeadDyno, Offerslook, Scaleo, Tapfiliate – FLA News - FLA News
Affiliate Software Market Technological Innovations and Future Opportunities by Top Companies: QualityUnit, Tipalti, LeadDyno, Offerslook, Scaleo, Tapfiliate – FLA News  FLA News

TEGNA Names Elliott Moore President and General Manager at KYTX in Tyler, Texas - Business Wire
TEGNA Names Elliott Moore President and General Manager at KYTX in Tyler, Texas  Business Wire

Investview (“INVU”) Announces Series of Transformational - GlobeNewswire
Investview (“INVU”) Announces Series of Transformational  GlobeNewswire

888 Reports Continual Poker Growth in Q1 2021, Confirms US Expansion in "Next Couple of Months" - Pokerfuse
888 Reports Continual Poker Growth in Q1 2021, Confirms US Expansion in "Next Couple of Months"  Pokerfuse

ENERGY TRANSFER LP : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q) - marketscreener.com
ENERGY TRANSFER LP : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)  marketscreener.com

That's Not a Moon, It's a Roundup of Star Wars Merch! • The Pop Insider - The Pop Insider
That's Not a Moon, It's a Roundup of Star Wars Merch! • The Pop Insider  The Pop Insider

‘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

Affiliate Marketing Platform – Comprehensive Analysis on Global Market Report by Company, by Dynamics, by Region, by Type, by Application and by COVID-19 Impacts (2014-2027) – KSU | The Sentinel Newspaper - KSU | The Sentinel Newspaper
Affiliate Marketing Platform – Comprehensive Analysis on Global Market Report by Company, by Dynamics, by Region, by Type, by Application and by COVID-19 Impacts (2014-2027) – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

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

Corporate Office Properties Trust: What You Need to Know - Motley Fool
Corporate Office Properties Trust: What You Need to Know  Motley Fool

Transactions & Financings: Cushman & Wakefield Brokers PGIM-Revera JV; HumanGood Affiliates with Washington Provider - Senior Housing News
Transactions & Financings: Cushman & Wakefield Brokers PGIM-Revera JV; HumanGood Affiliates with Washington Provider  Senior Housing News

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

NOBLE MIDSTREAM PARTNERS LP : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q) - marketscreener.com
NOBLE MIDSTREAM PARTNERS LP : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)  marketscreener.com

Affiliate Market Size Analysis Grow with Significant CAGR by 2028 | Key Organizations – Amazon, Tradedoubler, Alibaba, Rakuten, AWIN, EBay, etc – Clark County Blog - Clark County Blog
Affiliate Market Size Analysis Grow with Significant CAGR by 2028 | Key Organizations – Amazon, Tradedoubler, Alibaba, Rakuten, AWIN, EBay, etc – Clark County Blog  Clark County Blog

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

05/06/21: Disney+ shifts Loki debut - cynopsis.com
05/06/21: Disney+ shifts Loki debut  cynopsis.com

10 Things to Know about Second Draw PPP Loans as Updated for the Economic Aid Act and the ARP Act - Update #5 - JD Supra
10 Things to Know about Second Draw PPP Loans as Updated for the Economic Aid Act and the ARP Act - Update #5  JD Supra

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

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

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

GGPoker Cuts Off Vanessa Kade Affiliate Revenue Over Anti-Bilzerian Stance - PokerTube
GGPoker Cuts Off Vanessa Kade Affiliate Revenue Over Anti-Bilzerian Stance  PokerTube

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

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

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

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

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

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

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

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

Airbnb ends affiliate program as it ramps up host recruitment marketing campaign - CNBC
Airbnb ends affiliate program as it ramps up host recruitment marketing campaign  CNBC

How a new order of commerce is increasingly coming to the rescue for publishers with advertising challenges - Digiday
How a new order of commerce is increasingly coming to the rescue for publishers with advertising challenges  Digiday

Affiliate marketing: How publishers earned in the pandemic - Press Gazette
Affiliate marketing: How publishers earned in the pandemic  Press Gazette

Image: Brand Affiliates 101: What Is Affiliate Marketing? - Business 2 Community
Image: Brand Affiliates 101: What Is Affiliate Marketing?  Business 2 Community

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

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

ViacomCBS Reports Q3 2020 Earnings Results - Business Wire
ViacomCBS Reports Q3 2020 Earnings Results  Business Wire

ViacomCBS Reaches 19.2 Million U.S. Paid Streaming Subs, Ad Revenue Grows - Hollywood Reporter
ViacomCBS Reaches 19.2 Million U.S. Paid Streaming Subs, Ad Revenue Grows  Hollywood Reporter

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

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

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

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

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

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

‘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

Fox Corp. Tops Wall Street Estimates, But Fiscal Q1 Revenue Rises Just 2% In Tough Climate - Deadline
Fox Corp. Tops Wall Street Estimates, But Fiscal Q1 Revenue Rises Just 2% In Tough Climate  Deadline

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

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

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

The 25 Best Affiliate Marketing Companies in 2019 - Small Business Trends
The 25 Best Affiliate Marketing Companies in 2019  Small Business Trends

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

How businesses can use affiliate marketing to boost revenue generation - ZDNet
How businesses can use affiliate marketing to boost revenue generation  ZDNet

How Has Affiliate Fraud Evolved To Rip Performance Marketers Off? - Forbes
How Has Affiliate Fraud Evolved To Rip Performance Marketers Off?  Forbes

How Hearst UK’s e-commerce revenue grew 322% during the second quarter - Digiday
How Hearst UK’s e-commerce revenue grew 322% during the second quarter  Digiday

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

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

25 Ways To Earn $100 Every Day Online - Forbes
25 Ways To Earn $100 Every Day Online  Forbes

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

FOX Reports First Quarter Fiscal 2021 Revenues Of $2.72 Billion - PRNewswire
FOX Reports First Quarter Fiscal 2021 Revenues Of $2.72 Billion  PRNewswire

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

ViacomCBS Gets Past Wall Street Q3 Estimates, But COVID-Hit Revenue Slips 9% - Deadline
ViacomCBS Gets Past Wall Street Q3 Estimates, But COVID-Hit Revenue Slips 9%  Deadline

Five affiliate marketing and program management trends for 2021 - The Drum
Five affiliate marketing and program management trends for 2021  The Drum

Why Affiliate Marketers Need Ad Tracking Innovation Now - MarTech Series
Why Affiliate Marketers Need Ad Tracking Innovation Now  MarTech Series

After Growing Commerce Sales by 67% Last Year, BuzzFeed Eyes a ‘Digital Shopping Mall’ - Adweek
After Growing Commerce Sales by 67% Last Year, BuzzFeed Eyes a ‘Digital Shopping Mall’  Adweek

J.Crew Pulled Its Affiliate Marketing Program, But It Could Backfire - Morning Brew
J.Crew Pulled Its Affiliate Marketing Program, But It Could Backfire  Morning Brew

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