What is Affiliate Marketing & Why You Need To Know About It

Written by Claudio Sabato


What is Affiliate Marketing?What is Affiliate Marketing

If you are looking for an answer to this question…you are in the right place.

In the next 10 minutes I will explain you what is Affiliate Marketing and why you need to know about it…

You will also get a blueprint to start as an affiliate marketer immediately.

Have you heard great things about Affiliate Marketing?

It might not be all true, because traditional affiliate marketing is a flawed business model.

I will tell you why but first I want to make sure you have a clear understanding of the concept of affiliate marketing.

What is Affiliate Marketing

Let’s start with the Affiliate Marketing definition:

Affiliate Marketing is a way of earning money selling products or services created by a company that pays you a commission for every sale.

Simple, no?

An example is the Affiliate program offered by Amazon that allows you to advertise Amazon’s products on your website and earn commissions from purchases.

By knowing this you can start looking for Affiliate Programs in your niche and promote their products if they provide a good solution for your audience.

Things work this way:

  1. Join an Affiliate Program
  2. Start promoting offers
  3. Earn commissions for products you sell

The model is simple and it makes sense, right?

An Example to Make Things Clearer

Let’s say I create an online course to teach event organisers how to fill rooms during live events. The price of the course is $400 and it sells very well because if organisers apply the strategies I explain they can earn more than 10 times the original investment with a single event.

It’s a no-brainer, right?

There is one problem though…

I create a page on my website to promote this course but no one can see it. I need to find a way to drive traffic to my website and I have two options:

  1. Invest money in traffic to start bringing people in front of my offer.
  2. Create an Affiliate Program, you become my affiliate and you start promoting my course.

In the second scenario your role is easy, you just need to bring traffic to my website. That’s it!

And if one of the visitors you bring buys my course, you get an agreed commission…let’s say 30%, so $120.

Things start becoming interesting…

How Do I Know You Brought Me That Customer?

If you are wondering…

How do I know that the person who bought my course came from your marketing?

The answer is easy…tracking links.

Every affiliate has a personal link that looks like the following one (let’s assume I create an Affiliate Program for my website, Your Journey To Wealth). The tracking link will look like:

http://track.yourjourneytowealth.com/affiliate?offer_id=1357&affiliate_id=2587

Don’t worry if it looks complicated, I will explain everything:

  • track.yourjourneytowealth.com indicates that this is a tracking link for my Affiliate Program.
  • offer_id refers to the product you are promoting (e.g. the course to promote live events)
  • affiliate_id identifies you. Every affiliate within an Affiliate Program has a unique ID.

Now, let’s say someone clicks on your link…

That click is automatically tracked back to you because your Affiliate ID is in the link. This is done to have a very accurate way to pay commissions to the people who bring customers to my website.

That’s how affiliate marketing commissions are tracked.

I hope everything is clear so far.

Affiliate Marketing Pros And Cons

Everything seems to be good.

So why the affiliate marketing business model is flawed?

Let’s have a look at the positive side of traditional affiliate marketing first…

Pros

  • No need to create your own product.
  • Storage is not required.
  • You don’t have to worry about shipping.
  • There’s no need for a system to handle payments.
  • You can run your business from wherever you want.

So affiliate marketing gives you the opportunity to start your own business with a very low cost.

And you don’t need to create your own product, I know…it sounds a daunting task when you are getting started!

But not everything is good as it seems if you look at traditional affiliate marketing

Cons

  • Very often as an affiliate you get low percentage commissions.
  • The price of the products you sell is low. And the lower the price, the lower the commission.
  • Commissions are only paid on the front-end (Remember this, it’s very important!)

So, traditional affiliate marketing is flawed because of the low commissions you get and because you only get commissions on front-end products.

You might be finding yourself selling a $7 product with a 20% commission.

How many products do you need to sell to make this worth? (also remember that we are not even considering your marketing costs to drive traffic).

In this specific case the $7 product is the front-end product and you only earn a commission when you bring a new buyer. This means you will need to look for hundreds of new buyers to start earning some decent money.

It’s a lot of effort considering the return you can get!

So, what’s the alternative?

The Power of High-Ticket Affiliate Marketing

So far I have explained what is Affiliate Marketing and why it’s a flawed business model.

So what’s the alternative?

Have you ever heard about High-Ticket Affiliate Marketing?

It refers to Affiliate Marketing Programs that differentiate themselves from traditional ones because they offer products that are much more valuable and hence more expensive.

Can you see how this can be good for you as an affiliate?

Higher price means higher commission.

Imagine that now, instead of selling a $7 product you sell a $700 product. You won’t have to find too many buyers and with few sales a month you can start building something definitely worth your time.

And things can get even more interesting…

Some affiliate programs offer product that cost few thousands dollars because of the huge value they offer, how does it sound to get a 30% commission on a $10.000 product?

Let’s compare your effort with a $7, $700 and $10.000 product assuming that you want to earn $6000 dollars (the commission is 30% and we are excluding marketing costs to make things clearer):

  • $7 dollar product: you earn $2.1 and you will need 2857 buyers.
  • $700 dollar product: you earn $210 and you will need 28 buyers.
  • $10.000 dollar product: you earn $3000 and you will need 4 buyers.

For sure I don’t want to find 2857 buyers when just 4 of them can give me the same results!

What about you?

And There’s More…

And some High-Ticket Affiliate Programs offer even more benefits…

Do you remember when we were talking about front-end commissions?

Basically traditional affiliate marketing programs only offer commissions on the first sale you make for them, and that’s always their lowest price product.

And what happens next?

They sell more expensive products to the buyers you brought them and that’s where they make the real money!

This doesn’t sound fair to me, considering that you are the one who brought them the customer in first place, no?

But there are some High-Ticket programs (not many know about them) that also pay commissions on the back-end. Let’s see how it works…

  1. Sally clicks on your affiliate link and she buys a $7 front-end product.
  2. You receive your 30% commission ($2.1), nothing changes until here from traditional affiliate marketing.
  3. Sally is now bound to you for life. What does that mean?
  4. If Sally buys another product offered by the same company you receive another commission even if you didn’t actually make the effort of selling it to her.
  5. And things can become extremely interesting because Sally has the opportunity to buy back-end products that cost thousands of dollars and pay you big commissions (this is what we call back-end products).

Can you see the advantage of High-Ticket Affiliate Marketing over traditional Affiliate Marketing?

So let’s recap, I have explained…

  1. What is Affiliate Marketing.
  2. Why standard Affiliate Marketing is a flawed business model.
  3. Why High-Ticket Affiliate Marketing is the way to go.

I hope everything is clear.

And Now…5 Tips To Get Started

And now, I would like to give you some tips based on my past experience.

I made so many mistakes and it’s part of the learning curve but not everyone is ready to accept that. We live in an era when everyone wants results quickly!

I wonder if you remember how many times you fell on the floor while trying to learn how to walk…

But I want to help, the following five tips will allow you to avoid well-known affiliate marketing mistakes:

#1 One is the magic number

We always try to do 10 things at the same time…it’s time to stop doing that!

Don’t join several affiliate programs while you are starting.

Select one program and focus on it long term. Once you master marketing for that Affiliate Program it will be easier to include additional programs into your strategy.

And I explained you, don’t waste your time with traditional affiliate marketing. High-ticket affiliate marketing is the best way to optimise the way you use your time.

Also, it takes a while to learn something new…

Jumping from one program to another will force you to start learning everything from scratch. This will definitely reduce your chances of success.

#2 Mindset first

Your success is heavily influenced by your mindset.

The first step is to move away from the consumer mindset. Start seeing yourself as a producer of information who provides useful content and solutions for people.

If you do that, people will look for you and they will buy from you!

When you look for affiliate programs choose one that helps you develop your mindset, it’s an asset that you will leverage every single day of your life.

#3 The importance of a coach

How long would it take for you to learn again what you know today?

How many errors have you done before finding the solution to your problems?

If you really want to succeed and minimise errors along the way get a coach, someone who has already made the mistakes you are very likely to make…

Someone who can teach you what works in the high-ticket affiliate marketing space.

Your coach will:

  • Hold you accountable.
  • Prevent you from finding excuses.
  • Bring you nearer to your goals step-by-step.

Never underestimate the important of a coach!

#4 Learn to earn

I don’t believe in success overnight…

In order to earn with affiliate marketing you need to be ready to learn first.

Chose an Affiliate Program that helps you build your marketing knowledge with webinars, training sessions and live events.

The best investment you can do is in yourself and to become a professional marketer you need to invest in your education.

The more you will learn the clearer your business vision will be.

#5 The power of association

Napoleon Hill in his life changing book Think And Grow Rich talks about the mastermind, a group of like-minded people who work together towards a well defined purpose.

Do you have your own mastermind?

A community to share successes, failures and strategies with will increase your motivation and boost your achievements as a marketer.

The power of association is a must for your affiliate program.

Are You Ready to Learn?

I have learned what is Affiliate Marketing and how to start leveraging High-Ticket Affiliate Marketing from a training program that has also given me the tools to become a professional online marketer.

It has enabled me to share value with my readers and reach thousands of people worldwide.

If you feel you would like to know more about Affiliate Marketing, if you want to start building your Internet Business…

Get Your Journey To Wealth’s Affiliate Marketing Starter Guide for FREE Here

It will be the beginning of an exciting journey for you!

Also, send me an email to claudio@yourjourneytowealth.com if you have any questions.


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