How Does Affiliate Marketing Make Money?

If you’ve been searching for a way to make some extra money online, you may have heard about this thing called affiliate marketing. But what is it exactly? How does affiliate marketing make money? I’ll tell you a little bit about how affiliate marketing came about, how it has evolved and you can learn to make it work for you.

 

An Industry Is Born


The concept of affiliate marketing was first put into practice in 1989 on the Prodigy Network (a crude version of the internet we know today) and was started by William J Tobin. Tobin was the founder of PC Flower and Gifts and it was he who implemented the first online affiliate program.

Amazon.com is one of the most popular and longest running affiliate marketing programs online. Although they where not the first, they did popularize the concept of affiliate marketing and they set the standard of how many affiliate programs would be developed thereafter.

 

Affiliate marketing has existed in one form or another for many years before the birth of the internet. Think of a car dealer. He/she doesn’t own the car he/she sells you, but they do earn a commission for selling that car.

 

Affiliate marketing is performance based or commission based in the same way. Let’s say you owned a website that had articles on different baby products. Then, within those articles you linked your readers to amazon.com where those products can be purchased.

 

Now, if they purchase that product (or any other product on amazon.com) you would earn a commission for sending your visitor there through you affiliate link. Bear in mind, this is something that not all affiliate programs do. This is one of the advantages to promoting amazon products.

 

Affiliate Marketing Explodes!


Today, affiliate marketing is a multi-billion dollar a year industry. New affiliate networks are coming online constantly and competing to give you, the affiliate marketer, the best incentive to promote their products.

 

There is an affiliate program for almost any product you can imagine and there are more choices available for customers than ever before. This means that the opportunities to build an affiliate marketing business are better than ever!

 

How To Make Affiliate Marketing Work For You


Are you ready to learn how to make affiliate marketing work for you? Just click the blue button below and accept my special invitation. It is FREE to start and you never have to pay a dime if you choose not to.

 

 

 

 

Affiliate Marketing Basics

 

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5 Comments

  1. Hi Steve,
    I stumbled upon your site and I wanted to take a moment to tell you what remarkable site I think you have!
    You have a great wealth of information presented in such a wonderful format.
    This past year I was finally able to follow my desire to venture into the wonderful world of affiliate marketing and it is only because I was blessed to be led to Wealthy Affiliate!
    I encourage anyone who may read this that is visiting your site to embrace your recommendation and join Wealthy Affiliate.
    There is absolutely no better online opportunity!
    I wish you great success.
    Christa

  2. Hi Steve,

    In a short span of 26 years, affiliate marketing has really changed the way we use the internet. Shopping online is unheard of in my parent’s generation and but it’s totally a norm in mine.

    Given the choice, I would choose to buy from affiliate marketers because they usually provide product reviews. This type of information gives me more confidence to purchase as an online consumer.

    🙂

    • Steve

      Hey Cathy,

      We, as affiliate marketers are doing what used to be standard practice in retail. Educating consumers. There are very few retailers today who train their employees for this and communication skills are quite lacking. If I’m interested in making a first time purchase, I will look online for information without even thinking about it. If I don’t absolutely need the product that same day, I’ll go ahead and order it through the site that was most helpful in my decision making process.

      Steve

  3. Wendy

    You explain affiliate marketing so well. This industry have really grown and I think the biggest reason is because anyone can start earning money without a huge investment.

    People love to buy online, I like knowing that I’m helping people find what they are looking for.

    Great Post!

    ~Wendy

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