How To Create a Passive Income Through Affiliate Marketing

What is Affiliate Marketing?

Let’s have a look at the picture below (from the SFM Training Program) and I’ll try to explain it in simple words.

Let’s start from the top:
 
THE AFFILIATE INTRODUCES THE MERCHANT WEBSITE
The affiliate (you), brings traffic to a website where visitors get introduced to products or services that you are endorsing.
 
The ways to direct traffic to a website are several, and we have already covered some of them in my previous posts (Blogs, YouTube, Email Marketing etc.).
 
The most common way though, is by publishing ads on search engines like Google or Bing.
 
CUSTOMER CLICK THE AD OR LINK
If your ad is interesting, people will click on it.
 
CUSTOMER IS SENT TO THE MERCHANT SITE THROUGH TRACKING LINK
After clicking on your ad or link, the user will get redirected to a website where the product or service you are endorsing is explained and presented.
 
The ad or link contains a tracking code that belongs to you and you only (very important!).
 
CUSTOMER MAKES A PURCHASE ON THE MERCHANT WEBSITE
If the visitor (now inside the website) likes the product you are offering, the visit might result in a purchase.
 
AFFILIATE NETWORK RECORDS THE PURCHASE AND DETAILS OF THE TRANSACTION
The website records the details of the purchase, including price, credit card payment, delivery address etc.
 
THE PURCHASE IS CONFIRMED BY THE MERCHANT AS A VALID SALE
When the visitor confirms he/she wants to buy the product, he/she will click on the “Confirm” button, or something like that… At that point the sale is made.
 
THE TRANSACTION IS CREDITED TO THE REFERRING AFFILIATE
Whenever a visitor that YOU brought to that website makes a purchase, that transaction will be automatically credited to you as an affiliate.
How?
Do you remember that very important tracking code we talked about earlier? Your name is on it! Or at list some kind of ID-code.
 
AFFILIATE GETS PAID THEIR COMMISSION
Since the sale has your name on it, you now deserve your commission, which will be paid to you by the merchant.
At this point you will reinvest part of your profit into advertising or some other way to direct traffic to the merchant website. And the circle is closed!
 
Read this process one more time. This time try to figure out one thing: where, in all this, do you have an active role?
 

What are you supposed to do?

 
The only step where you play an active roll is the very first one. Bring traffic to the website. The rest is taken care of by someone else.
 
Even better: that first step is something you need to do just once!
 
How is that possible? Here are two examples.
 

Example 1:

 
Say you publish a blog article containing an affiliate link. That article is going to be there forever and people will be able to read it until you remove it.
 
That link will redirect your traffic and trigger the process for years. In complete automation!
 

Example 2:

 
Let’s say you publish an ad on Google that actively directs visitors to your website where you sell your products.
 
As long as the ad is active, the only thing you have to do is watch the traffic flow to your website and visitors make purchases there! (And of course, you’ll have to pay the bill to Google…).
 

Conclusions

 
We can agree on one thing: this is a powerful system!
 
The theory is quite simple, but it involves a certain amount of skills that the average internet user does not possess.
 
Personally, I didn’t even know what affiliate marketing was when I started my journey as an Online Entrepreneur.
 
What I knew was that people were making money online.
 
At that point I hade two choices:
 
Take a chance with a do-it-yourself strategy, like purchase a domain name and start a blog and try to figure out how it all worked.
 
But believe me: it would have taken years of trial and error and I would have lost a lot of time and money.
 
Instead, I went for a more professional approach and joined one the world leading Training Programs for Online Business available on the web.
 
I have learned the skills needed to kick-start my own Internet Business starting more or less from zero-knowledge.
 
And the best part is: I’ve done it mostly in the evenings, alongside my regular job!
 
 
 

Leave a Comment

Your email address will not be published. Required fields are marked *