What is Affiliate Marketing? (Step-by-Step Guide)

Affiliate marketing is a more recent form of advertisement. It can be seen on many websites, through sponsored ads or through affiliate links — links that redirect to another website, usually an e-commerce site. Affiliate marketing is one of the most popular forms of internet marketing because it takes little start-up cost and often generates high revenue for both the advertiser and the affiliate. The money is made by earning commission through sales generated on your website.

When Did Affiliate Marketing Start?

Affiliate marketing has been around for a long time. The first recorded case was in 1866, when a publisher persuaded booksellers to commission salespeople to sell his books. In the mid-1990s, an affiliate program was first implemented by William Tobin's PC Flowers and Gifts. In '96, Tobin applied for a patent on the "affiliate marketing" and "tracking" procedure, granted in 2000. Other businesses saw the success of PC Flowers and Gifts and adopted the model for their own use.

Elements of Affiliate Marketing

• Advertiser — the owner of the product, who supplies an affiliate program for other professionals to market it for a fee
• Publisher — the affiliate, responsible for generating what the advertiser is looking for, using traffic they own or know how to generate
• Affiliate Network — a platform allowing advertisers and affiliates to work together

8 Types of Affiliates

1. Coupon sites — incredibly popular due to their ability to bring in eCommerce customers

2. News and media sites — many larger media companies monetize content with affiliate links within articles

3. Content sites — comparable to magazines, with fresh content and sponsors alongside affiliate links

4. Review sites — evaluate advertisers, usually in a particular niche (Amazon review sites are a common example)

5. Shopping comparison — price comparison tools that embed affiliate links in their data feeds

6. Email — large publishers build email lists to rely less on search traffic and algorithm changes

7. Mobile apps — apps that link out to the App Store or partner offers

8. Bloggers — content creators focused on specific niches: hobbies, product reviews, money saving, lifestyle tips

How to Become an Affiliate Marketer

Affiliate marketing is not a simple market to enter and competition is significant. A few steps to get started:

1. Choose a niche — a good starting point when you have no existing traffic or sales

2. Target your markets — research what people are searching for using affiliate networks and free tools

3. Create unique content — generic content that others can copy won't build lasting traffic

4. Set up a website — a home base to interact with customers, get feedback, and store content

5. Promote your niche — use research tools to find profitable niches and start promoting

How to Choose the Best Affiliate Program

Affiliate marketing is one of the most profitable approaches to earning income from a site, since you never need to offer your own product. A few things to evaluate before joining a program:

• High commission per sale — verify commission rates and cookie duration
• Reaching the payment threshold faster — some programs set a minimum payment for transactions
• Lifetime recurring commissions — some referrals earn a lifetime commission rather than a one-time payout
• Commission structure based on sales volume — some programs scale commission with the number of sales rather than their value
• Better brand value — high-quality affiliate programs come with stronger brand association, which protects your own credibility

Wrapping Up

Affiliate marketing is a way for individuals and businesses to make money by connecting with other professionals in an online marketplace. If you are interested in getting started, research your niche, pick a program aligned with your audience, and build content that earns trust before it earns clicks.