In this post, you will learn all about the amazing side hustle known as affiliate marketing!
When I was in college, I was taught that if I knew how to sell, I’d always have a job. Since then I’ve discovered that if I knew how to sell online, I’d never need one.
What Is Affiliate Marketing?
Affiliate marketing is simply being an online salesperson for whatever product it is you want to sell and making a commission for your efforts.
Take Amazon, for example. It is one of the biggest e-commerce stores on the web. Amazon has an affiliate program meaning that, once you are accepted, you can sell anything on their site and earn a 10% commission.
Say you buy a new backpack from Amazon that you really love for $80. You love it so much that you do a product review and share the backpack to your Instagram and Facebook pages. In your product review or on your Instagram story, you paste your affiliate link to the backpack. An affiliate link is a link to a product with a unique tracking code that ties the source back to you. When the link is clicked and the product is purchased, you get credit.
The conversion rate measures how well your linked material is working. In other words, for every 100 people that view your review how many of them actually take action? The standard conversion rate is around 2% — 2 out of every 100.
Back to the example from earlier… if 2 people buy your backpack at $80 apiece, that would be $160 in sales. Now remember, Amazon’s commission rate is only 10%. In total profits, you are looking at $16.00. This doesn’t seem like a lot of money, but imagine if this model was scaled. What if you could get 1,000 views? What if you had an extra $160 in your pocket at the day? This is where the magic starts to happen.
Running Ads on Affiliate Offers
If you really want to scale your affiliate profits, you need to run ads. In the above example, all traffic coming in from the social media posts was organic. Organic traffic is free and takes…