What is Affiliate Marketing?

Affiliate marketing is essentially acting as a salesperson for various products online, earning a commission for each sale made through your referral.

Take Amazon as an example. As one of the largest e-commerce platforms globally, Amazon offers an affiliate program that allows you to earn a 10% commission on sales made through your unique affiliate link.

Imagine you purchase a stylish backpack for $80 from Amazon that you absolutely love. You decide to create a product review and share it on your Instagram and Facebook pages. In your review or Instagram story, you include your affiliate link to the backpack. This link has a special tracking code that identifies you as the source of the sale. When someone clicks on the link and buys the backpack, you earn credit for the sale.

Conversion Rate

The conversion rate reflects how effectively your promotional content is driving sales. For instance, if 100 people view your review, how many end up making a purchase? The average conversion rate is about 2%, meaning that 2 out of every 100 viewers will typically buy.

Returning to the earlier example, if 2 people purchase the backpack for $80 each, that results in $160 in sales. Considering Amazon's 10% commission, your earnings would total $16. While this may not seem substantial, imagine scaling this effort to attract 1,000 viewers. The potential for additional income becomes significant.

Running Ads on Affiliate Offers

To maximize your affiliate profits, consider utilizing paid advertising. In the previous example, all traffic was generated organically, which can be slow to build.

Paid traffic, however, can be scaled quickly. With the right strategy and calculations, your affiliate offers could yield substantial profits. Currently, I have optimized my spending so that for every dollar invested in ads, I earn back that amount and more. I aim to invest as much as possible as long as the numbers remain favorable.

High-Level Overview

For instance, if you can spend $8 to obtain 100 clicks without incurring a loss, and you achieve that for only $7, your profit is a modest $1. While this may seem minimal, envision the earnings if you scale that to $80 or $800 in ad spend. Once you confirm your approach is effective, you could be looking at a reliable income stream.

When starting a side hustle, many focus on immediate profits without considering long-term growth. Even if your earnings just cover your customer acquisition costs, you still gain something invaluable—a customer who trusts your recommendations!

Capturing Leads

You might wonder, "What do you mean by having a customer?" Before I guide potential buyers to a sale, I always request their email addresses. This process is known as capturing leads. By doing this, when you have future offers, you can reach out to these contacts, enhancing the likelihood of repeat sales.

For example, suppose your next promotion involves luggage priced at $300 on Amazon. With a 10% commission, you'd earn $30 per sale. Because the customer already trusts you, they're more likely to purchase from you again. A simple email explaining the new offer can lead to a sale, and since you’ve already acquired the lead, all earnings from this transaction go directly to you.

The affiliate marketing model thrives on building email lists and consistently providing valuable recommendations. I continuously develop lists and offers across various niches, and if you think long-term, the opportunities are boundless!

Three Rules of Affiliate Marketing

1. Risk: Assessing risk is crucial when exploring new ventures. On a scale of 1 to 10, I would rate affiliate marketing at a 1. You won't have to handle customer service issues or maintain inventory.
2. Time: There are two paths: free and paid. The free route takes considerably more time, so I would rate it a 6, while the paid strategy is quicker, earning a 3.
3. Cost: The free approach costs nothing, earning a 1, while the paid method incurs some expenses, ranking a 6.

Real-Life Example

Take a look at my blog post "My Top 10 Books." I included a brief introduction followed by links to each book. Since they are available on Amazon, I used their affiliate program to create trackable links, ensuring I earn a commission regardless of which book is purchased.

ClickFunnels

ClickFunnels is an excellent platform for managing affiliate marketing websites, and I am an affiliate for them! When I guide individuals on setting up their affiliate marketing campaigns, I always recommend ClickFunnels, both because of my positive experience and the potential commissions I can earn from referrals. This software has a monthly subscription model, meaning I receive a recurring commission.

LadyBoss

If you're just getting started, you may not be ready to promote business software. However, there are many companies that provide opportunities for ongoing income. For instance, LadyBoss sells supplements designed for women. Since most supplements come in a 30-day supply, as long as customers enjoy the product, they will continue to buy, and I will keep earning commissions.

There are numerous high-quality affiliate programs available. I recommend starting with brands you recognize or have personally used. As you gain experience, you can explore programs that align with your interests and offer lucrative opportunities.

Affiliate marketing is an intriguing side hustle. To learn more, check out my complimentary lessons on my YouTube channel. I look forward to hearing about your success!

Peace and God Bless.

I create new content every week, so make sure to subscribe to my YouTube channel and follow me on Instagram @brambilabong and TikTok @AdrianBrambila. Additionally, I offer a wealth of resources and courses on my website. Visit www.adrianbrambila.com to discover more about my journey toward financial freedom.