So in this video, I'm going to be explaining how the affiliate marketing industry
works. And exactly what affiliate marketing is. I'll be defining terms for
you and I'll be boarding everything for you right on this whiteboard right here.
Affiliate marketing is sort of a jargon filled complicated industry. They're all
these terms. Advertiser, publisher, traffic source, etcetera. That have no meaning to
people in normal day life. But I'm going to attempt to really break things down for
you in a way that you can understand. I'm going to be using multiple examples and
diagrams on this whiteboard to help you understand this territory. This will be
especially interesting for you if you want to get into affiliate marketing.
It's a very lucrative world. I do affiliate marketing myself and I run a
multi-million dollar business. I started earning millions of dollars in my young
20s. And you know hopefully this will give you a good basis for understanding
this industry. So, the first thing you want to understand about affiliate
marketing is what it is is it's commission-based marketing. It's selling
products on a commission only basis online. Now, it's very similar to
door-to-door salesmen or salespeople selling used cars or telemarketers.
Basically, these are people that are calling you on the phone or that are
going door-to-door. They're selling the Encyclopedia Britannica a hundred years
ago. Now, these salespeople would say, "Hey, you
could buy the Encyclopedia Britannica for your family. It's 100 bucks." And
if they sold the Encyclopedia Britannica to you,
$100 went to the company and you know maybe they pocketed $50 or
something like that. Whatever it was. The company kept some money. Customer paid
the money to make that happen. Same thing with selling cars. If you buy
a car from a salesman on a lot for a thousand dollars, maybe $800
of that is going to the cars lot and $200 of that is going
to the salesperson and you know it came from the customer. Now, in affiliate
marketing, it's very similar. It's almost the exact same thing. You have
company, you have a customer and you have an affiliate. Now, the company gives the
product to the customer and the customer gives the money to the company. The
affiliates job is to connect the company with the customer. And in return, the
company pays the affiliates some money and the affiliate connects the customer
with the company, right? So, it's a big triangle. You know it's a pyramid scheme.
It's a pyramid. Its pyramid. You know, it's not a pyramid. They could turn it and
it's different. It's just basic commerce, okay? It's direct response sales. Now, what
we call it in affiliate marketing is there are a companies has offers.
That's what we call the products that they sell. So for instance, let's say
going back to the Encyclopedia Britannica example. The company that sold
Encyclopedia Britannica's might have other things that the salesperson could
sell the person. They might have Encyclopedia Britannicas. They might
also be selling of tutoring services to help people's children learn English or
learn history. So, you know like an actual service to help people, you know, learn
more. A company can have multiple offers. They can have multiple products that
they offer Commission's on. Now, generally speaking, there are tens of thousands if
not millions of companies that have affiliate programs. It gets very
complicated to find all of the different affiliate programs that somebody might
want to market. So, the way it works is we have what's called affiliate networks. So,
what is often the case is an affiliate is working with an affiliate network. Now,
an example of affiliate network is Clickbank, ShareASale, Avangate Commission
Junction. Amazon is an affiliate Network. Walmart has an affiliate Network. EBay
has an affiliate Network. Target has an affiliate network. With lots of different
products from lots of different sellers that you can earn a commission on. So, an
affiliate might login to let's say Amazon. Amazon's Affiliate Network and
they can find any product that they want to market
all in one place. They can choose a lot of different ideas of products to market.
Now again, the way affiliate is marketing to the customer is through what's called
a link or URL. And in some other videos, if you want to learn the basics of do
affiliate marketing. We're going to have my assistant put up a card on this YouTube
video so you can go see my playlist on YouTube. My free course on how to do
affiliate marketing. Or you can subscribe to my channel and you'll get my free
course on how to do affiliate marketing. But you'll get a link and you can
advertise that link on Facebook posts on snapchat on Instagram. You could put it
on, you know, send it to somebody through text message. You could send the link to
somebody through email. It doesn't really matter how you send the link out. You
could put it on a postcard and mail it to somebody. It doesn't matter. What
matters is that somebody clicks on it, that's how you connect people with these
companies. Now when a customer buys a product from one of the companies that
you recommended. Let's say they bought a product on Amazon that you recommended.
They bought this book. What the affiliate network will do is they will pay you the
money. So, the customer pays the affiliate network. Let's say 2 dollar signs. And
the affiliate network will pay you 1 dollar sign. So, they get money and you
get some of it. You get. That's your commission for making that connection.
Now, some examples of affiliate marketing companies to make it really dead easy in
your mind are let's say Expedia.com. If you've ever booked a flight online and
you've used Expedia Priceline Orbitz or any of the other companies that you can
book flights through. All of these companies are affiliate marketing
companies. Expedia.com does not own any airplanes. They don't own any flight
patterns. Expedia is an affiliate. You go to Expedia.com and you buy from one of
the airlines. You are paying United or American Airlines some money. And for
making that connection for Expedia.com making that connection, they are getting
a commission for connecting you with that flight. To
use some more examples. It is the same logic with Airbnb or Uber. These are
affiliate marketing companies. Airbnb does not own any hotels. Uber does not
own any cars. What they are doing is they're simply connecting you with
somebody who is willing to rent out their place or they're connecting you
with somebody who is willing to drive you someplace. And Uber or Airbnb is
making a little commission on making that connection. Again, they don't own any
inventory. They are simply making that connection. You can be an affiliate
marketer. And all you need is a link to make that connection. And you can earn a
bit of commission if somebody uses your service. Now, Uber does not earn any
money if you don't get a ride anywhere. That makes sense, right? If you just
install the app, uber doesn't make any money. Uber only makes money if you hire
a driver to drive you somewhere. So that's what affiliate marketing is in a
nutshell. Now, I hope that explains things. It's a bit of a complicated world but
it's really easy when it comes down to it. You're just making connections and
you're getting commissions for helping make those purchase connections. Just
like Airbnb, just like Uber just like hotels.com
or cars.com or any of these other companies. Expedia. It's a very simple
industry. Now, if you're looking to learn more about affiliate marketing, that's
what my business is. I make a lot of money doing it and I've a lot of friends
all over the world doing it it's the easiest business to get started in the
requires no technical skills, no inventory. And allows you to live a life
of freedom of location of time. I wake up whenever I want and I can be wherever I
want that my wife allows me to be now. But the point being, if you want to learn
more about this. Make sure you subscribe to my channel and hit that notification
bell. And you'll get a free course on how to get started with affiliate marketing.
Now, if you like this video as well, make sure to comment and tell me what would
you like to learn about next and also push that like button if this has been
helpful for you in learning and in your journey in any
way.