Affiliate Marketing

Affiliate Marketing

by Ted Sudol and Paul Mladjenovic, CFP

Affiliate Marketing For Dummies®

Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

Copyright © 2020 by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

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Library of Congress Control Number: 2019953037

ISBN 978-1-119-62824-8 (pbk); ISBN 978-1-119-62833-0 (ebk); ISBN 978-1-119-62832-3 (ebk)

Manufactured in the United States of America

10 9 8 7 6 5 4 3 2 1

Contents at a GlanceIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Part 1: Getting Started with Affiliate Marketing . . . . . . . . . . . . . 5CHAPTER 1: WhatIsAffiliateMarketing? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7CHAPTER 2: WhyShouldYouBeanAffiliate? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17CHAPTER 3: PitfallsandRisksfor Beginners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27CHAPTER 4: StepstoTakeBeforeBecominganAffiliate . . . . . . . . . . . . . . . . . . . . . . . . 37CHAPTER 5: SurveyingtheAffiliateLandscape:ProgramsandNetworks . . . . . . . . . 49

Part 2: Building on the Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61CHAPTER 6: KeywordResearchandProductSelection . . . . . . . . . . . . . . . . . . . . . . . . . 63CHAPTER 7: UsingaWebsiteforAffiliateMarketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79CHAPTER 8: NicheMarketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97CHAPTER 9: AffiliateMarketingWithoutaWebsite . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109CHAPTER 10:SEO:SearchEngineOptimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125CHAPTER 11:EmailMarketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

Part 3: Advanced Affiliate Strategies . . . . . . . . . . . . . . . . . . . . . . . . . 167CHAPTER 12:Multitier,Passive,and OtherOffbeatCommissions . . . . . . . . . . . . . . . . 169CHAPTER 13:AffiliatePlatforms,Directories,andMore . . . . . . . . . . . . . . . . . . . . . . . . 179CHAPTER 14:Opt-InandLandingPages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189CHAPTER 15:SalesFunnelStrategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

Part 4: Going Professional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217CHAPTER 16:TheLegalStuff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219CHAPTER 17:TheMerchantSideofAffiliateMarketing . . . . . . . . . . . . . . . . . . . . . . . . . 231CHAPTER 18:TaxesfortheAffiliateMarketer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245

Part 5: The Part of Tens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255CHAPTER 19:Ten(OrSo)oftheBiggestPitfallsforAffiliateMarketers . . . . . . . . . . . . 257CHAPTER 20:TheTenBestFreeToolsforAffiliateMarketers . . . . . . . . . . . . . . . . . . . 267CHAPTER 21:TheTenBestPaidToolsforAffiliateMarketers . . . . . . . . . . . . . . . . . . . 275CHAPTER 22:TheTenBestMarketingStrategiesforAffiliates . . . . . . . . . . . . . . . . . . . 285

Appendix: Tools and Resources for Affiliates . . . . . . . . . . . . . . . 293

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307

Affiliate Marketing

Table of Contents vii

Table of ContentsINTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

AboutThisBook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1FoolishAssumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2IconsUsedinThisBook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2BeyondtheBook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3WheretoGofromHere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

PART 1: GETTING STARTED WITH AFFILIATE MARKETING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

CHAPTER 1: What Is Affiliate Marketing? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7GettingaHandleonHowAffiliateMarketingWorks . . . . . . . . . . . . . . . . 7ProfitingfromInternetPromotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Multiplyingopportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Automatingthemoneyflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Distinguishingaffiliatemarketingfromother internetbusinesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

PreparingtoStartYourAffiliateMarketing Business . . . . . . . . . . . . . . .12Settingexpectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12Layingthegroundwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13Walkingthroughtheprocess . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

CHAPTER 2: Why Should You Be an Affiliate? . . . . . . . . . . . . . . . . . . . . . . 17SurveyingtheRequirementsofStartingaTraditionalBusiness . . . . .18AssessingtheAdvantagesofAffiliate Marketing . . . . . . . . . . . . . . . . . .19

Youcanstartyourbusinessinstantly . . . . . . . . . . . . . . . . . . . . . . . . .20Youcanchooseyourownpathandlifestyle . . . . . . . . . . . . . . . . . . .20Youcanofferadiverserangeofproducts . . . . . . . . . . . . . . . . . . . . .21Youhavenoproductdevelopmentand fulfillment . . . . . . . . . . . . .21Youdon’thavetobeatechnicalgenius . . . . . . . . . . . . . . . . . . . . . . .22Paymentandaccountingareautomated . . . . . . . . . . . . . . . . . . . . .23Yougetcompany-suppliedmarketingmaterials . . . . . . . . . . . . . . .24Youcantakeadvantageoftaxdeductions . . . . . . . . . . . . . . . . . . . .24

SettingExpectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

CHAPTER 3: Pitfalls and Risks for Beginners . . . . . . . . . . . . . . . . . . . . . . . 27LookingOutforPersonalPitfalls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

Lackingfocus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28Managingtimepoorly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Makingfew(ifany)contentupdates . . . . . . . . . . . . . . . . . . . . . . . . .32

viii Affiliate Marketing For Dummies

AvoidingInternetRisks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32Stayawayfrominstantbusinesses . . . . . . . . . . . . . . . . . . . . . . . . . . .33Don’tfallforthenextbrightshinyobject . . . . . . . . . . . . . . . . . . . . .34Don’tfollowotherstooclosely . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

CHAPTER 4: Steps to Take Before Becoming an Affiliate . . . . . . . . 37SettingYourGoals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38AssessingtheSkillsYouHaveandNeed . . . . . . . . . . . . . . . . . . . . . . . . .38

Whereareyounow? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Howdoyoumoveahead? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

StrengtheningYourAbilitytoFocus . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40Decidingwhatis(andisn’t)important . . . . . . . . . . . . . . . . . . . . . . . .40Settingyourpriorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41Seeingthemagicofmassiveaction . . . . . . . . . . . . . . . . . . . . . . . . . .43Makingtimetoplay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43Riddingyourselfoftimewasters . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44

CHAPTER 5: Surveying the Affiliate Landscape: Programs and Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49DiggingintoAffiliatePrograms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49

Assessingtheadvantagesofaffiliateprograms . . . . . . . . . . . . . . . .50Findingandevaluatingaffiliateprograms . . . . . . . . . . . . . . . . . . . . .51Joininganaffiliateprogram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

LookingatAffiliateNetworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56Checkingouttheadvantagesofaffiliatenetworks . . . . . . . . . . . . .56Findingandevaluatingaffiliatenetworks . . . . . . . . . . . . . . . . . . . . .57Joininganaffiliatenetwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

UnderstandingtheDangersofGettingBanned . . . . . . . . . . . . . . . . . . .59

PART 2: BUILDING ON THE BASICS . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

CHAPTER 6: Keyword Research and Product Selection . . . . . . . . . . 63CombiningPassionandProfit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64AnalyzingProductKeywords . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65

Lookingatlongtailkeywords . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66Goldenkeywords . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70

SiftingthroughKeywordAnalysisTools . . . . . . . . . . . . . . . . . . . . . . . . . .71MarketSamurai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72KeywordRevealer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74GoogleKeywordPlanner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75

ExaminingMarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76Focusingonevergreenmarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77Sizingupseasonalmarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77

Table of Contents ix

CHAPTER 7: Using a Website for Affiliate Marketing . . . . . . . . . . . . . 79BeginningwiththeBenefitsofaWebsitefortheAffiliate Marketer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80EstablishingaDomainNamefor Your Website . . . . . . . . . . . . . . . . . . .81

Choosinganame . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81Usingaregistrar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82Checkingouttheaftermarket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83

ComparingSelf-HostingtoFreeHosting . . . . . . . . . . . . . . . . . . . . . . . . .84Self-hosting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85Freehosting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87

GoingwithWordPressSoftware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88Installation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89Themes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90Plug-ins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91

MonitoringYourWebsite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94TotalingtheCostsofStartingandRunninganAffiliate MarketingWebsite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95AskingaFewImportantQuestionsabout Websites . . . . . . . . . . . . . . .96

CHAPTER 8: Niche Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97UnderstandingtheBasicsofNicheMarketing . . . . . . . . . . . . . . . . . . . .97FindingYourNiche . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99

Followingtheheadandtheheart . . . . . . . . . . . . . . . . . . . . . . . . . . .100Consideringmarketsizeandcompetition . . . . . . . . . . . . . . . . . . . .100

ReviewingKeywordAnalysisToolsforNicheMarketing . . . . . . . . . . .101MarketSamurai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102KeywordRevealer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103Googletools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104KeywordsEverywhere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104

SpyingontheCompetition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105SurveyingSeasonalNiches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107

CHAPTER 9: Affiliate Marketing Without a Website . . . . . . . . . . . . . 109GettingStartedWhenYouHaveFollowers(AndWhenYouDon’t) . .110

Leveragingthefollowersyoualreadyhave . . . . . . . . . . . . . . . . . . .110Takingactionwhenyouhavenosocialmediapresence . . . . . . . .112

SurveyingStrategiesforDifferentSocial MediaPlatforms . . . . . . . . .113Facebook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114LinkedIn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115YouTube . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115Instagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116Reddit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117Quora . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117Guestblogs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118

x Affiliate Marketing For Dummies

CheckingOuttheConsofAffiliateMarketingWithoutaWebsite . . .119Yourwebpresenceislimited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119You’renotbuildingassetvalue . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120Youdon’townthegroundyou’rebuildingyourbusinesson . . . .120Yourcontentdoesn’tlastlonginfrontofyourfollowers . . . . . . .121You’realwaysfightingthecompetition . . . . . . . . . . . . . . . . . . . . . .121Youhavetoadjustyourapproachforadifferentaudience . . . . .122Youmustkeepontopofsocialmedialimitations andrestrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122Socialmediaisn’tnecessarilylesscomplicatedthan havingawebsite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123Havingawebsiteisn’tasexpensiveas you maythink . . . . . . . . . .124

CHAPTER 10: SEO: Search Engine Optimization . . . . . . . . . . . . . . . . . . . . 125TakingCareofSomeIssuesBefore You FocusonSEO . . . . . . . . . . . .126

Selectingtherightniche . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126Understandingtheelephantintheroom:Google . . . . . . . . . . . . .127

DistinguishingOn-PageandOff-PageSEOFactors . . . . . . . . . . . . . . .130On-pageSEOfactors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131Off-pageSEOfactors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138

SettingUpYourSitetoBeSEOFriendly . . . . . . . . . . . . . . . . . . . . . . . . .139Tagsandcategories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140Postsandpages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140Buildingasilo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143

TryingOutSEOTools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144Yoast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144MarketSamurai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144GoogleWebmasters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145

CHAPTER 11: Email Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147AssessingtheAdvantagesof Email Marketing . . . . . . . . . . . . . . . . . . .148BuildingYourListwithDifferentTypes of Email . . . . . . . . . . . . . . . . . .149

Marketingemails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149Autoresponders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149Transactionalemails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150Emailcampaigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151

HostingYourOwnEmails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152Theprosofhosting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152Theconsofhosting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154

PlayingbytheRules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156CAN-SPAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156Theopt-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158Thedoubleopt-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158Unsubscribing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159

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UnderstandingEmailScreening . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159Softbouncesandhardbounces . . . . . . . . . . . . . . . . . . . . . . . . . . . .161Bewareofbuyingalistofemails . . . . . . . . . . . . . . . . . . . . . . . . . . .161Ariskofprobationifemailaddressesaren’tchecked . . . . . . . . . .161Emailthrottling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163

ConsideringDifferentEmailSenders . . . . . . . . . . . . . . . . . . . . . . . . . . .163Sendinblue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164AmazonSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164SendGrid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165Mailchimp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165ConstantContact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .166

PART 3: ADVANCED AFFILIATE STRATEGIES . . . . . . . . . . . . . . . . 167

CHAPTER 12: Multitier, Passive, and Other Offbeat Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169GettingaHandleonMultitierAffiliate Marketing . . . . . . . . . . . . . . . . .170

Tryingtwo-tiermarketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170Watchingoutforthethirdtierandbeyond . . . . . . . . . . . . . . . . . . .171Findingaffiliatesforyourmultitier program . . . . . . . . . . . . . . . . . .172

PickingOutPassiveIncomeOpportunities . . . . . . . . . . . . . . . . . . . . . .174ProfitingEvenWhenNoSaleIsMade . . . . . . . . . . . . . . . . . . . . . . . . . .175

Costperaction/payperlead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175Costperclick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176Costperview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177

CHAPTER 13: Affiliate Platforms, Directories, and More . . . . . . . . . 179AssessingAffiliatePlatforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179

JVZoo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180ClickBank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181CJAffiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183AmazonAssociates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184

DiggingintoAffiliateDirectories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185CheckingOutCPANetworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186LookingatAdvertisingNetworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .187

CHAPTER 14: Opt-In and Landing Pages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189ExaminingtheElementsofanOpt-InPage . . . . . . . . . . . . . . . . . . . . . .190

Videosversustext . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .190Thelayout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192Otherconsiderationsforsuccess . . . . . . . . . . . . . . . . . . . . . . . . . . .192

CheckingOuttheElementsofaLandingPage . . . . . . . . . . . . . . . . . . .193Thevisuals:Colorsandimages . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193Theheadlineandthesubheadline . . . . . . . . . . . . . . . . . . . . . . . . . .193Ad/salescopy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .194

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Testimonials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196Bonuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197The“what’sinside”element . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197Thebio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198Paymentbuttons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198Frequentlyaskedquestions(FAQs) . . . . . . . . . . . . . . . . . . . . . . . . .199Legalnoticesanddisclaimers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200

FocusingonOtherFactorsforSuccess . . . . . . . . . . . . . . . . . . . . . . . . .200TestingwiththeA-Bsplit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200ConsideringSEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201Usinganexitpop-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201Benefitingfromothers’wisdom . . . . . . . . . . . . . . . . . . . . . . . . . . . .202Tryinglandingpagetemplatesand software . . . . . . . . . . . . . . . . .202Judgingresults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202

CHAPTER 15: Sales Funnel Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203SellingYourProspectonMultipleOffers . . . . . . . . . . . . . . . . . . . . . . . .203

Startingwiththefrontend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204Movingtothemainorcoreoffer . . . . . . . . . . . . . . . . . . . . . . . . . . .206Continuingwiththeback-endoffer . . . . . . . . . . . . . . . . . . . . . . . . .207Usingupsellsanddownsells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207Puttingeverythingtogether . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .208

SettingUpYourSequenceofOffers . . . . . . . . . . . . . . . . . . . . . . . . . . . .210Lookingatthetoolsyouneed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210Modelingamerchantfunnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .211Assessinganaffiliatefunnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212Buildingastructureforpassiveincome . . . . . . . . . . . . . . . . . . . . . .213

PART 4: GOING PROFESSIONAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217

CHAPTER 16: The Legal Stuff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219FollowingtheFederalTradeCommission . . . . . . . . . . . . . . . . . . . . . . .220

Knowingthemainguideline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .220Avoidingunrealisticclaims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .220Retainingrecordsabouttestimonials . . . . . . . . . . . . . . . . . . . . . . .221Watchingyourlanguage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .222Keepingyourpricingconsistent . . . . . . . . . . . . . . . . . . . . . . . . . . . .222Havingaclearrefundpolicy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .222Beingawareoftherulesaboutbusinessopportunities . . . . . . . .223

GettingtheScoopontheGeneralDataProtectionRegulation . . . . .224SafelyUsingImagesandOtherContent . . . . . . . . . . . . . . . . . . . . . . . .225

Gettingpermissioninwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .225Understandingspecialcontentrights . . . . . . . . . . . . . . . . . . . . . . .226

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AddressingLegalMattersonWebsites . . . . . . . . . . . . . . . . . . . . . . . . .227Aprivacypolicy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .227Disclaimers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228Termsofservice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228Othersites’rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .229

CHAPTER 17: The Merchant Side of Affiliate Marketing . . . . . . . . . . 231KnowingWhetherYou’reReadytoBeaMerchant . . . . . . . . . . . . . . . .232

Isyourproductconducivetoanaffiliatemarketingprogram? . . . .233Isyourcompensationplanattractive? . . . . . . . . . . . . . . . . . . . . . . .235Canyouserviceaffiliates? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .236Becomingan“undercoveraffiliate” . . . . . . . . . . . . . . . . . . . . . . . . .236

ChoosingYourTechnology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .237Consideringanin-houseaffiliateprogram . . . . . . . . . . . . . . . . . . .237Usinganexternalaffiliateplatform . . . . . . . . . . . . . . . . . . . . . . . . .238Outsourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .239

RecruitingandWorkingwithAffiliates . . . . . . . . . . . . . . . . . . . . . . . . . .239Knowingwheretofindaffiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . .239Makingofferstheycan’tresist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .240Providingaffiliatetools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .240

CHAPTER 18: Taxes for the Affiliate Marketer . . . . . . . . . . . . . . . . . . . . . 245SettingUpYourBusinessforTaxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .245

Thesimplestbusinessstructure:You! . . . . . . . . . . . . . . . . . . . . . . .246Thesecondsimplestbusinessstructure:TheDBA . . . . . . . . . . . . .246Thenextlevel:LLCs,corporations,andpartnerships . . . . . . . . . .247

HandlingTaxesonAffiliateMarketing Commissions . . . . . . . . . . . . . .247Federalincometaxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248Federalself-employmenttaxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248Stateandlocaltaxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249Salestax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249

DiggingintoPowerfulTaxDeductions . . . . . . . . . . . . . . . . . . . . . . . . . .250Deductinghomeofficeexpenses . . . . . . . . . . . . . . . . . . . . . . . . . . .250Lookingatthemostcommonaffiliatedeductions . . . . . . . . . . . . .251Checkingoutothercommonbusinessdeductions . . . . . . . . . . . .252

KeepingGoodRecords . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253ResearchingPensionTaxBenefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253ReviewingResourcestoHelpYouwithYourTaxes . . . . . . . . . . . . . . .254

PART 5: THE PART OF TENS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255

CHAPTER 19: Ten (Or So) of the Biggest Pitfalls for Affiliate Marketers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257LookingtotheNextBrightShinyObject . . . . . . . . . . . . . . . . . . . . . . . .257BattlingaLackofFocus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .258

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NotInvestinginYourselfandYourEducation . . . . . . . . . . . . . . . . . . . .259MakingtheTransitionfromContentConsumertoContentProducer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260HavingUnrealisticExpectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260SpreadingYourselfTooThin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .261NotStickingItOutUntilYouAchieveSuccess . . . . . . . . . . . . . . . . . . . .261NotSpendingMoneytoSaveTime . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262NotProtectingYourTrustFlowandReputation . . . . . . . . . . . . . . . . . .262

CHAPTER 20: The Ten Best Free Tools for Affiliate Marketers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267WordPress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .268Elementor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .268Yoast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .269KeywordsEverywhere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270SpyFu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270BlogIdeasGenerator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270MarketSamurai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .271GTmetrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .271SimilarWeb . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272Buffer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273

CHAPTER 21: The Ten Best Paid Tools for Affiliate Marketers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275MarketSamurai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .276KeywordRevealer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .276SpyFu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .277Elementor,AstraProTheme,andUltimateAddons . . . . . . . . . . . . . .277ContentSamurai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .278WPRobot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .280CleanTalk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .280Sendinblue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281AmazonSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281Mailster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .282

CHAPTER 22: The Ten Best Marketing Strategies for Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285GuestBlogging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .285SEOStrategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .286SocialMediaMarketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .286YouTubeMarketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .287EmailMarketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288ContentMarketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .289E-bookPublishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .289

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JointVentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .290MediaInterviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .290SmartphoneApps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291

APPENDIX: TOOLS AND RESOURCES FOR AFFILIATES . . . . .293

INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307

Introduction 1

Introduction

Today many people find the economics of living very stressful. Prices are ris-ing, and wages are either flat or barely rising. It seems that almost everyone is looking for a way to earn extra money. But how do you do that — try to

squeeze a second or third job into your already harried life?

Affiliate marketing can be a solution for many people both young and old. It’s a marketing system that allows an affiliate to earn a referral commission when an online visitor uses his affiliate ID to make an online purchase. It can be worked on either a full- or part-time basis. There is no big financial investment or risk as there would be with a traditional business. We hope the recipe for extra income in Affiliate Marketing For Dummies provides some relief.

While affiliate marketing is a solid opportunity that has allowed thousands to profit (some spectacularly), it is not a get-rich-quick scheme. This book is an antidote to the thousands of internet hucksters who promise you will earn a for-tune by next Tuesday. Affiliate Marketing For Dummies is a solid road map that can help you find your way to internet profit, and it has been an honor for us to write.

About This BookAffiliate marketing is an exciting way to make extra income on either a full-time or part-time basis. You can avoid many of the hurdles of starting a regular busi-ness, like a large investment, large losses, and a multiyear time frame to get established.

This book is designed to give you a realistic plan to earn extra income. It’s intended as a realistic antidote to all of those online ads (which, of course, never work) claiming you can make millions from the comfort of your home by next week without doing any work. We guide you by not only telling you about good free or low-cost tools you should try, but also telling you about the pitfalls (that trap many new affiliate marketers) to avoid.

This book is meant to be used as a reference tool. Feel free to read the chapters in whatever order you choose. You may want to focus your reading on chapters with topics you are not familiar with and go lighter on chapters whose topics you

2 Affiliate Marketing For Dummies

already have a good grasp on. However, if you are a beginner, it probably would make more sense to build your business from the beginning.

As you dip into and out of this book, feel free to skip the sidebars (shaded boxes) and the paragraphs marked with the Technical Stuff icon. They contain interest-ing information but aren’t essential to becoming an affiliate marketer.

You may note that some web addresses break across two lines of text. If you’re reading this book in print and want to visit one of these web pages, simply key in the web address exactly as it’s noted in the text, pretending as though the line break doesn’t exist. If you’re reading this work as an e-book, you’ve got it easy — just click the web address to be taken directly to the web page.

Foolish AssumptionsWe’ve made some assumptions about you, dear reader:

» You already have a blog, a website, or a social media following and you want to make money from what you’re already doing.

» You’re looking for a way to make money that can be worked on either a part-time or full-time basis.

» You have expertise in a topic from your past experiences and would like to make money from it.

» You’re passionate about a topic and would like to make money from it.

» You have an interest in a topic that you would like to investigate and want to make money from your investigation at the same time.

Icons Used in This BookFor Dummies books use small pictures, called icons, to mark certain paragraphs. Here’s what they actually mean:

This icon flags some advice that may shorten your work time, give your affiliate marketing business a boost, or facilitate a solution to a problem.

Introduction 3

A particular bit of advice that we want you to remember is marked with this icon because you may have to use it over and over again during your affiliate marketing career.

Pay attention to this icon, and you can avoid problems that may cause you extra heartache, damage your web reputation, cost you extra money, or delay your success.

Text marked with this icon may provide an advanced solution or bit of knowledge, but it’s not crucial to your understanding of a given affiliate marketing topic.

Beyond the BookIn addition to the material you’re reading right now, you have access to a free Cheat Sheet with articles that will help you further and cement your affiliate marketing success. Check it out at www.dummies.com; just search for “Affiliate Marketing For Dummies Cheat Sheet.”

You can also visit https://affiliatetoolbelt.com/dummies for additional information as well as discount coupons for products mentioned (if available).

Where to Go from HereThis book is written so you can pick and choose the information you need. If you’re an absolute beginner when it comes to affiliate marketing, it’s probably best for you start at the beginning of the book. If you’re already very familiar with a chapter topic, then feel free to skip that chapter.

If you need further help, go to the table of contents or the index, or contact me (coauthor Ted) at dummies@affiiatetoolbelt.com and I will try to point you in the right direction. For the latest discounts, coupons, and updates, go to https://affiliatetoolbelt.com/dummies. Have fun building your affiliate marketing business!

1Getting Started with Affiliate Marketing

IN THIS PART . . .

Discover what affiliate marketing is and how you can profit from it.

Find out why you should become an affiliate marketer. One reason is affiliate marketing allows you to avoid the headaches of traditional business.

See how to avoid the pitfalls and traps that trip up new affiliate marketers and deny them the success they deserve.

Figure out how to use your interests and passions to catapult your affiliate marketing business. You can capitalize on what you already know and profit from it.

Check out the various affiliate marketing programs and networks so you can choose the right ones for you.

CHAPTER 1 What Is Affiliate Marketing? 7

Chapter 1What Is Affiliate Marketing?

An affiliate marketer is someone who introduces others to products and services. The affiliate marketer doesn’t develop the product, ship the product, or handle the payment to the merchant. He simply refers others

to products and/or services offered on the internet, and when a sale is made, he earns a commission.

This chapter gives you an overview of affiliate marketing: how it works, how the internet plays a role, and how to get started.

Getting a Handle on How Affiliate Marketing Works

Referral marketing has been going on for hundreds of years. In pre-internet days, you might have gone to networking events and handed out business cards. The hope was that you would be able to help out a fellow attendee by giving him a lead that would result in a purchase. The attendee you helped with the lead would return the favor. In a sense, referral marketing was a value exchange that could be summarized as “you help me and I’ll help you.”

IN THIS CHAPTER

» Defining affiliate marketing in a nutshell

» Discovering how the internet plays a role in affiliate marketing

» Getting set to become an affiliate

8 PART 1 Getting Started with Affiliate Marketing

However, a lot was left to chance. You weren’t sure whether the cards and leads you handed out would lead to any reciprocal benefit from those you helped. There was no easy way of tracking when purchases were made and the referral sources for those purchases.

The internet changed everything. Now there was an easy-to-use tracking mecha-nism (the cookie) that could show you when a purchase was made, what it was for, and the referrer who was due the affiliate commission.

William Tobin, founder of PC Flowers and Gifts, was the first internet affiliate marketer. He started the PC Flowers and Gifts affiliate program in 1989. He was granted a patent for the idea in 2000. Amazon’s affiliate program was begun in 1996 and quickly grew in size and importance.

The value exchange on the internet is the same as it was with networking events and business cards. The blogger or website owner shows you a new product, helps explain a problem you’re having in a post, or convinces you to buy a program. To return the favor, the affiliate marketer is hoping that you’ll make a purchase through one of his referral links. The cost to the purchaser who buys through an affiliate link is exactly the same as if he went directly to the manufacturer.

When we visit websites and they give us solutions to problems we were having or otherwise help us, we want to reciprocate and help them out. We do this by pur-chasing through their affiliate links.

Whether you realize it or not, practically every blogger, every celebrity, every website, and every company on the internet today is an affiliate marketer. They are all making money day after day from this largely passive means of earning extra income. See that ad on your favorite movie star’s blog? Click on it, and if it’s a pay-per-click ad, your star gets paid. See that link at the end of their recom-mendation? Click on it, and if you make a purchase, they get paid. There are also campaigns that are sent via email or social media. Click on the ad or make the purchase, and in most cases someone gets paid. See those links on someone’s Facebook or other social media page? Trust us; someone is getting paid, and you may as well join the crowd and start discovering how to earn your share.

Profiting from Internet PromotionAffiliate marketing is a performance-based marketing system. It basically means that if and only if a sale is made or a specific action is taken does the referring affiliate marketer get paid. In the following sections, you find out how the internet

CHAPTER 1 What Is Affiliate Marketing? 9

gives you plenty of opportunities for affiliate marketing, how the internet auto-mates the process, and how affiliate marketing is different from other internet businesses.

Multiplying opportunitiesAs we note earlier in this chapter, one of the problems with earlier versions of referral marketing was that there was no way to accurately track purchases and the original referrers who deserved the reward for generating the purchases. The internet changed all that. A system of cookies, or little bits of code stored in your browser and in your affiliate dashboard, is able to track purchases. The cookie can also track the affiliate marketer who promoted that sale so she can be credited and receive the affiliate commission.

Companies just love a system of marketing where they have to pay for that mar-keting only when a sale is made. The salesperson (in this case the affiliate mar-keter) pays all the expenses of marketing (however minimal, like hosting, software, tools, domain registration, and so on). What’s not for a company to love? More and more companies are getting onboard the affiliate marketing band-wagon. So the opportunities for the affiliate marketer to profit are expanding with the growth of affiliate programs.

The internet also multiples the opportunities you have to profit by orders of mag-nitude simply because of the size of the internet audience you can reach easily and economically. Depending on your product or service, your audience may vary from an enormous audience of millions down to a small, specific audience that is look-ing for exactly what you have to offer. In the past it would not be practicable, or economically possible, to seek out and advertise to these small, widely dispersed groups.

In contrast, with the internet an affiliate marketer can potentially put her promo-tion before millions or even hundreds of millions of potential purchasers. The affiliate marketer’s offer of goods or services is available 24 hours a day, seven days a week. Any one of the billions of internet visitors could potentially visit the affiliate marketer’s site 24 hours a day, seven days a week, and make a purchase. In essence the affiliate marketer’s “store” is open for business 24 hours a day, seven days a week.

Automating the money flowNow with the internet, a visitor to an affiliate marketer’s website can click on a link, make a purchase instantly and electronically, and have that order fulfilled and the physical product shipped within days by the company. The affiliate can

10 PART 1 Getting Started with Affiliate Marketing

both track the sale and depend on payment at the merchant’s or affiliate net-work’s next payout date. If the product is digital, often its delivery is within minutes.

Setting up a way for people to pay on your website used to be a long, complicated process, sometimes requiring you to apply for and qualify for merchant status. Now it’s a simple, almost instantaneous process. The affiliate program you’re considering usually has a number of banners, images, and graphics that you can simply copy and insert on your web page. You choose the sales piece that best fits with your site, product, and promotion. Copy the link the company generates, which has your unique affiliate ID, and paste it on your web page or promotion where and how you want it to appear. (Flip to Chapter 7 for more details on setting up a website for your affiliate marketing business.)

In addition to cookies facilitating the tracking of purchases and referrers, and directing the affiliate commissions to be paid to the right affiliate marketers, other changes facilitated money flow. Electronic payment vehicles such as PayPal became widespread and easy to use. Today it’s simple to put a PayPal payment button on your site to facilitate your customer making a purchase. PayPal can track the purchases, process refunds, and take care of other parts of the purchas-ing puzzle.

There are also many “shop” building programs that can automate and handle many of the chores of setting up your “shop” where you can offer your affiliate products. For example:

» Shopify (www.shopify.com/), a shop building application, handles many of the technical and design aspects of setting up your shop. They have a library of templates that you can use and modify to make them your own. Depending on your goals, this can dramatically speed up building your affiliate business.

» WooCommerce (https://woocommerce.com/) is another “shop” building solution. They call themselves the e-commerce solution. They are probably the largest shop and e-commerce solution around. The program is open source and built on the WordPress platform, so they are sure to be around for quite some time. (See Chapter 7 for an introduction to WordPress software.)

Since WooCommerce is open source and the largest shop building or e-commerce solution, many software vendors and developers offer integra-tions, hooks, and extensions that integrate their product to work with it or extend its functionality. Over 400 extensions plus an equal number of integrations handle store chores such as payment, returns, shipping, market-ing, shop management, and so on. There are both free and paid extensions and integrations.

CHAPTER 1 What Is Affiliate Marketing? 11

Distinguishing affiliate marketing from other internet businessesThere are many different ways of making money on the internet, and it seems new ways of making money are being developed every day. For instance, there are people who develop internet marketing programs and strategies for both big and small companies. Computer coders develop the software and plug-ins affiliate marketers use. Freelancers who develop a skill in writing, web design, graphics, and so forth offer their services for hire on sites like Freelancer, Fiverr, and Upwork. There are closely related ways of making money like digital marketing, which is developing online marketing campaigns and strategies for companies. Even in this book we describe different variations of affiliate marketing.

One main way affiliate marketing differs from other forms of making money on the internet is that, with a few exceptions, the affiliate marketer doesn’t develop, build, pack, or ship the product. He simply acts as the “referrer,” exposing the purchaser to a new product or service; when the sale is made, the affiliate mar-keter makes a commission.

In Parts 1 and 2, we focus on the affiliate marketer who is offering a product or service of a company and earning a commission. Thousands, if not millions, of companies offer affiliate programs — companies like Amazon Affiliate Program, eBay Partner Network, Sears, Target, Walmart, and many others. We focus on this flavor of affiliate marketing in these parts because we feel it is easiest to under-stand, there are thousands of companies offering affiliate marketing programs, and there are millions of products to choose from to promote.

The one criticism of offering physical products is that the commissions are lower than other forms of affiliate marketing. Another flavor of affiliate marketing we discuss in this book is digital products. Most often these are either tools or courses for other affiliate marketers to use in developing their business. The advantage of this flavor of marketing is that the commissions are usually a lot higher. They can range from 25 percent to 75 percent of the selling price. The disadvantage of this flavor of marketing is that it draws other affiliate marketers to it who probably have more experience and more skill than you, so competition is tougher. The size of your potential market, or “hungry crowd,” is also a lot smaller. Part 3 offers examples of this type of affiliate marketing.

The next flavor in affiliate marketing is discussed in Part 4, where you develop a service and offer it to other affiliates to promote and market. In a sense you become the “company” offering the affiliate marketing program. You’re recruit-ing other affiliates to promote your product, in effect multiplying your promo-tional efforts by the number of affiliates who join your affiliate program. You can also offer your product to affiliate marketers through an affiliate network. If you

12 PART 1 Getting Started with Affiliate Marketing

have a great product, promote it well, and attract a large number of affiliates who promote your product to others well, you can make a lot of money. But first, you have to develop a compelling product other affiliate marketers will buy. Secondly, you must have already mastered all of the steps in affiliate marketing and have your own affiliate marketing setup.

If your goal in the future is to develop, introduce, and market your own product, that’s great. But make it a step you take after you master the necessary steps in the easier “flavors” of affiliate marketing described in the first parts of this book. That will set you up with a firm foundation as you plan more ambitious (and potentially more profitable) affiliate marketing pursuits.

One thing you’ll notice as you do your research is that there are hundreds, if not thousands, of “review sites” claiming to be lists of the top ten affiliate networks, themes, or whatever you’re looking for. It’s important to realize that most of these sites are affiliate marketing sites that earn a commission when you click on a link for one of their recommendations. New affiliate networks, small affiliate networks, or ones with some problems may have a greater need for people to pro-mote their product and be willing to pay a higher commission. We’re not saying any particular list is skewed in favor of higher-paying choices, but that is a dis-tinct possibility. This is an internet safety tip that can help you in a lot of your searches. Have you ever searched for a stereo receiver or some other consumer good and found the largest and most well-regarded manufacturers missing from a list of a source’s top ten? But somehow the stereo receiver from a company you’ve never heard of is at the top of the list. Just consider the possibility that financial motivation may have skewed the results, and stay smart.

Preparing to Start Your Affiliate Marketing Business

We’ve all heard maxims like “failing to plan is planning to fail.” You know what? They are right. If you don’t prepare correctly, you can either doom yourself to affiliate marketing failure or cause yourself a lot of delays and problems that you have to help yourself out of. This section shows you how to prepare effectively for your new affiliate marketing business.

Setting expectationsDespite what you may have read on the internet from various “gurus” selling their latest magic affiliate money-making course, becoming an affiliate marketer is not a get-rich-quick scheme. It’s a solid get-rich-slow plan. We’re not talking