Affiliate Marketing

What is Affiliate Marketing?

Affiliate Marketing is one of the oldest and smartest forms of marketing where you promote or refer certain products and services on behalf of a business online, and when anyone buys those products or services using your reference, you get paid in the form of commissions from the business.

Millions of people from all around the world earning quite a  handsome money out of this.While some people consider this as a passive or additional income to their main source of income, whereas some people are making their lives out of it  by leaving their current job.

Reason?? They are earning way much better than what they are earning from their regular 9-5 job.(Believe me or not it is true!!!)

According to a research done by Rakuten Marketing Affiliate Marketing Industry to Grow to $6.8 Billion Over Next Five Years (between 2015-2020).

If you are interested to start your own Affiliate Income Business.You are at the right place,because in this post I will explain all aboout it in detail.After reading this article you will have an idea of affiliate marketing, how it works and how you can start your own affiliate marketing business.

This post will be bit lengthy because I will be covering as much information as possible.So your patience will be much appreciated.I will try my best to make it worth your time.

I have categorized this article into several sections to make this a better reading experience for you.Feel free to jump into any sections at any time by clicking in the navigation section below.


What is Affiliate Marketing?How Does it Work?

Let's see what Wikipedia has to say about Affiliate Marketing.

Affiliate Marketing

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts.

Now take the following illustartion as an example to understand this further.

Let’s say “Susan” is a health conscious girl who has been reading a lot recently about Bodybuilding,Getting Slim and other stuff online.

She came to a website (let’s say written and owned by Brian) and read an article which is about all benefits of cycling.Just when she was about to finish reading the article she saw an ad about an Exercise Bike just below the article and decided to check that out by clicking on that ad.The ad took her to another website,which is all about Fitness products Business (Let’s say “Delta Fitness Company”-an imaginary name made up by me off course) selling online.

Susan” likes their products and finally ends up buying some products from that website. And this makes some money for Brian, which he will receive from Company "Delta" for generating a sale of their product.

See the graphic below.Can you relate the above example?

  • Online Shopper-Susan.
  • Affiliate Website-Maintained and Promoted by Brian.
  • Merchant Site-Delta Fitness Company.
  • Network-Websites that have offers for the affiliate to choose from and also takes care of the payments.(I will explain this later in this post).
What is Affiliate Marketing?

History Behind Affiliate Marketing

Affiliate marketing concept was first started by “William J. Tobin” who owned “PC Flowers & Gifts”in 1989.His company PC Flowers and Gifts in partnership with Prodigy Network (Partly owned by IBM.) applied for a patent in 1996.They were issued one on Oct. 31, 2000 for affiliate marketing and tracking.

Bill-Tobin-The Father of Affiliate Marketing?

Meanwhile, in 1994, CDNOW also launched their BuyWeb program. The idea was simple.Music sites could review albums and redirect their visitors directly to CDNOW where they could purchase the albums.

Then came the Amazon..

Amazon joined the party in 1996 with their Amazon Associates Program. Although they are not the first to start an affiliate program, but were certainly the first to attract global interest. Their model involved paying a commission as a percentage of the sold product.All most of the companies followed this model later.

Amazon Associate Program

Same year two other companies also started their affiliate business.Johnson and Samuel Gerace established BeFree, and Linkshare (now Rakuten Affiliate Network) was founded by Stephen and Heidi Messer

Success made by these companies caught the attention of other comapnies as well.More and more comapnies got into this business and the rest is history.Today the Affiliate Business itself is an industry.

Here is an infographic showing the history of Affiliate Marketing since its inception.

History of Affiliate Marketing

Does it Really Work?How Much Does it Cost to start an Affiliate Marketing Business?

Off course it does.Affiliate Marketing is not a Billion Dollar Industry just like that.People from all over the world are earning from affiliate marketing today.

And the best part is it is very cheap.All you need is to create a website with rich and useful contents related to any topic you like and you could make money out of this.

Sounds too simple to be true?

Yes..it is that simple.Anyone from school student to a 65+ years old grandmother, from a working person to house mom can earn from affiliate marketing.

​Not only this..

It does not take a large amount of money to invest.All you need will be a Website and  Hosting Plan.And you are set to go.

How Much Money can anyone make from Affiliate Marketing?

Well,it depends on many things.Knowledge about Affiliate Marketing, whether you are a beginner or you have some knowledge about it, how much time and effort you are giving to this business and others.

Whereas some people are making  quite a well from Affiliate Marketing,some are earning so well that they have left their full-time job just to concentrate more on this.I have seen some people earning $100 per month, some $10000 as well.

Affiliate Marketing is not a quick rich scheme.Consider this just like any other business.You need to put your effort in making your business.

But on thing is for sure.If you are dedicated and consistent enough you will be successful.

 How Can You Start Your Own Affiliate Marketing Business? What is the Best Way to Learn Affiliate Marketing Online?

Short and Simple answer.Internet.

All the resource and guide you need to start your affiliate business is easily available online. Start interacting with other affiliate marketers who are in this business for quite some time and try to get their insights of what and how they are doing.Keep learning about what is happening in the Affiliate Marketing Industry around you and make your strategies.

Let's make this simple for you.To start your affiliate business do these simple three steps in the beginning.

1. Select a topic of your choice.In internet marketing, we call this Niche.

2. Create a Website(Read How to Create a Website with WordPress and start Blogging)

3. Start writing articles on your topic and keep promoting relevant products related to the topic.

At Build Your Referrals,we share affiliate marketing tips and guides to help you to get started.Subscribe to our blog posts for newsletters and articles about affiliate marketing.

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