When beginning your affiliate marketing career, you’ll want to cultivate an audience that has very specific interests. This allows you to tailor your affiliate campaigns to that niche, increasing the likelihood that you’ll convert. By establishing yourself as an expert in one area instead of promoting a large array of products, you’ll be able to market to the people most likely to buy the product.
A page on your website or blog that informs site visitors what you do with their personal information – whether received via contact forms, etc or through any anonymous tracking methods. A website is required to have a privacy policy by many merchants to participate in their affiliate program. It is also required to use Google AdSense and Google Analytics.
Your web host is responsible for hosting all of the files necessary for your site to function. When choosing a web host you’re going to have a variety of options to choose from. Some will be dedicated towards sites with large volumes of traffic, while others will specifically host WordPress sites. We offer a detailed breakdown of hosting options here.
Are you an expert in conversion optimisation, sales funnels, SEO, website building, copywriting and proofreading? If so, you have a better chance than most newcomers. Chances are, if you’ve only just heard about affiliate marketing, you don’t have all or even any of these skills just yet. In this case, settle down for the long haul. This is going to take some time, but you will get there – as long as you don’t give up along the way!
So an effective affiliate marketing program requires some forethought. The terms and conditions have to be tight, especially if the contract agreement is to pay for traffic rather than sales. The potential for fraud in affiliate marketing is a possibility. Unscrupulous affiliates can squat on domain names with misspellings and get a commission for the redirect; they can populate online registration forms with fake or stolen information; they can purchase adwords on search terms the company already ranks high on, and so on. Even if the terms and conditions are clear, an affiliate marketing program requires that someone be monitoring affiliates and enforcing the rules. In exchange for that effort, however, a company can access motivated, creative people to help sell their product or services to the world.
Websites and services based on Web 2.0 concepts—blogging and interactive online communities, for example—have impacted the affiliate marketing world as well. These platforms allow improved communication between merchants and affiliates. Web 2.0 platforms have also opened affiliate marketing channels to personal bloggers, writers, and independent website owners. Contextual ads allow publishers with lower levels of web traffic to place affiliate ads on websites.[citation needed]

Almost nobody buys just one thing on Amazon at a time: This is one of my favorite aspects of marketing for Amazon. When someone clicks through your link to purchase your recommendation, they will probably purchase additional products. You get a commission for everything they purchase after they click through your link (more about this later in the post).
One great traffic driver for me has been my new Travel Resources page. I put it up less than a month ago, created some pretty pins for it and it has done superbly well on StumbleUpon and Pinterest (racking up over 1.5k repins). This boost in traffic has helped substantially increase my conversions for Amazon, which was not a huge earner for me before. So, traffic + affiliate links = happy money dance.
Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer. The two forms of marketing are differentiated, however, in how they drive sales, where affiliate marketing relies purely on financial motivations, while referral marketing relies more on trust and personal relationships.[citation needed]

Although affiliate marketing is an incredibly effective online strategy, many businesses have yet to take full advantage. This presents a huge opportunity for you to gain an extra edge over the competition, but you’ll need to move quickly. As we saw in the statistics above, more and more companies are engaging with affiliate marketing to drive revenue. If you don’t incorporate an affiliate program into your marketing strategy, then you’re likely to be missing out on sales.
Being in Australia, I’m not required to do anything by the law (although I hear talk that there may be changes around this). I don’t disclose every single Amazon link on my photography blog in a direct way but do I have a disclaimer/disclosure page on the blog. When I’m doing a ‘best seller list’ always include a disclaimer on those posts as the whole page is filled with affiliate links. I have also written numerous times on DPS about how the links to Amazon earn us money and help the site to keep growing and be free.
Ohhh making that first affiliate sale might be the greatest feeling ever, even if it’s 18 cents. Here’s the sad thing though: most networks will have a minimum payout threshold that’s typically $50 or $100, so it may be a LONG time before you see the money. I used to be an affiliate for BlueHost, and after my first sale, I was stoked to see $65 in my affiliate report!! Legitimately, I felt like a millionaire. Unfortunately, BlueHost has a minimum payout of $100, so that money went untouched until I made another sale, but even then…
Once you know “What is affiliate marketing?” you can begin to consider whether it’s a good tactic for your business. You need to work with professionals once you can define affiliate marketing. They know the most common mistakes and can provide helpful affiliate marketing tips. You don’t want to waste your money advertising on another’s web site, make sure you’re getting on a profit return on your dollars. Affiliate marketing is another tool for your business to compete in today’s tech-hungry world. But like other tools, if not properly used you can even damage the traffic heading to your site. A poorly designed, poorly placed advertisement can make viewers think twice about your competitor. You want to send your competitor an ad that makes them a little scared. Many businesses have exploded due to affiliate marketing in your company could be next.
The truth is much more complicated. It’s true that affiliate programs can be sources of phantom revenue and off-brand promotion. But managed properly, they can also make up 5-15 percent of online revenue and have an ROI among the highest of any online channel. CMOs are realizing that affiliate marketing can be an important part of their arsenal and are integrating the channel into their overall marketing strategies.
So, there you have a comprehensive answer to the question – what is affiliate marketing? It can benefit a wide range of businesses and delivers a strong return on investment. The setup requires some initial work to define program terms and create promotional content for affiliates to use. However, once this is completed, affiliate marketing can be a relatively passive source of revenue.

There’s something about an image that people are drawn to and that makes them click. I began to experiment with linking images to Amazon with my affiliate links, setting up a tracking code to test whether they converted. While they didn’t convert as well as text links, they did convert in some instances and to this day I still use this technique most of the time.
In February 2000, Amazon announced that it had been granted a patent[18] on components of an affiliate program. The patent application was submitted in June 1997, which predates most affiliate programs, but not PC Flowers & Gifts.com (October 1994), AutoWeb.com (October 1995), Kbkids.com/BrainPlay.com (January 1996), EPage (April 1996), and several others.[13]
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