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Affiliate Marketing: How To Get Started

We live in the era of brands and influencers – no one would deny it. But before a business becomes a brand, it often invests heavily in marketing. Is a return and high revenue guaranteed? Not really. The same goes for content creators who put in lots of effort to establish their online presence but don’t always see the results they expect.

But what if brands and content creators could collaborate to amplify each other’s reach (and fame) without wasting money? Sounds surreal? In reality, there is a way: affiliate marketing programs

The only issue with affiliate marketing is that many believe it’s too complicated to get started. Sure, when you’re at the early stages of your journey, you have all kinds of questions that begin with “Why,” “What,” and, of course, “How much?” It’s simply overwhelming.

Yet, when you find answers to all of them, you discover that affiliate marketing is one of the best strategies you’ve ever used. And we’re here to prove it!

What Is An Affiliate?

Let’s start with the most basic question: what is an affiliate? An affiliate is a person or company that promotes another business’s products or services in exchange for a commission on sales or leads generated through their marketing efforts. Affiliates (or affiliate marketers) can be bloggers, influencers, or even large media companies that have an audience relevant to the products they promote. Some people even recruit their own customers as affiliates. 

Here’s an example: a pet blogger might join an affiliate program for a pet food brand, earning a commission each time a reader purchases through their unique link. This win-win strategy allows businesses to expand their reach without upfront advertising costs while affiliates earn money by sharing products they genuinely recommend.

The Benefits of Running an Affiliate Program for Your Business

So, what are the reasons (aka tangible benefits) for running an affiliate marketing program if you have a business? How does a relationship with a content creator or a blogger give your brand a competitive edge? Let’s see:

The Benefits of Running an Affiliate Program for Your Business infographic

♻️ Cost-effective marketing: You ONLY pay for converted customers, so no more unreturned investments, at least not when it comes to affiliate marketing. Plus, it’s a cost-effective way to scale, as you don’t have to spend money on a bunch of extra marketing activities that might not pay off.

♻️ Increased reach: If you want to “shake hands” with more customers, the best way to do it is with an introduction from someone they trust. Affiliate marketers usually have a loyal following, and their blog is a trusted source for their subscribers. As a result, working with affiliates allows you to access audiences you might never approach otherwise. 

♻️ Low risk: In fact, there is no risk at all. Since you pay only for conversions, there is no chance of losing money. Easy, huh? 

♻️ Enhanced brand recognition: If people repeatedly see or hear about companies and physical products through influencers’ websites and social media, they will recognize these easily later. This is how you achieve recognition. The more people hear about you, the more you can leverage the power of word-of-mouth. So, there is a much higher chance that your customers will refer to your brand when talking to others.

Why Be an Affiliate?

The most basic yet fundamental question for content creators sounds like this: Why would you choose to be an affiliate marketer? Before we list all the advantages, it is worth looking at two main entry points for any affiliate: 

🧑‍💻 You are a content creator who wants to boost your income. You have an established audience, and you know this audience’s interests. Therefore, you can start promoting products and services with an affiliate link attached. 

🫵 You want to start making some extra income, and you know that affiliate marketing works well for this kind of goal. Even if you don’t consider yourself a content creator, you can still promote some brands.

Now, let’s see the advantages you can expect as an affiliate: 

The Benefits of Becoming An Affiliate Marketer infographic

✅ Low initial costs: You don’t have to create a product and think about all the layers necessary for a successful business. On the contrary, you can start with just a website, blog, or social media presence. Your main goal is to make people interested in your partner’s products or services through your own authentic voice. That’s why this doesn’t require any serious initial investment.

✅ Passive income (or quite active): Yes, that’s what you already know, but we will stress it one more time. While affiliate marketing is often considered an option to earn extra money, you can also make it your primary source of income. We’ll cover this topic fully in another section (wait for it). 

✅ Flexibility: You could hear how affiliate marketing is often called the “earn money while you sleep” approach. Well… it is not exactly true: you still have to create content (unless you are a sleepwalker content creator). But it still allows you to be flexible and work on your own terms. Tip: If flexibility is a priority for you, make sure you check the requirements of the affiliate networks you’re collaborating with (if any). 

✅ Earn as much as you wish: Affiliate marketing is a performance-based tactic. So, the more conversions you get, the more you earn. If you convert one person, you’ll get paid just for that. But if you are consistently good, you generate traffic and interest, and your affiliate sales are soaring, then you can expect to be in the top league of affiliates (of course, there is no such term, but you get the idea, right?). Besides, every well-established brand will reward you for your extra efforts and great results.

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What Types of Affiliate Marketing Can You Use?

As you know, the relationship between a business and its affiliate marketers can range from love at first sight to outright frustration. The impression often depends on the type of your affiliate marketing collaboration. Let’s break down the three main options that are widely used:

#1 Unattached Affiliate Marketing

Unattached affiliate marketing means promoting products or services without personal experience, expertise, or connection. It often involves paid ads, SEO, and general content. 

Some would say it is like a casual coffee date – there’s no deep commitment. It makes sense: you promote a product or a service without any connection to them. You’re basically a middleman, mostly relying on search engine optimization or PPC campaigns to drive traffic to the merchant’s site. 

An example of this could be having a website online and investing heavily in SEO. By attracting organic traffic to this site, its owner can integrate affiliate links to some products or services. 

Here is an example of an Independent article that reviews the best yoga mats. Yes, they mention that they’ve invited a pro yogi to test these mats. But overall, we understand that Independent has no strong connection to the yoga community.

affiliate marketing example article independent sponsored links
Source: Independent

In this article, you can see a selection of mats with affiliate links next to them. 

example affiliate links independent yoga mats
Source: Independent

Another great example is a blog called The Strategist. While their writers test some of the products, they often simply consult with the experts. So, they don’t have any particular expertise themselves. Instead, they “borrow” it and earn affiliate marketing commissions.

example affiliate website strategist affiliate link commission
Source: The Strategist

This type of affiliate marketing is a great choice if you’re looking for low-risk and less time-consuming involvement. Just remember, with great power comes… no responsibility for the product’s quality (if you have no one to test it for you).

The good thing, though, is that you don’t need an established presence for this type of collaboration. But before you jump into unattached affiliate marketing, remember that it is more of a passive income-generating activity than a way to earn really high commissions. 

So, if you need extra income but don’t want to get involved in the whole “affiliate partners” thing too much, this is your choice. As for businesses, you can add this type of partnership to your affiliate marketing program, but it shouldn’t be your main focus.

#2 Involved Affiliate Marketing 

Involved affiliate marketing means promoting a product or service that the affiliate has personally used and loved. It is also known as related affiliate marketing. 

So, this one is a bit more personal – okay, it is a lot more personal. Here, you promote products or services that you are genuinely passionate about. It’s like recommending your favorite hidden gem to a friend – you know it’s good because you’ve tried it. However, to turn it into a successful campaign, an affiliate’s site or social media should be well-optimized for a specific audience. 

This type of digital marketing involves hard work: creating content, sharing personal experiences, and building trust with your audience. Affiliates should give their followers honest (!) recommendations. As a result, they earn commissions from sales and get to geek out about products they love – what’s not to like? 

An interesting example is GearLab. Why? They position themselves as a place where you can get “the world’s best hiking gear reviews.” They test all the products and don’t accept sponsored content. That’s precisely why it is called involved affiliate marketing because the level of involvement is pretty serious. 

gearlab example involved affiliate marketing commission reader reviews
Source: GearLab

So, of course, when guys like these publish a selection of the best rooftop tents, you trust them. And most (if not all) of the products they mention will have affiliate links attached to them – we’re talking affiliate marketing, after all.

affiliate link example top 13 rooftop tents gearlab
Source: Gear Lab

When it comes to related affiliate marketing, you need to show your expertise. If you can be quite indifferent about products in unattached affiliate marketing, here, you have to be aware of your real likings. In the end, this is how you build a reputation for your personal brand. 

#3 Relevant Affiliate Marketing 

Relevant affiliate marketing means promoting products or services related to the affiliate’s content or audience interests, even if the affiliate hasn’t used them personally.

This option is in between the previous ones: not too impersonal, not too close to your heart. In a way, it is just a service. You promote a product in your niche, even if you haven’t used it yourself. It’s like being a matchmaker: you know the needs of your audience and connect them with a product or service that can meet those needs. 

An example of this can be pretty much any influencer. Let’s say there is someone with a moto blog. They might recommend a service for getting custom pipes to their audience, even if they haven’t tried it themselves. 

How Can a Brand Start Running an Affiliate Marketing Program in 5 Steps

Let’s get to the main question: How do you start affiliate marketing for companies? Here’s your guide to creating your first affiliate program: 

Step 1: Check Your Budget and Define Your Goals

Before looking for affiliate marketers, make some preparations: understand what you want to achieve with your affiliate campaigns. But even before that, you have to define your budget and set realistic expectations. Then, move to setting your goals. 

What is your ultimate objective? Are you looking to increase sales, boost brand awareness, or enter a new market? Maybe you learned about how low-cost it is to start affiliate marketing campaigns and want to test them. Knowing your goals will help you design a program that won’t disappoint you. 

Step 2: Choose Affiliate Program Software

Selecting the right software, as they say, can make or break your affiliate program (and will certainly affect your revenue). For example, you can choose Referral Factory, which is not only advanced but also very easy to use.

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affiliate marketing software referral factory dashboard

No matter what tool you pick, ensure it has proper tracking, an analytics system, and a dashboard where affiliates can access and manage their efforts. 

affiliate marketing campaign analytics software referral factory

Step 3: Identify Your Ideal Affiliates

Think about who would make great affiliate marketing partners to promote your products. These could be bloggers, influencers, content creators, or even other businesses. The key is to find affiliates whose audiences align with your target market. In any case, we always recommend starting small. But later, try aiming for all three types of affiliate marketing we’ve mentioned earlier. 

Someone might have a logical question: Isn’t an affiliate network the easiest way to find proper affiliates? This option can be useful, but, at the same time, it has many downsides, from high costs and less control to reliability issues and click fraud. Still, you can take a look at affiliate networks to understand what affiliate marketers can offer. Yet, don’t forget that there are many other “risk-free” options.For example, at Referral Factory, we have a marketplace where all our clients can publish their affiliate marketing campaigns for free. Then, affiliates can easily join your program, even if they haven’t heard about your brand before.

referral factory affiliate marketplace affiliate network

Step 4: Set Up Your Affiliate Program

It’s time to define all the rules, choose the rewards, and start your affiliate marketing game. From this moment on, you are going to be actively involved in digital marketing, so it is better to polish every single point of your affiliate marketing program. 

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If you need help, it’s okay! Test different approaches and see what works for you. Besides, if you choose proper affiliate marketing software, you can ask for support and training from them. 

affiliate recruitment form builder affiliate marketing software referral factory
affiliate marketing program recruitment form for affiliate marketers easy affiliate link referral factory

Step 5: Create Marketing Materials

Provide your affiliates with the tools they need to make more sales and money. This includes banners, links, product images, and promotional content – anything they can use on their websites and social media. 

The easier you make it for affiliates to promote your products, the better results you’ll see. Ensure that all materials reflect your brand identity and messaging. Remember – your profits will depend on the quality of these. 

If you have a large-scale affiliate marketing program, you can work on SEO to make sure your affiliates can access everything they need through the search engine.

fiver affiliates example affiliate resources marketing materials
Source: Fiverr

How to Get Started as an Affiliate? 

Okay, here we are. How, in the world, do you start all this affiliate marketing thing? Let’s get started (pun intended) with the most important steps you should take:

Step 1: Choose Your Niche Understand Your Aims

If you look at most affiliate marketing guides, they will always tell you to choose your niche first. But wait a moment; that’s not the best starting point. Before you even think about the niche, you need to find out what your intentions are. 

You can check tons of sites and get to the bottom of search engines, but none of them will know YOUR objectives. So, the first thing you want to do is to understand what you’re aiming for:

⚡ Do you want a small passive income? 

⚡ Do you feel like you can turn affiliate marketing into your full-time job?

⚡ Do you only want to promote the products you genuinely believe in (see the types of affiliate marketing above)?

⚡ Are you looking to build a brand or just make quick money?

⚡ Are you interested in a particular industry or product category?

⚡ Do you have a network or audience to tap into?

Once you turn all these questions into answers, you are ready to start your affiliate marketing journey! 

Step 2: Research and Select Your Niche

Once you’ve nailed down your goals, it’s time to choose your niche. It can be anything from fitness equipment and eco-friendly products to tech gadgets and fashion. The key is to pick something you, as an affiliate marketer, are genuinely interested in and have some knowledge about. 

Why? Because it makes creating content and staying motivated much easier!

Step 3: Join Affiliate Programs With Clear Rules and an Affiliate Link Tracking

Now that you know your niche, the next step is to find affiliate programs. Look for reputable brands that offer products or services related to your niche. Joining them is very easy and doesn’t require much from you. 

Yet, try to be selective to make the whole affiliate marketing process more pleasant and earn more money. If you choose a program that has clear requirements and offers affiliate link tracking, you will simply make your life much easier.

affiliate dashboard referral factory

Step 4: Create Quality Content & Start Promotion

With your niche and affiliate programs in place, it’s time to create content. Whether you’re doing affiliate marketing through your websites or social media, be active. Create blog posts, videos, or SM publications and promote a product or service you are affiliated with. 

It is all about how enthusiastic you are. You don’t have to sell something all the time. Instead, show how you’re using the product/service, be honest about your experience, and then drop your discount code in a natural way.

Step 5: Build and Grow Your Audience

Building an audience is crucial for affiliate marketing success if you want to work in marketing in the long run. Use SEO, social media, or email marketing, create a website, and utilize other strategies to attract and engage your target audience. Besides, don’t forget to optimize your efforts after checking out your analytics.

How Affiliate Marketers Make Money and How Much?

Affiliate marketers earn by promoting and selling products… This could be the answer. Well, yes, but it is like looking at affiliate marketing through a tiny hole – without seeing the bigger picture. There are actually 5 ways for affiliate marketers to make money: 

  • For sales: The most common way to get paid is for each purchase; 
  • For leads: Once a lead is generated, an affiliate marketer gets the money; 
  • For action: This could be a signup or a subscription through an affiliate link;
  • For install: When users install software, affiliates get paid; 
  • For click: The affiliate is paid every time someone clicks on a unique affiliate link that leads to an affiliate product. This isn’t the most common approach.

Most affiliates get paid for making sales. But different companies have different definitions of a conversion, so make sure to check it. Yet, overall, every affiliate marketing campaign works as follows: an affiliate link is clicked, the purchase is made, and an affiliate marketer gets paid – an easy equation. 

Now, how much money can affiliate marketers actually make? The answer varies widely, and there is no universal number. Some affiliates earn a few hundred dollars a month, while others can make four, five, or even six figures. Some stats say that, on average, an affiliate marketer makes $8k monthly by referring customers. 

However, it all depends on your niche, your popularity, the amount of traffic, the quality of the leads, and the commission rates offered by a company that runs an affiliate program. Successful affiliate marketers often diversify their income streams and use multiple methods to maximize their earnings. After all, you can monetize your content through SEO-friendly websites, social media, email marketing, and dozens of other channels.

What Results Can Businesses Expect From Affiliate Marketing?

Affiliate marketing can be a powerful tool for brands, but what results can your company realistically expect? Can you sell more products? The outcomes will vary based on factors like your industry, product type, and the quality of your affiliate partners. 

The first things you will see rather quickly are short-term gains. You will most likely notice a quick boost in traffic and sales once you start an affiliate program, especially if you partner with well-known affiliates. 

However, the real value often comes from building your own network of loyal affiliates who consistently put efforts into promoting your products. That’s when you can see the real long-term results.

Still, when can you expect the first results? Of course, it depends. But the general rule of thumb is:

👍Affiliate program setup and recruitment: 1-3 months; 

👍First sales: Could be right after the setup, but can also take up to 6 months;

👍Long-term growth & affiliate campaign promotion: 6+ months. 

During all these phases, you can expect better brand exposure, a surge in sales, and increased conversion rates. 

Is Affiliate Marketing Profitable for Brands?

Yes, profitability is one of the cornerstones of affiliate marketing. The way brands benefit from affiliate marketing is very straightforward: an affiliate promotes your product or service, and after people make a purchase, you pay a commission to your affiliate. 

Affiliates both help sell these products/services and make them more visible to more people through their websites or social media. As a result, you can’t really waste your budget because you are paying after the conversion (whether it’s a purchase or an install). Besides, it is quite a low-cost tactic compared to PPC or influencer marketing.

Still, how much can your company actually make? In general, brands see a 10-25% increase in sales. However, in some industries, sales growth can be much higher. 

For example, a company selling high-ticket items, like electronics or luxury goods, can see a significant revenue boost even with fewer sales, thanks to the higher price points. On the other hand, a company selling everyday items might need a higher volume of sales to get to high earnings. Again, a lot depends on how well your affiliate program works.

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FAQ

What Does It Mean if You Are an Affiliate? 

Being an affiliate means promoting a company’s products or services and earning a commission for each sale or lead generated through your marketing efforts. Affiliates are often considered middlemen, helping connect potential customers with the company’s offerings. But in reality, an affiliate also builds their personal brand.

What Is an Affiliate Marketer to a Company? 

An affiliate is essentially a partner to a company that helps promote its products or services. In return, the affiliate gets paid a commission for every sale, lead, or action generated through their marketing efforts. It’s a mutually beneficial partnership – companies get more exposure and sales, while affiliates make money by helping to drive business growth.

What Is Affiliate and How Does It Work? 

Affiliate marketing is a popular online strategy where brands collaborate with affiliate marketers to promote their products or services. Here’s how it works:

  • A company partners with an affiliate marketer who agrees to promote their product or service. Affiliates can be bloggers, influencers, website owners, or anyone with an online presence.
  • An affiliate marketer promotes the products/services using special tracking links provided by the business. These links are unique to each affiliate and track all the traffic and sales generated through them.
  • When a customer clicks on an affiliate’s link and makes a purchase, the transaction is tracked back to the affiliate.
  • The affiliate earns a commission for the sale. The commission structure can vary – it can be a percentage of the sale price or a fixed amount per sale.

What Is an Affiliate Example? 

Let’s say a popular fitness blogger writes about a healthy lifestyle. They could become an affiliate marketer for a sportswear company. This blogger can create a post about their favorite workout gear and include affiliate links to specific products on the company’s website. 

When a blogger’s audience clicks on these links and purchases the products, the blogger earns a commission on those sales. This is a simple example of how affiliate marketing works in practice.

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