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What Is Affiliate Marketing

And How Does it Really Work?

I want to teach you guys what affiliate marketing is. So I'm going to show you guys the basics and fundamentals. Just explain how it works and I'm going to hop into my computer actually. And show you guys some real examples and show you step by step how people are using affiliate marketing these days to make money online. And trust me when I say this, everyone does affiliate marketing, literally everyone.

All the famous YouTubers, all the tech reviewers, people on Instagram, all those fitness people. Big companies like Uber, Lyft. Blogs like Smart Passive Income. And even small food blogs, "small" food blogs do affiliate marketing. So, let's just hop into the computer so I can live you guys an actual click by click, step-by-step on how affiliate marketing works and what it is. Alright so we have transported inside of my computer using a little technology called Magic. And now I'm going to show you guys step-by-step some real world examples of how affiliate marketing works and how it is used in the real world. But just to get things started, a basic description at its core of affiliate is that it is just referrals, okay. So affiliate marketing it's kind of a fancy term for just referrals. It's basically referring people to products and services of companies that are not your own and then receiving commission if those people sign up or take action upon your referral. Usually through a link. 

Basically, Amazon Associates if I just go right here, it is Amazon's affiliate program. Let's just log out of that real quick. So Amazon Associates is Amazon's affiliate program. And as you guys can see, earn up to 10% advertising fees with a trusted e-commerce leader. So if you join Amazon Associates which you guys can do today. It's completely free but you might need to have a website in order to get approved. Some people are able to without it. But I would have a website just in case. Alright guys so if you log in and then you just look up products for Amazon Associates that you can promote.

As you can see here in my article we have the M50x. And all you have to do is click here, and then get link which basically is your personalized tracking link that you can include in your videos, on your website, on your landing page. And then this link is personalized to your account. Now what that means is it has a tracking code through cookies. Where if somebody clicks that link it's gonna be tracked back to you. And for Amazon Associates at least, if somebody buys anything from Amazon, not just the product which is the headphones. If they buy anything within 24 hours, you receive a percentage of the commission. Now, the commission ranges. It definitely ranges based on the product category. It can range from 4 up to 10%. So if I just look up Amazon Associates rates then we can actually see each specific product category and how much they pay. 

So that's how it works at its core. Amazon Associates is the largest in terms of affiliate programs because it just has the widest range of products. But there are many sort of affiliate networks that have more exclusive offers with the companies and with the products that may yield you a higher percentage of commission. So this is just a quick example right here of how people do it on YouTube. I'm gonna move on to the next example which is blogs. And my favorite affiliate marketing blog is smartpassiveincome.com. It's created by a guy named Pat Flynn who is awesome. He has an awesome podcast that you guys should check out. But basically Pat's been crushing it with affiliate marketing for as long as I've been in the game basically.

And if you look at this, this is his income reports. And as you can see two mill during the last 12 months. Six figures a month when a lot of people are trying to strive for six figures a year, this guy's making six figures every single month. But basically if you scroll down. If I just choose the latest income report. So we'll do August 2017. I just scroll down and I'll show you guys that he actually is transparent enough to share his affiliate marketing earnings broken down by company.

You see Amazon, He made about 600 bucks, not too bad.But if you scroll down to some of these other companies like Bluehost, you see $19,470 from a single source of affiliate marketing. So from posting links guys. Again, it's that simple, it's that easy. It's completely passive income. Which is one of the reasons why I believe it is the best online business that anyone can take up today.

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