Making passive income is the dream of everyone. And 99% of people who actually make passive income get started with affiliate marketing. They promote other people’s product through an affiliate network so that they can earn a commission when consumers buy those products, thanks to their effective marketing efforts.
Affiliate marketing is based on a Revenue-sharing business model
If you are a product owner (Merchant) and would like to attract more sales, you can work with independent promoters who will help you drive your sales in exchange for an incentive. On the other hand, if you want to earn money from this opportunity, you should take the other side of the coin by promoting products which you feel are valuable to people.
The affiliate marketer or publisher
An affiliate marketer can be a single individual or a company. As an independent publisher, you can earn a few hundred dollars to millions of dollars in commissions a month. This is where all the marketing happens since your job is to attract and convince consumers of the potential value of the product you’re selling.
To achieve this, you will need to establish a marketing platform in form of a review blog. Alternatively, you can setup an entire website that publishes related information and where to find cool products around the internet. It can have reviews and affiliate links here and there.
It’s important to include affiliate networks into the equation. These companies act as a link between the publisher and the vender/merchant.
While it’s possible to technically arrange a direct revenue share between you and the merchant without an intermediary being involved, working with networks like Amazon, ClickBank, or Commission Junctions puts a serious note on your affiliate marketing business.
Furthermore, majority of merchants out there find it convenient to manage their affiliate programs through a network, and thus one has to sign up with those networks in order to promote their products. That’s one reason why you should work with an affiliate network.