The process is very simple: you send people to Amazon (or another affiliate program) using a special link, which puts a cookie on their machine and tags their purchases with your affiliate code. When they buy something, you get a cut of the profit – starting at 4%, I believe – because you referred them. You don’t need to do anything else. You don’t ship anything, you don’t handle customer service, you don’t even need to make yourself a trustworthy storefront. All you need to do is get people to click through and buy.
Affiliate networks also make it very easy to find products and services to promote. They will list advertisers by category and show which advertisers other publishers are currently having the most success with. Commission Junction, a large affiliate advertising network, currently has nearly 3,000 different advertisers listed. You will have the most success by promoting products that are closely related to the content that you write about. If you had a website about investing, you would primarily want to promote investing related services like stock brokerages and stock research tools. You wouldn’t get good results by promoting unrelated services like web hosting and domain name registration services.
The implementation of affiliate marketing on the internet relies heavily on various techniques built into the design of many web-pages and websites, and the use of calls to external domains to track user actions (click tracking, Ad Sense) and to serve up content (advertising) to the user. Most of this activity adds time and is generally a nuisance to the casual web-surfer and is seen as visual clutter. Various countermeasures have evolved over time to prevent or eliminate the appearance of advertising when a web-page is rendered. Third party programs (Ad-Aware, Adblock Plus, Spybot, pop-up blockers, etc.) and particularly, the use of a comprehensive HOSTS file can effectively eliminate the visual clutter and the extra time and bandwidth needed to render many web pages. The use of specific entries in the HOSTS file to block these well-known and persistent marketing and click-tracking domains can also aid in reducing a system's exposure to malware by preventing the content of infected advertising or tracking servers to reach a user's web-browser.
Learn how it works. An affiliate marketer embeds her own unique affiliate link in her web page or blog. This link does not have any impact on customers, and it does not alter the price of any products/services being offered by affiliates. However, any time the customer makes a purchase after clicking an affiliate link within a specified time frame, the marketer gets a commission from that sale. How much you earn will depend on each affiliate's prices, commission percentages, and the number of sales you're able to initiate on a weekly or monthly basis.
Don’t put all your eggs in one basket. If you only promote one merchant’s products, you are stuck with their commissions, their landing pages, and ultimately, their conversion rates. It is important to work with many different merchants in your niche and promote a wide range of products. This affiliate marketing strategy will diversify the amount of commissions you make and create a steady stream of revenue when building an affiliate website.
Here is something that I didn’t think about before if you are selling informational type products. If you want to make a lot of money very quickly you will need to build a list of names and email addresses. The larger the list the better. That way when someone has a product that you can sell as an affiliate you can just send out an email message to your email list and people will start buying from you that day or in the very near future.
Spears recommended that you get things in writing when making a deal with an affiliate – “things like how many clicks or leads they will send, and on what date(s). If their mailing will include leads and buyers, or just leads. What you will do in return for those clicks and leads (match them, increase commission, reciprocal mailing date on your side, etc.).”
Create a bonus offer for a product that an affiliate is already marketing. For example, if one of your affiliates is selling a course on driving e-commerce sales from your Facebook fan page, you can write a short and useful step-by-step guide that complements the product, such as the fundamentals of lead generation from Facebook. Ideally, the short bonus that you add to your affiliate’s product should bring extra value to all of your customers.
So as an affiliate marketer, you have to build a compelling website, attract traffic to that website, and retain a consistent audience in order to sell ads. Then, you join an affiliate network like Amazon or eBay, and they show ads on your site. It’s important to note that affiliates don’t earn money by simply serving ads. They have to direct qualified traffic to a company’s site so that the company can earn more in sales.