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How Affiliate Marketing Really Works

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Welcome back to your Home Business blog. In the last post I talked about SEO techniques used by expert marketers to rank their websites for low competing keywords they find using google keyword tool. Today I want to look back over everything I have learned up to this point so you have a clear idea of what to expect should you launch your very own online business or blog. By putting out this information I hope to encourage you to take action and find some time to start building passive income streams. You could start working towards this goal alongside your current job. This process will take six months to a year before you start to see good results.

I remember when I first started building my Home Business. I found so much information about ways to make money online. Is like every blog post I read, or YouTube video I watched proposed a different solution and all of them worked! Other marketers would be quick to promise… if you buy this course or you buy this training… you will have the most wildly profitable business. Some of them would show a flashy Lamborghini in their adds, or a luxurious Ferrari. Others would post stacks of cash to show how good they were doing. Back then I would have believed this was possible… but the more I dig deeper into the world of affiliate marketing the more I have come to realize this is marathon and not a sprint. Affiliate marketing is an industry which is growing very fast when compared to many others which are currently being lost to technology and automation. Today more than ever before are businesses and corporations putting 20% (or more) of their marketing budget toward affiliate marketing programs and there is a 10% increase in affiliate marketing spending across all industries combined through 2020.  By 2020 affiliate marketing will generate $7 billion in sales.

Looking at those numbers is easy to believe the road to success is simple because there is so much opportunity. However, the far greater majority of individuals who try affiliate marketing actually find themselves quitting within 3-6 months of just starting out. Two data points you can easily find online is that 95% of all affiliate marketers WILL FAIL and 97% of online businesses fail. Do you want to know why this happens and what you could do to be part of the small percentage that actually win? In this post I will aim to answer these questions.

Firstly we need to examine the ways you could make money as an affiliate marketer. One way is by selling products and bringing customers to businesses and corporations with CPA marketing. If you want to learn some tricks to promote CPA offers read this post. Another great way to earn income from affiliate marketing would be by producing information rich blog posts, which allow visitors who read them to make informed decisions about some product or service they want to buy. You could also promote Multi Level Marketing (MLM) type businesses like herbalife, however given the growth in this space if the program you are joining requires you to pay in order to qualify to promote what they have to offer chances are you are dealing with some sort of scam. With so much growth in this industry and affiliate programs available the reality is you should not be paying any money just to be able to promote a product.

Another common way to make money online is by promoting marketing training programs and masterminds. Many of these programs do not supply any real value. Some others provide amazing value but it would require technical and marketing skills to execute them. Other programs will try to give you everything… including all marketing material and sales funnels which are working for the top affiliates in the company. The problem is a new affiliate doesn’t know how to drive traffic to that offer or close clients. Personally I think some masterminds can be really useful in expanding the arsenal of tools a marketer can leverage to grow their home business however it will still take tons of skill building, effort, and experimentation to adapt this concepts to your own business. When it comes to affiliate marketing what works for one person doesn’t always work for others so is up to you to figure out what works for you.

As of recently the explosion in the cryptocurrency markets had led to the flourishing of lending platforms. Lending platforms would promise investors they would earn fixed returns on their investment capital like 1-2% per day and would allow them to earn commissions of 7-10% every time they would refer a new investor which deposited money into the company in question. Companies like Bitconnect, Usi Tech and DavorCoin have shut down their lending services or claim to have problems with their payment system and do not allow their investors to withdraw any of their money. If you buy cryptocurrency like Ethereum or Bitcoin keep your digital assets safeguarded in a cryptocurrency wallet you personally own. The minute you transfer any cryptocurrency to a wallet which belongs to another company (even if is a trusted exchange like Coinbase)… you run the risk of losing your money. The reality is even if you keep your money in the bank you still run the risk of losing it that’s why affluent people invest into housing units which produce cash flow. They know even during a financial collapse people will still need a place to live so they can generate income from renting the units. Real state also appreciates in value due to inflation caused by fractional reserve lending and many other factors.

Other common ways to generate income online today is by launching kindle books on Amazon, copywriting or writing for various businesses and services. If we look back at the list… CPA marketing is one of the most lucrative ways to make money online. The problem with CPA marketing is that in order to make substantial income you will need to find very targeted traffic or run advertisements. I have discussed this topic with many leading growth managers and experienced affiliate marketers and many of them agree if you were to launch a CPA marketing campaign about 90% of the times it won’t be profitable unless the campaign is optimized in one way or another. A better way is to copy the campaign of other marketers and run paid advertising to it but even then is likely the campaign will break even or not make much profit. The fastest way to grow online is by using paid advertising but there is the risk you won’t make any money. It takes excellent marketing skills and a team of programmers in order to put in place all the necessary tricks required to win big with paid advertising. The market is very competitive as it is and competition is only growing. That’s why I would recommend you to start working on your home business TODAY.

When it comes to blogging… this is actually one of the best ways to generate residual income for years to come. The problem with blogging is that it could take you six months to a year before you make a penny. Right now I’m focusing very deeply on SEO because my main goal is to bring tons of free organic traffic from search engines. What I find from personal experience and the experience of many webmasters that have build successful blogs before me is that in general it takes them six months to a year of publishing useful content before their analytics start to report a huge boost in traffic. You could be promoting the best product in the world but if you don’t have an audience to sell to in the first place you won’t succeed. Imagine you earn a fixed $5 as an Amazon Associates for selling a product like a digital camera which converts at a 1% rate.  You would need 4000 visitors on a daily basis in order to generate $200 in sales commissions. In order to get that much traffic it will take you 1-3 years of ranking your content before Google starts to send you this kind of traffic. This happens because in order to get to the point where Google and other search engines send you visitors you will need to build trust and visibility by gathering Domain Authority and ranking your pages.

If you come to this space focused on making money quickly… you will give up before having any chances to succeed. Google wants to see you care about USER EXPERIENCE and you focus on providing valuable information with clear facts to aid your visitors. Remember Search Engines compete with one another… so in order to stay the dominant force above Bing and Yahoo, Google focuses on delivering the best possible answer for any given search query. Back in the day it was possible to build an Online Business using affiliate marketing by posting SEO optimized articles 300-500 words long promoting various products and services. Since competition was lower and it was possible to use low cost black hat services which would rank websites within 24 hours. Search algorithms have become smarter… and although reputable link building services still exist, winning SEO campaigns these days take months before any real effects can be seen in the volume of organic traffic generated.

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NOTE: As I have stated above one way to generate income is by providing SEO services. These days… big companies and corporations turn to SEO specialist in order to optimize their websites and build links that bring more traffic. Link building is a very profitable skill which is in high demand. Done the right way… SEO could bring about prosperity and growth to just about any business or corporation. In particular, properly executed SEO campaigns will take 7 to 10 weeks to produce noticeable results and see a return on the investment. If you take a shortcut and buy cheap links from Fiverr or use some other black hat service what will end up happening is that Google will penalize your website and it will set you back months or even years in the ranking process. Leading SEO companies like MOZ are now becoming the lawyers of the internet and help their clients revoke bans placed by Google. Remember that Google employs some of the smartest engineers alive today so using unconventional tricks to boost your ranking and visibility will very likely end in catastrophic fashion.

NOTE: Google has so much power these days that a manual ban can take even the most established companies into bankruptcy. Some reports claim the search engine giant favors their own adds over competitors. Play by the rules and try your best not to trigger a manual ban or software penalty.

Focus on building the most positive user experience for your visitors and no matter what niche you choose to blog about you will eventually succeed. Once again I recommend you to stay away from Multi Level Marketing and Cryptocurrency lending platforms. You should also be cautious about joining and promoting mastermind programs. Like I stated above I believe online business education and masterminds can produce real positive impact but many of the concepts you will learn will require you to build your skills in digital marketing and various other technologies. One way to go around the big learning curve and achieve success much faster is to outsource the tasks that you find difficult and assign the various tasks to freelancers in platforms like Upwork and Fiverr. In those platforms you will be able to find skilled people from a variety of countries willing to produce quality work at very cheap rates for US standards. If I actually go back to soul crushing corporate America it will be because I will be able to generate more resources I can use to outsource a lot of the work I currently do. Right now I wear all hats in my business venture and I have learned tons of valuable skills but I can only do so much on my own.

SEO writing jobs and Kindle publishing are two great opportunities right now. I’m thinking of launching my own kindle book because in this way I can leverage Amazon as an advertising platform. A single book likely won’t bring about life changing income but if you publish various books (think 30-100)… then chances are you will be able to make sufficient residual income to live comfortably and even travel to luxurious places. One course I recommend to everyone about kindle publishing is K Money Mastery. Since Amazon takes care of doing the selling for you… and you earn royalties for every single sale this is probably the easiest way to build residual income right now. I should write my book while there is still opportunity in this space because I know competition will only grow as more time passes.

NOTE: If you want to know about the advantages to publishing your very own kindle book you should read this other post. Near the end I talk about how affiliate marketers today use kindle publishing to grow their email list and promote income streams they have already built by leaving links to their websites and blogs which ultimately bring about more business opportunity and growth.

If you decide to launch a course on affiliate marketing having a kindle book published will help you set the stage for an authority figure. I believe the fastest way to find success is to learn so much about your niche or business model that you become an expert. Perhaps right now you are making little money and you haven’t succeeded quite yet but once you start to develop results you can share with other people it will be easier for them to buy training programs or masterminds from you. The affiliate marketers that climb to the very top of the mountain are those who are seen as leaders and can provide extra value to the people who decide to purchase from them. I will consider to start offering free coaching later as I further develop my business but first I need to focus on SEO to bring profitable traffic.

One avenue to generate traffic I have yet to explore is to create YouTube videos. Some of the best affiliate marketers today are full time YouTubers who create videos which go viral and bring tons of organic traffic. The problem once again is that it takes time for your YouTube videos to rank properly so these are shown in the Search Engines or on top of the YouTube search results for your chosen keyword. A good strategy is to perform keyword research using Google keyword planner and then RANK YOUR VIDEO for your chosen keyword even before you record it. Some of my friends and mentors use video ranking software to target profitable keywords and wait a day or two for the video title to show up on the search results. They only record a video after it has ranked… which saves them time and brings about more profits. If I start producing YouTube videos I will probably invest in these tools to maximize my chances of success.

NOTE: If you start producing YouTube videos as a core strategy to drive traffic to affiliate offers a SEO strategy you need to be using is to talk about your target keywords from the very beginning. Google is using voice recognition technology in order to process search queries from virtual assistants like Alexa and Siri. By vocalizing your keywords throughout your video you will increase the chances that your video comes up in the search results for related voice commands. This post can teach you more about optimizing for voice search.

Other advice I get from the best affiliate marketers is that in order to succeed I need to master one traffic source before I invest my time and energy to learning another one. Specifically, I should be focusing all of my time and energy in mastering one social media platform like Facebook, Twitter or Instagram and become proficient at advertising to that specific audience. They also recommend me to build my brand in one platform first and then continue to grow on others from there on. Often times… by building a strong presence in a platform like Twitter is possible to send tweets to encourage people to follow you in other social networks. Automating the process of getting followers is also a great strategy many affiliate marketers resort to in order to succeed.

NOTE: Similar to SEO look for long term results and build a responsive community of followers. Stay away from services which will sell you Twitter and Instagram followers. These are fake accounts that won’t produce any benefit for your business.

What I want you to take from this is that as long as you stay motivated and producing helpful content and looking to add value you will win. If you expect to see fast results and earn lots of money just within a few months… chances are it won’t happen. This industry will keep growing and there is a huge amount of opportunity for those people who are patient to see results. Keep learning. Keep experimenting. Keep growing and search engines like Google will reward you with tons of organic traffic that will help you to generate residual income month after month. That’s how affiliate marketing really works. I hope this information is useful to you in helping you build a profitable online business. Get started today!

PS:
One of the most important parts of building a profitable online business is to build backlinks to your website. In this space there are many tools used by the gurus and SEO specialists in order to build high quality blacklinks. The problem with most tools out there is that the automation features don’t allow you to pick a preset number of links to build per day. As a result… Google ends up penalizing your website and you end up losing precious traffic. Currently there is one tool that allows you to build a sustainable link building campaign for which you can pick how many links you would like to build. This tool is the secret weapon some home businesses and SEO companies use to get results for their clients. Try it 7 days absolutely free.

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