Ultimate guide to affiliate marketing

1 year ago kashyapeesays 13


The big question is “What is affiliate marketing“?

Affiliate marketing is a blogger’s promotion of a particular product with a specific link that contains a tracking code. When someone buys on the basis of your recommendation, and clicks through from your tracking link, you get a commission on that sale.

So why consider affiliate marketing as an income source? When you consider advertising, the advertiser is taking a risk by paying you for amplification on your blog that might not work out, and you as the publisher are taking the risk by becoming an affiliate, it seems like a risky deal. But the rewards of affiliate sales can often be greater than through general advertising alone, which makes it an attractive option despite the risk.


What It Is ?

Affiliate marketing is an online version of a sales structure that has been happening offline for decades. In its simplest form, it involves three primary components:

  • Someone with a product or service to sell
  • Someone with the willingness and ability to sell that product
  • Buyers

For each product the affiliate sells, they receive a portion of the proceeds from the merchant.

Affiliate Marketing Economics

For publishers, the affiliate marketing revenue equation looks something like this :

Visitors x Click Rate (on Affiliate Links) = Referred Visitors

Referred Visitors x Conversion Rate x Average Purchase Price = Referral Revenue

Referral Revenue x Commission % = Affiliate Marketing Revenue


The success of an affiliate marketing strategy depends on how many referrals you’re able to send to merchant sites and how well these referrals convert . The more relevant and appealing the offers you highlight on your site, the higher both your click and conversion rates will likely be. If you’re running a travel blog, you probably don’t want to be featuring affiliate offers for baby products; replacing them with affiliate links to cruise packages would probably result in a higher referral rate.


Three Key Factors

Put another way, think of affiliate marketing as this formula:

Revenue = Visitors x Click Rate x Conversion Rate x Commission

Improving any one of the variables on the right side of this equation will increase the dollar amount on the left side. So affiliate marketing really boils down to optimizing three factors:


Factor 1: Visitors / Traffic

In order to make money from affiliate marketing, you need to convert a visitor to your site to a paying customer for your merchant partner(s). Obviously, the more visitors you have (i.e., the greater the traffic to your site), the more chances you have to make an affiliate referral.

If your website doesn’t have much traffic to speak of, there’s probably not a big opportunity for you now in affiliate marketing. Focus on producing high quality content, building some links, and getting a recurring stream of visitors to your site. But if you have a website that is already attracting a significant number of visitors from referring sites, organic search, and direct visits, affiliate marketing could be a logical way to monetize.


Factor 2: Click Rate

This is where we put the “marketing” in affiliate marketing. It’s up to you as the affiliate marketer to make sure that your audience sees the affiliate links and offers you have on your site. You can’t simply throw them into the right sidebar and hope that your audience seeks them out and clicks on them. There’s a great deal that you can do to increase the likelihood that your visitors click on the links and get in front of the affiliate offer.

This topic is extremely broad; there are countless strategies for increasing visibility (and ultimately click rate) on your affiliate links, ranging from incorporating links into your content to sending emails to your newsletter list.


Factor 3: Conversion Rate

Conversion rate refers to the percentage of referrals sent, who ultimately complete the desired action i.e. buy the product or service.

This is one area that is often overlooked as an “out of my hands” part of the affiliate marketing funnel. Once you’ve sent a visitor to the merchant site, all you can do is cross your fingers and hope they ultimately complete whatever action is necessary for you to get your commission. That’s partially true I suppose. But you have more input here than you may realize.

Part of the affiliate marketing game involves picking out merchant partners and products to promote. If you’re promoting a crap product, you can probably send some traffic through the affiliate link by doing a good job of marketing it to your audience. But once they get to the merchant site and are disappointed in what they see, they’re probably going to abandon.

If you’re promoting a quality product that you think delivers great value to your audience, they’re much more likely to complete the purchase once they’ve clicked.



  • Mention Products in epic post
  • Create a course/series article around the product
  • Product Giveaway
  • Comparison post
  • Write a post on why I switched from X to Y
  • Create videos explaining about the product
  • Create Coupon/deal specific post for product

Let me know if you have other tips that you follow on your blog to improve your own affiliate conversions.

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If you want to see how I use affiliate marketing in my post you can check out my latest blog posts