What Is Affiliate Marketing & How It Works?

So what is Affiliate Marketing? Chances are a friend or a relative mentioned it, or you were advised that it’s a good online business to start. You may not be quite sure what it is and what it entails.

What is Affiliate Marketing Illustration

Affiliate Marketing is the simplest and cheapest type of online store to set-up and operate. It requires the promotion of someone else’s’ product or service, for which you earn a commission if a sale occurs.

This is done through the creation of a website, for which you can set up the basics in 30 minutes.

Your website will provide information on a particular area of interest to site visitors.

Links provided to you by the creator of the products you promote will allow your visitors to make purchases. Due to cookies on your affiliate link, when a product is purchased, you earn a commission.

For Affiliate Marketing therefore, you are an online salesperson.

Affiliate Marketing becomes a win-win for all parties. Vendors obtain sales for their products, consumers can purchase products to meet their needs and the affiliate marketer obtains a commission for referring a product.

Examples of Affiliate Sites

We peruse or purchase from affiliate sites on a frequent basis, without realizing there is the opportunity for us to be on the other side, and earn an income. Here are examples of a few affiliate sites.

Million Dollar/ Established Affiliate Sites;

This Is Why I’m BrokeSurvival Life,The Wire Cutter

Pick My Shaver,Money Saving Expert,Young and Raw,Kitchen Faucet Divas

Newer Affiliate Sites;

The Lazy Lifter,BodyBuilding By John,Fearless Backpacker

I Am That Girl,Super Student Program,Delta SleeperMindful Philosophy

Potential Earnings 

The potential earnings for this method of making money can be highly profitable. In top market areas, profit can be USD $10,000 to USD $100,000 monthly and in secondary market areas USD $1000 to USD $9000 monthly.

Your profit is dependent on being in a ✓ profitable niche and ensuring ✓ valuable content for visitors. Also, the ✓ promotion of profitable products and obtaining ✓ continuous new visitors. (All of which are highly attainable).

Ease of Start-Up

Ease of success and the time-frame to begin making money is approximately 4-6 months. This is determined by whether you are coached or go it alone, and the time and effort invested.

If you already have an email list, a blog, subscribers to YouTube channel, published Kindle book(s), in contrast to a complete newbie, the process will be quicker. However, starting from scratch is possible, but should be done with guidance.

So What Are The Advantages?


✓ Low start-up cost – Apx USD $100.00

✓ Highly profitable

✓ Global clientele

✓ Simple to achieve (no prior training necessary)/ Suitable for online ‘Newbies’

✓ Opened for business 24hrs

✓ Profit within 4-6 months

✓ Facilitates any field of expertise/passion

✓ Accomplished from any part of the world

✓ Facilitates/accommodates family life, another job, travel, personal life

✓ No; manufacturing cost, burden of production, product storage, business location and staff issues, customer service and shipping responsibilities (unlike other types of online stores)

✓ Emails, Videos, Banners, Product Information and Ads are usually all provided by the creator of affiliate products

✓ Community & Coaching Support


✓ Unlikely to earn profit before 4+ months

✓ Lower profit returns than other online business models

✓ Initially requires time invested in its first few months, but this decreases progressively to several hours weekly (depends on how speedily set-up is desired)

The Basic Steps

  1. Select a Profitable Topic- Your success is dependent on ensuring your topic(niche) has a large market, and there are profitable affiliate products to promote.
  2. Setting up Website & Content Creation– This process is necessary and basic, and can be accomplished through step by step guidance or coaching. Articles, videos and other forms of content for your website can be done by self or sourced at a low cost.
  3. Promotion & Traffic Generation – Through participation and content sharing on social media platforms (Facebook, YouTube, Twitter etc.), re-direction to your website, will increase visitors.

Steps To Success In Affiliate Marketing

1. Select A Profitable Niche

To be successful in Affiliate Marketing it is integral to first determine a profitable market niche.

This is a 2-part process. First determine market size, then profitable products to promote.

A profitable niche will consist of a large market size (i.e >10,000 monthly searches), is evergreen and has several profitable affiliate products.

By evergreen, we mean able to generate an income for years, and not seasonal. To determine market size and affiliate products, research needs to be done.

The Primary profitable niche areas are:

  1. Health – Fat Loss, Dieting, Fitness, Nutrition, Natural Healing etc.
  2. Wealth – Starting an Online Business, Investing,  Real Estate, etc.
  3. Relationships – Dating for Women, Dating for men, Getting Your Ex back etc.
  4. General /Hobbies – Aquaponics, Survival, How to play the guitar, Dog training etc. 

There are literally thousands of niches- it’s integral to determine which are profitable and suited to your interest.

How to find a profitable niche

The first step is to obtain the market size for niches you are interested in pursuing.

By performing keyword research, the market size can be determined. Keywords are the phrases which are typed in whenever someone does a search e.g on Google, Yahoo, Bing etc.

Simply create a free Google Keyword Planner account.

This will provide hundreds of search results related to your specific keyword search, the option to choose search location and CPC (cost-per-click i.e the cost for each click by a visitor to your website when advertising with Google Adwords)

Keyword Finder provides an average monthly figure for your specific keyword, related keyword searches, Competition, SEO (Search Engine Optimization) difficulty level, CPC and Top page results related to the keyword with estimated # of visitors.

For a list of 1000+ evergreen niches and a Step-by-Step guide on how to determine a profitable market and products you may download –

An In-Depth Guide To Niche Research For Affiliate Marketing & Blog [optin-monster-shortcode id=”skhcadypd8m3xnyd”] 

Researching Affiliate Products

Once you have determined market size, it is now necessary to ensure there are digital and or physical products on affiliate networks.

Some Affiliate networks are Amazon Affiliates, Clickbank, ShareASaleCJAffiliate and a host of others.

Alternatively, to determine affiliate products for any niche, perform a google search; ‘niche’ + affiliate

It’s worthwhile to know that digital products usually carry the highest commission, but other products also can have commissions of USD $200+ each.

It is advisable to either sell fast moving products or if you choose products with lower commissions, to refer at 1 least product with a higher return.

Once you determine the market size and affiliate products you can sell, you can now narrow your selection to the most profitable and your preferences.

To recap – Your final niche selected should have a market size of 10,000+ monthly searches and have several profitable affiliate products.

2. Setting Up Your Site & Content Creation

Setting Up Your Site

You’ve decided on your niche, now comes what you may consider difficult. This however, isn’t.

Yes, setting up your website. It’s a simpler process since the advent of WordPress, to create a beautiful quality website.

First, you need to determine your domain name (the domain name of this site is ‘thebreadandbutterhub.com’).

Obtaining a domain and setting up your website is a cheap
and simple process that can be done at web servers such as Bluehost.

After you select a domain, you next install WordPress to create your website. With the installation of WordPress, you can choose from 2000+ free themes to enhance your site.

Alternatively, Chris Farrell Affiliate Training provides step-by-step training videos with website building templates and themes which add to the simplicity of the process.

Content Creation

Importantly now, your website needs to contain information (content) that’s relevant, informative, interesting and adds value for visitors to your site. e.g what you are reading now (smile).

Content takes the form of articles on a Blog, YouTube videos, Images, Quotes, Webinars, Reviews, Podcast, and Interviews. You should determine which of these methods are most suitable to your niche and audience.

This can be done by checking content provided by other successful business entrepreneurs in your field of interest and brainstorming what additional value you can add via which method.

Creation of content, such as Articles, Reviews, Videos etc., is not as laborious as you may think. You can obtain services starting from USD $5+ to have these services done at Fiverr and  Upwork .

Articles can also be sourced at Write Articles For Me.

 3. Promotion &  Traffic Generation

So now your site has been launched, and consist of content. Next is Social Media Marketing.

Your marketing strategies will require the creation of Facebook, YouTube, Instagram, LinkedIn, Pinterest and social media accounts.

This works two-fold.

Through uploading and sharing content, you acquire a global audience of fans, followers, and subscribers. Your audience is then reverted to your web-site from the content you share.

Additionally, creating an e-mail list is crucial to facilitate correspondence: this allows you to advise subscribers of new content and product offers.

To acquire subscribers, pop-ups and opt-ins on your website provide site visitors with additional information while allowing you to forward relevant information.

This is best achieved with  Optin Monster which provides templates, features ( such as pop-ups, embedded, slide-in opt-in forms..) and blog information for converting visitors to subscribers.

Emails of subscribers, then need to be stored via an email marketing platform, to facilitate email marketing through broadcast and auto-responders.

Aweber is highly recommended due to their reliability in ensuring subscribers do not suddenly disappear (this has been reported to occur with some other platforms), features, customer support, and up-to-date blog.

Remember, the more traffic coming to your blog/website, the increased opportunity for sales.

The Next Step….

Affiliate marketing can be accomplished either independently, or with training.

On your own, you can follow steps and obtain information for launching, implementing, marketing and scaling up.

Alternatively, Chris Farrell Membership (CFM) is highly recommended for starting and growing your Affiliate Marketing business. Training videos and community support make the process simple to understand and implement.

Training is provided by Chris Farrell, one of the most respected and successful internet marketers in the online industry.

He began his entrepreneurship in 2008 with no previous experience, and within 6 months was able to achieve profits of $250/day then to some days with $1000/day within 9 months. He has taught over 23,000 trainees and continues to be a highly sought Affiliate Marketing training program.

Chris Farrell Membership cost $4.95 for 7 days then $37 Monthly, with a 30-day Money Back Guarantee.

Be Informed. Be Inspired. Be Motivated.

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What Is Affiliate Marketing and How It Works
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