Ultimate Beginner’s Guide to What is affiliate marketing and How does it work

What is affiliate marketing and How does it work

Our intent at AffiliateChef is to give you bite-sized power-packed information on Affiliate Marketing so that you can start your Online Business at the earliest. We do not want to bore you with overly complicated details but just enough information that will help you take action today. If you are new to this field, then this is a perfect article to understand what is affiliate marketing and how does it work.

If you have not gone through the first article in this series of Affiliate Marketing for Beginners, do check it out – Success Mindset for Affiliate Marketing

What is Affiliate Marketing?

Affiliate Marketing is an amazing business model where you endorse other company’s products and if the sale happens through you, then you get a commission from the sale.

Now the reason this business model has worked so well for so many people is that it is a win-win situation for both the seller and buyers.

Any product company needs a lot of budget for marketing.

So in addition to their regular marketing campaigns, they create an affiliate program for their product.

As an affiliate marketer, you bring buyers to the company’s sales page through your blog, Youtube channels, Instagram, and Facebook page ( we will discuss the details in the coming articles).

You are the bridge between customers who are looking for a quality product and the seller who is selling a product in that category.

How do you make money from Affiliate Marketing?

what is affiliate marketing and how does it work

Now the second part of your question – what is affiliate marketing and how does it work.

Many product companies and sellers have affiliate programs. 

You signup for the affiliate program and then choose the product that you wish to advertise.

You will get a custom URL ( also called Affiliate Link) for the product.

You pick the product and bring customers to the product through various means which we discussed above.

The customers then reach to the sales page of the product through your affiliate link.

Once the payment is done, you get the aforementioned commission on the product.

Let us understand this with an example.

Suppose, you are a fitness enthusiast. You want to convert your passion into a business.

So, you start a blog about fitness tips, weight loss, etc.

Now you can create an article about FitBit and its importance in tracking your health goals. You can signup for FitBit’s affiliate program (https://www.fitbit.com/global/us/partners/affiliates) and then talk about their importance.

You will include a button in your article (containing the affiliate link) and if someone makes a purchase using your link, then you get a commission from the sale.

Many of the affiliate programs have an added advantage that even if the sale does not happen that very day but sometime in the future, you still get the commission.

The Amazon Affiliate program for instance states that if a user comes to Amazon from your referral link and ends up buying additional items or something different altogether, you still get the commission!

Why Affiliate Marketing is the Best Online Business for Beginners?

To start any business, you need to have a product, a decent capital to sustain the business.

This is not the case with Affiliate Marketing Business.

You do not have to create a product. 

You do not need to handle the sales and invoicing.

You are not responsible for customer service 

All you need is to figure out the right product or products to sell and bring customers to that product who are already looking for that product.

Here at AffiliateChef, we will guide you step by step on how to identify the right products, what are the most profitable products to choose from, and how to create a successful affiliate business around the same.

What is the Best Strategy to Succeed in Affiliate Marketing?

Since this model is so easy to begin, therefore there are many players in the market.

Your advantage is that the majority of the marketers are not doing it the right way.

This is not a get rich quick scheme

Your chances to succeed are far more if you follow a proven strategy to make the most out of this business model.

The first step is to pick your niche

Niche in layman’s term is a particular category where you can start your blog. Now the proven approach is to choose a very specific category, to begin with.

For example, if you want to start a fitness blog, drill further down to let’s say weight loss category, and better still is if you go further down to something like Keto Diet for Weight Loss.

This helps you get a very targeted audience and it is much easier to convert them into a buying customer.

For more insight you can check our article on How to do Keyword Research for your Niche

You can also check our article on niche selection here but we encourage you to follow the articles as per the series for a holistic picture.

Create a Platform

The next step is to create a Platform to Engage with the Audience and promote products in your Niche.

For a beginner, it is recommended to begin with a blog. You will again get step by step guidance to create and grow your blog in this series.

You can also create a youtube channel and start your journey if it appeals to you.

Build an Email List

The chances of a first-time visitor purchasing a recommended product through your blog are very less.

What you want is to get your visitor’s email address through opt-in forms, lead magnets (covered in further articles).

This gives you an opportunity to interact with them through your email chains ( also called Email Marketing) and slowly build trust with your audience.

It is only when they trust you enough that they will consider your recommendation and make purchases through your referral link.

Provide upfront value to your audience

You cannot get all salesy right away.

You need to give your audience a reason to stick around. They need to get some value upfront so that they choose you over many other options available online.

The idea here is to understand your audience. What are their pain points. What value can you provide through your blog, trainings, Ebooks, or Courses.

How can you help your audience transition from their current state to their desired state?

This understanding develops and gets better over time. Also, you can interact with your audience through your social media pages, emails, and polls to get a pulse of what they want.

Build Massive Trust

It all comes down to this.

You need to be seen as a trusted person in your Niche.

You have to develop subject knowledge of your niche and help educate your audience in that area.

It helps if you pick a niche that also aligns with your interest. In fact it is highly recommended that you choose a niche that you are familiar with and have an interest.

Keep gaining your audience’s confidence through your content. Advertise products in your niche that you have actually used and benefitted from.

When your audience trusts you and belives your recommendations, the money will come.

You cannot go after the money first. This approach motivates you to take shortcuts and make mistakes.


Does all of this look like a lot of work?

Well, if you want something that you never had then you have to do something you never did.

Affiliate marketing can help you achieve Financial Independence and live the life of your dreams.

You have struggled your way in your life till now. Why not take a leap of faith and hustle your way to glory.

Hope this article helped answer your question about what is affiliate marketing and how does it work.

Leave your thoughts and let us know how you feel about taking the next step.

Chapter 3: How to find a profitable niche


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