A How To For Affiliate Marketing (To Maximize Your Profits)

Updated 21st September 2019


How To Make Money In Affiliate Marketing [Promote Your Business Online]


If you are already online and using the Internet to market your business, have you ever considered adding affiliate marketing to your Internet Marketing Campaigns? Affiliate marketing, when done right, can yield a great deal of positive results for your business mainly because it can maximize your profits.


How To Make Money In Affiliate Marketing To Maximize Your Profits


Furthermore, even when affiliate marketing is not done right, it doesn’t mean it will be financially detrimental to your business. This is because affiliate marketing is essentially an advertising program in which you only pay the affiliates when their marketing efforts yield financial results for your business.


This article will take a look at the how to for affiliate marketing, and explain how it works and, how to make money in affiliate marketing to and the benefits of doing so.  Its not all about the money folks.


What Is Affiliate Marketing


So what is affiliate marketing and is there a particular how to for affiliate marketing I hear you ask?  Affiliate marketing essentially involves having website owners, known as affiliates, post advertisements for your website on their own website.


the internet and marketing


You can learn more about affiliate marketing by checking out some of my articles on this page.


There is also a free PDF (Affiliate Marketing Simplified) you can download through this link


Affiliate advertisements encourage visitors to click on the link and visit your website. The advertisements are specially coded to allow you to determine how many visitors enter your website through this advertisement.


Unlike other types of Internet advertising where the business owner pays for the opportunity to place the advertisement on the website, an affiliate program does not work this way. Instead the affiliate is paid when the advertisement yields a desired result.


An affiliate advertisement can work with:


  1. cost per impression
  2. pay per click
  3. cost per lead
  4. pay per sale


Cost Per Impression means the affiliate earns a profit each time the affiliate advertisement is served. This means for each unique visitor who views the advertisement the affiliate is given a predetermined amount of money.


This amount will depend on a number of factors and will be agreed upon by the business owner and the affiliate before the advertisements begin appearing on the affiliate’s website.


Pay Per Click programs reward the affiliate each time a visit clicks through the advertisement.


Cost Per Lead programs reward the affiliate when a visitor not only clicks on the advertisement but also performs a desired action such as filling out a survey or registering with the website.


Pay Per Sale programs reward the affiliate each time a visitor clicks through the advertisement on the affiliate’s website and also makes a purchase during this visit.


Effective Affiliate Advertisers


The compensation plans associated with affiliate programs are so desirable because the business owner can have a number of affiliates and they only have to pay these affiliates if the advertising on the affiliate’s website is effective.


Affiliate marketing does not always work. When seeking out affiliates it isa how to for affiliate marketing important to look for a number of different factors. An affiliate with a great deal of experience, a website with high traffic numbers and a proven track record for producing positive results will likely be a good choice for an affiliate marketing program.


These affiliates rely on their advertising knowledge to promote the businesses and do not necessarily have to understand the business they are promoting.


Another excellent choice for affiliate marketing is to select another business that is closely related to your own business but does not compete with your business. This is a good idea because they may share your target audience and their website visitors will also likely be interested in visiting your website as well.


For example if you sell running shoes you may wish to run an affiliate marketing campaign on a website that promotes road races such as marathons, half marathons, 10Ks and 5Ks. This website does not directly compete with your business but they are likely to attract an audience that would be interested in, and have a need for your products or services.


Deciding whether or not to implement an affiliate marketing campaign is easy. As I previously mentioned there is very little risk in this type of campaign so its worthwhile in just about any situation.


Affiliate Commissions


A more important decision to make is how you plan to compensate your affiliates. The compensation for pay per impression programs is typically pretty low because your business is not necessarily generating a sale from each impression.  The affiliate can also earn a commission from more than one tier.


sample sales commission plan


Conversely, pay per sale programs usually compensates the affiliate better because the business does directly generate a profit from the advertising on the affiliate’s website. This amount may be a flat rate commission or a percentage of the sale depending on the affiliate agreement.


Ok, now you have some understanding of what affiliate marketing is about lets move on to, a how to for affiliate marketing


Starting An Affiliate Marketing Campaign


Some business owners opt to start an affiliate marketing campaign as part of their overall marketing strategy. In most cases the affiliate marketing campaign is something like dipping your toe in to test the water and usually only a small portion of the overall marketing strategy. 


However there are some business owners who opt to rely exclusively on this type of marketing. The main purpose of doing this is to save money while still achieving valuable advertising.


dipping your toe in


However, once a business becomes more successful they should consider being more proactive and combining affiliate marketing with other types of Internet marketing such as placing Banner Ads or an email marketing campaign. Lets take a more indepth look at what affiliate marketing is and provide insight into why this is popular, and how it can be used effectively.


What Is A Marketing Campaign


An affiliate marketing campaign is essentially a situation where other website owners place Ads for your business on their websites. These website owners are known as affiliates. Its important to understand how this type of marketing works.


In general the affiliates are given a code for your Banner Ad to place on their website and given the freedom to promote their own website as they see fit. In promoting their website they are also attracting attention to your website because of the Banner Ad directing visitors to your own website.


One of the most appealing elements of affiliate marketing is the affiliate is onlyhow to advertise with Banner Ads compensated when they produce a desired result.


This means the business owner is not obligated to pay the affiliate unless the affiliate is successful. Success may be defined as generating traffic to the website, resulting in a sale or even resulting in the Internet user registering on your website or perhaps filling out a survey.


The compensation for affiliates is generally based on cost per click, cost per lead or cost per sale.


Cost per click and cost per lead are usually paid in terms of a flat fee which is awarded to the affiliate each time an Internet user either simply clicks through the Banner Ad on their website or performs a specific action after clicking through the Ad.


Cost per sale may result in the affiliate being awarded a flat fee or a percentage of the sale depending on the agreement between the business owner and the affiliate.


Best Practices For Marketing Online


The most effective use of marketing online, and I might add best practice is to actively seek out affiliates with a proven track record of promoting the businesses which they support. Most affiliate programs are open to anyone with a website and its not necessarily damaging to allow those who are not particularly knowledgeable about marketing to run your Banner Ad. 


However it will be far more worth your while to seek out affiliates who are quite adept and generating website traffic to their own website.


This is important because the more visitors they receive each month the more likely your website is to receive interest from visitors who click on the affiliates Banner Ad.


Another aspect of affiliate marketing which can contribute to success or failure is the design of your Banner Ads. Its important to remember affiliate marketing is viewed the same way other types of marketing are viewed and care should be taken to create Banner Ads which will be appealing to your target audience. This means everything from the colors of your Ad to the size and style of the text should be carefully considered to create an appealing advertisement.


Lets discuss a bit more about Banner Ads…


Internet Banner Advertising


Placing Banner Ads can be a highly effective way to market your business on the Internet. Banner Ads are essentially advertisements which appear on a website, usually in the form of a combination of graphics and text, to encourage Internet users to click through these advertisements to your website.


what makes a good banner ad


The most common form of Banner Ads is an advertisement which appears on the top of a website and spans the width of the webpage. These advertisements derived their name from the similarity to a banner but technically Banner Ads can come in a variety of shapes and sizes.


Lets take a look at the effectiveness of Banner Ads as well as methods for placing them.


Are Banner Ads Effective?


Banner Ads can be highly effective if used properly.  However, placing your Banner Ad all over the Internet with very little consideration to whether or not the location is likely to be beneficial to your business is not a good idea.  It will most likely also be a tremendous waste of money as well as other resources such as time and effort. 


You should also bear in mind what group of people will be most likely to look at your Banner Ad.  Therefore business owners who are considering using Banner Ads to promote their business should spend some time to learn how to use Banner Ads effectively.


target audience banner design


The most ideal location for a Banner Ad is prominently displayed on a website which receives a great deal of website traffic and also complements your products and services well without providing direct competition for your products or services.


As an example consider a business owner who specializes in selling athletic shoes specifically for runners. Buying Banner Ad space on a website which offers advice on training for running events and provides information on upcoming races would be an excellent idea.


This website attracts visitors who have an interest in running and are likely to purchase athletic shoes but does not sell running shoes directly. This means the website attracts members of your target audience but does not compete for your business.


Banner Ad Design And Styles


In addition to purchasing Banner Ad space, some business owners opt to join Banner Ad exchange groups. This is an alternative in which the business owner does not pay for their Banner Ad to be placed on another website but in exchange they agree to post one or more advertisements on their own website. This is a very affordable option for placing Banner Ads but its not always the best strategy.


effective banner ads


This is because the business owner often has little input into where their Banner Ad appears and has limited input into the Banner Ads which appear on his website in return. In most cases, business owners have the ability to decline to host advertisements which they deem to be offensive but cannot specifically choose the Banner Ads they must post.


Finally, when posting Banner Ads, business owners should be aware of the effectiveness of the ads they place. They may choose to post different designs for their Banner Ad on different websites but they should monitor the results of their advertising to determine if one style is more effective than another. This information can be very important.


If one style is enjoying a great deal of success while the other style is not, the business owner may wish to use the more successful style for all of their Banner Ads or to redesign the less successful style to make it more appealing to Internet users.


Lets discuss Banner Ad Exchanges some more before I finish.


Banner Exchanges And Participating In Them


Business owners who want to take advantage of Internet marketing strategies such as Banner Ads but are on a limited budget may find banner exchanges to be quite useful. The ideal use of Banner Ads would include placing your Banner Ad on a website which receives a great deal of traffic and attracts an audience who will likely be interested in your products or services. Additionally, this website should not directly compete for your business.


banner advertising exchange


This scenario may be difficult to find and even when a business owner is able to find this type of situation, purchasing advertisement space may be expensive especially if it is a highly competitive niche. These business owners may find banner exchanges to be an affordable alternative.


Cost Effective Banner Ad


The most appealing factor of Banner Ad exchanges is the cost effectiveness of these situations. Most Banner Ad exchange groups are free to participants. Unlike placing a Banner Ad independently, there is no financial cost for the appearance of the Banner Ad on another website but the business owner does have an obligation to fulfill.


Most banner ad exchanges will find another website to post your advertisement without charging a fee but they will require you to post at least one Banner Ad, and sometimes more, on your website in exchange for having your Banner Ad displayed on another website.



Many Banner Ad exchanges will work to attempt to match your Banner Ad to a relevant website but this is not always possible and your Banner Ad may wind up on a website which is not relevant to your products or services. This will likely mean that the Banner Ads will generate very little interest in your products and services.


Similarly the advertisements you are asked to post may not complement your website very well. You will likely have the opportunity to reject advertisements in particular categories you find to be offensive but will have little control beyond that to moderate the Banner Ads on your website.


Ok folks there you have it.  An outline of what it takes to start affiliate campaigns and Banner Ads and also what you will need to become successful with them.


How To Make Money In Affiliate Marketing


Before I finish, if you don’t already have a website of your own can I point you in the direction of an online program called Wealthy Affiliate that will give you two sites for free.  They will also be hosted for you on the internet free of charge.  The program will also give you the training on how to create and build those websites out to enable you to get your online advertising up and running as well, and therefore start earning you extra income.


The Program is free to signup to and you get access to a whole lot of tools to help you as well.  (see graphic below). If you’re interested there’s also ‘the wealthy affiliate’s compensation plan’ you can get involved with which will teach you the “a how to for affiliate marketing”.


free website training courses


For further information you should click on this link which will take you to a web page with a menu at the top of the page.  Click on those Menu Headers and you can read all about how Wealthy Affiliate can and will teach you all the different ways how you can make money from affiliate marketing.  There’s also a page where you can join or do it through the image below.


When you do signup make sure you get in touch and I will help you all I can, as will the other million plus members.

affiliate marketing training free

Onwards to success folks, and please do have an awesome day.


Best Wishes For That Success.


Robert Allan

Hello I have been an affiliate/internet marketer for many years and I'm very successful at it. If you need any help and pointers to earning an online income from home or to start up your own home-based business then please feel free to read the other articles within this site. I'm sure you will go away with lots of tips and advice that will help you get started. Here is a link to my About Me page - http://quickwaysmakemoney.siterubix.com/about-r-allan This other link is my profile within the work from home make money online community I am a member of since 2014. https://my.wealthyaffiliate.com/robert-a


Add a Comment
  1. Great article! Affiliate marketing is where it’s at, and it’s one of my several income streams. I also believe that most physical-businesses, regardless if they sell mainly products or services, can benefit from implementing an affiliate marketing strategy. It can help them earn additional revenue or turn into a whole new side business that generates just as much as their main business! 

    And you’re definitely right about people shouldn’t just dump their banner ads everywhere and anywhere online!

    1. Hello Nate and if I’m not mistaken this is not your first visit to my website, so thank you for coming back.
      To me this means you found the information you where looking for the last time.
      I do try to make my articles as comprehensive as possible so that the site visitors will get the information that was relevant to their search terms.
      Good to know I’m getting it right.

      As for marketing online, yes its the way to go whatever business you’re in whether online or off-line.
      In fact its especially worthwhile for a bricks and mortar business to have an online presence as there are so many options they can try and use to generate extra money to maximize their business profits.

      When it comes to Banner ads its always prudent to do your research simply because, as you say, don’t just dump them anywhere.

      You must use your Banner Ad where it will have the greatest effect and generate the most interest.

      Please do visit again Nate and I’m sure you will go away with some more tips and advice.

      Onwards and upwards and please do have a great day whatever you’re up to.

      Best Regards.
      Robert Allan

  2. Robert, my viewing of your website came at a very opportune time. I am at the beginning of my affiliate marketing journey. Your information gave me a detailed overview of the various ways of monetizing my websites. As I develop my own blog(s), I can refer to your information to lead me on the next step of which method of monetizing my site will best suit my own circumstances. It seems that the options are numerous and varied and perhaps I should spend some “quality time” with each to determine my best way forward. Now, I’ll just have to take a deep  breath and dive in!

    1. Hello Mike
      Glad you found my article interesting and helpful.
      I suggest you do pick one method and although you don’t need to master it its best if you work with it until you have a full understanding what is required of you to make it successful.
      After you have done that then you can perhaps try your hand at another method and the same advice applies.
      Work with it until you k now how to work with it for the best results.
      You need any more tips and advice then please do visit again as I publish on a regular basis.
      Onwards and upwards to success Mike and have a great day.
      Best wishes for your success.
      Robert Allan

  3. Hello Robert, this is a golden piece and would always be helpful for times to come. I don’t think I have ever come across anything as detailed as this concerning what affiliate marketing entails and how to get things running even as a rookie. The part I like most is the area of the cost per click action. Though it’s yet to be incorporated into my line of business, I’m really looking forward to maximizing my income potential through it. Great post I must say! Cheers

    darrick Ramos

    1. Hello Darrick Ramos
      Glad you liked my article on affiliate marketing.
      There is plenty of information within the article that will keep even the complete beginner on track and if not then my link to other similar articles will surely help out.
      Yes Pay Per Click is a good way to make a few dollars but remember this is not for you if you are the affiliate who is promoting.
      This is for the owner of the product.
      There is a difference so don’t get confused.
      Remember if you need more info on how it works click from the link I give to learn more about this way of marketing and making money from it.
      Enjoy your day and be successful.
      Robert Allan

  4. I’m always looking for way to make money online and I’m always looking for new and valuable information, so a post like this one is really helpful. I agree that affiliate marketing is a cost effective way to advertise your business. The most it will cost you is in time. Pay per click is something that I’m always interested in, so I will follow your link here to check it out further, well done!

    1. Yes indeed Affiliate Marketing is a very cost effective way to make money from the internet and if you also have a brick and mortar business it can certainly boost your profits to have your own website to give you an online presence.
      All four ways to make money are just as effective as each other so try them all out and not just Pay Per Click.
      You will soon find out what method is right for you.
      Please visit again as I publish on a regular basis and tell your friends or colleagues so that they too can benefit from affiliate marketing.
      I wish you success.
      Best wishes for that success.
      Robert Allan

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