WHAT is Affiliate Marketing and HOW Does it Work? For Beginners!


– In this video I’m going to explain what affiliate marketing is. And how does it really work? Stay tuned. Hey, what is up guys. ODi Productions here. If you’re new to this channel let me just give you guys a quick background about me. My name is Odi go by ODi
Productions on YouTube. I have about 33,000 subscribers right now. And a little over ten million views. So I am a full-time entrepreneur
and affiliate marketer. And two years ago I
actually dropped out of the most applied to school on the planet and my dream school, UCLA with a 3.5 GPA my senior year in order to pursue entrepreneurship
and online business. Thankfully I found affiliate marketing which has given me the
lifestyle of my dreams today just two years later. I live in my dream apartment
here in downtown Chicago. You guys want to peep the view. Peep the view for a second right here. Do a little pan, nice and easy. And every single day I get to drive my dream car which is a
custom Porsche 911 Turbo. Which I’m gonna put some
clips or something right here. But anyways let’s get on with the video. I want to teach you guys
what affiliate marketing is. So I’m going to show you guys the basics and fundamentals. Just explain how it works and I’m going to hop into my computer actually. And show you guys some real examples and show you step by step how people are using affiliate marketing these days to make money online. And trust me when I say this, everyone does affiliate marketing. Literally everyone. All the famous YouTubers,
all the tech reviewers, people on Instagram, all
those fitness people. Big companies like Uber, Lyft. Blogs like Smart Passive Income. And even small food
blogs, “small” food blogs do affiliate marketing. So, let’s just hop into
the computer so I can give you guys an actual click by click, step-by-step on how affiliate marketing works and what it is. Alright let’s get into it. Alright so we have
transported inside of my computer using a little
technology called Magic. And now I’m going to show you guys step-by-step some real world examples of how affiliate marketing works and how it is used in the real world. But just to get things started, a basic description at its core of affiliate is that it is
just referrals, okay. So affiliate marketing
it’s kind of a fancy term for just referrals. It’s basically referring
people to products and services of companies
that are not your own and then receiving commission if those people sign up or take
action upon your referral. Usually through a link. So just to give you guys
a quick, quick example. So this is my video. It’s a review of a very popular headphone called the Audio-Technica ATH-M50x, which I actually have right here. It looks a little different from the video because I put some skins on them. But basically you guys
can see 300,000 views. And if you scroll down to the description, the first thing you see
here is an Amazon link. And you guys as long as
you weren’t born yesterday, if you watch any sort of
tech review on YouTube, you’re gonna see Amazon
links or some sort of funny looking links in description, And nine times out of ten
those are affiliate links. And what is an affiliate link? Basically, Amazon Associates
if I just go right here, it is Amazon’s affiliate program. Let’s just log out of that real quick. So Amazon Associates is
Amazon’s affiliate program. And as you guys can see, earn up to 10% advertising fees with a trusted e-commerce leader. So if you join Amazon Associates which you guys can do today. It’s completely free but you might need to have a website in order to get approved. Some people are able to without it. But I would have a website just in case. Alright guys so if you log in and then you just look up products for Amazon Associates that you can promote. As you can see here we have the M50x. And all you have to do is click here, and then get link which basically is your personalized tracking link that you can include in your videos, on your website, on your landing page. And then this link is
personalized to your account. Now what that means is it has a tracking code through cookies. Where if somebody clicks that link it’s gonna be tracked back to you. And for Amazon Associates at least, if somebody buys anything from Amazon, not just the product
which is the headphones. If they buy anything within 24 hours, you receive a percentage
of the commission. Now, the commission ranges. It definitely ranges based
on the product category. It can range from 4 up to 10%. So if I just look up
Amazon Associates rates then we can actually see each specific product category and how much they pay. So let’s just look down. If we scroll down here you guys can see there are a fixed rate for each product on that you sell. So if you sell something from
let’s say in the PC category. So this could be computers, laptops, DVDs, Blu-ray, et cetera. You get 2.5% of that sale. So if you sell a laptop for $1,000, you will receive 25 bucks basically. So basically 2.5% right there. So that’s how it works at its core. Amazon Associates is the largest in terms of affiliate programs because it just has the widest range of products. But there are many sort
of affiliate networks that have more exclusive offers with the companies and with the products that may yield you a higher
percentage of commission. So this is just a quick example right here of how people do it on YouTube. I’m gonna move on to the
next example which is blogs. And my favorite affiliate marketing blog is smartpassiveincome.com. It’s created by a guy named
Pat Flynn who is awesome. He has an awesome podcast that
you guys should check out. But basically Pat’s been crushing it with affiliate marketing for as long as I’ve been in the game basically. And if you look at this, this is his income reports. And as you can see two mill
during the last 12 months. It’s insane. These numbers are crazy. Six figures a month. Six figures a month when a lot of people are trying to strive
for six figures a year, this guy’s making six
figures every single month. And it’s just insane. But basically if you scroll down. If I just choose the latest income report. So we’ll do August 2017. I just scroll down and I’ll show you guys that he actually is transparent enough to share his affiliate marketing earnings broken down by company. So as you guys can just scroll
down here you see Amazon. He made about 600 bucks, not too bad. But if you scroll down to some of these other companies like Bluehost, you see $19,470 from a single source of affiliate marketing. So from posting links guys. Again, it’s that simple, it’s that easy. It’s completely passive income. Which is one of the reasons why I believe it is the best online business that anyone can take up today. So just to give you guys
a little more detail into how this works. Bluehost right here, they
are a web hosting company and it’s obvious they
have an affiliate program. Because he’s earning
close to 20 grand from it. Now if we go to Bluehost’s website. You guys can see right here bluehost.com. It’s web hosting. For anyone who wants to create a website you can sign up for Bluehost right here. With WordPress or whatever. But if you scroll down to the very bottom. And now this works for most companies that have affiliate programs. You will see affiliates
at the bottom footer. Now if you click that it will take you right into their affiliate program. And you guys can actually
see over five million paid in commissions last year alone. So as you guys can see this isn’t some sort of scam or anything. Definitely do not confuse
affiliate marketing with network marketing, which is multi-level marketing, which is pyramid schemes. Affiliate marketing is not
a pyramid scheme at all. It is legit sales and commissions. So basically you’re a
salesman for real companies. You’re not selling energy drinks and driving around base three series. This this is a real business right here. This right here I mean
look at this right now. Bluehost is a legit company. They also have affiliate programs for companies like HostGator, GoDaddy. You’ve heard of these companies. You’ve seen them on TV,
you’ve seen them on ads. These are real companies
that were talking about. So anyways getting back into
Bluehost’s affiliate program. If you scroll down, as you guys can see, free to join as with
most affiliate programs. You guys can see how it works. Basically you have
custom banners and links just like Amazon Associates for every visitor who clicks your link and signs up within I believe a 30 day period. Now Amazon’s is only 24 hours. But for most affiliate
programs it’s usually around a 30 day tracking cookie. It’s between 14 days to 30 days. 60 days, sometimes 90 days. But 30 is the industry
average for tracking links. And Bluehost, they will give you $65 a pop for everyone who signs up through your Bluehost link. Completely free to join
just like Amazon Associates. Again, this is affiliate marketing. It’s very simple, it’s very basic. But I figured I’d just
peel back the kimono and show you guys how people are really making money online behind the scenes. Now I’ll give you one more example. This is Instagram. One of my favorite YouTubers slash people that I follow on
Instagram is Maxx Chewning. Been following him
since the first few days back when he started doing the Full Day of Eating videos. Those were my favorite. Basically here is an ad. This is for MVMT watches. And this is a little different because the thing is
with affiliate marketing is you usually have links right. But another way that you can do this, now some people call this sponsorship, it’s all the same thing to me. Basically is providing coupon codes. So as you guys can see, Maxx
has his own coupon codes. It’s personalized, says, “MAXX15”. You get $15 off your order at MVMT. And basically what is happening here is if you use Maxx’s link, yes you get $15 off but he also gets attribution for your sale, and therefore he gets a
kickback or commission. Now I don’t know how much
he makes off the sale. I’m not a MVMT affiliate, I cannot speak on that. But it’s probably somewhere
around 10, 15 bucks per sale. Which is a very nice
extra source of income considering how passive it is. He just has to post one photo like this or make one video and he can continue to earn money off every
single sale from that video. And as you guys can see, the power of the internet, the power of scale. This has over 10,000 likes. And you can bet that
of those 10,000 likes, the chances of a few people buying a watch using his code are pretty high. Let’s be honest. It’s just math at the end of the day. Marketing is a numbers game. And if you’re getting 10,000 likes, you’re getting 10,000 views, you’re getting 10,000 clicks. Chances are someone’s buying something and you’re gonna be making commission. So basically those are
all my big examples. It’s very simple. I hope I can show you
guys behind the scenes of how affiliate marketing actually
works in the real world. And how people are using it to generate large sources of side
income that is different. And it’s more effective than
just doing Google AdSense. Which is just showing ads. Just for an example,
YouTube only pays two bucks for every thousand views in my experience. Now this this changes depending on your niche or your industry. But just to put things in perspective. If Maxx sells one of
these and he makes $15, just think about the amount of views he would have to get to
make that same amount of money from one sale
of selling one watch. So really less is more. You don’t have to sell as much. You don’t have to get as many views. But if you get sales
you get more commission than getting thousands
upon thousands of views. But obviously if you have both then it’s a win-win for everybody. Multiple streams of income
always the way to go. Alright guys so that wraps up this video. I hope you guys found
value in this free lesson. And if you guys like the video please thumbs up the video and
leave a comment below letting me know because
I really appreciate it. And it will allow me to continue to make more videos and free
lessons just like this. If you have any questions
about affiliate marketing, feel free to leave a comment below or contact me via Instagram by
dming me at odi_productions. So leave a comment, Instagram, either way I’ll get back to your question as soon as possible. Now for anyone who is serious about affiliate marketing and you want to use it as a vehicle to wealth and living a life of passive income and basically hopefully one day achieving
your dream life like it gave me. Guys definitely check
out my brand new course called Affiliate Marketing CHAMP at affiliatemarketingchamp.com. Where I just released my brand new course that’s five hours of HD video. If you guys enjoyed my teaching style. If you guys enjoyed learning from me. And if you want me to be your mentor and your guide for affiliate marketing, then definitely check out this course. I share a bunch of really awesome lessons such as the best examples of successful affiliate marketing in the real world. So it’s an extension of this video. I’m showing pretty much
every single example out there of how
affiliate marketing works. And also giving you guys a step-by-step plan on how to start a successful affiliate marketing business. So basically I give each step on how I’ve created my affiliate
marketing businesses, and you guys can replicate
that exact same process. And by doing each one of these steps, it increases your chances of success by that much more. Also I share the most profitable niches in affiliate marketing. Which is a complete game changer. ‘Cause this could be
the difference between making a thousand a
month and 10,000 a month. And trust me I learned
that from experience. Aside from that, I teach you guys how to rank on the first page
of YouTube and Google while still being a small channel. I’ve been able to surpass YouTubers who have millions of subscribers. Millions more than I do
and I’ve been able to surpass them on the Google rankings on the first page. And also I’m going to show you guys how to use paid traffic and show you guys a secret paid traffic source that will turbocharge your results
for not much investment. Along with creating a Facebook ad for affiliate marketing. And even creating an affiliate marketing website from scratch. Lastly, I share my top five mistakes of affiliate marketing that I wish I knew when I got started. That would have saved me months, if not years of frustration and failure. But that’s basically the
core of the lessons guys. I’m going to be adding more modules, more lessons in the future. And I’m going to keep
expanding this course to be the most comprehensive and the best possible course in affiliate marketing to get you guys started today. So if you guys are interested in that, I actually have a $100 off discount that is going to be for a limited time. If you guys use the
link in the description. So the code is gonna be already applied. As you guys can see here, there is no discount
or anything like that. But if you guys apply the code, then you guys will see $100 off discount. And there’s limited spots available. So if you guys are
really interested in this I suggest you get on it ASAP. But if you have any questions, please feel free to leave a comment below, Instagram DM me, whichever way you can reach me. And I’ll be happy to
answer those questions. So anyways on to the next video. I hope you guys enjoyed it. Alright, peace.

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