What is Affiliate Marketing in 2019?


So in this video, which
I’m gonna try my best to keep short and concise, we are gonna talk about
what is affiliate marketing. We are gonna cover the affiliate
marketing business models, so whether high ticket, low ticket, organic strategies, pay
strategies and so on. We are going to talk about
some of the biggest dos and donts in affiliate marketing, and some of the major mistakes that we see in the online business
community that I run and on the webinars that I host. We’re gonna talk about the
affiliate marketing niches, the biggest affiliate marketing niches that typically affiliate
marketers will go into. And finally we are going to talk about the most effective steps that you can take to actually start an affiliate
marketing business today. So what is affiliate marketing? Affiliate marketing is essentially a business model where
you are taking charge of the front part of the business process and another company is
dealing with everything else that happens after the initial sale. So if you imagine, say you were to go and launch a company today, brick and mortar, typical business. Now if you’re setting up a company, you would have to develop a product or offer a service. You would have to deal with operations. You would have to deal with finance. You would have to deal with legal. You would have to deal
with customer support. You would have to deal with absolutely everything that goes on as part of running a business, including sales and marketing. Now what affiliate marketing is, is essentially you’re taking
the entire business process and use an affiliate, just
dealing with the front end of it, sales and marketing. Or for some companies even just marketing, and I’ll touch on that in a sec. So just front end. And then the company that
you’re an affiliate with or partnered with, the company
deals with everything else. So they develop the product, they offer support, they offer, or they go through operations. They go through manufacturing production, da, da, da, da, da. The finance, legal, Patreon, etc. That’s all dealt with by them. So typical companies. Now this business model is
basically built on connectivity. So if you imagine companies Uber or Airbnb or Expedia. So Uber doesn’t own a single taxi, yet it is the biggest
taxi company in the world. Airbnb doesn’t own a single hotel, yet it’s the biggest hotel
company in the world. Expedia, same thing. Planes, don’t own planes, biggest travel company in the world. Now with that in mind, what’s actually happening
there to allow these businesses to be so effective? And the model is connectivity. So what all of these companies
are doing is they are connecting buyers,
potential buyers of products with people or businesses
that can offer those products. All they are is a bridge between the two. And for making that connection they receive a small commission. So affiliate marketing is essentially a very similar thing. You as an affiliate, or your company as an affiliate company, would be connecting people who need a product or service with
that product or service, and that’s it. And for that you receive a commission. Now traditional misconceptions with affiliate marketing are
that it’s very much like MLM or you’re selling to friends and family. Or that you’re basically
building a business where you’re trading a
lot of time for money. And that could not be
further from the truth. So in this day and age, with digital marketing, with online business, we can use systems,
technology, online marketing, organic marketing. We can get lots, or we can
use lots of strategies, sorry, to get offers for products or services in front of buyers at the point where they’re in the market automatically, and without us having to do
anything to make that happen because we’ve set up systems
or marketing strategies that will enable us to service
content to these people to provide a value. And then in turn, if you then, or if they were to
click on affiliate link, for example that you’ve put
into a piece of content, you would get a portion of
the revenue from that sale. And often that portion of revenue would be relative to the amount of the business process that
you are taking charge of. So there’s lots of different
affiliate companies out there. Now lets talk about the different types of affiliate business model. You can have low ticket
affiliate business model, which might be selling
products on Amazon for example. So Amazon made, I think
it was 47 billion dollars worth of revenue in 2018
from third party sellers. Okay, now I, the exact, I don’t know if it’s 47 billion, it might be 45 billion. I can’t remember the exact number, but it’s around that number. And so the pint is that most of the stuff that people buy on Amazon are bought from sellers like you and me putting products, listing on Amazon and connecting people that
wanna buy that product with the actual manufacturer
of that product. Now this is all well and good, but the problem with low ticket affiliate, so selling like a book on Amazon or something like that, is that to make any kind of tangible, sizeable return, you’d have to be getting a lot of people to be looking at that offer and then deciding whether to purchase. So the problem, one of the problems with low ticket is that you
just need a lot of volume. And the thing is with traffic online, typically you can either go
down the paid marketing route or the organic marketing route. And again this is a bit
of a generalisation, but more often than not
building an organic audience is gonna take more time, and you need to put a lot more commitment into growing an organic audience either on like a YouTube channel or through an Instagram page or from writing a blog,
and ranking on Google. There’s many different ways as well, but that’s just a few. And so organic typically would take time. And so with low ticket affiliate, going down the paid route is very tricky because there’s a lot of
other advertisers online, and if you’re only making $2 or $0.50 or something as an affiliate commission for like selling a book, that’s not a lot of advertising
budget to be playing with. You don’t have the margins
to be able to spend money on paid advertising, which
means you’ve gotta grow an organic audience. And growing an organic audience is gonna take a lot of time to get a lot of eyeballs on that product
to make it worthwhile. Now with the paid route,
typically you might, you’d be better off, in my experience, looking at high ticket affiliate offers. Now you’re generally not
gonna see high ticket on things like Amazon associates or things like CJ Affiliate, which is another affiliate, basically programme that offers, that allows businesses to partner with you as an affiliate. But what you’ll be looking
at in higher ticket is companies that sell products of maybe several thousand dollars. And you can get affiliate commissions of a few hundred dollars, $500, $1,000. There’s one affiliate
company that I partner with that does up to $8,000
commissions per sale. So if you think about that for a second, that is a lot more marketing budget that you’re playing with. Obviously it takes more time to match up and provide value to somebody to enable them to make that
kind of buying decisions. But that is the kind of
stuff that you can learn. And that’s the kind of stuff
that can be largely automated. And so here’s the key. If you’re going down the low ticket route, in my experience generally
organic strategies are really the only way to go. And that’s gonna take more time, okay, which is fine if you’re willing to put in the time and do the work. If you’re going down
the higher ticket route, you can do organic as well of course. All right that’s fine. But you might also look to explore the paid marketing route. And paid marketing typically
is gonna be quicker to build an audience. It doesn’t mean it’s easier, it just means that it’s typically quicker to build an audience and get eyeballs on what it is that you’re
creating as an offer. Now essentially with this in mind one of the most important dos and donts of affiliate marketing,
or don’t should I say of affiliate marketing is do not recommend products or services that you have not purchased
or experienced yourself. That is very important because if you’re, the whole aim of the game here is about providing value and helping people move forward. Helping people overcome
there problems in their life. That’s the key. We provide value. And so if you’re recommending things that you have not experienced
or purchased yourself, you don’t know whether it’s any good. Think about it this way, would you recommend your friend goes and sees a film that you
haven’t even seen yourself? No, ’cause you haven’t seen it. Would you recommend your friend goes and joins a gym that you’ve
never even joined yourself? No, you wouldn’t. This is no different. You know people that
you’re connecting with, the main focus that you have
to put your attention to is providing value, is
solving their problems. And so if you’re gonna become an affiliate for a company you’re
gonna recommend a product, the number one rule is
make sure it’s something that you know is actually any good. So another do and don’t
of affiliate marketing, or again should I say probably a don’t of affiliate marketing is that people will typically decide right, okay, I wanna, I wanna create
an affiliate business. I’m gonna create an affiliate business. So now I’m gonna go and find a product. So I’ll go on Google
and I’ll type you know how to find high ticket affiliate offers. And then I’m gonna, you know, search different high
ticket affiliate companies. And with dollar signs in my eyeballs and I’ll be looking at this offer again. Look how much commission
I can make for that one. Look how much money I
can make if I sell that. That’s really good there. And then what they’ll
try and do is they’ll try and build a business behind that. Or start getting people
to look at this offer and buy this offer. And the problem with putting your focus on the money or the quick wins or just give me an affiliate product so I can sell it and start
doing affiliate marketing ’cause I wanna quit my job. You know with that kind of mentality behind what you’re doing it’s
gonna be very short lived. The novelty will wear off
very quickly, believe me. So we’ve gotta make sure
that whatever we’re doing we have some kind of passion or interest either in the niche that we’re in, or we are enjoying
something every specific about the process, and
we have a bigger vision, a bigger why of what type of
life we’re looking to create and the impact that we wanna create and who we wanna help. Well ultimately there’s
something that we’re doing it for that is bigger than us, kids, family, wife, husband. And really what we wanna be doing is driving towards creating the type of future that we want to create for us and for the people
that we care about. And in that future you’re probably not gonna be wanting to spend the next five years of your life just
looking over the internet to find products to sell to people that you don’t care about, you don’t really want anything to do with, and that you’re focusing on nothing more than making the money. It’s not sustainable. It’s not gonna last. So biggest affiliate marketing niches. And again this isn’t a decisive list. There’s obviously a lot more than this, but biggest affiliate marketing niches would typically be health and fitness, dating and relationships are big ones. Online business, education is a big one. Personal development is a very big one. Also sports, things like golf, you know people would spend a lot of money on golf equipment and so on and so forth. And really what you
wanna be thinking about is when you’re tying in something
you’re passionate about, something that means something to you, something that you’ve got value from, lets say a personal development
event that you’ve been to and you’ve gotten massive
transformational value out of that and so you
wanna help other people experience the same thing that you did. Well you might consider looking
at being an affiliate for that personal development seminar ’cause most companies are
for affiliate partnerships. So if that’s what your focus is, well the number one lesson here is that most affiliate marketing niches that are big and successful, all affiliate have great
success in those niches, some affiliates. The most popular niches are ones where you are solving the
biggest problems for people. So think about what problems do people have, what
are the biggest problems that people have that you
would like to help solve. And something that means something to you is gonna be a much better path to go down than something that you don’t care about anything except the money. Okay so what are the biggest problems that people are trying
to solve in their life and how can you help solve that? And if you can find a
company to partner with that does a great job of helping solve that problem, then it’s just a case of learning how to drive traffic to an
offer that you’ve created for that company, okay. So lets talk a little bit now about how you can actually
start affiliate marketing and what the most valuable
thing that you can focus on is to allow you to take those first steps. Now one thing that I’ve
learned on my journey, ’cause I launched my first
business in September 2016, company was actually
incorporated in December 2016. I was like sole trader before that. So December 2016 was when the company was incorporated as a
private limited company. That was primarily an affiliate business and the company that I partnered with was an education platform
that I was going through to learn how to do online marketing. Because I realised that if I learn how to do online marketing and I learn how to get a message, a valuative message in front of people, whether it’s through video, whether it’s through
written content like blog, whether it’s a paid ad in
like Google paid search or Bing paid search or
something like that, if I learned that skill
then I could connect potential buyers with sellers of the products that the
buyer’s were looking to buy. And for that I could receive
a commission in return. And I realised as I was going through this education myself, I realised that well I’m getting so much value out of this and this is the journey that I’m going down and I have goals and vision that I wanna create and I see that this is the
way I can create that vision and so I know that this
is gonna help a lot of people like me as well. So that’s how I started. I found a high ticket affiliate product that I resonated with because I was going through the education and
seeing how valuable it was. So what I started was an
affiliate marketing company, which is called Scrap the Nine to Five. And what that does is it recommends people to education
that can help them learn the skills of building an online business. Whether that’s affiliate, whether it’s other business
models like E-commerce, which I won’t walk about in this video. Whether it’s like consulting, again I won’t talk about
that in this video. So the point is that
is what I startled with because I was going
through the process myself. Now, here’s the important point, lack of information is never the problem. If you don’t have an online business yet, the reason that you don’t
have an online business is not because you don’t know the how. It’s nothing to do with having the magic tactic or the magic strategy. Never lack of information
that’s the problem. So for example, how many
people have six pack abs? How many people are in fantastic shape as a percentage? Quite small right? Probably five percent, three percent, two percent, one percent. You know depends on how
fantastic shape we’re talking. And yet if I said to you to get in great shape
what are the two things that you need to do, what would you say? It’s gonna be exercise more and eat healthier, right? In some form or another. You can have loads of different tactics and strategies of how
to do those two things, but we all know fundamentally
how to get in great shape. You just exercise more
and you eat healthier. We all know that, except 95% plus of us are not in fantastic shape. It’s not lack of information. It’s ’cause we, it’s not ’cause we
don’t know how to do it. We all know how. And it’s no different in online business. If you type into Google
how to start an affiliate marketing company, 197
million results come up. The answered are there for free. We all can find out from just
literally typing a sentence on our smartphone, we
can all find out answers. But that is not why we don’t succeed. Why we don’t succeed is
much bigger than that. To deal with what’s going on in here. It’s because we don’t
have the right mentors, we don’t have the right accountability, we don’t have the right
vision of why we’re doing it. We can’t overcome procrastination. We don’t overcome our fears. The list goes on. And so when I started
I very quickly realised that if I was gonna succeed in this game I would need to find people who had already achieved the result that I wanted to achieve
and then model them. And if I could do that
and have these people tell me how did you succeed? And they tell me this is what I did, this is the steps that I take, and then you model those steps. You do the same things that they did, you get the same results that they did. It might take time, might
take changing some things, might take failing a few times, but if you model what
someone else has done to achieve a result and you model exactly what they’ve done, eventually you will
achieve the same result. It’s not rocket science. So therefore, if you wanna create an affiliate marketing business, or you wanna know how to start, very simple, you gotta find someone who’s already done it and model them. Model what they did. That’s what I did. That’s how I started. So if you’re in the same space as me as I was when I first started, whereby I wanted to get out of an unfulfilling career, I wanted to create time
freedom in my life, I wanted to be doing things that I wanted to do instead of doing what my boss told me to do. I wanted to spend time with the people that I wanted to spend time with instead of having to
go work a nine to five or more like seven til seven. I was doing 60-70 hours a week. So if those are the kind of things that are motivating you to
want to create some change in your life to build an online business, to build an affiliate marketing company, then just model someone
who’s already done it, and just take the same
steps that they took. And the first step that
I took was go through an online education that would teach me the fundamental basics of
building an online business. If you wanna aces the
same education as well, then in the top coroner of this video you will see a button that you can click that will take you through to my website and give you access to the
same education platform, the same mentors, the same community, the same accountability groups, the same training and the same everything. The same eco system and environment that I went through to
start launching businesses. So I now have four companies. I’ve been travelling the
world all across 2018, now in 2019 I’ve settled down a little bit and got an apartment in London. Wanted to really start
to scale more businesses more aggressively, build a team behind me which I’ve started doing. A lot of you, if you’re
involved in my communities that I’ve been building over the last year and a half or so, you probably have already connected
with some of my team. So you’ll know them, Catherine, Jason, my brother, he
works with me as well. Sarah, another new member
who’s recently joined the team. So the point is if you want to model and create this kind of result as well, just model and follow somebody
who’s already done it. That’s why I do what I do. That’s why I do this content on YouTube. That’s why I’ve created the
private entrepreneurial network that you might end up joining. You know, not expensive. So all of these things are resources to help somebody get the same results through taking the same actions. If this makes sense, if
this sounds interesting, if it sounds like you might want to learn how to make a start as well, get in the same environment, surround yourself with
people who have done it. Click that link and that’s
gonna give you three choices, three options, all right. Number one, you can
just join the community for yourself. For just $29.95, it comes with a 30 day money back guarantee. You can check it out. It is literally zero risk. If it’s not for you,
you just click a button in the back office. It’s just one button click and it’s an automatic
refund of your subscription. Couldn’t be easier. Number two, if you’re not really sure yet, you wanna find out a little bit more about how online business works, what the different models are, then you can access a free video series that goes a lot more into the basics and the fundamentals and how other people do make a start in affiliate marketing or E-commerce, two very
powerful business models online. All right so you can access that video series for free
if you wanna learn more. Or number three, if you’re
thinking as you’re watching this well he’s just trying
to sell me something, then I’ve got something that I think might really help you as well. So out of curiosity click the link. Have a look at the three options. You can look at all three if you’d like, see what they’re about. And if one of them resonates with you there’ll be details on exactly
what you can do from there to help yourself move forward. Even if you’re thinking he’s just trying to sell you something. I’ve got a free resource for you that I think will really help. All right so thanks very
much for watching this video. If you’ve enjoyed it, if you found it useful, then don’t forget to subscribe. I do plenty of videos
about online business and also about personal development and mindset for success. Believe all these kind of things. I love delving into what goes on in there and how that contributes to our success or the results that we create in our life. So if you’ve enjoyed this, found it useful, subscribe. And also comment below if there’s anything that you’ve learned,
any questions you have, any perspective that you’d
like to add and share. I would love to hear from you. Thank you very much for watching. Really appreciate it. And I will speak to you in another video. Bye for now.

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