What is Affiliate Marketing And How Can You Leverage It

What is Affiliate Marketing And How Can You Leverage It

You’re starting a business or you may have
one. But you don’t have the money to spend on marketing. What should you do? Hey, everyone, I’m Neil Patel and today I’m
going to explain what affiliate marketing is and how you can leverage it. The cool part about affiliate marketing is
that it’s performance based marketing. If someone drives you a lead or a sale, you pay them out.
You pay them on a cost per acquisition. Acquisition can be a lead or a sale for you. You determine whatever it is. And you can even determine what you want to
pay people. If your product sells for 500 bucks and your
margin on it is 250 – in essence you’re operating at a 50% margin – and if you decide: “hey I’m
willing to pay someone a $100 for every sale they drive me” then you can offer affiliates
“Hey for every sale you drive me, I’m going to give you a $100”. And they may decide that they’re going to
drive these sales through SEO, Pay Per Click, Facebook advertising. Whatever it may be. And that’s up to them. That’s what affiliate marketing is all about. Now there’s a few things that you to know
about affiliate marketing. Number one: it’s really hard to recruit affiliates. Where do you look for them right? You can’t just go around the web to go find
marketers and say “hey, you want to join my affiliate program?”. Instead, you want to join networks like Clickbank.com. So when you join these affiliates networks
and you talk to them, they’ll tell you: “Hey here’s your product. Here’s what you should price it at for CPA. This is what you should pay people every time
they drive you a sale.” And they’ll make sure it’s competitive and
you’re not losing money. Because the last thing you want to do is
be willing to pay someone $10 per sale when it costs them $20. Because if it costs someone $20 to drive you
a sale, they’re not going to take $10. That means they’re going to be losing money. Especially if you’re making thousands of dollars. They’re going to be like: “no, you gotta offer more.” You have to be competitive. And companies like Clickbank that offer affiliate
networks will tell you what you should price your offer at. There’s other ones too, like another site
that I use is JVZoo. JVZoo is also another place that you go to
recruit affiliates. In addition to that, you can also go to conferences
like Affiliate Summit. Affiliate Summit or Affiliate World are really
big affiliate conferences where all these marketers go and they’re looking for new offers
to promote. So go there and you’ll find people who’ll
be willing to promote your offers and these conferences even teach you how to price your
product, what to sell it for, what to give affiliates to incentivise them etc. The second thing you need to do to continually
optimise your own website. If people are driving traffic, but those visitors
aren’t converting into customers, that means they’re either driving irrelevant traffic,
but most affiliate marketers are good at what they do. So usually the traffic sources typically qualify
or it means that your web page isn’t converting and your web page not converting is usually
the issue. So you want to run surveys. You can use Quaraloo.com. That’s a tool that I love using and you can
ask people questions on your landing page such as: “What else would you like to see
on this page?”. After you get 30 plus responses, you’ll get
a really good understanding of what’s wrong and you can fix those things. As you fix those things, you’ll notice that
your conversions will go up. In essence, the more visitors coming to your
website come more of them will convert into sales because you’re fixing the conversion. While before you may have had over a thousand
visitors to your website and zero buy, and now it could be that after you fix the conversions,
a thousand come and ten buy. That’s improving conversion rates and that’s what
happens. Another tool that you should use is Crazyegg.com
and with Crazyegg it will show you where people scroll, what they click on. It’ll track the mouse movements of your visitors
and that will give you insights on what you need to change so that you can maximise your
conversion rate. So if you do those two things, you can generate
traffic through affiliate marketing. And affiliate marketing is one of the most
powerful marketing techniques or tactics out there. Especially for businesses that don’t have
a tonne of capital. Because you only pay money for sales. And when you’re paying out the money for these
sales, pay on a Net 30 basis. Because sometimes you’ll get refunds or credit
card fraud. You don’t want to give out payouts for people
who you’re refunding. So to ensure that you’re not getting ripped
off by these affiliate marketers, make sure your payouts are Net 30.


  • Digital Pratik

    July 6, 2017

    JVZoo is my favorite… the best one for digital marketers i mean… ✌️

  • Hardik Oza

    July 6, 2017

    Keep creating these mini info videos. Your knowledge​ is always gain for me. Thanks for sharing your knowledge.

  • Rajesh Rajput

    July 6, 2017

    hey Neil how can I learn writing by my own mind.

  • Joey Janssen

    July 6, 2017

    I'm in the process of building an authority site in my niche. If I create affiliate links to my blog pages (that affiliates can use as presell pages), won't this hurt my google rankings? I heard this a while back and don't want to risk my quality score with search engines for affiliates. Should I build an entire different site just for affiliates that sells the same product? Thanks Neil!

  • Hello TRENDS

    July 6, 2017

    hey Neil can I join Neil Patel team,i will do it free,i only need is experience working with you.

  • TwigBrush

    July 6, 2017

    Neil, in one of your blogs, you mentioned how great infographics are. Since infographics are usually pictures, does it mean that Google won't be able to read the text on them? Wouldn't that be bad for SEO? Would really appreciate the help!

  • Ronikisidy Muhammad Rohani

    July 7, 2017


  • Sanjay Shinde

    July 7, 2017

    Thanks Neil for sharing a wealth of knowledge. Really appreciated.

  • PankajRaj Singh

    July 7, 2017

    Thanks for sharing affiliate video.

  • Diogo Maria

    July 9, 2017

    Do you recomend any books ir course on affiliate marketing? (for the Marketer)

  • Dave Anthony

    July 11, 2017

    Love these videos. Thanks for sharing Neil.

  • Vishnu Moorthy

    July 15, 2017


  • Mihir Shah

    July 17, 2017

    Nice one

  • Manoj Sundaram

    April 4, 2018

    Hi neil , it is pretty difficult to get backlinks for affiliate websites , how to do it ,..Give me some tips

  • Yash Nikam

    April 29, 2018

    Hey Niel . Can we share the Amazon affiliate link directly from the associate portal to Facebook or Instagram ? Will they pay sales through social media ?
    Without having a blog of any intermediate medium ?

  • Sawand Belcher

    January 28, 2019

    Great day brother. I'm thinking I'm going to make a video about the financing for investors that we provide via affiliate link. then use the buyers list we have and promote to them… should I do a raw iPhone video or pay for a commerical to be made?


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