Table of Content
This post is an Introduction to Affiliate Marketing and Powerhouse Affiliate how it works and how it can help you get started with your own affiliate marketing business.
Do you prefer watching video training rather than reading? Powerhouse Affiliate has designed a COMPLETE Video training course that is available for Premium Powerhouse Affiliate Members. Click Here to Access the Course With Your Premium Membership or Upgrade Now for Access.
What is Powerhouse Affiliate?
Many people join the Powerhouse Affiliate as a free member without really understanding what they do.
If the first question you are asking yourself is “can you tell me how I make money here?” then you need to follow this course in its entirety.
Powerhouse Affiliate is an affiliate marketing training platform that teaches the business of online affiliate marketing. They have their own affiliate offers you can promote, but the methods and strategies they teach you can be applied to any affiliate program online!
As a Premium Member, You can earn commissions through their own Powerhouse Affiliate Referral Program. If you refer people to Powerhouse Affiliate using the link inside your Powerhouse Affiliate members account dashboard, you can earn commissions.
But how do you actually earn money?
First, let’s clear up one common misconception. Being a member of Powerhouse Affiliate doesn’t mean money will magically appear in your bank account or PayPal account.
In fact, you might not earn any money at all. This post is meant to explain to you that the affiliate business takes time and effort, and you need to work for it.
So on that note let’s first describe the business you are about to learn, then we will talk about how we can help you earn your first commissions!
What is Affiliate Marketing?
AFFILIATE MARKETING is a type of marketing in which a business or product owner rewards someone (an affiliate) for each visitor or customer brought by the affiliate’s own marketing efforts. Millions of people who aspire to make money online have used the Affiliate Marketing business model to generate long term income. Many affiliate marketers go on to even build their own online stores and businesses as they gain more and more skills.
As an affiliate, you do not need to own any products but you still make money by selling other companies’ products online.
Affiliate marketing is perhaps one of the oldest and the most “easy to enter” home business models for people who want to make money online.
Let us take a look at the different ways and methods by which we can use affiliate marketing to make a substantial amount of profit.
4 Key Players in the Affiliate Marketing Business Model
THE ONLINE AFFILIATE MARKETING INDUSTRY HAS FOUR MAIN PLAYERS
- THE MERCHANT (also known as the ‘advertiser’ or ‘product owner’)
- THE AFFILIATE NETWORK (this is a 3rd party company that links merchants to affiliates. It holds all the advertisers’ offers and also takes care of the payments to affiliates)
- THE AFFILIATE (also known as ‘the publisher’)
- THE CUSTOMER or potential customer (also known as ‘visitors’, ‘clicks’ or ‘traffic’)
Affiliates can make a considerable quantity of cash every day considering that the internet makes it possible to range to very large numbers. You have the potential to hit a worldwide market right from your very own house.
In order to gain money affiliates use tracking web links supplied to them by an associate/affiliate network or item proprietor. After that, the affiliate obtains “web traffic” to that web link. Several different sources of “online website traffic” are readily available to produce earnings from your affiliate advertising organization including natural search engine optimization (Search Engine Optimization), paid online search engine marketing (Pay Per Click– PPC), e-mail marketing, native ads, content advertising and marketing and screen display advertising — every one of which is cover in powerhouse Premium Online Web traffic programs or inside the personal online forum.
AFFILIATE MARKETING IS PERFORMANCE-BASED, meaning an advertiser (or product owner) only has to pay you when you perform.
For instance, if I own a product and I want to sell it online, I may simply pay other individuals (affiliates) a commission every time they sell my product for me. I might only pay affiliates when a visitor they send to my offer turns into a customer or qualified lead or performs any action I have specified in the offer terms.
Despite the global economic downturn, the Affiliate Marketing business continues to grow rapidly and shows no signs of slowing. The only thing changing is technology, and the regulations of the game, which makes the industry a lot more quality controlled. If you are looking to start an online business, starting as an affiliate marketer is a fantastic way to get in without a product or service. You are coming in at a great time!
How Do You Actually Make Money?
Understanding the flow of the money is key in understanding how you will eventually set up your own online business. There are hundreds of ways to make money online, and every day you will find 100’s of new methods! Affiliate marketing has become one of the most popular forms of earning money online, especially for people just entering into online business. With affiliate marketing, you can essentially work at your own pace, and you do not need in-depth computer skills to start earning money.
The first thing you need to do is join an “affiliate program” or an “affiliate network“. Thousands of product owners online have affiliate programs. We explain this more in a bit. As a Premium member of Powerhouse Affiliate, you can access our own recurring commissions’ affiliate program. We will actually pay you to refer people to Powerhouse Affiliate premium just by using your own tracking link inside your own Powerhouse Affiliate account. This course is going to get into more depth on how you can go about setting up your own campaign using that link.
Powerhouse also has a CPA network which has hundreds of more affiliate offers, which you will learn more about once you become a member. So you are on the right track!
No matter what affiliate program you join, the first thing you need to do as an affiliate is getting your own affiliate tracking link from your affiliate program. The next step is to start promoting that link online or even offline.
As an affiliate, you earn affiliate commissions every time you perform the desired action of any offer you are promoting. This is often defined in the affiliate terms or in the specific offer terms on any Affiliate network you join. It is EXTREMELY IMPORTANT that you follow the rules of promoting any offer. If you break the rules or generate spam online you can lose your affiliate accounts, and not get paid.
There are two trains of thought on how to promote your affiliate links.
- Direct linking – This is where you take your link and just start pasting it in different places online including in emails, articles, blog posts, forum links, and social media pages or profiles that you are allowed to post in.
- Building an Authority Style Website or Landing Page – One of the easiest and most common methods for affiliate marketers to make money is by building an authority style website, or landing page
The biggest online affiliates most often using landing pages or authority style blogs to get their message across, then they direct traffic to this webpage.
How Much Do Affiliates Earn?
Every affiliate program on the internet describes what your “payout” is. This is generally how much you will earn for every sale or lead you to generate for a business.
Every day BILLIONS of people go online and search for information or products. There are some affiliate sites that generate millions of views every day!
For example, if you are a paid member of Powerhouse Affiliate, and you are using your own referral link from your Powerhouse Affiliate Account, and you get people to join, you can earn 50% of all sales generated by those referrals for life. (Recurring revenue)
So let’s say you refer 20 people to our free membership using your own referral link in your member’s dashboard, and 3 of those people Upgrade to Premium Membership for $47.
You would earn $23.50 X 3 = $70.50 in “Fast Start Commissions.
But that’s not all. You will also earn “Team” commissions on their referrals, as well as there referrals! That’s 3 levels deep of sub-affiliates you get paid on!
Powerhouse also pays up to $5000 in Mentor Bonuses.
But the best part is that if these referrals continue to stay as a premium member every month you get paid again on those sales. This is a recurring commissions type of Affiliate Program. All of your sales are tracked inside your own Powerhouse Affiliate account in the member’s area and you can see them by clicking here:
Powerhouse Affiliate also pays you up to 3 levels deep.
Powerhouse affiliate marketing training is not only going to explain how to promote its Affiliate offer. They have in-depth courses which show you that you can promote pretty much anything online as an affiliate! In fact in their CPA network, they have hundreds of Affiliate offers that you can promote on a daily basis. Powerhouse affiliate has everything from skin care, to online gaming, to diet products and finance. Our premium courses show live examples of some of the CPA affiliate programs you can promote to earn thousands of dollars each week.
What makes affiliate marketing so attractive is the low barriers to entry and low start-up costs since you don’t need to develop products, you don’t need to hire customer support teams or large web developers…none of that. In fact, we have made it even easier by proving you this FREE starter training! 🙂
Let’s talk more about the required investments.
First and foremost, we recommend you use a landing page, squeeze page or a website. We are going to show you in the next lessons how you can set this up with your own domain and hosting for less than $15 a year. (we show you exactly how to do this in the next lessons using the services we recommend). Other optional expenses include using easy drag and drop website builders which we explain in later steps. We will also describe how you can get these tools for relatively cheap. The web builder is only optional and we also show how to build your blog or webpage without it.
After that, on a minimal budget, your only ongoing expense will be the cost of the website’s hosting and domain.
The only additional expense for newer affiliates would be for traffic. But again we are going to explain ways you can get free traffic. If you choose to pay for traffic or website visitors this would be an optional expense. There are ways to get traffic without spending money, and we will explain all traffic methods in our other premium training.
Therefore we arrive at the startup cost of around $15 – $100.
Speaking of the time investment, you can invest as little or as much time as you want. It can be anything from a couple of hours a week to one to two hours a day, to a full working day. When you are finally in the position to quit your day job you will be happy you spent some time learning this business :).
The best advice is to take it one step at a time, and not jump into the river without thoroughly educating yourself about the underwater surprises.
The three best options to consider are the cost per sale, cost per action and recurring revenue models.
Cost Per Sale is where affiliates get paid a percentage of the sale that they referred.
Cost per Action (CPA) is where affiliates are paid for a specific action like getting people to fill in a form online.
Recurring Revenue is more of a long term strategy and one of the highest paying ways of building your business. In this course, we are going to focus only on Recurring Revenue since we actually provide all the tools and offers to get this running for you today. 🙂
- Content producers — bloggers, article writers, and other content-driven websites – (This is generally the most common startup style since it just requires a content niche specific website.)
- Email marketers — affiliate marketers who maintain targeted email lists
- Coupons and deals — websites primarily focused on frugal consumers or those looking for additional sales and discounts
- Datafeed-driven websites — shopping directories/aggregators and price comparison engines, powered by data feeds
- Domain-oriented affiliates — monetizing mistyped versions of the advertiser’s URL
- Loyalty affiliates — affiliates offering cashback, virtual currency, or other types of rewards/incentives for consumers to convert (may not be allowed for some affiliate programs)
- Mobile-oriented affiliates — from mobile app developers to mobile search marketing and those that marry click-to-call with pay-per-call, this is another (broad!) type of affiliate strategy worthy of your attention
- Paid Search affiliates — affiliates driving traffic/conversions by means of paid search marketing
- Pay-per-call publishers — marketers driving inbound phone calls being compensated on a performance basis
- Ranking/review sites — affiliates focused on publishing ratings, ranking lists, and/or reviews (e.g.: TopTenReviews.com)
- Remarketing/retargeting solutions — online marketers that offer outsourcing remarketing and/or retargeting for affiliate-model compensation (e.g.: UpSellit.com, Ve Interactive)
- Social media publishers — niche and topical influencers that leverage their social media following or people that buy Facebook traffic or other social traffic.
- Video marketers — the video is a type of content that stands out from the rest and deserves a separate mention
In our training, we focus heavily on content, email, and paid traffic since we have had the most success there, however, all of these affiliate types can yield significant results!
VERY Key Terms You Should Learn & Get Familiar With!
All of the terms below will be seen over and over again through all of our courses and throughout the discussions. You should really get familiar with all of them.
Often referred to as a merchant or product owner. In our training, an advertiser is a person or company that wants to sell their own products and services on the web.
An affiliate, often called a publisher, is a person, or company, that’s not employed by the advertiser, but rather assists the advertiser in marketing products and services in return for a commission.
Professional affiliates use tracking software to track all clicks and conversions so that they can determine which advertising channels are working best for their affiliate campaigns. We dive deep into the right tracking tools to use and how to set them up.
- Affiliate Network
An affiliate network acts as an intermediary between affiliates and advertisers. It allows affiliates to find and participate in several different affiliate programs all in one place and allows merchants to reach a larger audience by promoting their affiliate programs to all of the affiliates participating in the affiliate network. An example of an affiliate network is http://vaultmedia.com
Creatives are all the ads that an advertiser may make available to affiliates for promoting any given offer. Creatives can include banner ads, text links, text ads, and email templates. The more creatives an advertiser provides, the easier it is for affiliates to promote their products on their own websites, blogs, social media or email campaigns.
A click can mean many things but most commonly refers to when someone actually clicks on a link or banner or other creative.
An impression occurs when a page or creative was viewed but doesn’t mean it was clicked. Impressions are also often called page views.
- Affiliate Link
An affiliate link is a URL (http://www.yourdomain.com/affiliatetracking) that is provided by the affiliate network that will track all clicks referred by you as an affiliate and will enable their tracking system to automatically assign a payment to you if the desired action (sale or lead generation) has resulted from someone clicking that link.
A link is put in place on a blog or site by an affiliate and when clicked, leads the visitor to the advertiser’s landing page or product site. Each link is encoded with a unique identifier to track each click to the correct affiliate. We will show you how to get these links and put them into your website.
- Landing Page
A landing page is the web page that affiliates direct their visitors or traffic to. (this can also be your website) An affiliate link is often placed on the landing page. When a visitor clicks the affiliate link on the landing page, your job is done and it is now in the hands of the advertiser to ensure a visitor converts into a lead or sale.
This is the point where a visitor becomes a customer by completing the action defined by the advertiser. The higher the conversion rate, the more attractive an offer is to potential affiliates and the more profitable affiliates are.
Conversely, if affiliates see that they are successfully driving a lot of traffic to an offer’s landing page but visitors aren’t converting, they will abandon the offer.
An offer is a product or service that the advertiser is trying to promote. An advertiser may have several offers running at any given time.
- Squeeze Page
A squeeze page is like a landing page and is built to first capture an email address or other information about a visitor. (can also be your website) Once the visitor enters their information then the visitor is given what was promised.
is the same as visitors or clicks and is generated through several different places online. Knowing how to get traffic to a link, or landing page is the key to success in online affiliate marketing and you will learn much more about traffic generation & promotion within our lessons.
- Direct Link
Direct linking is when an affiliate sends their traffic directly to the advertiser’s site through their affiliate link and skips their own website, landing page or squeeze page.
- Affiliate Website
An affiliate website can be a full authority site or review style site, or it can be a landing page or squeeze page. A website generally means a collection of pages all in one main domain. A domain is the actual web address like https://powerhouseaffiliate.com.
- Niche Website
A common type of affiliate marketing method is to target a specific niche and develop a content-rich affiliate niche site also known as an ‘authority site’.
For example, you could have a niche site built around a niche like “how to generate traffic to any website” and you could have separate pages all targeting a specific way to generate traffic to a website. Each page would then link to an affiliate offer.
- Conversion Rate
Simply put it means the number of people who convert based on the number of clicks.
So for example, if 100 people click your affiliate link and 3 of them convert, then the offer has a 3% conversion rate for you.
The conversion rate can be measured on many things including the landing page and ads or creatives.
- Click Through Rate
This can be measured on a landing page or ad.
For example, if 100 people visit your landing page and 15 people click the affiliate link on that page, your landing page has a 15% click-through rate.
Similarly, if you place a banner on your website and 100 people visit your website but only one of them clicks the banner, the banner has a 1% click-through rate.