How to Use Affiliate Marketing

Photography: Storefronts ~1920

First, a teaser. I’m working with someone to deliver a great ebook on affiliate marketing. Watch for that. In the interim, I wanted to just tell you a bit about how I use affiliate marketing as part of what I do. It’s not necessarily the best way, and definitely not the only way, but maybe this will resonate. Note: I’ve written about this a bit before when I told you about my worry reduction buttons. That’s a good place to start.

Quick Definition of Affiliate Marketing

I define affiliate marketing as “promoting a product or service that someone else has created to your community with the hope of providing benefit to that community, and to be compensated for that promotion.” For instance, I am an affiliate for several premium WordPress themes. Over on Man on the Go, I use affiliate marketing as most of my ads. Thus, anything at the top or bottom of every post, plus most of those sidebars is an affiliate program.

In all these cases, I don’t own the end product. I own a relationship with a community who matters to me (you), and I own a transactional relationship with the company that sells the product or service. They don’t pay me for promoting them. They pay me if I sell one of their products (or sometimes, if I sell a lead towards a potential sale).

Which Products and Services Should You Sell?

In my case, I’m a bit of a mixed bag. On my site, I promote products and services that make sense for bloggers and media makers. I sell Genesis (affiliate link), a WordPress theme, and I promote Rackspace (aff link), my hosting provider, and products like that.

I only promote products that I’ve used and that I can vouch for. That’s not how everyone does this, but for me, my relationship with you is worth more than $14 or so bucks, so I’d rather be able to vouch for the quality of a service.

You can find products to promote on places like Commission Junction, Share-a-Sale, LinkShare, not to mention finding direct affiliate programs with certain people like GoDaddy (example: Resell Domains for GoDaddy.com).

I Don’t Want to Seem Scammy or Disingenuous

Welcome to my world. I recently wrote disclosure always to talk about how I handle disclosure. I also link in that post to how others handle it. To me, when in doubt, be clear on your disclosure that you stand to make money should someone buy something from your site. I have a whole section for disclosures of all types on my about page. Even in Twitter, that’s how I do it. If I mention something is an affiliate product, I put it somewhere in the tweet, so that people know my intentions.

The More Integrated, The Better

Over at Man on the Go, I add affiliate links to products and services that would make sense to business travelers. Here on [chrisbrogan.com], I link to things that might make sense to business people and marketers, as well as new media types. I do my best to make the products and services match the community, and I recommend this for you, too.

Is It Worth It?

This is a tough question to answer, because your mileage will vary. I have around 300,000 unique visitors a month, so I get enough traffic and have enough built-in trust to convert buyers reasonably well. On my site, a couple links I have are paying 1-3x my mortgage payment every month. That means, my kids have a house no matter what I do right or wrong with my business. Is that worth it? To me, it is.

What should you expect starting out? Aim for beer money. Then aim for steak money. Then aim for an additional car payment. Then mortgage. That’s how I did it. Some day soon, I’ll figure out what’s next: maybe aim for an entire salary off affiliate links?

This is just one stream of revenue, but it means that I can stop eating ramen noodles, and it means that I don’t wince whenever the mortgage check payment comes out. Is that worth it to me? I say yes.

Thoughts? Questions?

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  • http://www.HectorJCuevas.com Hector Cuevas

    Chris..

    THAT’S the way to sell OPP.. If I haven’t used it.. I don’t promote it.. Just like you, I don’t think it’s worth the commissions.. being very transparent about affiliate links is one thing I’m gonna start doing though..

    thanks for the awesome post bro..
    Hector Cuevas

  • http://chrisbrogan.com Chris Brogan

    Glad you’re here, Hector. Thanks for the reinforcement.

  • http://twitter.com/presentsqueen Helen Tarver

    Great piece. I added a big note about how my site worked after one of your earlier posts, as well as disclosing that I work for a big retailer in my day job, and I sometimes write about products I love that we’re doing. But only if I love it. And if I don’t, then I don’t write about.

    Thanks for more good advice.

    Helen

    • http://chrisbrogan.com Chris Brogan

      Always happy to add to things, Helen. : )

  • Anonymous

    What I like about this post is that you have reasonable expectations and set them for others.

    One of the issues of the blogosphere are people who think that their blog or their site or whatever is going to bring in so much money right off the bat they can quit their day job, and the people who try to bottle and sell that idea to folks.

    You’re right, it starts as beer money.. then it grows. You’ve gotta put the time and work in, in one shape or another. And scale helps too. You say you have 300,000 visitors, that’s way more than some people I see with a thousand or five thousand trying to make that same 3x their mortgage payment you do, not to mention the not-so-clearly quantifiable-on-a-spreadsheet “trust” factor.

    I’m not trying to rain on anyone’s parade – but you’ve gotta take into account reality when shooting for the stars. The people I know who are successful realize that there’s logistics to getting that rocket to Alpha Centauri :)

  • http://twitter.com/SmartCookieMktg OneSmartCookieMktg

    Disclosure. Integration. Progress from beer money to mortgage. You always drill down to the nitty gritty – thanks!

  • http://twitter.com/vascocv vasco vasconcelos

    I just gotta say I love the way you set reasonable goals and objectives, and don’t just “sell” stuff like it’s the next big thing, that will change people’s lifes forever. Thank you.

  • http://chrisbrogan.com Chris Brogan

    I do my best. Trying to be a smart chocolate chip and earn my way up. : )

  • http://chrisbrogan.com Chris Brogan

    People actually sadly fall for the “this will make you RICH” sales pitch more often than not, but I do my best to keep mine on the “this will make your blog prettier” side of the street. Seems like a better way to die.

  • http://chrisbrogan.com Chris Brogan

    I tried my best to set this up to be clear and realistic. People really get sold a bill of goods all the time. I’m doing my best to pop some of the magnifying bubbles out there and get us focused on what we COULD do.

    Oh, and we start somewhere. My first few months doing affiliate stuff, I made vending machine money. : )

  • http://gvmcmillan.wordpress.com/ Grant McMillan

    I have been trying to figure this whole online world out more and I appreciate how down-to-earth you are, Chris. I’m so frustrated by people who use only acronyms, which I think are their way of trying to sound like an insider. You explain it in ways a normal, beginner in business will understand. That builds trust perhaps even more than seeming like an insider. I am learning from you daily, and for this I thank you.

  • http://reallifemadman.blogspot.com Marjorie Clayman

    Grarg…I don’t know. This whole facet of the business is something I struggle with. That’s not at all a hit at you or anyone else who does this in an equally transparent and well-meaning way. I see the reasoning for it. And hey, I like money! I would like more of it!

    Somewhere along the way, and I don’t really know how, I became a blog purist. Now, your Man on the Go has a different format and seems un-bloglike (new adjective, please), so it doesn’t rub me the wrong way. But when I visit blogs that I count on for content, I admit, even though it might not make any sense, that the affiliate thing rubs me the wrong way. It rubs me the wrong way when people use blogs to ask for votes for SXSW. It rubs me the wrong way when people use blog posts to blatantly say “Heyyyyy do business with me.”

    I guess for me, blogs that I visit for content are like library books. I would not want or expect to see ads in a library book. I’m borrowing the book to learn about what that author has to say. If they think that I should use a product that they mention in the book, I’d expect to see that…somewhere else.

    I say all of this at my own peril. As a person in business myself, I know that I need to get over this. It’s a big battle in my head and heart right now. The resistance is strong, but I’m not sure where it came from.

    I guess I’ll have to wait for your e-book, non? :)

  • http://twitter.com/vascocv vasco vasconcelos

    Totally agree. Nothing like going to bed with an easy conscience.
    And I also agree with Grant: the more I know the online world, the more I apreciate down-to-earth people. Quoting books is easy: anyone can do it. But only a few actually understand things, and even fewer are honest about it.

  • http://chrisbrogan.com Chris Brogan

    Funniest thought in the world coming from an advertiser. : )

    All information costs something. Some of us share that cost right out front. Others tuck it in and try to obfuscate it. I find lots of people promoting things without disclosing that it’s a client or their own company.

    In my case, I’m sharing products and services that I think are useful/valuable. When you don’t want the service, you simply don’t click the link and don’t buy.

    You don’t turn your TV off just because it has commercials. You don’t stop watching a movie when you catch the product placement. You just discern which ones you care about and move past.

    My site is free to read and has been for over 11 years (in various formats). If I shut that down and charged people what it was worth for me to create it every day, then I’d probably make a few bucks, but I’d lose tens of thousands of community members.

    I think it’s a fair swap.

  • Anonymous

    I don’t have a huge readership but I do very well with affiliate marketing because I only link to things that I use and love myself and, what readers I do have, know that. I definitely don’t make enough to cover any sort of house payment but I’m only aiming for pocket cash when it comes to affiliate marketing. I use custom campaigns to aim for the stars…. :)

  • http://www.andicrook.com Andrew Crook

    Affiliate marketing is great for business, its one up on business referrals and can often lead to more direct sales and brand awareness. However, there is a darkside whether it be scammy or spammy :-) not only can this be bad news for the consumer it can put a big dent in the credibility of any business.

  • http://www.andicrook.com Andrew Crook

    Going back to the subject of business referrals I think these are often overlooked and go great with both online and offline networking. Referrals can take the form of testimonials , recommendations or even just pointing someone in the right direction to find some information. Nor do business referrals have to be for commission or other financial gain , they can be used to help multiple parties mutually or gain credibility.

  • http://www.imagemaven.com Marlene Hielema

    I’m really happy to hear that working for beer money is a realistic goal to start with! I’ve been very discouraged with affiliate marketing, but also realize I need to develop more content and have more traffic. I honestly think I’ll have more potential with my own products, as for one thing, I’m much more passionate about them.

    I guess too, it all comes down to the goals for your site and your business and where you are making the effort. Are you an affiliate marketer, product creator or service provider?

    Chris, thanks for putting this into perspective, being honest about what you make, and taking the pressure off. The seductive trance that affiliate marketing gurus put us in make it sound like we can be a millionaire in 6 months.

  • http://reallifemadman.blogspot.com Marjorie Clayman

    I know, right?!?

    I think that’s part of the problem, though. We’re called an advertising agency still (“we” in this instance referring to my family’s company, not all of my personalities), but really we’ve extended well beyond that. We can still put together ads, but we also can consult with our clients on how that ad should be distributed and how we can make sure it succeeds. Advertising agencies are being forced to evolve *extremely* quickly into idea people who can help companies achieve what they need to achieve. The actual “doing” of things, as you wrote about recently, is no longer the domain of agencies alone.

    The tap dance of agencies in the Social Media world is extremely complex, and I think perhaps the affiliate issue, or the issue of promotion, is where the apex of my confusion lies. My blog and everything I do is, in the end, only peripherally about me. I am here as a representative of my family’s marketing firm. Ultimately, everything I learn in this space, it is hoped, can be used to help our clients evolve and succeed in this quickly changing world. That’s what my work and passion is about. If we mention to our clients that Margie has a blog post up and there are Amazon affiliate links there, would that send a mixed message or a wrong message? I worry that it would.

  • Anonymous

    I follow the same motto with affiliate links as I do in real life. How can I tell you that a restaurant has awesome food and service if I have not eaten there? Even if you are giving a 3rd party review or recommendation you should state that somewhere,somehow. Example I don’t use said hosting company but I have done work for people that had to give me access to their hosting account. Based on that fact and my 3rd party experience with that company I feel comfortable recommending them to others.

  • Anonymous

    The people I know who made a million in six months from a standing start had millions to invest ;)

  • http://wwwjackbenimble.blogspot.com/ The JackB

    As long as people engage in disclosure I don’t really care whether they have an affiliate program or not. If people make money doing it I think it is great.

  • http://twitter.com/frankmireault François R. Mireault

    One of the reasons I visit this site is because you share the tools you use to grow your community/business. I always click on affiliate links of people I trust, to see which products they endorse and how these can help me.

    It’s also good for business in general and allows people like Chris Pearson to sell thousands of themes and develop better ones.

  • http://www.biznetcentral.com John Wheeler

    Chris,

    I read through some of your comments (ok, I scanned most of them – Please Don’t Shoot!).

    I think there’s a big misunderstanding about how much money can be earned from a blog. There seem to be people out there expecting to make a million dollars per year from affiliate marketing.

    They’ve heard the tales of people doing just that, and entered the blogging scene hoping to make a decent living.

    Unfortunately, I doubt there are many people make a million dollars per year off affilitate marketing and if there are, they’re probably using a different model then just running a blog.

    If anybody can make a million dollars a year from affilate marketing, it would be you with your 300,000 unique visitors per month.

    I’m good frineds with the webmaster and star celebrity from another big site (that gets your sort of traffic) and I can assure you’re they’re not making a million dollars from affiliate marketing.

    John

  • http://www.webhostinglogic.com/web-marketing/web-marketing-home.html Seo Guru

    A lot of people had the wrong notion about affiliate marketing. They think they will get easy money and get rich quick out of it. I can’t blame them since there are scrupulous individuals who market their link and promise their readers huge sum of money if they join the club. Anyway, I am anticipating your Ebook and hope to market it in my own community. Thanks for the teaser.

  • http://greenantlers.com/ Margekatherine

    Thanks Chris for this commentary. It helps to put the online business into perspective and makes me feel a bit better when millions of fans haven’t flocked to my site (yet)… or the “if I create it, they will come mentality.” Linking to an affiliate must be an extension of my genuine beliefs. I think that shows, don’t you?

  • http://experimentsinpassiveincome.com Moon Hussain

    I like your comment here and agree that most people think it’s as easy as snapping their scummy little fingers. I hate deception and there’s a lot of it online.

    As long as you’re honest about being an affiliate and it relates to your audience, why not?

  • http://www.mikeslife.org Mike CJ

    I like this post, but I’d add to it. The money you can make from affiliate programs is related to niche as well as traffic.

    We have a travel blog that’s very focused in a small niche, and it “only” gets around 70,000 visitors a month. But that earns mortgage money from a few, very well selected and very relevant (to the readers) affiliate programs. Like you, we started very slowly, but by carefully optimising the way each was promoted, we get a lot from relatively small traffic.

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  • http://www.danieldecker.net Daniel Decker

    To me affiliate opportunities just make sense. If I use something, like it and would recommend it to others then I think it’s only smart to make a little $ off of it if that opportunity exists. It’s business.

    I only have a few affiliate programs that I push right now but last month, combined, I pulled in over $2500. To me, it’s very worth it. I haven’t sold my soul… I don’t try put conversions over relationships… and it’s working for me. :)

  • http://twitter.com/W_Debauchez William Debauchez

    Affiliate marketing is not only important as an affiliate, it’s going to take a growing part of anyone’s business as more and more people will need to promote their own products and operate an affilate platform of some kind. This will enable for referrals and business relationships to be more structured around a clearly identified revenue stream for both parties.
    William / InternetCoachingCircle.com

  • Freewifistation

    If I have a site like yours, have lots of visit per month, I will choose ads wisely.

    Affiliate is a good way to make money online. Choose the right product and the right keyword.

  • http://www.carfocus.info Peter Abatan

    Although I have 2 blogs I have not considered affiliate marketing yet, as I think building the content should be first priority, then followed by the traffic. I am not in a hurry, I just want to get to a stage where the quality of the content pulls in enough traffic because the site is just compelling and trustworthy. Finally, I genuinely want visitors that come to the site to belief I want to help them come away from the blogs better informed and this is the most important thing to me. When I read this blog I see that Chris has a passion for people first, just like other leaders like Gary Vaynerchuk, Mitch Joel, Darren Rowse, Gideon Shalwick etc.

    It would be good to hear from Chris Brogan, Daniel Decker, and Mike CJ on whether this is the right approach. I think many blogs are driven by the motive to make money and do not really show a passion to help people, in this case success can only be short lived.

  • http://www.imagemaven.com Marlene Hielema

    So, THAT’S the part they leave out!

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  • http://twitter.com/Fraserstrategy Jeff Maystruck

    Affiliate marketing gets such a bad rap, probably because (in most cases) it is misunderstood. I think people are naive to think that if they click a link on a popular site (such as Chrisbrogan.com) that the site owner isn’t compensated for that. Personally I like it. In general, I would rather trust someone else’s opinion (an influencer) of a product then a marketing message any day. I guess the question is when the line between influencer and salesperson gets crossed, then what happens?

  • http://210consulting.com/ Jeremy Blanton

    For me, I agree 100% with you about knowing who you promote. I only do those products/services that I personally have use and am completely satisfied with. My reputation becomes attached to that product when I promote it & I don’t feel like jeopardizing my social media capital just to make a $30 sale.

    Once the vendor proves itself to me, then I will become an affiliate.

  • http://www.secretcontents.com Ret

    Thanks Chris. I know that Affiliate Marketing offers a great income opportunity. As a new blogger, I am still striving to experiments on affiliate products. It’s true that we should promote products that we can vouched to protect our integrity and protect our community.

  • http://www.slymarketing.com Jens P. Berget

    What I find interesting is how many products should we focus on? I’m currently focusing on marketing two products, and it seems to be working a lot better for me than when I tried to market 5-6. I have tested all the products and they’re great, but it seems that when I focus on few products I earn more money :)

  • http://www.mikeslife.org Mike CJ

    My view is that both strategies can work, Peter. If you have a product or an offering that solves a problem for people, then you can sell it online with a simple sales page (for example) and as long as you can get the right traffic to that page, and the pricing is right, it will sell. There’s no need in that scenario (although it isn’t my chosen route) for any passion to help people! Many very successful internet marketers do that, day in and day out.

    My personal preference is to employ my passion to help people to make them, and in turn, me, more successful. That works too.

    • http://www.carfocus.info Peter Abatan

      I can see your view point, which is very valid. Thanks for giving your perspective on this topic. I should start looking out for affiliate programmes to promote soon.

    • http://www.carfocus.info Peter Abatan

      I can see your view point, which is very valid. Thanks for giving your perspective on this topic. I should start looking out for affiliate programmes to promote soon.

  • http://chrisbrogan.com Chris Brogan

    Well, I’m not compensated for everything on my site. Wouldn’t THAT be lovely. : )

  • http://chrisbrogan.com Chris Brogan

    I think that’s a great way to do it. I’m focusing on a class of products: things for bloggers (on my site) and things for business travelers (on man on the go). Maybe 2 or 3 are good.

  • Anonymous

    As is often the case, I like the article. In this case though, I did find a piece of contention and dissension between us. You tell people that you “own” the relationship. I think that mindset is dangerous. Our target markets in affiliate marketing certainly give us real estate on relationship blvd., but at best we lease it, in most cases we rent it post by post. In the beginning it is definitely post by post rental as we can lose the relationship with one post. Someone like yourself may have a better lease and be able to get away with a couple big mistakes without taking too much penalty. The people we build relationships with hold the purse strings on those and I think that is important to remember.

  • Anonymous

    I like to push something when I first find it’s “awesome sauce”, the reason I use it. I find it best when I am excited about the product.

  • http://www.slymarketing.com Jens P. Berget

    Do you only push it right after you’ve tested it, or how long do you keep pushing the product (probably depends on how long you think it’s awesome)?

    • Anonymous

      I’m just starting so I’m feeling it out. My thought right now is that until I have more practice writing a pitch, I need to be fired up about it or I will convey too much blah. I don’t mean that I would promote something I don’t use, but I might promote something later that doesn’t make me do backflips. Right now, I only promote backflippables :-)

    • Anonymous

      I’m just starting so I’m feeling it out. My thought right now is that until I have more practice writing a pitch, I need to be fired up about it or I will convey too much blah. I don’t mean that I would promote something I don’t use, but I might promote something later that doesn’t make me do backflips. Right now, I only promote backflippables :-)

  • http://twitter.com/PhotoBySki PhotoBySki

    Hello, Chris. I REALLY liked this post (I subscribe to your RSS feed…thanks for all the info!). And I just bought your book from B&N…it’ll be here Thursday…can’t wait. BUT BACK TO THIS POST…I am interested in setting up an affiliate program for my photography business. How do I do that? Thanks so much!

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  • Stock Promotion

    Thanks for the article.It helped to understand the use of affiliate marketing.

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