Affiliate marketing is getting commission for directing paying customers to their product.
So, there are essentially 2 ways to do this:
Setting up your own website/blog and directing traffic through that
PPC (pay per click) advertising is the most familiar
Affiliate arbitrage means buying traffic - PPC, display ad traffic, or other traffic you can pay for - and send it to a page that monetizes by per click, ad revenue or purchase of the product.
Profit = Affiliate commission - PPC cost
Setting up own blog/website
In short, the idea will be to create a website that promotes/reviews products that have an affiliate program, rank in google for keywords related to these products and then sell the website.
I have done this in the past and have had success with it. It’s not going to be a quick rich scheme, and will take some time, but with dedication and hardwork, it will pay off down the road.
Start by picking an evergreen niche that will allow you to expand as you grow
Niches such as health and pets are good examples
Next, find as many products as possible within this niche and group them into similar categories. Go to places such as Amazon and Clickbank to get ideas
Put all of the product ideas into a spreadsheet. Try to find at least 100 different products
Start doing keyword research on both these products you found as well as keywords that are related to the products
Keep all keywords in a spreadsheet as well
By now, you should have two spreadsheets full of both products and keywords that you can target on your website
Next, go buy a domain name, hosting and setup your website. There are plenty of guides out there that will walk you through the process
Once your website is up and running, it’s time to start writing content that targets the products and keywords that you found.
Here are some strategies for this:
Write product reviews for individual products (Ex - Proactive Acne Review)
Write “Best…” articles (Ex - Best acne removal cream)
Write “X vs. Y” articles (Ex - Acne cream vs Acne soap)
Write informational articles (Ex - Ingredients to avoid in acne cream)
Basically, write as much as you can on the topic/niche you choose
You can either write the content yourself or hire someone to do it for you from Upwork or Textbroker
Write at least 1 new article per week (more the better)
Make each article at least 1,000 words (more the better)
Do this consistently for at least 6 months and you should start to see some traction in Google and start to bring some organic traffic
By now, you should be making money and you can now start to invest the profit into scaling your content. Start to hire writers so that you can begin posting 3–5 new articles per week. This will help grow your website so much faster.
Tweak your website and optimize it for conversions
Keep Growing and Eventually, Sell
Here is a great Case study of Tung from CloudLiving used this EXACT method to grow it to $6,800/month in ~15 months with a $5000 startup capital.
There’s 2 options for you when you get your website established (start generating good profit):
a. Hold the site for it passive income
b. Sell the site
The first option to hold, has more risk but also more upside because you could continue to grow it and it would be worth more down the road. The second option, selling it now, allows you to cash out now.
Whether you decide to sell it or not down the road, you should still be aware of what factors affect the valuation of your business. It’s better to start early than later down the track! Here’s our guide on how to value a website or internet business.
If you have more questions feel free to ask! Click here