Are you looking to boost your retirement income?
Affiliate Marketing is one of the best ways to generate extra retirement income. Once it is set up, it will keep producing money with no involvement on your part.
That’s the beauty of it, it’s passive! What better way is there to bring in money than by doing it passively?
In this post and video, I will tell you what it is, why it is useful for retirement, how much you can earn, and how to get started.
What Is Affiliate Marketing? A Simple Example
In short, it is a way of making money when people buy something you’re promoting. Here is an example to illustrate the concept better.
Suppose that you belong to an online community (eg., a Facebook group) where the members trust you. You now recommend a product or service to your audience in the community. As the community members trust you, they consider buying the product you recommend.
In affiliate marketing, you can obtain a link for a product that is specific to you. If the community members (or whoever) click the link and buy the product, it is counted as a sale of the product by you. You, as an affiliate, will receive a commission from the seller. The diagram below shows an example of this process.
Why Is It So Popular?
From a customer’s point of view, there is no surcharge in price. They pay the same as if they would have gone straight to the merchant’s store. They may even get a better price through your affiliate link, as merchants sometimes offer discount coupons to affiliates.
From the merchant’s point of view, marketing through affiliates has a significant advantage. They pay commissions to the affiliates only when there is an actual sale, so there is no (marketing) cost involved before such a purchase. Due to this advantage, some merchants don’t use traditional marketing methods but only affiliate marketing.
This win(you)-win(customer)-win(merchant) mechanism has made affiliate marketing widely adopted in a variety of industries.
How Much Can You Earn?
- Awin (well-known affiliate network) has more than 100,000 affiliates and 13,000 merchants. The affiliates earned over $700 million last year.
- Affiliate programs generate 15%–30% of all sales for advertisers.
- 15% of the total digital media advertising revenue is attributed to affiliate marketing.
- Jason Stone made $7 million in affiliate marketing revenue in a single year.