How Does Affiliate Marketing Works?

by Tamal Anwar on Tuesday, April 16, 2013

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affiliate-marketingSo you must have heard of affiliate marketing and people can make money being an affiliate. But what is it exactly and how it works? In this article I am going to share what affiliate marketing is and how it really works.

To make it really simple, I am going to share a real life example. I have launched BlogKori Academy which is an online coaching platform. My readers can join this course and learn from me through videos. My course is priced at $49-$99.

Now the thing is, in order to have more sales, I need to attract more students. My resources and reach is limited. So what I did was to offer an affiliate program. In this program someone can join as an affiliate (for free) and promote my course. When they make a sale, I will pay a percentage of the profit to that affiliate. This is called an affiliate commission.

I am using software so the sales tracking and commissions are managed automatically. So you see that this way I can reach more people and sell more. On the other hand my affiliate is making money by promoting my stuff.

It’s a win win situation for both of us. So this is how exactly affiliate marketing works.

You go ahead and sign up for a product’s affiliate program. The sign up process is free 99% of the time –because the seller wants to bring in more promoters on board.

Then you will get a special link that will act as a tracking code for your commission. Promote this product on your blog, website, email and friends; when they make a purchase you make money.

I am personally promoting a lot of affiliate products in my network. One service that I am promoting for years is the web hosting service from hostgator. This is the web hosting service that I personally use for my blogs and I am happy with them. This is why I am excited to talk about it with my friends, clients and blog readers.

There are many affiliate marketplaces where you can find products to promote. For an example Amazon has its own affiliate program. If you recommend books on your page, you can create an affiliate link and make small chunk of change when someone buys them. Physical products don’t pay that well to the affiliates however digital products pay the most.

amazon affiliate program

You can sell software, e-courses or e-books. My course is a digital product and I offer 50% commissions. So you can go ahead and promote my course here.

Video: How to promote BlogKori Academy and make money

So now you have learned how exactly affiliate marketing works. It is a legit way to make money on the internet. It takes no money to join. But a piece of advice, only promote the products/people you trust and believe in.

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  • http://blog.smalltownkid.net Asif Irtiza Hussain

    Hi Tamal Bhai,

    Good to read this article. Nicely organized… as always I liked your easy-to-read writing style. I understand that there are not too many affiliate marketers in Bangladesh. And worse, most people think of something like “destiny” when they hear the word freelancing and affiliate marketing. I think this article will help people of Bangladesh to understand affiliate marketing a little better!

    I wrote an article about affiliate marketing too, recently. Hope you will check it out and give me a few pointers as well.

    Thanks! Keep rocking…

    • Tamal Anwar

      LOL that’s the problem. Freelancing and Outsourcing seem to be the same according to people. Anyways, I was going to add some more pictures or stuff to make it clear but couldn’t find that creativity. Will update this post later. I am happy that you loved this post.

      P.S: I am now checking out your article.

  • Farhan

    I wanna start affiliate marketing business, and I’m ready for the go. But what worries the most is the “tax paying” issue.

    Suppose I’ve joined Amazon’s affiliate program and through my website I’m promoting the products and consumers from all over Europe are buying them through my site and I’m earning well from it. Now, to which government do I have to pay income tax to, Bangladesh government or the Country from which consumers are buying my promoted products, or both?

    • http://www.blogkori.com/ Tamal Anwar

      There will be a tax form from Amazon, W8BEN which you have to file it, it says that you are foreign affiliate and no need to pay tax to US corp. And for BD govt, you will be tax free until 2016 or so, and then if the law renews you will be tax free for more years or so.