Affiliate Marketing Guide: Full Guide for Beginners

Affiliate Marketing is a popular online business model where you can earn commissions by promoting products or services of other companies. In this guide we will discuss all aspects of affiliate marketing for beginners in detail.

Table of Contents

What is Affiliate Marketing?

Affiliate marketing is a performance-based marketing strategy in which a person or company (Affiliate) promotes products or services of another company (Merchant) and gets commissions for each sale, click or lead.

How does it work?

๐Ÿค First you join an affiliate program. It means, you go into an agreement with a brand or company of your choice. They basically say, ‘You promote our products, we will give you commission.’

๐Ÿ”— Then they will give you a unique affiliate link. This link is the real magic! It allows the company to track perfectly, any sale or click that came through your affiliate link.

๐Ÿ“ข You start sharing this link – It can be on your own blog, Facebook page, Instagram, or through e-mail.

๐Ÿ–ฑ๏ธ When someone clicks on that particular link and finally buys the product, a commission is automatically accumulated in your account!

Simply put, you recommend things online, and if someone buys on your recommendation, you get a commission in return.

๐ŸŒŸ At a glance (at a glance)

  1. You join an affiliate program
  2. You get an Unique Affiliate link
  3. You share this link on your website, blog, social media or other platforms
  4. When someone clicks on your link and purchases the product, you get commission

Key Players of Affiliate Marketing

Affiliate Marketing key player Or โ€œKey Playersโ€ refers to the main participants who run this entire system together.

These key participants are: Merchant/Advertiser, Affiliate/Publisher, Affiliate Network, Customer

๐Ÿ‘ฅ Merchant/Advertiser

It is the company that manufactures products or services and runs affiliate programs.

Suppose, you are a shop owner or a company owner. You have some great products or services of your own (such as clothes, electronics, online courses, etc.).

What is your goal now? Getting your products to as many people as possible and increasing sales.

But it is a bit difficult to reach everyone with just your own website or shop. Here comes the strategy of affiliate marketing.

You, as a merchant –

๐Ÿงพ In simple words:

Merchant is the ‘owner’ or ‘producer’ who makes others his ‘brand ambassadors’ to promote and sell his products and gives them a commission if the work is successful.

๐Ÿงท Let me say with an example:

So, the merchant is the one who controls everything from behind and expands his business through affiliates!

๐Ÿค Affiliate/Publisher (Affiliate/Publisher)

It is the person or organization that promotes the merchant’s products and earns commissions.

๐Ÿ’ก Think of a Scenario:

๐Ÿ“ข What do you do now?

โœจ And then the magic happens!

๐Ÿงญ Summary:

Affiliate is the ‘preacher’ or ‘influencer’ who earns a commission if the product is sold by promoting other people’s products on her/his own social media or website.

๐Ÿงท Example:

It’s a kind of win-win situation โ€“ merchant’s sales increased, and you made money.

๐Ÿ”— Affiliate Network (Affiliate Network)

It is the median platform between merchants and affiliates that provide tracking, payment and reporting facilities.

๐Ÿช In a word, affiliate network is a huge marketplace or medium.

This network acts like a bridge that connects the merchant and the affiliates.

๐Ÿ”— How exactly does affiliate network work?

It not only introduces, but also provides the following important services to make the whole process run smoothly:

๐Ÿ“ Tracking (tracking):

๐Ÿ“Š Reporting (Reporting):

๐Ÿ’ต Payment Processing:

๐Ÿงท Understand with an example:

‘Clickbank’,  ‘Shareasale’ are large affiliate networks.

The affiliate network is the trusted third party. It creates trust between merchants and affiliates and keeps them free from all technical and financial troubles, so that they can only focus on their respective work.

๐Ÿ’ธ Customer (Customer/Client)

This is the person who purchases the product through the affiliate link.

In one word, The customer is the person who is the king of this entire affiliate marketing system! Because, her/his decision to buy one is the source of income for both merchants and affiliates.

How does the customer’s journey work?

Let us understand this with a real life example:

Suppose you have a favorite fashion blogger or Instagrammer (Affiliate), whom you trust a lot.

๐Ÿ”— Recommendations found: One day she/he posted a picture of a saree on Instagram and wrote, ‘I like the fabric and design of this saree very much! You can buy discounts from the link below.’
* That link is the affiliate link.

โค๏ธ Growing Your Interest: Being a subscriber you believe her/his review and grow an interest on the saree. You click on the link that takes you to the website of the ‘Merchant’.

๐Ÿ›’ Purchase of goods: You order that saree from the website and complete the payment.

Congrats! You are now a customer!!

โญ Why is your (customer’s) role important?

You as a customer, is not parting with any extra money to buy the product! Because of the affiliate link that you click, the merchant gives a small commission to the Merchant Affiliate. You are not affected anyway.

๐ŸŽฏ An affiliate makes the effort to bring in the customer, who buys a product, and in the process merchant increases the sales โ€“ everyone is happy!

When you buy something by clicking on a link online, you have become an important part of this system!

Types of Affiliate Marketing

๐Ÿ’ฐ Pay Per Cell (PPS)

This is the most common type of affiliate marketing where you get commission for every successful sale.

๐Ÿ–ฑ๏ธ Pay Per Click (PPC)

Here you get money for every click on your affiliate link, even though there is no purchase.

๐Ÿงพ Pay Per Lead (PPL)

In this model you get money to collect each potential customer information (such as email address).

Let’s look at these models in detail:

Affiliate marketing is mainly commissioned in three ways. These are Pay Per Cell (PPPS), Pay Per Click (PPC) and Pay Per Lead (PPL). Each model has its own functions and advantages.

๐Ÿ’ฐ Pay Per Sale (PPS) or payment per sale

๐Ÿง  This is the most popular and common model of affiliate marketing. Here you will get commission only if a successful sales or sale is completed. If someone clicks on your link or just go to the website, you will not get any money.

โš™๏ธ How does it work?

  1. ๐Ÿฌ You join the affiliate program of a merchant (whoever sells the product).
  2. ๐Ÿ”— You get a special affiliate link for a specific product.
  3. ๐Ÿ“ You review or promote that product on your blog, website or social media and add that link.
  4. ๐Ÿ‘ฅ A visitor clicks on your link and goes to the merchant’s website and buys the product.
  5. ๐Ÿ’ฐ After the sale is successful, the merchant gives you a commission at a predetermined rate (eg: 5% of the selling price or Rs 500 per sale).

๐Ÿ“˜ Real examples: Suppose you are a tech blogger and you have joined the Amazon Associates program. You wrote a detailed review of ‘Dell Inspiron 15 Laptop‘. In the review you added your affiliate link from Amazon.

If the reader clicks on the link but does not buy the laptop and sees something else, then you will not get any commission.

๐Ÿ–ฑ๏ธ Pay Per Click (PPC) or payment per click

๐Ÿ’ก This model is not that popular in affiliate marketing, but more related to advertising networks (like Google AdSense). Here you get a certain amount of money for each click, whether there is a sale or not from that click.

โš™๏ธ How does it work?

  1. 1๏ธโƒฃ You join a program that works on PPC models.
  2. 2๏ธโƒฃ You place their ads or links on your site or blog.
  3. 3๏ธโƒฃ When a visitor clicks on that ad or link, a certain amount of money is added to your account.
  4. 4๏ธโƒฃ If the visitor clicks and does nothing, you will still get payment for that one click.

๐Ÿงฉ Suppose you run a travel blog and you have joined a flight search engine’s PPC program. They agreed to pay you 5 per click.

โš ๏ธ Important information: Many affiliate programs do not work on PPC models, as they do not have sales guarantees. This applies to most advertising networks.

๐ŸงพPer Lead (PPL) or Pay per Lead

๐Ÿ’ก This model is a step between PPS and PPC. Here you don’t have to make direct sales, rather you have to create a ‘possible customer‘ or ‘lead‘ for the merchant. A lead is a person who has expressed an interest in the merchant’s product or service and has given some information (eg: name, email, phone number).

โš™๏ธ How does it work?

  1. 1๏ธโƒฃ You join an affiliate program of a company that collects leads (eg: insurance companies, software companies, educational institutions).
  2. 2๏ธโƒฃ You use their link to take people to a page where a form has to be filled.
  3. 3๏ธโƒฃ If a visitor clicks on your link and fills that form correctly, it is considered a lead.
  4. 4๏ธโƒฃ Merchant gives you a fixed amount (fixed rate) for each valid lead. Whether that person is a customer later or not, you will get your commission.

๐Ÿงฉ Suppose you are in the affiliate program of a popular web hosting company. They are offering PPL models to collect leads from new customers and they will pay Rs 200 per lead.

๐Ÿ“Š Comparison at a glance-

๐Ÿท๏ธ Features๐Ÿ’ฐ Pay Per Cell (PPS)๐Ÿ–ฑ๏ธ Pay Per Click (PPC)๐Ÿงพ Pay Per Lead (PPL)
Payment BasisSuccessful SalesClick on the linkForm Fill/Lead Generation
Amount of commissionMost (usually as %)Minimum (fixed per click)Medium (fixed per lead)
ExampleCommission on selling laptops from AmazonEarn by clicking ads on the blogIncome from filling out the insurance company form
Suitable for whomThose who can give credible reviews and are adept at boosting saleswho have a lot of traffic on the websiteThose who work in certain niches (such as finance, education)

Of these three models Pay Per Cell (PPs) It is most commonly used and it is the easiest to understand and start for beginners. But other models based on your niche and target audience may also be profitable for you.

Steps to Start Affiliate Marketing

Affiliate marketing is not just sharing a link, it is a business that requires planning, patience and strategy. The following steps will help you build a strong foundation.

Choosing the right niche

This is the most important step in your affiliate journey. Choosing the wrong niche makes it very difficult to get success.

๐Ÿงญ How to choose the right niche?

Find your niche by considering the following three points:

  1. ๐Ÿ’ก Your Interest & Knowledge: The subject you love to talk, write and learn. If you are not interested in something, you cannot create long-term content.
  2. ๐Ÿ“Š Market Demand (Market Demand): Are people interested in buying this niche products or services online? Do you shop?
  3. ๐Ÿ’ฐ Probability of profit: Is there an affiliate program that gives good commission in this niche?

๐Ÿงฉ Example:

๐Ÿšซ Bad Niche (very comprehensive): ‘Fashion’, ‘Technology’, ‘Health’. Competition is very high in these cases.

โœ… Good niche (specific):

Tips:

Build Your Platform

After selecting your niche, you need a ‘house‘ or platform where you will publish your content and share affiliate links.

๐ŸŒ Popular options:

๐Ÿ“ Blog or Website: You can create a WordPress site with your own domain and hosting.

A website or blog is your very own digital property, you are the owner. It is not a rented house, but rather like your own house.

To create your own website there are three key things you need:

  1. Domain Name: This is the address of your website, such as www.myniche.com You buy this name and it’s only yours.
  2. Web Hosting: It is a place or server on the Internet to store all the files, images and content on your website. You rent this place.
  3. WordPress (wordpress.org): It is a free software (Content Management System or CMS), through which you can easily create and manage your website without any coding knowledge.

๐ŸŽฅ YouTube channel: YouTube is great for video content. You can reach the viewers by making videos like product reviews, tutorials, unboxing etc.

๐Ÿ“ฑ Social media (Facebook page, Instagram): They help build a community quickly, but you are dependent on the platform.

๐Ÿ’ก Example:

๐Ÿ”‘ Tips:

Find the appropriate affiliate program and join

Once your platform is built, it’s time to join the affiliate program of companies that sell products or services related to that niche.

๐Ÿ—บ๏ธ Where to look for?

๐Ÿข Directly on the company’s website: Find ‘Affiliate’, ‘Partners’ or ‘Associates’ links in the footer of the company’s website that you use or like.

๐ŸŒ Affiliate Network: They are an intermediary platform where thousands of companies will get affiliate programs.

๐Ÿงพ What do you see before joining a program?

๐Ÿ“˜ Example: For your ‘Budget Smartphone’ blog you can join Amazon Associates, because almost all types of phones are available on Amazon. Also, you can promote the phones available in India by joining Flipkart affiliate program.

๐Ÿ’ก Tips:

๐Ÿ‘€ At a glance –

๐ŸŽฏ Niche selection

To be successful you need to choose a specific niche that you are interested in and the one that has market demand.

๐Ÿ—๏ธ Creating Platform

You can create a blog, website, YouTube channel or social media profile where you will promote affiliate products.

๐Ÿ” Finding affiliate programs

Find affiliate programs of companies related to your niche.

๐Ÿค Joining Affiliate Network

Affiliate networks give you access to multiple programs and make the payment process easier.

Popular affiliate networks and programs

Clickbank: Popular for digital products, offers high commission rates.

Commission Junction (CJ): Works with big brands, different types of products are available.

Awin: Popular for small and medium businesses, products are available in different niches.

Local options in India

Affiliate marketing in India is still new, but NYKAA, MYNTRA and other e-commerce sites are slowly launching affiliate programs.

There are many great local options for affiliate marketing in India. They facilitate greater reach to Indian visitors than international platforms and support local payment gateways.

Below is a list of popular affiliate programs and networks in India, which are divided into different categories:

๐Ÿ›๏ธ E-Commerce Giants

They are the most popular and suitable for almost any niche.

Amazon Associates (Amazon.in)

Flipkart affiliate program

๐Ÿ‘— Fashion and Beauty

These platforms can be very profitable if you work in this niche.

myntra affiliate program

Nykaa Affiliate Program

โœˆ๏ธ Travel & Hospitality

Travel blogging in India is a huge market, and affiliate marketing in this sector is very profitable.

MakeMyTrip Affiliate Program

MyAffiliate / API-based Partnership Enhancement
MakeMyTrip has now launched a B2B2C API Capability called โ€œMyAffiliateโ€, which works with other platforms (such as Amazon Pay, GPAY, PhonePe, HDFC etc.). MoneyControl+1
This means that those who will work as affiliates, they can do not only with links, but also API-integration, and can use product info, booking status etc. in real-time. MoneyControl

Development of various new vertical and partner types
MakeMyTrip is not only relying on ordinary consumer (B2C) gateways. They’re raising partners on the R-Car route:

  1. Less commission-rate and performance-based/slab-based commission
    Some platforms (such as Earnkararo) show that the commission rate for hotel and flight bookings is variable, and different slabs/rates are being given. Earnkaro
    That is, if you can bring more bookings, you can get better rates; But in the beginning the rate may be lower.
  2. Changes in tracking, payment and confirmation rules
    Affiliate bookings may increase tracking procedures and compfirmation times, take time, or have certain conditions. As Earnkarro says, ‘Transactions are recorded in โ‰ˆ36 hours, the commission may be confirmed in about 40 days.’ Earnkaro
  3. Offline Partners and Strengthening of Franchise / Agent Networks
    MakeMyTrip is growing their Franchise/Agent Partner Network. Efforts are underway to increase sales in Tier-2-3 cities. A-Zone Partnership, Training, Technical Support is being provided. mediabrief+yourstory.com

Status for Single Blogger / Independent Content Creator

For those who want to be an affiliate of MakeMyTrip as a โ€œsingle bloggerโ€ or independent blogger, it is important to know the following:

  • API-based partnership may require approval: Only having a blog or website will not always be taken as an API partner; In some cases there may be traffic, profile, website/app category, approval process. Although there is no clear information that bloggers will be the lowest key conditions.
  • Earnkaro or other intermediate partners can be easier to work through the platform: If you are not directly partner of MakeMyTrip, it will be easier to start working if you use Earnkero or RealCash or other cashback/affiliate networks. Earnkaro
  • Probable performance may be required: If blogs or social media can provide traffic and conversions, there are more opportunities to get better commissions or better rates.
  • Rules and conditions: Affiliate_links, appropriate content, brand rules, partner terms & conditions to follow; Accounts of those who violate the rules may be closed or the commission may be cancelled.

Goibibo affiliate program

๐Ÿ”น Affiliate Network (multiple brands together)

By joining these networks you can manage hundreds of brand affiliate programs from the same dashboard.

๐Ÿ’ฐ Earnkaro

๐ŸŒ VCommission

๐ŸŒ Admitad

๐Ÿ‡ฎ๐Ÿ‡ณ Tips for Indian Affiliates

Creating quality content

๐Ÿงฉ Content Type

๐Ÿ” SEO Basics

Learn Search Engine Optimization (SEO) so that your content gets high ranking on Google.

๐Ÿค Building trust with the audience

Be honest and transparent, don’t just promote the product for commission, but also provide value for your audience.

legal and ethical considerations

๐Ÿ—ž๏ธ Requirements to be published

In your content state clearly that you are using affiliate links.

๐Ÿ“œ Indian Law and Guidelines

What rules should be followed by affiliates and influencers in India? There are two main legal and ethical frameworks for this in India:

  1. โš–๏ธ Consumer Protection Act, 2019
  2. ๐Ÿงพ Guidelines of the Advertising Standards Council of India (ASCI)

โš–๏ธ Consumer Protection Act, 2019

This Act protects the rights of consumers in India. According to this Act, ‘misleading advertisement’ is a punishable offense. The law provides a definition of misleading ad that is directly related to affiliate disclosure:

Any advertisement that gives or may misrepresent the true nature, quality or characteristics of the product or service to the consumer, and which may affect the decision of the purchase, will be considered as misleading advertisement.

If you appreciate a product publicly but keep it secret that you’re getting money for that public appreciation, you’re not being honest. This can cause complications legally.

๐Ÿงพ Guidelines for Asci (Advertising Standards Council of India)

ASCI is the voluntary regulatory body of the advertising industry in India. Following their guidelines is considered ideal for all advertisers in India. ASCI’s Influencer Marketing Guidelines are very clear:

๐Ÿ‡ฎ๐Ÿ‡ณ Practical Advice for Indian Affiliates

So, if you do affiliate marketing from India, you should:

  1. Use #AD Or #sponsored Use hashtags in social media posts when you use affiliate link
  2. Follow the principles of ASCI and Consumer Protection Act.

โœ… Always be transparent: Be honest with your audience or readers. Let them know that you are promoting a product and you earn commission through it.

โœ… Give the disclosure clearly:

Make a clear statement at the beginning or end of your blog post. For example, ‘This post contains affiliate links. If you buy something through this link, I will get a small commission, but there will be no change in your purchase price.’

In the description box (description) in the YouTube video, leave a clear message divulging commercial nature of your affiliate links at the beginning of the video.

โœ… Ethical Practice

Don’t spread a product with false information, always stay true and fair.

Measuring Success

๐Ÿ“Š Original Metrics

๐Ÿ“ˆ Analytics Tools

Track your performance using Google Analytics, Affiliate Network Dashboard and other tools.

๐Ÿ”ง Performance optimization

Improve your strategies by analyzing data and identify which products or content is working best.

Common mistakes to avoid

๐ŸŽฏ Selection of the wrong niche

Don’t choose the niche that you are not interested in.

๐Ÿ“ฆ Promotion of additional products

Promoting many products at the same time may confuse your audience.

๐Ÿ’ก Not providing value

Not only should the product be promoted, but provide valuable information for your audience.

๐Ÿ“Š Ignore Analytics

If you don’t track your performance you can’t improve.

Advanced techniques

โœ‰๏ธ Email Marketing

Keep in direct contact with your audience by creating email lists and send affiliate offers.

๐Ÿ“ฑ Social Media Marketing

Share your affiliate links on Facebook, Instagram, Twitter and other social media platforms.

๐Ÿ’ฐ Paid Advertising

Promote your affiliate links using Google Ads, Facebook Ads or other paid Advertising platforms.

๐ŸŒ€ Sales funnel made

Create a sales funnel that attracts visitors first, creates their interest, and ultimately encourages the purchase.

The Future of Affiliate Marketing

๐ŸŒŸ New trend

โš™๏ธ New technology

๐Ÿ‡ฎ๐Ÿ‡ณ Opportunity in India

With the expansion of e-commerce in India, the opportunities for affiliate marketing are increasing. Local brands are slowly launching affiliate programs and opportunities are being created for new affiliates.

Resources and tools

๐Ÿ“š Learning Resources

โš™๏ธ Necessary tools

๐ŸŒ Community and Forums

Conclusion

Affiliate marketing is a great way to earn money online, but it requires patience, labor and proper strategy. You can succeed in affiliate marketing by choosing the right niche, creating quality content and building trust with your audience.

Remember, affiliate marketing is not a โ€œrich fastโ€ method, but rather a business that requires time, effort and patience. But if done right, it can be a sustainable and profitable online business.

Good Luck! May your affiliate marketing journey be successful!