What is affiliate marketing and how to get started?

Affiliate marketing is a way to earn money online by promoting products or services from other companies.

Whenever someone clicks your affiliate link and makes a purchase, you get a commission. Put simply, you’re the middle person connecting buyers with the products they already want, and you get paid for making that connection.

You don’t need to create your own product, deal with shipping, or handle customer service. With affiliate marketing, you can start small, grow at your own pace, and even turn it into a source of passive income over time.

Even better, getting started is easier than you might think. All you need is to sign up for an affiliate program and have a platform to share your recommendations.

Here are the six easy steps to starting an affiliate marketing business:

1. Decide on a niche. Pick a topic you enjoy and know about, so it’s easier to create content and connect with your audience.
2. Create an affiliate marketing website. Build a site where you can share your content and showcase affiliate products.
3. Join an affiliate marketing program. Sign up for programs that fit your niche and offer products you’d actually recommend.
4. Create high-quality content. Write blog posts or reviews, or record videos that give value while featuring affiliate links.
5. Track your content’s performance. Check traffic, clicks, and sales to see what’s working.
6. Optimize your content for conversions. Tweak your content and calls-to-action so more of your audience takes action and buys.

Continue reading to dive deep into the benefits of affiliate marketing and how you can do it yourself.

What is affiliate marketing?

Affiliate marketing is a business model in which you promote products or services from other companies and get paid for every successful transaction.

It’s a win-win for both sides – affiliate marketers earn income without creating or stocking products, while companies expand their reach through third-party promotion.

Successful affiliate marketing requires several participants working together:

• Merchants. These are the companies or product creators who want to sell their products or services. They provide affiliates with unique links and promotional materials.
• Affiliates. Also called publishers, these are the marketers who promote the merchant’s products to their audience. Affiliates use blogs, social media, email marketing, or other platforms to drive traffic and generate sales.
• Customers. The end users who purchase the products through the affiliate’s links. Without customers taking action, the affiliate doesn’t earn a commission.
• Affiliate networks (optional). These platforms act as intermediaries, connecting merchants and affiliates. They often provide tracking technology, reporting tools, and payment management, making it easier for both sides to work together efficiently.

How does affiliate marketing work?

Affiliate marketing is a performance-based marketing strategy that enables merchants to expand their reach, affiliates to earn income, and customers to discover products they need. Building an affiliate marketing business is straightforward when you follow this process:

1. Sign up for a relevant affiliate marketing program in your industry. If you want to promote products from various merchants, join an affiliate network instead.
2. Once registered, you’ll get unique affiliate links.
3. Promote your affiliate links on your website, blog, YouTube video descriptions, and social media platforms.
4. When someone clicks your unique affiliate link and completes the desired action, such as making a purchase, you’ll earn a commission.
5. The merchant tracks conversions through your unique links, ensuring you get referral credits to claim your commission.

The commission structure and requirements differ from one affiliate program to another. Some offer a percentage of the sale amount, while others pay a fixed rate regardless of how much you sell.

Beyond sales, many businesses also use affiliate marketing to increase brand awareness. They’re willing to pay commissions just to get users to create an account or sign up for a free trial.

What are the types of affiliate marketing?

Based on the level of association with the promoted product, here are three main types of affiliate marketing:

• Unattached affiliate marketing. In this scenario, the affiliate marketer has no relevant background or authority in the product or service they advertise. For example, a fashion blog showing gym product banner ads.
• Related affiliate marketing. It focuses on promoting products that align closely with an affiliate’s area of expertise or niche. For instance, if you’ve worked at a cafe before, you can use your knowledge to recommend coffee brewing machines.
• Involved affiliate marketing. Unlike the other two types, this one requires direct involvement from the marketer. Using the above example, instead of relying on your experience as a barista, you actually try every brewing machine to provide authentic reviews, which can be much more persuasive.

How affiliate marketing differs from dropshipping

While similar, affiliate marketing and dropshipping are two separate business models.

With dropshipping, you sell products from different suppliers under your own brand name. As such, you’re fully responsible for product quality, delivery times, and customer support. Any issues with the item or shipping process can directly damage your brand reputation.

In contrast, affiliate marketing is more about recommending products that might solve the audience’s problems, instead of selling directly.

As an affiliate marketer, you position yourself as a helpful resource for users looking to make an informed choice instead of the seller they will buy from.

➡️ Check out our article on how to write a product review that builds trust and influences readers’ buying decisions.

How to start an affiliate marketing business

Now that you understand how affiliate marketing works, let’s discuss the step-by-step process of launching and scaling your affiliate business.

1. Decide on a niche

Building a successful affiliate marketing business begins with choosing the right niche – the specific topic your content will focus on.

For example, affiliate marketing sites in the travel niche may talk about affordable trip destinations or hiking gear recommendations.

Selecting a niche you genuinely know and love is a great starting point. As an expert in your field, you’ll be able to create content that’s true to you and your target audience, making it easier to establish trust.

However, since you’re just getting started, it’s best to conduct affiliate keyword research and target a highly specific market. Breaking into broad and popular niches is tough because these sectors are usually saturated with established affiliates.

Use keyword research tools like Ahrefs to find less competitive affiliate marketing niches with good traffic potential. Simply open the Keyword Explorer tab and type in your desired niche, such as personal finance.

As you can see, this term has a high search volume, but it’s super difficult to rank for. If you want to niche down, go to Matching terms on the left sidebar and set the keyword difficulty (KD) to 20.

Here, you’ll see several low-competition topics with a decent search volume. For example, the phrase “best personal finance books” is searched by 2,000 people each month, but its KD score is only 13.

Targeting this particular sub-niche is a great way to enter the personal finance niche before branching out to more popular keywords down the line.

If you’re more of a high-risk, high-reward person, it’s also possible to target popular topics right off the bat. That said, you have to offer something unique to have a chance of attracting and converting visitors.

Take FinlyWealth as an example. Instead of just comparing the best credit cards like Nerdwallet, this affiliate marketing site decided to take a unique approach: providing personalized recommendations based on individual spending habits.

To do so, FinlyWealth incorporates features like bank account integrations and spending analysis into its site. This way, customers can choose the right credit card for their specific needs and financial goals.

2. Create an affiliate marketing website

While you can start an affiliate marketing business without a website, having one helps you establish credibility much faster. Some affiliate programs like Amazon Associates require website ownership to join, so having a site from the start opens more opportunities.

Launching your affiliate business on a website instead of a social media platform gives you much more control. You can register a custom domain name and tailor the site’s design to match your brand identity.

A website also gives you creative freedom to display products or affiliate links in a way that’s appealing to visitors. Plus, it’s easy to integrate any affiliate marketing tools to optimize your efforts.

The best part? Creating a website isn’t as complicated as it might sound. Our managed hosting for WordPress comes with powerful tools to help you set up an affiliate marketing site in no time:

• AI Website Builder for WordPress. Create a website and instantly populate it with affiliate links.
• Hostinger Affiliate Marketing Tools plugin. Link affiliate products on your site by pulling the data from Amazon Marketplace or Mercado Livre (if you’re in Latin America) directly into your WordPress dashboard. You can add a single product, display multiple items, or present a comparison table.
• AI Content Creator. Write and publish high-quality content regularly with the help of AI to attract readers and build your authority.

Before starting the setup process, sign up for one of our WordPress hosting plans. We recommend choosing Cloud Startup for the best performance.

On the checkout page, select a subscription duration. The 48-month plan offers the best price and three extra months, plus a free domain name.

Then, create a new Hostinger account and fill in your payment details. After completing the payment, follow the guided onboarding steps to set up your website. You can build using our AI Website Builder for WordPress, choosing a pre-built website template, or selecting a WordPress theme.

If you need an in-depth guide, check out our article on creating an affiliate marketing website. And to spark some inspiration, you can read our compilation of the best affiliate marketing websites and their monetization strategies.

3. Join an affiliate marketing program

With your affiliate marketing platform ready, it’s time to sign up for affiliate programs.

Research brands within your niche and see whether they offer an affiliate program. If you sell retail products, the most obvious choice is to join Amazon Associates.

➡️ If you’re interested in joining Amazon Associates, check out our complete guide to building an Amazon affiliate website.

Consider the following aspects when selecting an affiliate marketing program to join:

• Cookie period. Merchants track your affiliate sales through a cookie attached to your unique links, which last from one to over 30 days. By choosing programs that offer a longer period, you have more time to convert visitors.
• Commission structure. Look for programs with a high commission rate and a low payment threshold. Subscription-based businesses usually offer recurring commissions as long as the customer is still paying for the service, making them a good option for passive income.
• Brand reputation. Check out online reviews, discussion forums, and social media conversations to evaluate each merchant’s track record.
• Support. See if the affiliate program provides additional resources to help market their product, such as marketing assets or frequent workshops.

Apart from established affiliate marketing programs, you can also partner up with retailers or suppliers who haven’t tried affiliate promotion yet.

This approach helps you negotiate better commission rates. Plus, you don’t have to compete with thousands of other affiliates for the same products.

Alternatively, apply for an affiliate network to access various programs at once. Popular affiliate networks include Rakuten Advertising, ShareASale, and CJ Affiliate.

4. Create high-quality content

By now, your affiliate marketing business should be all set up, but the job isn’t done yet. You still need to attract potential customers before you can generate affiliate revenue.

Creating helpful content around your niche is a proven method of driving organic traffic, connecting with your audience, and gaining their trust.

According to digital marketing statistics, ranking first on Google generates 39.8% of all organic clicks, which highlights the importance of optimizing your site for search engines.

When you consistently implement affiliate marketing SEO strategies on your site, Google bot crawlers will recognize your site as a trusted source and ultimately place your site higher than others in search results.

However, high-quality content that provides real value to your audience and naturally draws traffic is still at the heart of any successful SEO effort.

When writing SEO-friendly content, it’s good practice to target specific and long-tail keywords since they’re easier to rank for than generic ones. Keyword research tools like Ahrefs or Google Keyword Planner can help you come up with the right content ideas.

Here are some of the most common content types for affiliate sites:

• Product reviews. This is the most popular content type amongst affiliate marketers, as 90% of online buyers seek product reviews before purchasing.
• Product comparisons. Compare two similar products and explore their benefits and drawbacks to help your audience make an informed choice.
• Product roundups. Similar to product comparisons, a product roundup evaluates several products within the same category.
• Tutorials. Explain how to use products or services step by step. Customers are more likely to buy a product when they understand how they can use it to their benefit.
• Resource pages. Consisting of tools and resources to solve your audience’s problems, this content type can further establish your authority as the go-to source for a topic.
• Statistics and reports. Partner with research companies to survey users and publish original reports not available elsewhere. This is a great strategy to attract other websites linking to your site, which can bring more traffic to it.

Whatever type of content you prefer, aim to produce original, informative pieces that address your audience’s interests and questions.

Place your affiliate links where they make sense, and use link cloaking to keep them clean and professional. Be careful not to overload your article with too many links, as that can hurt the user experience.

Include an affiliate disclosure for transparency and legal compliance. This is a message stating that you earn commissions per click (EPC) whenever people purchase through your links.

Besides publishing content on your blog, there are other methods to generate traffic to your affiliate business site:

• Write guest posts. Creating articles for more established websites lets you “borrow” some of their readers. Make a list of relevant sites in your industry, reach out to them via email, and offer a guest blogging partnership.
• Launch an affiliate email marketing campaign. Send newsletters from your business email address to communicate product recommendations, limited offers, and regular updates. Email marketing helps nurture leads and gently nudge them toward a purchase.
• Use social media marketing. Consider your audience demographics when choosing the right social platform. For example, TikTok is perfect for targeting younger generations, as most of its users are between the ages of 18 and 24.
• Participate in online discussions. Forums like Reddit and Quora are great for connecting with your target audience and promoting your brand.

Keep in mind that content marketing is a long-term game. For example, it took FinlyWealth 10 months to go from zero traffic to over 1,500 visitors per month.

5. Track your content performance

Monitoring your affiliate site’s performance lets you assess what types of content work and which areas need improvement.

For example, low traffic signals that you need to audit your site’s SEO. Meanwhile, if your site generates a lot of visitors but no one clicks the affiliate links, it’s a telltale sign that it’s time for a full content revamp.

There are a lot of tools that help you track website traffic and user behavior, with Google Analytics 4, MonsterInsights, and Amplitude being the most popular.

However, once visitors click your affiliate links and leave the site, it’s a whole different story. You need to rely on the reports provided by each advertiser or affiliate network to see whether users actually make a purchase.

For instance, as an Amazon Associates member, you can access the Reports dashboard to find your affiliate site’s key performance indicators, such as clicks, ordered items, shipped goods, and conversion rates.

Unfortunately, most affiliate programs and networks don’t tell you exactly which content brings traffic and sales. Did visitors click a button on your landing page? Or did they make a purchase through your banner ad?

Add a SubID to your affiliate links to track the exact CTAs, images, pages, and blog posts that generate the most revenue. A SubID is a unique identifier that tracks and records data, including:

• Link placement on the page, such as top, middle, or bottom.
• Affiliate link format, including button, image, and banner.
• Source of traffic.

While you can create and track affiliate links and SubIDs manually, a level of technical knowledge is still essential. Investing in paid tools like Affilimate makes the process a lot faster and easier.

6. Optimize your content for conversions

Creating high-quality content is just the first step – optimizing it for conversions is what turns your traffic into revenue. Here are actionable strategies to boost your affiliate marketing performance:

• Offer coupons or special deals. People are more likely to click and purchase if they feel they’re getting extra value, and mentioning a limited-time deal can create urgency.
• Include a clear call to action (CTA). Make sure the text clearly states what action you want your audience to complete, like “Buy now,” “Claim your discount,” or “Learn more.” Place your CTAs in strategic points: above the fold, right after key points in your content, or at the end of your article.
• Use exit-intent pop-ups. Capture visitors before they leave your site by showing a pop-up with a special offer, newsletter sign-up, or product recommendation. This can recover lost conversions and keep your audience engaged.
• Place affiliate links strategically. Instead of randomly scattering your links, include them where they naturally fit within your content, like product reviews, tutorials, or comparisons. People are more likely to click on links placed in contextually relevant spots.
• Add testimonials or social proof. Showing real customer reviews, case studies, or success stories builds trust. When readers see that others have benefited from a product, they’re more likely to convert.
• Test and tweak regularly. Use analytics tools to track clicks, conversions, and user behavior. Experiment with different headlines, CTAs, link placements, and offers to find what resonates best with your audience.

What are the benefits of affiliate marketing?

The biggest benefits of affiliate marketing are its low entry barrier, scalability, and the freedom to promote products you genuinely believe are useful.

In fact, more than 80% of advertisers trust this marketing strategy to grow their sales. This explains why the business model is becoming popular among online hustlers. Here are more reasons that make affiliate marketing worth it:

• Low startup costs. Unlike brick-and-mortar businesses, affiliate marketing requires minimal upfront investment. You don’t have to hire staff, pay store rent, or buy office supplies.
• Ease of getting started. Most affiliate programs are free, and you can easily create a website and social media accounts to start promoting products. You also don’t need specific expertise to be a successful affiliate marketer, although product knowledge certainly helps.
• Flexibility. Affiliate marketing allows you to work from anywhere, at any time. It’s a great career path if you want to spend more time with your family or travel the world while making money.
• Diverse products. You can promote various products or services across multiple niches. Plus, your income potential is virtually unlimited – the more referrals you get, the more money you make.
• Passive income. Once you’ve built a successful affiliate marketing platform, you can earn money even while you sleep.

What are the mistakes to avoid as an affiliate marketer?

Many beginners slip up at the start of their affiliate marketing journey by not fully understanding the products they promote, neglecting their website’s performance, or ignoring SEO altogether.

Here’s a list of common reasons why many affiliate marketers struggle to make money to help you avoid the pitfalls:

• Lacking product knowledge. If you simply repeat what other articles say without actually trying the products, your content will sound generic and less credible in the minds of readers. Focus on offering genuine insights and personal experiences with the products.
• Neglecting site performance. A slow or poorly functioning website frustrates visitors, negatively impacting your affiliate marketing efforts. To ensure the best speed and performance, consider investing in a cloud hosting service.
• Overlooking the importance of SEO. Optimizing your pages with the right keywords is key to ranking higher on search results and driving qualified leads to your website. Ignoring SEO means missing out on this opportunity.
• Producing overly salesy content. Avoid over-promoting products – people can smell a sales pitch from a mile away. Instead, create informative, interesting, and engaging content that actually helps your audience solve their problems.
• Relying on one advertiser. Diversify your affiliate programs and networks to mitigate risks, prevent affiliate marketing scams, and increase potential revenue streams.
• Not including an affiliate disclosure. Failing to disclose your affiliate partnerships can lead to legal issues and loss of trust.

What are other ways to earn money online?

Affiliate marketing isn’t the only path to earning income online. Similarly to creating affiliate content, blogging is also one of the most popular option to earn money.

Build a blog around a niche you enjoy to attract readers and monetize through ads or sponsored content. Blogging also pairs well with affiliate marketing, giving you multiple ways to earn from the same platform.

Another route to make money online is through starting a dropshipping business. With this model, you only need to set up an online store while the supplier handles inventory and shipping. This makes dropshipping a low-risk option for entrepreneurs who want to focus on marketing and customer experience without worrying about logistics.

Alternatively, you could consider freelancing, where you earn by offering skills like writing, design, or coding. Freelancing is a flexible and scalable option that can be a side hustle or a full-time career. Start by browsing the top freelance websites so you can connect with clients and find projects that match your expertise.

Each of these opportunities comes with unique benefits, and many people combine them for multiple income streams. If you’re ready to take the next step, learning how to start an online business will give you a clearer direction and help you choose the path that fits your goals best.