How To Run An Affiliate Marketing Business sucessfully From Home

By the year 2022, it is estimated that affiliate marketing will be worth over $8 billion. If you’re longing to find a way out of the grind of a traditional 9 to 5 job and get in on a multibillion-dollar industry, affiliate marketing may be the solution. What is affiliate marketing? This new niche of marketing involves earning a commission for promoting the products or services of another brand.

Affiliate marketing is a departure from traditional marketing and has become popular because of its flexibility and profitability. Many brands and marketers alike have found that it is effective for driving sales and generating impressive revenue online. If you’re interested in getting started as a content creator or brand vendor, this article will tell you what you need to know about affiliate marketing.

Table of Contents

What affiliate marketing is

Affiliate marketing is defined as a process in which a brand affiliate markets products or services — created and sold by a different person or brand — in exchange for a commission. A brand affiliate ultimately earns money by promoting a product they enjoy and making a slice of the profit on every sale they made. Brands track affiliate sales through links between websites. The process of affiliate marketing includes the following steps:

  1. The brand affiliate posts an ad on their blog, personal website, or social media feed.
  2. The consumer clicks on the link featured in the ad.
  3. Via the tracking link, the consumer is sent to the brand’s online store.
  4. The consumer makes a purchase directly from the brand store.
  5. An affiliate network records the sale as originating from the tracking link.
  6. The sale is credited to the brand affiliate.
  7. The brand affiliate receives a commission.

How affiliate marketing works

How does affiliate marketing work, exactly? This popular marketing strategy functions by sharing the various tasks of product marketing and content creation between several parties. Affiliate marketing is effective because it utilizes individual talents to create impactful campaigns. In turn, this process allows contributors to earn a fair share of the proverbial pie.

In typical affiliate marketing, there are three key players: the brand, the affiliate, and the buyer. In this process, these three parties share a complex relationship to secure the success of their affiliate program. Let’s delve into each important role:

The brand

This term encompasses the party that creates and sells the product or service. Essentially the brand is the party that is seeking marketing services. The brand may be:

  • An individual entrepreneur
  • A vendor
  • A merchant
  • Product designers or creators
  • A retailer with a product that needs marketing

The product may be an item — like a beauty product or household item — or a service — such as a fitness tutorial or nutrition coach. The brand may or may not be an active participant in the marketing of its product. If they are actively involved in marketing the product, they will share in the profit created from the revenue of their product.

An example of a seller might be a wellness brand seeking exposure to a new audience. They would pay an affiliate to promote their brand via their website, social media, YouTube channel, podcast, or another medium.

The brand affiliate

The affiliate may be a content creator, marketer, or advertiser. Brand affiliates are also known as publishers, and they may be a company or an individual. The brand affiliate’s role is to market the brand so that it is attractive to potential customers. They promote the product by convincing consumers that the product will be of value to their life or business. If a sale is made as a result of the affiliate’s content, they will earn a commission.

One of the advantages of using an affiliate is that they often have a strong connection to a niche market. The brand may be able to leverage the personal brand of the publisher to establish a relationship with new consumers in specific markets.

The buyer

The buyer is the target audience, consumer, or client of the brand. Perhaps the most important player in affiliate marketing is the buyer. The consumer discovers brands via the affiliate’s blog, social media presence, or website. Once they make a purchase, the brand and the affiliate split the profit from the sale.

The buyer may or may not be aware that they are being sold a product via affiliate marketing. While affiliate marketing occurs with varying levels of transparency, brands typically do not upsell in an affiliate marketing program. As a result, the consumer experiences the buying process as they would with any product.

Tim Ferris, the host of the popular podcast, “The Tim Ferris Show”, chooses to be a straightforward brand affiliate by acknowledging that his show is sponsored by his brand partnerships.

In this powerful example of affiliate marketing, Tim Ferris makes it clear that he is being paid to promote his brand affiliations, while also providing a compelling explanation of their benefits.

How affiliate marketers earn money

Affiliate marketing is often touted as an escape route from a traditional desk job. For the affiliate, the appeal of affiliate marketing lies in the power to make money by creating content online. But how do they actually earn money? While there is no one answer to this question, there are a variety of avenues through which brand affiliates get paid, including:

Per click

In a pay-per-click program, the affiliate aims to direct consumers from their website or social channel to the brand’s website. In this process, the affiliate must persuade the buyer to make the leap from their content to the seller’s site. In this model, the brand affiliate is paid based on the increase of web traffic they create for their brand.

Per lead

The pay-per-lead system may seem complicated, but essentially, this model pays the brand affiliate based on the number of leads they generate for the seller. In this program, the publisher must successfully persuade the consumer to move from their content to the brand’s website and convert to a lead. This may be signing up for a newsletter, providing contact information, creating an account, or committing to a product trial.

Per sale

The pay-per-sale system is the most standard form of affiliate marketing. In a pay-per-sale system, the brand compensates the affiliate with a classic commission — a set percentage of the product’s sale price. The affiliate must take enough action that the buyer makes a purchase in order to earn money from this model.

Common affiliate marketing channels

Affiliates possess the freedom to choose the platform or channel that most suits them and their audience. In fact, they have the freedom to choose more than one! Common affiliate marketing channels include:


In modern business, influencers are perhaps the most “of-the-moment” marketers. Influencers are social media users who impact consumer decisions via their social media following. These contemporary marketers are well-equipped for affiliate marketing as it is often quite simple for them to persuade their followers to make a purchase based on their recommendation. In fact, many followers engage with influencers to gain recommendations and lifestyle tips.

Liza Koshy is a popular entertainer, social media personality, and high-profile example of a brand affiliate. In this example, Liza uses her Instagram feed to promote her partnership with the fitness brand, Fabletics.

Liza Koshy models products from her brand partner, Fabletics. Liza uses her social media star power to drive sales for her brand affiliates.

Blogging or Podcasting

The modern blogger relies on strong SEO skills and compelling content to attract an audience. Bloggers typically convert their followers by providing in-depth reviews and content that promotes the value of their affiliated brand in an engaging way. Ultimately, bloggers drive their readers to the brand’s site through links and positive reviews.

A contemporary iteration of blogging is podcasting — a medium that nets millions of listeners per month. Podcasters often discuss their favorite products as a part of their content or take a break mid-episode to promote brands they love. Tim Ferris is an author and podcaster who promotes products on both his written blog and podcast.

Tim Ferris promotes his affiliated brands with a multi-media approach.

Hosting a YouTube channel

Another popular way to create brand affiliate content is with a YouTube channel. Brand affiliates can create seamlessly integrated promotions, or pause in their content to market their brand partners. A popular example is “Binging with Babish,” a hyper-popular YouTube cooking channel. Host Oliver Babish often interjects his cooking tutorials with convincing promotions for brands like Squarespace.

In this YouTube video, Babish paused mid-sloppy joe to promote Squarespace.

Launching email campaigns

While email newsletters might not be hyper-impactful on their own, they are a powerful part of building brand loyalty originating from a blog, social media following, or website. Affiliates may build email lists that they use to promote upcoming events, reveal sneak peeks, and create a VIP experience. In this way, bloggers and influencers alike can utilize email marketing to link their followers with their affiliated brand site where they can make their purchases.

The benefits of becoming a brand affiliate

There is clearly money to be made as an affiliate marketer, but there is a long list of lifestyle benefits as well, including:

Earning a passive income

Beyond personal enrichment, the purpose of employment is to earn a living, and — contrary to tradition — an affiliate can make an impressive profit from the comfort of their home. Affiliate marketing is considered to be a passive form of income in which the content creator can continue to earn money long after they have clocked out for the evening. After investing time in the original marketing campaign, the publisher will continue to see returns every time the buyer makes a purchase or uses their tracking link — depending on the affiliate model they are working within. The result is a steady flow of income built by a flexible work schedule.

Avoiding customer complaints

Brand affiliates do not have to field complaints or customer service questions from the buyer. Instead, they are a link between the brand and the buyer. This means they are able to enjoy the profits of their marketing efforts without any of the drawbacks of customer service.

Working from home

One of the most appealing aspects of being a brand affiliate is the flexibility it affords. Marketers can launch campaigns and earn money from home, during travel, or from anywhere they choose! The flexibility doesn’t end with the location of a home office — publishers enjoy the freedom of working as a freelancer. This means they can set their own goals, only market products that intrigue them, and create their own work hours.

Launching a career without major out-of-pocket costs

Unlike booting up a business with their own money, fresh brand affiliates can launch a career as a marketer with minimal cost to them. This allows publishers to get started quickly and easily.

Earning based on performance

Many brand affiliates enjoy the rewarding model of this form of marketing. Performance-based earning can help boost motivation and provides fast-paced upward mobility.

How to get started in affiliate marketing

If the life of a brand affiliate sounds appealing to you, there are several steps you can take to become an outstanding affiliate marketer:

1. Start by building an audience

As you launch your affiliate career, it is essential that you build a niche audience. The goal is to tailor your content to a particular audience, whom you can convert from a reader to a buyer. You are much more likely to find success in marketing by establishing your expertise in one area.

Consider an industry or niche that you are already passionate about. Are you a yoga enthusiast or fitness buff? Do you have a degree in public health or psychology? Are you a beauty aficionado? Market to an audience to whom you know you can provide value and entertainment.

2. Network

Building your network of fellow influencers and bloggers is key to successful affiliate marketing. Consider guest blogging, collaborations, and other creative ways to share resources as a way to earn more affiliations….


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