Affiliate Marketing Business Model Explained

NOTE:  Updated 2/22/2016

A couple of quick notes before you read.  After the lesson I have a video to walk you through in some more detail I also include a nice info-graphic as well.  Plus, if you need help or simply do not understand something I give you several ways to contact me!  Just wanted to let you know that I am here for you.

What is the affiliate marketing business model?

It’s simple really.

Affiliate marketing means getting commission on someone elses’ products or services and making a earning money on anything, anyone buys.  This is also most typically done by having a website.

I don’t want you to think of this in a door-to-door sense.  For instance this doesn’t involve going to someone’s home, knocking on the door and trying to get them to buy something.

What I am talking about actually makes more sense.

In affiliate marketing our objective is to drive targeted (free or paid) traffic to those websites.  Sales commissions for us occur when someone clicks on one of our links and purchases something.

Notice a distinct difference here?

We’re not bothering people.  We’re giving interested people exactly what they want instead.

Next, these are the steps that you will take throughout my affiliate marketing training.

Affiliate Marketing Explained In Steps

  1. Find a niche market to get involved in.  (Niche means smaller part of a large market).  I have an easy tutorial set up for finding a niche here.  After you find a niche do some keyword research.  Check out where I share some examples of what types of niche markets exist.
  2. Build a website based around that topic or type of product.  I set up a tutorial for that as well.  (It’s point and click easy)
  3. Promote products on your website using affiliate links.  When someone buys something through these links we get paid.
  4. Share your site to rank in the search engines for various keywords based on your market.  This can and should also be done on social media (Facebook, Twitter, Instagram, Pinterest ETC).
  5. Once that website starts making steady money; build it larger so it makes more money or build additional income streams by building more websites.

It’s really not complex and I believe everyone under the sun can do this.  You just have to work at it, try to actually do something and get a mentor by taking some paid online training.

I also offer training at Niche 60 that covers this exact business model in major detail if you need step-by-step help when you are getting started.

Huge Misconceptions About Affiliate Marketing….

There are some various misconceptions with affiliate marketing however.

  1. Affiliate marketing is impossible if you’re on the outside and have never done anything like that before.  If that were true I wouldn’t be typing this post to you today.  I started from scratch with no experience (read my story here) which may be the very place you’re at today.
  2. You need to be a techie or have a degree.

This isn’t true at all.  I am horrible with techie stuff.  I have no clue what a lot of Internet jargon even is.  I have no clue how to program anything at all.

If you can type, point and click a mouse and can learn how to read simple number graphs you can make money online.  I think 99% of mankind falls into this category.

Probably The Biggest Lie About Affiliate Marketing

  1. Click a few buttons and you’re rich.  This is the opposite end of the spectrum.  There are people who try to teach newbies that you click some buttons and get rich.  That type of stuff is pure BS.

If that was true I wouldn’t even bother typing this kind of stuff out to help you.  I’d simply pay someone to just keep clicking buttons so I can stack my bank account.

The Truth About Affiliate Marketing

The truth is, like everything, you’ll need to pursue getting better at it.  Sure you can make money in your first day, first week and a decent amount in your first month even.  But, the big bucks come to those who are willing to learn and make it happen.

Ignore the lies and gimmicks.

Finally, everything with making money online is all about making your first $1.  It becomes clear and much easier after that.  Then you simply rinse and repeat the system over and over again to turn that $1 into $100 and that $100 into $1000 and that $1000 into $100,000.  You get the point.

It all will take some work on your part but when you have a support group helping you and other people around you willing to do so it makes life even easier and that is one of the main reasons I started this blog and my business a few years ago.  To help and give back are more of what my mission is.

I remember what it was like to start out.  I also remember what it was like when nobody helped or really gave a damn.

One thing I enjoy is the fact that over the last few years I built a community of members that really genuinely care about each other.  I have yet to find that anywhere else online…..

Now, before you go on, I know many people reading this are results driven folks.  I put out a little walk-through a while back that shows what even a small affiliate marketing website can do in commissions.

When you get a chance it’s worth a peek.  Now, I am not suggesting that every website will make this money or any money – it all takes work and effort and these were my own results.  But, I am showing you what you can do as you hone your skills in affiliate marketing.

How I Made An Extra $14,500 In 5 Months

On a final note let me tell you who making money online using the affiliate marketing business model is NOT for.

  • People who are looking for get rich schemes.

If this is you, change now or you’re in for a long hard winding road of disappointment in any online or OFFLINE venture that you get into.

People like Richard Branson, Oprah & Mark Zuckerberg and even less successful people in the world but are still living comfortably all have in common one thing.

They worked at whatever their passion was.  They never looked for something where you click a mouse and angels begin singing your name and throwing you money from the sky.  They realized that these things do not exist.

I hope you do too.

Please Make Sure To Watch This Full Presentation Here As Well:  I Answer Many Of Your Questions.

If you are ready to join Niche 60 you can do that here.  If you’re not ready yet, that’s fine to!  I have more training coming your way tomorrow!  Watch for the email.

Have questions? Ask me on Facebook, Twitter, Privately Here or even over in the Google Plus Community.

Take a look at this simple info-graphic that will help you understand affiliate marketing a little more:

what is affiliate marketing

Michael Brown

I'm Michael S. Brown, Internet Marketer, husband and father. I have been successful in business and marketing since 1998. In 2007 I took to the internet marketing world and have never looked back. I love teaching people the knowledge that I have acquired and the ultimate boost to my ego is to see everyone I teach succeed in business. My goal is to make everyone who comes into contact with me as successful or even more successful than myself.

Click Here to Leave a Comment Below 12 comments
The Affiliate Marketing Business Model | Keyword Research Mastery - April 16, 2012

[…] To read the rest of the article, click here. […]

Dave - April 16, 2012

Hey Michael,
        I understand the affiliate marketing business model and I also understand that in order to proceed, one needs to have a website. With this comes a domain name, hosting, and an autoresponder….all of which, require a small investment. I have no capital what so ever. I appreciate all your info on the subject but for now…I am forced to keep searching for someway to make some money without money upfront. I've lost my job some time back and havn't been able to find steady/fulltime work anywhere. I have been looking on the net for various ways to earn some cash, and aside from taking paid surveys, which is not panning out at all. I am determined not to give up and I would be greatful to any ideas you may have as well. I could go on and on about my horrible cituation but I'm not going to bore you with it. Let me just say…I have to look-up to see rock-bottom… if you know what I mean. Sorry for the long story but any suggestions or ideas you may have knowledge of would be deeply appreciated.
         Thanks for listening, Dave 

Michael Brown - April 17, 2012


Sorry for your hard times man. I know what hat’s like and I am sorry to see you go through that.

If you like to write you can always try http://www.iwriter.com

You can write to get paid there.

To do affiliate marketing you will need at least $10/month as you noted in your post. So if you can’t swing that then you’ll have to do some minor writing like that to get started.

Keep going with whatever you do in life and don’t give up. But, if affiliate marketing is not for you right now just try things that interest you.

ron kerner - April 23, 2012

michael brown ,
I tried but lost my way. need some help or have to start over. Only help I saw had a $$$ tag

ron kerner - April 23, 2012

ron kerner is now rkyn1221@gmail.com

Kenneth Fontana - April 28, 2012

Hi Michael,
I have never earned a penny on the internet but that is because I am looking for but have not yet found anything.  My problem is that although no knowledge or expertise is needed, so it is said, there are statements that I simply cannot understand.  For example, in No.4 above on making money in affiliate marketing, the statement goes "Build back links and get others to do it for us and rank in the search engines for various key words based on our market."
I accept your need to be brief but getting others to build back links means nothing to me at present.  I presume that ranking key words in the search engine means selecting those words that put the web site on page one, but that is only my presumption.
The other thing that puzzles me is why all these helpers and back office staff do not undertake affilliate or other internet marketing themselves.  Surely they could make more money in this way rather than being wage slaves?
What I really need is to go through an explanation of the words and expressions used in the computer world and how they are applied.  Is there such an explanation?  I have no issues about others making money out of my sales in a pyramid structure as long as I can make some cash and as long as I get help.
As you may have gathered, I am a European Brit and no doubt lack the ability, as yet, to interpret some of the expressions used.
Is there somewhere where I can learn the basics before getting started?
Many thanks.

Michael Brown - May 1, 2012



Inside of Niche Blitzkrieg I do my best to break down these type of jargon words.  If you need a free place to start you can use my Unleashing Your Success System.

Affiliate Marketing Strategies for the Seasoned Veteran | Facts About Business - October 5, 2012

[…] find out what works for your business. In general men and women who genuinely completely grasp the affiliate marketing business model are aware of, however you may find times when they […]

In The Dark With Affiliate Marketing? Try These Tips | Facts About Business - October 8, 2012

[…] affiliate companies are aware of this. Typically individuals who really fully understand the affiliate marketing business model realize, yet you can find instances when they really do […]

shawn - June 10, 2013

I undstand everything you have mentioned except for #3

I was looking for details on #3

#3.  Promote products on our sites using affiliate links.  When someone buys something through these links we get paid.

How does this work?  How do I get partnered with an affiliate?



Michael Brown - June 10, 2013

You can find merchants on affiliate networks like.. Shareasale, Linkshare, CJ.com, Amazon and others. These are free to join and have thousands of businesses who have products for us to promote.

I walk everyone through this step-by-step at http://www.niche60.com


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