WHAT is Affiliate Marketing and HOW Does it Work? For Beginners!
– In this video I'm going to explain
what affiliate marketing is.
And how does it really work?
Hey, what is up guys.
ODi Productions here.
If you're new to this channel let me just
give you guys a quick background about me.
My name is Odi go by ODi Productions on YouTube.
I have about 33,000 subscribers right now.
And a little over ten million views.
So I am a full-time entrepreneur and affiliate marketer.
And two years ago I actually dropped out of
the most applied to school on the planet
and my dream school, UCLA
with a 3.5 GPA my senior year in order to
pursue entrepreneurship and online business.
Thankfully I found affiliate marketing
which has given me the lifestyle of my dreams
today just two years later.
I live in my dream apartment here in downtown Chicago.
You guys want to peep the view.
Peep the view for a second right here.
Do a little pan, nice and easy.
And every single day I get to drive
my dream car which is a custom Porsche 911 Turbo.
Which I'm gonna put some clips or something right here.
But anyways let's get on with the video.
I want to teach you guys what affiliate marketing is.
So I'm going to show you guys the
basics and fundamentals.
Just explain how it works and I'm going to
hop into my computer actually.
And show you guys some real examples and
show you step by step how people are
using affiliate marketing these days
to make money online.
And trust me when I say this,
everyone does affiliate marketing.
All the famous YouTubers, all the tech reviewers,
people on Instagram, all those fitness people.
Big companies like Uber, Lyft.
Blogs like Smart Passive Income.
And even small food blogs, "small" food blogs
do affiliate marketing.
So, let's just hop into the computer so I can
give you guys an actual click by click,
step-by-step on how affiliate marketing
works and what it is.
Alright let's get into it.
Alright so we have transported inside of my
computer using a little technology called Magic.
And now I'm going to show you guys
step-by-step some real world examples
of how affiliate marketing works and
how it is used in the real world.
But just to get things started,
a basic description at its core of
affiliate is that it is just referrals, okay.
So affiliate marketing it's kind of a fancy term
for just referrals.
It's basically referring people to products and
services of companies that are not your own
and then receiving commission if those
people sign up or take action upon your referral.
Usually through a link.
So just to give you guys a quick, quick example.
So this is my video.
It's a review of a very popular headphone
called the Audio-Technica ATH-M50x,
which I actually have right here.
It looks a little different from the video
because I put some skins on them.
But basically you guys can see 300,000 views.
And if you scroll down to the description,
the first thing you see here is an Amazon link.
And you guys as long as you weren't born yesterday,
if you watch any sort of tech review on YouTube,
you're gonna see Amazon links or some sort of
funny looking links in description,
And nine times out of ten those are affiliate links.
And what is an affiliate link?
Basically, Amazon Associates if I just go right here,
it is Amazon's affiliate program.
Let's just log out of that real quick.
So Amazon Associates is Amazon's affiliate program.
And as you guys can see,
earn up to 10% advertising fees with a
trusted e-commerce leader.
So if you join Amazon Associates
which you guys can do today.
It's completely free but you might need to
have a website in order to get approved.
Some people are able to without it.
But I would have a website just in case.
Alright guys so if you log in
and then you just look up products for
Amazon Associates that you can promote.
As you can see here we have the M50x.
And all you have to do is click here,
and then get link which basically is your
personalized tracking link that
you can include in your videos,
on your website, on your landing page.
And then this link is personalized to your account.
Now what that means is it has a
tracking code through cookies.
Where if somebody clicks that link
it's gonna be tracked back to you.
And for Amazon Associates at least,
if somebody buys anything from Amazon,
not just the product which is the headphones.
If they buy anything within 24 hours,
you receive a percentage of the commission.
Now, the commission ranges.
It definitely ranges based on the product category.
It can range from 4 up to 10%.
So if I just look up Amazon Associates rates
then we can actually see each specific
product category and how much they pay.
So let's just look down.
If we scroll down here you guys can see
there are a fixed rate for each
product on that you sell.
So if you sell something from let's say in the PC category.
So this could be computers, laptops,
DVDs, Blu-ray, et cetera.
You get 2.5% of that sale.
So if you sell a laptop for $1,000,
you will receive 25 bucks basically.
So basically 2.5% right there.
So that's how it works at its core.
Amazon Associates is the largest
in terms of affiliate programs because it
just has the widest range of products.
But there are many sort of affiliate networks
that have more exclusive offers with
the companies and with the products that
may yield you a higher percentage of commission.
So this is just a quick example right here
of how people do it on YouTube.
I'm gonna move on to the next example which is blogs.
And my favorite affiliate marketing blog
It's created by a guy named Pat Flynn who is awesome.
He has an awesome podcast that you guys should check out.
But basically Pat's been crushing it with
affiliate marketing for as long as
I've been in the game basically.
And if you look at this,
this is his income reports.
And as you can see two mill during the last 12 months.
These numbers are crazy.
Six figures a month.
Six figures a month when a lot of people
are trying to strive for six figures a year,
this guy's making six figures every single month.
And it's just insane.
But basically if you scroll down.
If I just choose the latest income report.
So we'll do August 2017.
I just scroll down and I'll show you guys
that he actually is transparent enough
to share his affiliate marketing earnings
broken down by company.
So as you guys can just scroll down here you see Amazon.
He made about 600 bucks, not too bad.
But if you scroll down to some of these
other companies like Bluehost,
you see $19,470 from a single source
of affiliate marketing.
So from posting links guys.
Again, it's that simple, it's that easy.
It's completely passive income.
Which is one of the reasons why I believe
it is the best online business that anyone
can take up today.
So just to give you guys a little more detail
into how this works.
Bluehost right here, they are a web hosting company
and it's obvious they have an affiliate program.
Because he's earning close to 20 grand from it.
Now if we go to Bluehost's website.
You guys can see right here bluehost.com.
It's web hosting.
For anyone who wants to create a website
you can sign up for Bluehost right here.
With WordPress or whatever.
But if you scroll down to the very bottom.
And now this works for most companies that
have affiliate programs.
You will see affiliates at the bottom footer.
Now if you click that it will take you
right into their affiliate program.
And you guys can actually see over five million
paid in commissions last year alone.
So as you guys can see this isn't
some sort of scam or anything.
Definitely do not confuse affiliate marketing
with network marketing,
which is multi-level marketing,
which is pyramid schemes.
Affiliate marketing is not a pyramid scheme at all.
It is legit sales and commissions.
So basically you're a salesman for real companies.
You're not selling energy drinks and
driving around base three series.
This this is a real business right here.
This right here I mean look at this right now.
Bluehost is a legit company.
They also have affiliate programs for
companies like HostGator, GoDaddy.
You've heard of these companies.
You've seen them on TV, you've seen them on ads.
These are real companies that were talking about.
So anyways getting back into Bluehost's affiliate program.
If you scroll down, as you guys can see,
free to join as with most affiliate programs.
You guys can see how it works.
Basically you have custom banners and links
just like Amazon Associates for every
visitor who clicks your link and signs up
within I believe a 30 day period.
Now Amazon's is only 24 hours.
But for most affiliate programs it's usually
around a 30 day tracking cookie.
It's between 14 days to 30 days.
60 days, sometimes 90 days.
But 30 is the industry average for tracking links.
And Bluehost, they will give you $65 a pop
for everyone who signs up through
your Bluehost link.
Completely free to join just like Amazon Associates.
Again, this is affiliate marketing.
It's very simple, it's very basic.
But I figured I'd just peel back the kimono
and show you guys how people are really
making money online behind the scenes.
Now I'll give you one more example.
This is Instagram.
One of my favorite YouTubers slash
people that I follow on Instagram is Maxx Chewning.
Been following him since the first few days
back when he started doing the
Full Day of Eating videos.
Those were my favorite.
Basically here is an ad.
This is for MVMT watches.
And this is a little different
because the thing is with affiliate marketing
is you usually have links right.
But another way that you can do this,
now some people call this sponsorship,
it's all the same thing to me.
Basically is providing coupon codes.
So as you guys can see, Maxx has his own coupon codes.
It's personalized, says, "MAXX15".
You get $15 off your order at MVMT.
And basically what is happening here is
if you use Maxx's link,
yes you get $15 off but he also gets
attribution for your sale,
and therefore he gets a kickback or commission.
Now I don't know how much he makes off the sale.
I'm not a MVMT affiliate,
I cannot speak on that.
But it's probably somewhere around 10, 15 bucks per sale.
Which is a very nice extra source of income
considering how passive it is.
He just has to post one photo like this
or make one video and he can continue
to earn money off every single sale from that video.
And as you guys can see,
the power of the internet,
the power of scale.
This has over 10,000 likes.
And you can bet that of those 10,000 likes,
the chances of a few people buying a watch
using his code are pretty high.
Let's be honest.
It's just math at the end of the day.
Marketing is a numbers game.
And if you're getting 10,000 likes,
you're getting 10,000 views,
you're getting 10,000 clicks.
Chances are someone's buying something
and you're gonna be making commission.
So basically those are all my big examples.
It's very simple.
I hope I can show you guys behind the scenes of
how affiliate marketing actually works in the real world.
And how people are using it to generate
large sources of side income that is different.
And it's more effective than just doing Google AdSense.
Which is just showing ads.
Just for an example, YouTube only pays two bucks
for every thousand views in my experience.
Now this this changes depending on
your niche or your industry.
But just to put things in perspective.
If Maxx sells one of these and he makes $15,
just think about the amount of views
he would have to get to make that same amount
of money from one sale of selling one watch.
So really less is more.
You don't have to sell as much.
You don't have to get as many views.
But if you get sales you get more commission
than getting thousands upon thousands of views.
But obviously if you have both then
it's a win-win for everybody.
Multiple streams of income always the way to go.
Alright guys so that wraps up this video.
I hope you guys found value in this free lesson.
And if you guys like the video please
thumbs up the video and leave a comment below
letting me know because I really appreciate it.
And it will allow me to continue to
make more videos and free lessons just like this.
If you have any questions about affiliate marketing,
feel free to leave a comment below or
contact me via Instagram by dming me at odi_productions.
So leave a comment, Instagram,
either way I'll get back to your question
as soon as possible.
Now for anyone who is serious about
affiliate marketing and you want to use it
as a vehicle to wealth and living
a life of passive income and basically
hopefully one day achieving your dream life like it gave me.
Guys definitely check out my brand new course
called Affiliate Marketing CHAMP
Where I just released my brand new course
that's five hours of HD video.
If you guys enjoyed my teaching style.
If you guys enjoyed learning from me.
And if you want me to be your mentor
and your guide for affiliate marketing,
then definitely check out this course.
I share a bunch of really awesome lessons
such as the best examples of successful
affiliate marketing in the real world.
So it's an extension of this video.
I'm showing pretty much every single example
out there of how affiliate marketing works.
And also giving you guys a step-by-step
plan on how to start a successful
affiliate marketing business.
So basically I give each step on how
I've created my affiliate marketing businesses,
and you guys can replicate that exact same process.
And by doing each one of these steps,
it increases your chances of success
by that much more.
Also I share the most profitable niches
in affiliate marketing.
Which is a complete game changer.
'Cause this could be the difference between
making a thousand a month and 10,000 a month.
And trust me I learned that from experience.
Aside from that, I teach you guys how to
rank on the first page of YouTube and Google
while still being a small channel.
I've been able to surpass YouTubers who
have millions of subscribers.
Millions more than I do and I've been able to
surpass them on the Google rankings
on the first page.
And also I'm going to show you guys
how to use paid traffic and show you guys
a secret paid traffic source that will
turbocharge your results for not much investment.
Along with creating a Facebook ad for
And even creating an affiliate marketing
website from scratch.
Lastly, I share my top five mistakes of
affiliate marketing that I wish
I knew when I got started.
That would have saved me months,
if not years of frustration and failure.
But that's basically the core of the lessons guys.
I'm going to be adding more modules,
more lessons in the future.
And I'm going to keep expanding this course
to be the most comprehensive and the best
possible course in affiliate marketing
to get you guys started today.
So if you guys are interested in that,
I actually have a $100 off discount
that is going to be for a limited time.
If you guys use the link in the description.
So the code is gonna be already applied.
As you guys can see here,
there is no discount or anything like that.
But if you guys apply the code,
then you guys will see $100 off discount.
And there's limited spots available.
So if you guys are really interested in this
I suggest you get on it ASAP.
But if you have any questions,
please feel free to leave a comment below,
Instagram DM me,
whichever way you can reach me.
And I'll be happy to answer those questions.
So anyways on to the next video.
I hope you guys enjoyed it.