What is Affiliate Marketing: Best Way To Make a Passive Income

What is Affiliate Marketing

Everybody has once heard about making money online but the major question is How to Get Started? If you want to know the most popular way to make a passive income online then this post will detail what is affiliate marketing all about.

Affiliate marketing is when you refer a customer to another business and make a commission if the customer purchases a product. In effect, your website is set up as a marketing and referral engine and you don’t actually sell any product.

In addition, you don’t directly collect any money either. Once a sale has been made, the affiliate business is responsible for paying you your commission which usually occurs on a monthly basis.

How does the affiliate business know who referred the customer?  A tracking cookie is placed on the customer’s computer whenever they click on a link on your site that takes you to their business.

If the customer makes a purchase and has the cookie installed on their computer, then you get credit for the sale.

Advantages Of Affiliate Marketing

The main advantage of affiliate marketing is the hands-off approach in the sales process.  All you have to do is refer a customer to a business and the customer makes a purchase, your job is done.

No worries whatsoever about product fulfillment and customer support. You get paid your commission and that’s it.

Affiliate marketing allows you to build as many individual niche sites or landing pages as you wish, which allows you to be diverse in the products you may want to sell.  It is also easier to gain trust when people are doing their research before making a decision on whether or not they are going to invest in a particular product.

If a new technology, a new niche, a new branch of content comes along you can quickly build a new site with affiliate marketing to take advantage of it.

Disadvantages of Affiliate Marketing

False advertising on the affiliate’s website may destroy a merchant’s reputation. More and more affiliates are engaging in this kind of scheme.

Merchants may suffer from commission costs. Set up and maintenance can also mean more cash outflow for the merchant from having too many affiliates.

Affiliates risk not getting paid if the merchant closes their program after you referred people to their business. However, that can be avoided by going with trusted merchants that are well established. There is an abundance of information out there on top merchants and platforms for referring customers and getting paid a decent amount for your efforts.

Some programs require the affiliate to give cash for a membership. I currently do that exact thing, but that kind of membership can be mutually beneficial if you know how to promote their product as you can make 10 times over for what you are dishing out for the membership.

I consider this a minor issue, but with an affiliate marketing business, there may be thresholds you need to reach before you can cash out.

For example, if you’re an Amazon affiliate outside of the US, you can only be paid by check or gift card. However, to receive the check you must have made at least $100. With experience, it should not be a problem if you have a winning strategy.

With its high payoff potential, affiliate marketing has also become a target for scammers and individuals wanting to earn from other people’s hard work. It is important to update your password and make sure your devices have some kind of security. When the money starts rolling in, the last thing you want is for people to hack in your accounts and steal your earnings.


A chance to have your own business is something we all dream of having. To start a physical place of business and be successful is hard.  A chance to start an online business and be successful is highly attainable.  No matter what, a business is a business and nothing will happen overnight.

To have a successful online business is a chance to live a more fulfilling life and buy back your time.  Imagine working on something for months that can pay you for years to come.  In my quest for financial stability and the freedom to really live life on my terms, I acted on this thought and it has completely changed my life.

If you are interested in affiliate marketing, I advise you to get the tools and training that online beginners need to become a successful affiliate marketer. I have written a Ultimate Guide with two of the best platforms to learn how to make money with affiliate marketing.

If you have any questions regarding affiliate marketing, feel free to leave a comment below and I will respond as soon as possible.

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