There’s no better way to start than with Affiliate Marketing basics. It works like this: Company A has a product and needs to get to the consumer the fastest and in the largest form of a campaign as possible. In order to do that, they “hire” affiliate marketers (YOU) to promote, review and recruit consumers (it’s cheaper than hiring 1,000 sales people you have to pay regardless if they make a sale). We as the marketers, get a HUGE commission from Company A (usually 50-100%…yes many times 100% of that first sale goes to YOU!) for bringing in the consumer and selling that product.
Visually it looks like this:
Now, you are probably saying “How can the seller give you 100% commissions on a sale, they need to make money right?!” Absolutely, and it would be surprising if you didn’t ask that question.
So here’s what happens…..you (the marketer) are getting up to 100% of the sales price for the initial purchase, say $40 for example, and Company A is going to make money for things called ‘upsells’. Upsells, are enhancements to the product (making the product easier to use or supercharging it), which makes it sexier for the consumer.
Think of the product as a bicycle…..When you buy it, it’s a basic bicycle, and it works great, but what if you could make it better or a more attractive product without doing all the work? Let’s say……add a bell, put a basket on it, instead of 3 speeds, give it 5 or 10….that’s where Company A makes their money. You (the marketer) makes your money on the front end and Company A makes their money on the back end. Company A is so confident that consumers are going to want their upsells, they just need you to get the consumer ‘in the door’ so to speak.
So from this……..
We’re sure you’ve purchased MANY upsells as they usually are worth it to the consumer.
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