Usually when people talk about making money in the stock market they don´t think about how to generate passive income, instead they think about capital gains. However, today I want...
What is affiliate marketing?
To be totally honest, I don´t know everything about what affiliate marketing is but I think it´s very interesting. I am in the process of finding out what it is and how it works. You might say that affiliate marketing is similar to network marketing/MLM. I have seen systems where you get commissions every time your referred customer buys something, first time they used your affiliate link and after that you will get commissions for life, every time they buy things from that store.
The only real difference is that if you introduce someone to a store or product and that person buys it and likes it, then decides to become an affiliate as well you won´t get any off the commissions from that. That means even if you help him/her to do it, there´s no value in that. But all affiliate programs are different, maybe there is such a system?
Anyhow, since this is just about direct sales the commissions are sometimes really high, especially for information products like video education material or E-books.
So what is affiliate marketing really then?
In plain English I would say that it is advertising on the internet but instead of getting paid for every ad that people click on, you will get paid only on sales that you create. Meaning that if someone comes to your website, clicks on an ad and then buys something from that store, BAM! You will make money.
Can anyone do affiliate marketing?
Yes, anyone can do this. Let’s say that you are a very “popular” and influential person and have a thousand friends or so on Facebook. Every time you post a new selfie it gets hundreds of likes and shares. And let´s say that you just read a book that you really loved, like 50 shades of grey or Harry Potter. Instead of just posting a picture of the book and recommend it to your friends you can instead find an online bookstore that has an affiliate program (most of them have one). Once you found a good store and signed up for their affiliate program you go to the bookstore website and find the book that you just read. When you have your affiliate link to the book you go to your Facebook and post the link together with a picture and short résumé of why you loved that book and why others should read it to. Voilà, now you just have to wait for the money to roll in.
Okay, now the next question might be: But what if I’m not a popular person with thousands of friends?
Good question, because I´m that person. Most people don´t give a shit about what I post on Facebook.
Is there some way for a normal person to do this, someone with no knowledge, no experience, no idea what affiliate marketing is?
Yes there is, and I decided about 2 weeks ago that I was going to give it a fair try for the purpose to show you all that it´s possible to create passive incomes with no experience, little money and no knowledge. Now I have no idea what I´m doing but I am willing to learn.
The other way to do this is to make a website that gets visitors every day, you have ads on that website that are linked to your affiliate accounts, people will click on the ads and buy things. For every sale that is created through your links you will get commissions.
Now to me that sounded A LOT harder!
And of course it is, but what to do, I´m not a popular and influential person so the alternatives are kind of limited.
It´s probably harder to just make yourself popular than to learn how to do the “website thing”.
The case study
Okay, so I´ve heard about affiliate marketing before but had no idea what it was until just recently and I figure I could do a study to see if really anyone can do this. Since most people who read this blog are either Scared of losing money, lazy, don´t know how to do or don’t know what they want to do.
Now I want to do this as fair as possible for everyone, so this is the deal:
- I shall find a niche that I don’t know anything about.
- I shall make a website (that I learned to do on my own with just a YouTube explainer video to help me).
- I shall make create traffic to the website that I don’t have a clue of how to do.
- I shall within this year of 2016 grow a passive income stream from this so that it´s over 100€ per month.
Choosing the niche
Now there are a lot of ideas about this out on the internet and the most suiting seemed to be the one where you choose a niche like this:
Be creative and find something that there are people searching for but not too many, a few thousand searches per month is enough. What we want is low competition, so we will be able to show up in the Google search results. One way to know if there is low competition is to search in Google for your thought “key word”, if there is 2 million pages or less it´s considered low competition. What you also want to do is go to the Google keyword planner and see the amount of searches, if it´s “low” competition and that there are other related keywords to use as well. The niche has to relate to things that people want to buy. For example if you make a page about how to turbo charge your Corvette maybe you can put ads from dealer that sell all sorts of things to buy for Corvettes.
So, I did all those things and decided what niche I was going to use.
Making the website
This website is the first one that I have ever made, so I know everyone can do one. It took a couple of days to get ahold of it but it´s not that hard. I also know that if you just take simple web hosting including domain name (your website address) It all will cost less than 100€ to set up.
Since I´ve already did this website it only took me about an hour to create the new niche website.
Getting traffic to the website
Here I guess it’s just about listening to the ones that know how to do it, like with most things. Read a lot and put in the time to really learn what works. What we want to do is get the website rank on the first page of Google when people search for things that are related to whatever we choose to make a website about. I have no idea of how to do that but I´m willing to put in the time to learn it.
Passive income of 100€ per month
Since I don’t know anything about this I set a goal that feels realistic and also a good step for most people who want to start their journey against financial independence. I have no idea if I can do this or not, but we´ll give it real a try, I can promise you that if can do this, everyone can. Let´s not forget that this is all brand new to me and I chose a niche that I know nothing about.
So what is affiliate marketing?
I don´t know yet, but I´m going to find out!
I want to make this test to see if anyone can start making passive income on the internet to help you guys understand that achieve financial independence is not that hard. It can be done with limited starting capital and anyone can do it. I will keep you updated about how it goes later on.
Take care you guys!
Passive income together