How Affiliates Earn Money

Affiliates Get Paid to $hare

By Dallas McCalister

This article may contain affiliate links. (See Disclosure For full details)

Affiliates can earn great extra money by simply sharing information or endorsing other company’s products or services.

Affiliate Marketing is a type of performance-based marketing in which a business, such as Amazon, Wal-Mart, Best Buy and so on, rewards one or more affiliates for each visitor or customer brought to them by the affiliate’s own marketing efforts.

Imagine getting paid every time someone purchases a product from “Amazon” (as an example) that YOU recommended in you’re Website, Blog, Email campaign or any of the many online venues available to you such as social media.

A recommendation, endorsement or a review you have written about a product or service can lead to getting paid a nice commission from the company that has created or sells the product or service you’re recommending.

You are provided a link, a banner, or a video etc. by the company or service you are using and/or recommending so that your readers will have a chance to learn more about the products or services you are recommending.

When they click on the “link” or the banner you provided them within your Blog or Website, they are re-directed to the company’s product or service description page and order form.

The “link” they have provided you with to be inserted in you’re Website or Blog is how they know you were the reason they came to them.


Below is an example of one of the affiliate income sites we recommend to our readers:



When any of your readers make a purchase from a company you are recommending – YOU get paid a commission according to the affiliate agreement you have signed with the company selling that particular product or service.

Some affiliate commissions are small, while others may be quite significant.  It can help you earn a nice added profit – especially if you do not overload your site with too many obvious offers.

We also recommend that the products and services you recommend are related to your message.

What’s really great about earning affiliate commissions is the fact that this can occur 24/7, 365 days a year, even if you’re sleeping, traveling, or just enjoying time with friends or family.

Becoming an affiliate for an online product or service company is generally very easy. There’s no cost to become an affiliate for an online company.  If there is, we would recommend you move on to other more reliable affiliate programs.

A real win-win situation for everyone.  Naturally, it is always best if you …

  • Use the product or services personally and are satisfied with them.
  • Do your due diligence and you are confident it can provide great value to your audience.
  • Are recommending a product or service being sold by a highly reputable source.

Affiliate marketing is not to be confused with a network or multi-level marketing business where you would join a company, recruit or sponsor other’s into your organization & get paid on multiple levels.

Affiliate Marketing is not new.  It has been around for ages and many businesses such as Amazon use it as a means of advertising, mainly because they only have to pay a commission or “affiliate fee” once a conversion, or sale has been completed.

Amazon has some strict rules you must abide by.  Most ethical affiliate programs do but are certainly not too difficult to comply with.

Many of them may require you to be a Website or Blog owner.

Don’t be too discouraged if you apply for an affiliate membership with one of these companies and are denied. There are literally thousands upon thousands of companies on the Internet that are looking for affiliate marketers.

On the other hand, you will not want to recommend everyone who does pay affiliate commissions. It is still, in my opinion, one of the truly great benefits of online business owners.

Publishers like it better than using conventional paid advertising strategies such as “cost-per-click” or cost per impressions even when they make a little less on their eBooks, paperbacks or other forms of products they create or control.

When I created my first eBook, I decided to look for a company that not only sold eBooks online but could also teach me all the in’s and out’s of creating, producing and selling my eBook(s).

After a lot of research, I discovered Mark Coker’s program called Smashwords.

Mark has a tremendous amount of experience with this growing industry. His company is one of the top eBook sellers along with Barnes & Noble, Amazon, and many others. They are also one of the leading educational companies in this field.

Recently, Smashwords introduced their new affiliate program. I was pleased to see this because after all Mark Coker and his company had taught me about writing, producing and marketing my own eBook(s) – I was referring people to his company every chance I got without earning a commission.

They really are good at what they do and Mark’s personal eBooks and online training courses teach every aspect of eBook creation and marketing.

He also does a great job with the history of eBooks, and the eBook revolution. He covers in detail why it is the best format for writing and selling you’re own book(s) today.

I found it very interesting to learn how publishers treat their authors and why it is better to be you’re own eBook Author and Publisher.

Many companies who utilize affiliate marketing as a way to promote their goods and services offer some truly excellent marketing tools to help their team of affiliates makes more sales.

You (the publisher and site owner) are given a special code that’s embedded in a link or banner etc. whereby the advertiser is able to track the sales you are responsible for (usually by what is known as cookies).

You will then be paid your commissions (which will vary from product to product) according to the affiliate agreement you signed. Electronic payments are generally made via Pay Pal, Click Bank, wire transfers, credit or debit card and so on.

If you get serious about utilizing the affiliate marketing aspect of an online business, you could find yourself sitting on top of a huge pile of extra cash each month!


Although affiliate marketing is a great source of added revenue for many bloggers, some only earn a small amount due to a list of reasons listed below.

> They do not recommend products and or services that tie into their niche.

> They fail to create good content that helps convince the reader to take action.

> They “overdo it” by incorporating too many obvious affiliate links in their site.

Earning commissions as an affiliate can be very exciting and rewarding if you use some common sense when building you’re Website or Blog.

This gets us back to what we have stated in many of our posts and articles within our site. You need to have a good road to follow.

A mentor and teacher(s) who will cover all aspects of how to become a successful online business owner. Take time now, if you haven’t already done so, to read our review on Our # One Choice for learning how to build a highly successful online business.

Making money as an affiliate for other products and services that you recommend can become a large part of the income you earn with you’re Website or Blog. One of the Bloggers we have been following for some time now is getting paid more than $50,000 a month from affiliate commissions.

I’m not saying that you will do this well, but it gives you an idea why we feel it is important to learn how to build your own Website and learn to include this powerful way to create an extra stream of income for your site.

Are there other ways to earn money with your Website?

You bet there are and as a subscriber to our online newsletter, SuccessNow! and a regular visitor to Affiliate Income Magic, we’ll cover all the ways for you to earn the kind of income you desire and deserve.

For your better future,

Dallas McCalister

6 Comments on “How Affiliates Earn Money”

  1. Great info here Dallas 🙂
    Your #1 recommendation caught my eye and I knew it had to be Wealthy Affiliate.
    There are other affiliate programs out there but nothing even close to WA.
    It’s the only way to earn real money if you’re a hard worker and determined to be successful.
    The trainings, webinars, and support are second to none.
    If you have a passion, then build a website, get traffic, help others, and make money.
    I agree with the information overload but if you take it one step at a time and ask for help, it’s not that big of a deal.
    Thanks for a great review!

    1. Well said Rob – could not argue with those points. Thanks so much for stopping by to take time to read our review – and to give us your comments.  Yes, WA is the best on this field.  


  2. Oh I now I understand.

    So what will happen, companies want to have more sales for their products so they will pay affiliates a commission every sale they make, right?

    I got it now.

    I have also had time to look into your #one choice and I loved it. I will be coming back to read more about it and hopefully take some value off of it. Thanks for clear explanation and guidance.

    1. Hey Dave – that’s terrific, sure appreciate your comments and glad we could help.  

      Let’s stay in touch – 


  3. Thank you for your informative post which clearly explains how affiliates earn their money. I like the idea of making sales by just promoting company products that I don’t get to manufacture myself.
    Also, the idea of having marketing tools at my disposal as an affiliate marketer is encouraging.
    However, I like your openness too in pointing out, not all who start affiliate marketing businesses succeed due to reasons you pinpointed.
    I am interested in Wealthy Affiliate. Do you have an idea how much commission it pays?

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