Introduction To Affiliate Marketing

January 11, 2007

I shall continue from my previous post on how you should go about creating the income streams mentioned in my ebook.

I’ve talked about the potential of setting up an online business. Now many people posted me this question ‘What should I sell?’. From that I can gather that most people are absolutely clueless on what to sell.

Now if you’ve read my book carefully, I actually listed down several types of products you can sell. You can easily sell information products such as ebooks, software, audio clips and video clips. Or you can also purchase resell rights products. These are products created by others but you just need to buy the rights to sell them.

And the best part is, you can also sell other people’s products! This was elaborated in income stream #6. I guess many are still abit unsure of what affiliate marketing is about. I’ve already gave quite a clear explanation of what is it about in my eBook, but I guess I shall elaborate further for the benefit of those who didn’t quite catch it.

Affiliate marketing is: the promotion of products by third parties in exchange for a commission/ cut of the sale.

Simple as that.

To give you an example, lets say now instead of allowing people to download my ‘7 Ways To Earn Money Online’ program, I’ve decided to sell it. But instead of just marketing it based on purely my own efforts, I’ve decided I want to increase my sales by getting others to market my product. Hence, I decided to list my product on an affiliate network, and allow anyone to sign up as my affiliate for free. So whenever an affiliate refers a customer to my website and that person purchases my product, I pay my affiliate a commission of say 50%.

That’s affiliate marketing for you.

Now I’ve gave a further elaboration of affiliate marketing in my eBook so pls go read it.

So the next question now is, why would any company be so foolish to pay commissions as high as 75%? Wouldn’t they make a loss? I’m sure some of you find it hard to accept that.
Now you’ve got to understand that commissions will only go above 50% for information products. This is because the profit margin for such products are so much higher. For example, once I’ve written an ebook and decide to sell it, every sale I make is pure profits. Hence the merchants can afford to pay out such high commissions.

Now, so you might wonder why merchants would even want to share with you a percentage of their profits. This is because these sales that were generated by you would not have taken place had you not referred others to their website. Thus, they are benefiting from extra sales and hence are willing to give you credit for it in terms of commissions.

Affiliate marketing is one of the best kept secrets on the Internet. Actually, it is already growing and rather common in the Western countries. But it’s less heard of in Singapore. In fact, I would never have gotten to know of such a lucrative industry if not for Secrets of Self Made Millionaires.

Fact: Affiliate marketing is a $95 billion industry that is expected to grow to approximately $230 billion in the next 3 years. (Source: Forrester Research)

Not sure if you’re starting to get excited. But it is definitely an extremely lucrative industry. Nowadays, as businesses get more competitive, retailers are willing to pay affiliates huge commissions in return for referrals.

Every successful business which wants to succeed on the global stage has to rely on its affiliates and companies are starting to see the light. Thus, this provides an excellent opportunity for normal people like you and me to earn some money through blogs and websites.

Do not afraid of your referrals not getting credited to you as affiliate networks are organized and reliable and companies will issue you with your own unique affiliate link. I personally have made quite a high number of affiliate sales.

Note that the visitors you refer do not have to buy instantly as most merchants will place a cookie to track the visitor so you still get credited for a certain time period.

Nowadays, as competition in businesses get more intense, it is highly important for businesses to hunt for extra sources of customers. Hence, affiliate marketing provides a perfect solution to their problems.

By enabling people to sign up for their affiliate program, these affiliates are like partners to them. Hence, they help by referring visitors and these affiliates benefit by earning commissions. It’s really a win-win situation,

In today’s world, affiliate marketing is a crucial element to a business’ success. Though it’s still not common in Singapore, it’s really gaining popularity in countries like USA. Some of the biggest companies in the world are using affiliate programs to expand their market. Eg. Sony, Amazon, Dell, Adidas and eBay all have affiliate programs. And more and more companies are jumping on the affiliate bandwagon everyday.

There are affiliate programs for food, clothing, software, computers, toys, electronics and even medicine! You can literally build your online store with tons of different products and receive commissions for simply referring people to buy from these sites!

Now this provides the perfect opportunity for the average people looking to earn money online. The best thing is, affiliate programs are free to join! While you can make a few hundred bucks from affiliate marketing every month, many have gone on to make a few hundred thousands (or even millions) every year.

If you are serious about making a huge income from affiliate marketing, you’ve got to treat it like a real business. Meaning to say, you’ve got to register your own domain name and web host and create your own websites. You can integrate affiliate marketing with your own products or choose solely to be an affiliate marketer.
I shall not go into the affiliate marketing techniques in this post, just to give you a brief idea of what it is all about. So be sure to read carefully the income stream #6 in my ebook as I really feel affiliate marketing is the ideal solution for newbies to make good money.

You should check out successul affiliate marketers like Singaporean Ewen Chia and Rosalind Gardner.

Ewen is regarded as the no.1 affiliate marketer in the world and is highly recognized in the industry. His record was when he created $1.48 million in sales in 48 hours. And he is only in his early thirties. Hence, if he can do it, so can you! Be sure to check out his Secret Affiliate Weapon at


2 Responses to “Introduction To Affiliate Marketing”

  1. James on January 14th, 2007 12:14 pm

    Hi Calvin

    This is James Tan. I finally met you in person at the Johnny Wimbrey seminar on Friday. Hope i didn’t shock you by coming up to you. I recognised you from your video in EmailCashPro. Well, as mentioned before i just started out on Internet marketing w my friends and we want to achieve success! So your ebooks have come in handy. Keep in touch & maybe we can work tog in future..

  2. Calvin on January 15th, 2007 1:59 pm

    Hi James,

    Haha yeah it was a pleasant surprise. Just shocked that you actually recognized us. Anyway the seminar was awesome don’t you agree? Glad that the ebooks came in useful. And all the best to your intenet marketing endeavours! It’s really so fun and addictive don’t you agree?
    Alright let me know if you have any JV ideas.


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