If you’re running a website or want to bask in the field of affiliate websites, you may have wondered how affiliate websites make money. It’s a valid question since most of these sites don’t seem to sell anything directly.
There is no doubt that the idea behind it can be confusing trying to figure out how these websites make money, especially if you are new to the game and lack appropriate knowledge regarding the workflow.
Because, I was once in your shoes, wondering how on earth people make money out of something that doesn’t even look like it’s selling anything.
After a lot of research and failed attempts, I finally figured it out, and let me tell you that it is not as complicated as it looks.
And I am pretty sure, you may have googled it yourself and arrived at this post while looking for an answer, so consider yourself lucky because you will finally get one.
So let us scroll down below to find the answers on how affiliate websites make money, shall we?
Table of Contents
What Do Affiliate Websites Even Mean?
An affiliate website is a platform/portal that acts as a middleman between the service/product owner and the customer.
In other words, it’s kind of like a dating app, but instead of people, it’s connecting businesses that need customers with people who are looking for products/services.
The affiliate website contains links to various products/services and when somebody clicks on these links and buys something, the affiliate website gets a commission from the company.
This is how simple the working model of an affiliate website is.
In Technical terms, the website owner (affiliate) promotes the products or services of another company on their site, and in return, they receive a commission for every successful sale made through their site.
This way, companies get more exposure for their products, and the website owner earns a commission on every sale.
It’s a win-win situation for both parties, literally!
Now that we know what affiliate websites are and what their purpose is, let’s move on and see how these guys make money.
How Do Affiliate Websites Make Money?
Now that you know the workflow, it is time to look into the different types of affiliate marketing to see how do affiliate websites make money:
1. Cost per Sale (CPS)
The first and most common type of affiliate marketing is the cost per sale or CPS. In this model, the affiliate website earns a commission on every product that is sold through its site.
To give you an example, let’s say that you have a website about gardening and you’re promoting a new gardening tool. If somebody clicks on the link and buys the product, you’ll earn a commission on the sale.
This is the most common type of affiliate marketing, and it’s often used by big companies like Amazon.com.
2. Cost per Action (CPA)
The next type of affiliate marketing is the cost per action or CPA. In this model, the affiliate website earns a commission on every customer that they refer to the company, regardless of whether or not they make a purchase.
For example, let’s say that you have a website about car insurance. If you refer somebody to a car insurance company, and they get a quote, you’ll earn a commission.
This is a great way to earn commissions on leads, and it’s often used by companies in the insurance and financial services industries.
3. Cost per Click (CPC)
The third type of affiliate marketing is the cost per click or CPC. In this model, the affiliate website earns a commission on every customer that they refer to the company, regardless of whether or not they make a purchase.
For example, let’s say that you have a website about car insurance. If you refer somebody to a car insurance company, and they get a quote, you’ll earn a commission.
This is a great way to earn commissions on leads, and it’s often used by companies in the insurance and financial services industries.
4. Cost per Impression (CPI)
The fourth and final type of affiliate marketing is the cost per impression or CPI. In this model, the affiliate website earns a commission on every customer that they refer to the company, regardless of whether or not they make a purchase.
For example, let’s say that you have a website about car insurance. If you refer somebody to a car insurance company, and they get a quote, you’ll earn a commission.
This is a great way to earn commissions on leads, and it’s often used by companies in the insurance and financial services industries.
Additional Bonuses
Some companies also offer bonuses and rewards for achieving certain milestones, such as a certain number of sales in a month. This is to encourage affiliates to sell more and also to retain them.
Because, obviously, if an affiliate website is making good money for a company, that company is going to want to keep them around!
These are just a few of the most common ways that affiliate websites make money. As you can see, there are a number of different models that companies can use to compensate their affiliates.
So if you’re thinking about starting an affiliate website, or if you’re already running one, be sure to research the different types of affiliate marketing to see which one would be the best fit for your site.
And the answer is yes! If you have a website, you can start affiliate marketing and earn commissions by promoting products or services.
Things To Keep In Mind
Now that we’ve answered the question “how do affiliate websites make money”, there are a few things to keep in mind:
1. First and foremost, you need to have a website! You can’t start affiliate marketing without a site.
2. Secondly, you’ll need to choose an affiliate program that’s a good fit for your site. Not all programs are created equal, and some may not be a good match for your content or audience.
3. Finally, you need to promote the products or services on your site. If you don’t do this, you won’t make any sales and you won’t earn any commissions.
Best Affiliate marketing programs
Here are a few affiliate marketing programs that we think are a great fit for almost any website:
1. Amazon Associates
Amazon Associates program is an amazing choice for such websites about shopping, product reviews, and general interest topics.
As an Amazon Associate, you can earn commissions on products that your visitors purchase on Amazon.com.
This is a great program for sites with high traffic since it’s likely that many of your visitors will be Amazon shoppers.
2. Clickbank
Clickbank is a marketplace for digital products, such as ebooks, software, and membership sites. As an affiliate, you can earn commissions on sales of these products.
With Valid strategies, you will be earning those sweet wads of cash in no time.
3. CJ Affiliate
CJ Affiliate (formerly Commission Junction) is an affiliate network with a wide variety of advertisers, including many major brands.
Although, it isn’t as crowded as Amazon or Clickbank. As an affiliate, you can earn commissions on sales of these products.
This is a great program for sites in almost any niche since there are so many different advertisers to choose from.
Nonetheless, These are just a few of the most popular affiliate marketing programs. There are literally hundreds of programs to choose from, so be sure to do your research to find the one that’s right for you.
Conclusion
So now that you know how affiliate websites make money, you can start your own site and begin earning commissions by promoting products and services.
Just remember to choose the right affiliate program, promote the products on your site, and drive traffic to your pages.
If you do all of these things, you’ll be well on your way to making money with your affiliate website. Thanks for reading and good luck!
