1. “How the Affiliate Business Model Works”
Affiliate Chemistry
“How the Affiliate Business Model Works”

2. Introduction
Affiliate marketing business models is also known as the third-party proprietor
Affiliate marketing is to promote other people’s products via referral
No hassle of product creation, payment management and customer service support
Growing in popularity in various industries in the recent years

3. How Affiliate Marketing Works?
“Pay-Per-Action” model to either
Make product sales
Generate leads
If an affiliate successfully sells a product or generates a lead, the merchant pays the affiliate a commission (5-75% of product price)
Referral process works by using a unique link that allows tracking for both merchant and affiliate

4. Affiliate Marketing Model
Affiliate Network
Affiliate
Targeted Traffic
Merchant $

5. Rules of Affiliate Marketing Selection
Rule 01: Choose Your Niche
Find hungry market and gather a list of products to promote
Rule 02: Be Picky About Product to Promote
Market only products that are high demand, high quality, fairly priced and low refund rates
Rule 03: Do the Math!
Project how much can be spent on advertising and how many sales to reach profit target
Rule 04: Research on Your Merchant
Read customers and affiliate reviews

6. Where to Find Products to Promote?
Clickbank
Commission Junction
PayDotCom
Link Share

7. Independent Affiliate Programs
Paid by directly by merchant rather than affiliate networks
To find independent affiliate programs, Google search “product name + affiliate”
Example:- “fat loss 4 idiots affiliate”

8. How to Select Products to Promote
Visit affiliate network and gather list of related products to promote to your niche
Check out at the sales page and offer
Important to find product with high conversions and low refund rates (<10%)

9. How to Select Products to Promote (Con’t)
3 Main Ways to Find Quality Products
Buy the product and test it yourself
Find out from forums to see what people are saying
See what other affiliates are doing and if they are spending money on advertising

10. Product Selection Checklist
Relevant Product
Good Quality Sales Letter
Commission Payout %
At least $20 per sale
Low refund rates

11. Clickbank No.1 largest digital product marketplace
Instant product delivery
Professional support and handling
All tracking is done for you
High commissions up to 75%
Commission payments sent weekly

12. Clickbank (Con’t)

13. Clickbank (Con’t)

14. Clickbank’s Refund Rate Calculation
(Product Price – 7.5%) - $1 = Net Commission Net Commission x Payout Percentage = Affiliate Commission Affiliate Commission - $Earned/Sale = Refund Difference ($ Refund Difference ÷ Affiliate Commission) x 100 = Refund Percentage

15. Clickbank’s Refund Rate Calculation (Con’t)
Example:-
3 Variables Required:-
Product Price = $67.95
$Earned/Sale = $43.21
Payout Percentage = 70%

16. Clickbank’s Refund Rate Calculation (Con’t)
($67.95 – 7.5%) - $1 = $61.85 (Net Commission) $91.85 x 70% = $43.30 (Affiliate Commission) $ $43.21 = $0.09 (Refund Difference) ($0.09 ÷ $43.30) x 100 = 0.20% (Refund %)

17. How to Create Clickbank Hoplink

18. Affiliate Campaign Model
Traffic Source
Landing Page
Sales Offer

19. Traffic Source Main Types of Traffic Source:- Article marketing
Social bookmarks
Squidoo lenses
Video marketing
Podcasting
Blogging
Pay-per-click

20. Landing Pages Pre Sell Page Opt In Page Review Page Social proof
Personal experience on product
Opt In Page
Lead generation and list building
Follow up s to build relationship
Review Page
Product comparison

21. Sum Up of Affiliate Marketing
Affiliate marketing is to promote other people’s product
After your niche research, follow checklist to find a quality product to promote
Traffic  Landing Page  Sales Offer
Efforts will pay off and allow you to reap greater profits in shorter period of time