Business models
The affiliate marketing business model
The affiliate marketing business model: you recommend a product, and earn a commission when someone buys through your link. Companies pay for the sale, the sign-up or the lead you send them.
How it makes money
Companies pay for the sale, the sign-up or the lead you send them. You own no product and have no customer service, but you depend on trust and on other companies' terms.
Real examples
- Wirecutter, part of The New York Times, earns from affiliate links in its reviews.
- Amazon Associates pays commissions on sales it tracks.
The numbers to watch
- Earnings per 1,000 visitors
- Click-through to the partner
- Share of visitors from search
Who it fits
People with an audience who trust them, or who are good at search.
What goes wrong
A program cuts its rates, or trust goes because you recommend things only for the money. Most countries require that you disclose these links.
Try it this week
Write one honest comparison of something you really use, and label the links clearly.
Then give it a time: one block of 90 minutes this week, in your calendar. Our playbooks have the next steps for finding your first customers.
Questions
What is an example of the affiliate marketing model?
Wirecutter, part of The New York Times, earns from affiliate links in its reviews.
What is the biggest risk with the affiliate marketing model?
A program cuts its rates, or trust goes because you recommend things only for the money.
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