Affiliate marketing is one of the most accessible ways to start an online business, but when I first encountered the term in 2007, I had no idea what it meant. If you are asking the same question, you are in the right place.

Affiliate Marketing Defined

Affiliate marketing is a business model where you match products or services with buyers and earn a commission when a sale is made. The concept was patented for the internet in 1989, and thousands of online businesses now offer affiliate programs.

The simplest example is Amazon Associates. You place a special affiliate link on your website pointing to a product on Amazon. When a visitor clicks your link and makes a purchase, Amazon pays you a percentage of the sale. That is the core of affiliate marketing: connect a buyer with a product and earn a commission for making the introduction.

Simple to understand does not mean easy money. Building a profitable affiliate marketing business requires real work.

How It Works in Practice

In the approach we focus on at Late Night Internet Marketing, the goal is to attract organic search traffic to your website. Organic search traffic means people who find your site by searching for something in Google or Bing.

Here is the flow:

1. A person searches for something in Google or Bing, looking for information, a product review, or a buying recommendation.
2. They find your website in the search results and click through to your content.
3. On your site, they find affiliate links embedded in your content. These are special hyperlinks that contain a tracking code identifying you as the referral source.
4. They click an affiliate link and land on the merchant's website, such as Amazon.
5. If they make a purchase, the merchant's system recognizes they came from your site and credits you with a commission.

Think of it like a salesperson in a clothing store. When the cashier asks “who helped you with your purchase?” and the customer says Sally, Sally gets the commission. Affiliate marketing works the same way: if your website helped the visitor find the product, you get the commission when they buy.

Getting Started with Affiliate Marketing

The major affiliate networks and programs available to beginners include:

• Amazon Associates — the largest general affiliate program, offering commissions on millions of products
• ShareASale — a network connecting affiliates with thousands of merchants across many categories
• CJ Affiliate (formerly Commission Junction) — one of the oldest and largest affiliate networks
• Impact — a growing platform used by many major brands

The foundation of affiliate marketing success is creating valuable content that helps people make buying decisions. Whether you write product reviews, comparison guides, how-to tutorials, or resource lists, your content needs to genuinely serve the reader. Search engines reward sites that provide real value, and visitors only click affiliate links when they trust your recommendations.

What's Changed Since This Post Was Written

I originally published this in February 2013. The core definition of affiliate marketing has not changed, but the standards for success have risen considerably.

Google's E-E-A-T framework now requires demonstrated experience. Affiliate sites need to show real expertise and first-hand experience with the products they recommend. Generic reviews written from manufacturer descriptions no longer rank well.

FTC disclosure requirements have tightened. You must clearly disclose affiliate relationships to your readers. Most successful affiliate marketers include a disclosure statement on every page that contains affiliate links.

The commission structures have shifted. Amazon famously cut its commission rates in 2020, dropping many categories to 1-3 percent. Successful affiliates now diversify across multiple programs and often prioritize higher-commission programs over Amazon for their primary recommendations.

Content quality expectations are dramatically higher. In 2013, a 500-word article with an affiliate link could rank in Google. In 2026, competitive affiliate content requires comprehensive coverage, original photography or video, personal testing, and genuine expertise in the subject matter.

The opportunity in affiliate marketing remains enormous. The model is proven, the tools are better than ever, and there are more products to promote than any one person could cover. Success requires patience, consistent effort, and a genuine commitment to helping your readers make good decisions.

For more on getting started, check out the Affiliate Marketing Overview or listen to the Late Night Internet Marketing Podcast.