{"id":75437,"date":"2022-08-08T15:00:00","date_gmt":"2022-08-08T19:00:00","guid":{"rendered":"https:\/\/crazyeggblog.wpengine.com\/?p=75437"},"modified":"2026-01-06T15:14:03","modified_gmt":"2026-01-06T23:14:03","slug":"how-to-start-an-affiliate-marketing-business","status":"publish","type":"post","link":"https:\/\/www.crazyegg.com\/blog\/how-to-start-an-affiliate-marketing-business\/","title":{"rendered":"How to Start an Affiliate Marketing Business"},"content":{"rendered":"\n

Affiliate marketing has a definite allure. It\u2019s a lucrative business that continues to generate income even when you\u2019re off the clock. <\/p>\n\n\n\n

But it\u2019s not the get-rich-quick strategy most dreamers think it is. There\u2019s more to starting an affiliate marketing business than you may have previously thought.<\/p>\n\n\n\n

But don\u2019t worry. We\u2019re here to teach you how to set up a promising affiliate marketing business and give you every chance to reach the success you desire.<\/p>\n\n\n\n

Why Starting an Affiliate Marketing Business Is Worth It<\/h2>\n\n\n\n

Be Your Own Boss<\/h3>\n\n\n\n

We know it\u2019s a little cliche at this point. But most people genuinely want the opportunity to be their own boss. A study of entrepreneur wellbeing<\/a> across 82 countries showed that self-employment and providing employment to others have a positive influence on well-being and happiness.<\/p>\n\n\n\n

And affiliate marketing is something you can do from anywhere in the world. You could be catching a train to Rome or spending time with the kids at the park while those dollars are rolling in. It\u2019s an appealing lifestyle just for being location independent. <\/p>\n\n\n\n

A Wealth of Opportunities<\/h3>\n\n\n\n

Over 80% of advertisers<\/a> use affiliate marketing programs. The industry is huge. For you, as an affiliate marketer, this means there are tons of brands to work with and tons of opportunities to make money. <\/p>\n\n\n\n

There are now affiliate programs in all sorts of niches too, from photography to online dating to tech. To give you an example, here\u2019s a section of the categories available on an affiliate marketing network:<\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

So no matter what your thing is, you have the opportunity to monetize your content. Or, if you\u2019re coming at it from a purely business-focused standpoint, you can find a less saturated niche and dominate it.<\/p>\n\n\n\n

Earning Potential<\/h3>\n\n\n\n

The earning potential for affiliate marketing is good. Some affiliates earn the big bucks. Adam Enfroy earned over $600,000<\/a> in affiliate revenue in 2020, for instance.<\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

Bear in mind that affiliate marketing takes time and hard work, though. It\u2019s not strictly a passive income. You have to draw traffic and build an audience that trusts your recommendations if you want to earn a solid income.<\/p>\n\n\n\n

The Investment Needed to Start an Affiliate Marketing Business<\/h2>\n\n\n\n

Many people think they can simply share a link on Twitter and watch the dollars roll in. That\u2019s not necessarily the case. According to PayScale, the average salary for an affiliate marketer is $53,167<\/a>.<\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

Digital marketer and affiliate Andrew Collins says<\/a>, \u201cAffiliate marketing isn\u2019t about overnight success, to be honest. It might take a day, some months, or maybe years.\u201d He explains that many might not earn a dime for six months, but go on to earn a ton as time passes and you build experience.<\/p>\n\n\n\n

Affiliate marketing is certainly less of a time investment, however, than say creating a SaaS or DTC business. Essentially, you\u2019re just in charge of marketing the product(s) and don\u2019t have to worry about aspects such as customer support, development, and so on. <\/p>\n\n\n\n

The other good thing about affiliate marketing is that compared to other types of business, there are few expenses needed to get started. Experts estimate you\u2019ll need just a few hundred dollars<\/a> to cover costs such as web hosting. But it doesn\u2019t cost anything to sign up for an affiliate program.<\/p>\n\n\n\n

Perhaps the most complex, time-consuming step is forming your business legally. But that\u2019s not exclusive to affiliate marketing. Every business has to do this. Thankfully, there are services like ZenBusiness that take the time and hassle out of the equation. ZenBusiness\u2019s packages start at $49 plus state fees, which range from $50 to $520<\/a> depending on the state in which you form your business.<\/p>\n\n\n\n

6 Steps to Start an Affiliate Marketing Business<\/h2>\n\n\n\n

Now, let\u2019s get onto the good stuff. <\/p>\n\n\n\n

Here we\u2019ll cover everything you need to know about starting an affiliate marketing business from researching your audience, to setting up a legit business, to growing a following that\u2019ll earn you affiliate commissions.<\/p>\n\n\n\n

#1 – Create a Business Plan<\/h3>\n\n\n\n

If you\u2019re serious about starting your own business, you need to create some form of a plan, be it formal or informal. A good business plan lays out what you want to achieve, by when, and how you\u2019re going to do it. <\/p>\n\n\n\n

Those are the essential points. And you\u2019re more likely to achieve your goals with the process laid out in front of you.<\/p>\n\n\n\n

It\u2019s also vital you carry out lots of research in the planning stage. When you select your niche, you\u2019ll need to learn as much as possible about your audience. What are their pain points? How can you help them? And, ultimately, how can you sell something to them that they want to buy?<\/p>\n\n\n\n

With this information, you can position yourself as an expert in your niche and create the content that most appeals to your audience.<\/p>\n\n\n\n

#2 – Select a Niche<\/h3>\n\n\n\n

When it comes to selecting a niche for your affiliate marketing company, it\u2019s better to make it narrow. Affiliate marketing expert Pat Flynn says that all you need is 1,000 true fans<\/a> within your niche that\u2019ll buy what you’re selling. You\u2019re more likely to profit from this approach than trying and failing to reach high numbers with a broad topic that\u2019s already saturated.<\/p>\n\n\n\n

Think of a narrow niche as a topic within a topic. So rather than creating a blog about business, you create a blog about running an eBay business, as in this example from Kathy Terrill<\/a>:<\/p>\n\n\n\n

\"Kathy<\/figure>\n\n\n\n

Remember though that you still need to pick a niche that can be lucrative for you. It can\u2019t be so small that there isn\u2019t an audience for it.<\/p>\n\n\n\n

You can find a niche that\u2019s on the up in terms of public interest using a tool such as Exploding Topics<\/a>. For example, swiss cheese plants are hot right now:<\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

Or you can use Google Trends<\/a> to find popular search terms and their levels of popularity over time. It\u2019ll even show you related terms and queries which may give you ideas for narrower niches and\/or products. Here are some related to the term \u201ceco-friendly\u201d:<\/p>\n\n\n\n

\"Google<\/figure>\n\n\n\n

It looks like lots of people have been searching for eco-friendly coffins over the past 12 months, for instance. Perhaps there\u2019s an affiliate opportunity in that industry! <\/p>\n\n\n\n

#3 – Form Your Business<\/h3>\n\n\n\n

The first step in forming your business is to choose a business structure. Most affiliate marketing companies operate as a sole proprietorship, LLC, or corporation.<\/p>\n\n\n\n

You don\u2019t need to register as a sole proprietor which might be good when you\u2019re starting out. But it also means that you\u2019re personally liable if the business owes any debts for instance. <\/p>\n\n\n\n

Therefore, forming an LLC or corporation is the better option to keep your personal assets secure. A corporation offers higher levels of protection for its members and greater fringe benefits, but are more complex structures that require more record-keeping, reporting, and the like than an LLC.<\/p>\n\n\n\n

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Image Source: MyCorporation.com<\/a><\/figcaption><\/figure>\n\n\n\n

Thus, forming an LLC isn\u2019t the only option but it\u2019s the best option for starting an affiliate marketing business. If you\u2019re not sure how to form a business legally, then a service such as ZenBusiness<\/a> can do it for you.<\/p>\n\n\n\n

In fact, the service will create your LLC in less than ten minutes so you can get your business off to a start quickly. ZenBusiness offers a range of further services that help with taxes, compliance, and more.<\/p>\n\n\n\n

\"Zen<\/figure>\n\n\n\n

Essentially, they deal with the bureaucratic stuff and this frees you up to focus on your audience and sales strategy.<\/p>\n\n\n\n

#4 – Apply for Affiliate Programs<\/h3>\n\n\n\n

The easiest way to get started with affiliate marketing is to sign up for a few affiliate platforms. These act as the go-between for merchants and affiliates. <\/p>\n\n\n\n

Some examples are:<\/p>\n\n\n\n