You’re starting a business or you may haveone. But you don’t have the money to spend on marketing. What should you do?Hey, everyone, I’m Neil Patel and today I’mgoing to explain what affiliate marketingis and how you can leverage it. The cool part about affiliate marketing isthat it’s performance based marketing. If someone drives you a lead or a sale, you pay them out. You pay them on a cost per acquisition. Acquisition can be a lead or a sale for you. You determine whatever it is. And you can even determine what you want topay people. If your product sells for 500 bucks and yourmargin on it is 250 – in essence you’re operating ata 50% margin – and if you decide: “hey I’mwilling to pay someone a $100 for everysale they drive me” then you can offer affiliates“Hey for every sale you drive me, I’m goingto give you a $100”. And they may decide that they’re going todrive these sales through SEO, Pay Per Click,Facebook advertising. Whatever it may be. And that’s up to them. That’s what affiliate marketing is all about. Now there’s a few things that you to knowabout affiliate marketing. Number one: it’s really hard to recruit affiliates. Where do you look for them right?You can’t just go around the web to go findmarketers and say “hey, you want to join myaffiliate program?”. Instead, you want to join networks like Clickbank. com. So when you join these affiliates networksand you talk to them, they’ll tell you: “Heyhere’s your product. Here’s what you should price it at for CPA. This is what you should pay people every timethey drive you a sale. “And they’ll make sure it’s competitive andyou’re not losing money. Because the last thing you want to do isbe willing to pay someone $10 per sale whenit costs them $20. Because if it costs someone $20 to drive youa sale, they’re not going to take $10. That means they’re going to be losing money. Especially if you’re making thousands of dollars. They’re going to be like: “no, you gotta offer more. “You have to be competitive. And companies like Clickbank that offer affiliatenetworks will tell you what you should priceyour offer at. There’s other ones too, like another sitethat I use is JVZoo. JVZoo is also another place that you go torecruit affiliates. In addition to that, you can also go to conferenceslike Affiliate Summit. Affiliate Summit or Affiliate World are reallybig affiliate conferences where all thesemarketers go and they’re looking for new offersto promote. So go there and you’ll find people who’llbe willing to promote your offers and theseconferences even teach you how to price yourproduct, what to sell it for, what to giveaffiliates to incentivise them etc. The second thing you need to do to continuallyoptimise your own website. If people are driving traffic, but those visitorsaren’t converting into customers, that meansthey’re either driving irrelevant traffic,but most affiliate marketers are good at whatthey do. So usually the traffic sources typically qualifyor it means that your web page isn’t convertingand your web page not converting is usuallythe issue. So you want to run surveys. You can use Quaraloo. com. That’s a tool that I love using and you canask people questions on your landing pagesuch as: “What else would you like to seeon this page?”. After you get 30 plus responses, you’ll geta really good understanding of what’s wrongand you can fix those things. As you fix those things, you’ll notice thatyour conversions will go up. In essence, the more visitors coming to yourwebsite come more of them will convert intosales because you’re fixing the conversion. While before you may have had over a thousandvisitors to your website and zero buy, andnow it could be that after you fix the conversions,a thousand come and ten buy. That’s improving conversion rates and that’s whathappens. Another tool that you should use is Crazyegg. comand with Crazyegg it will show you where peoplescroll, what they click on. It’ll track the mouse movements of your visitorsand that will give you insights on what youneed to change so that you can maximise yourconversion rate. So if you do those two things, you can generatetraffic through affiliate marketing. And affiliate marketing is one of the mostpowerful marketing techniques or tactics outthere. Especially for businesses that don’t havea tonne of capital. Because you only pay money for sales. And when you’re paying out the money for thesesales, pay on a Net 30 basis. Because sometimes you’ll get refunds or creditcard fraud. You don’t want to give out payouts for peoplewho you’re refunding. So to ensure that you’re not getting rippedoff by these affiliate marketers, make sureyour payouts are Net 30.