An affiliate marketing agreement is a contract between a business and an individual or company who agrees to market or promote the business in exchange for a commission amount. According to corporate law and taxes, an affiliate is defined as a company that is related to another company often in a subordinate role. For companies to be affiliated, one must have control over the other or both must be controlled by a third company.
I'm Michael S. Brown, Internet Marketer, husband and father. I have been successful in business and marketing since 1998. In 2007 I took to the internet marketing world and have never looked back. I love teaching people the knowledge that I have acquired and the ultimate boost to my ego is to see everyone I teach succeed in business. My goal is to make everyone who comes into contact with me as successful or even more successful than myself.
Chris, I am glad you have had good fortune with amazon, I think I have chosen the wrong niche, it appears to be very competitive, I have had my site for 4 mo, and have made zero, however, it may not be all bad, I still work on content, and I do get indexing, however, I am at a loss on how to find keywords on ranking content; If I could find this out, then I could do some seo on any LSI keywords. I do agree about having a nice looking website, I paid far much less then you did, and I think I turned out with a site that looks very nice; If visitors do not think you are legit, or if you content looks like trash, then the will bounce before you can blink. I think once I can find those magic LSI keywords and rank them, then I think things will turn around, as I have also invested quite a bit up until this point.
Affiliates were among the earliest adopters of pay per click advertising when the first pay-per-click search engines emerged during the end of the 1990s. Later in 2000 Google launched its pay per click service, Google AdWords, which is responsible for the widespread use and acceptance of pay per click as an advertising channel. An increasing number of merchants engaged in pay per click advertising, either directly or via a search marketing agency, and realized that this space was already occupied by their affiliates. Although this situation alone created advertising channel conflicts and debates between advertisers and affiliates, the largest issue concerned affiliates bidding on advertisers names, brands, and trademarks.[35] Several advertisers began to adjust their affiliate program terms to prohibit their affiliates from bidding on those type of keywords. Some advertisers, however, did and still do embrace this behavior, going so far as to allow, or even encourage, affiliates to bid on any term, including the advertiser's trademarks.
(d) You will not, without our express prior written approval, use any Product Advertising Content on or in connection with any site or application designed or intended for use with a mobile phone or other handheld device (which prohibition apply neither to any site that is not designed or intended for use with such devices but that may be accessible by such devices, such as a non-mobile-optimized site accessed via an internet browser on a tablet device, nor an Approved Mobile Application as defined in the Participation Requirements or any television set-top box (e.g., digital video recorders, cable or satellite boxes, streaming video players, blu-ray players, or dvd players) or Internet-enabled television (e.g., GoogleTV, Sony Bravia, Panasonic Viera Cast, or Vizio Internet Apps).
MA acknowledges that any breach or threatened breach of this Agreement involving an unauthorized use of Confidential Information or Company and/or its Affiliate’s intellectual property will result in irreparable harm to Company and/or its Affiliate for which damages would not be an adequate remedy, and therefore, in addition to its rights and remedies otherwise available at law, Company and/or its Affiliate will be entitled to seek injunctive or other equitable relief, as appropriate, and MA hereby waives the right to require Company and/or its Affiliate to post a bond. If Company and/or its Affiliate seeks injunctive or other equitable relief in the event of a breach or threatened breach of this Agreement by MA involving an unauthorized use of Confidential Information or Company and/or its Affiliate intellectual property, MA agrees that it will not allege in any such proceeding that Company and/or its Affiliate remedy at law is adequate. If Company and/or its Affiliate seek any equitable remedies, it will not be precluded or prevented from seeking remedies at law, nor will Company and/or its Affiliate be deemed to have made an election of remedies.
Amazon runs one of the largest affiliate programs around, called Amazon Associates. You can become part of the program as long as your website already has some content (about five or ten posts). Bear in mind that once you’ve applied, it can take a few days to be approved. Once your account is ready, you can start to focus on building an effective website.
Media reporter Mathew Ingram tweeted, "Not great for media who rely on affiliate revenue[,]" potentially a nod to popular gadget reviews The Wirecutter, which was acquired by The New York Times. Technology journalist Michael Morisy quipped, "Amazon reworks affiliate program, cutting commissions 50% for electronics. Guess they think Jet threat has passed?" in a reference to up-and-coming Amazon rival Jet.com, which sold to Walmart in a deal largely regarded as a failure for the startup. 

You represent and warrant that: (i) you have all sufficient rights and permissions to participate in the Affiliate Program and to provision HubSpot with Affiliate Lead’s for our use in sales and marketing efforts or as otherwise set forth in this Agreement, (ii) your participation in this Affiliate Program will not conflict with any of your existing agreements or arrangements; and (iii) you own or have sufficient rights to use and to grant to us our right to use the Affiliate Marks.
A browser extension is a plug-in that extends the functionality of a web browser. Some extensions are authored using web technologies such as HTML, JavaScript, and CSS. Most modern web browsers have a whole slew of third-party extensions available for download. In recent years, there has been a constant rise in the number of malicious browser extensions flooding the web. Malicious browser extensions will often appear to be legitimate as they seem to originate from vendor websites and come with glowing customer reviews.[28] In the case of affiliate marketing, these malicious extensions are often used to redirect a user’s browser to send fake clicks to websites that are supposedly part of legitimate affiliate marketing programs. Typically, users are completely unaware this is happening other than their browser performance slowing down. Websites end up paying for fake traffic number, and users are unwitting participants in these ad schemes.
One major disadvantage for an affiliate is the lack of control she has over the offer made to the customer, the sales page and the amount of commission earned. Super affiliates, those with a proven record of driving high-converting traffic, can negotiate preferential terms, but this option isn't open to the new affiliate. It is not unknown for merchants to cancel an offer without informing their affiliates, or to pay commissions late or not at all. Merchants may also make it a condition that the affiliate doesn't bid on specific paid search terms and some refuse to pay for any sales resulting from paid search advertising.

3.4. You will be solely responsible for the development, operation and maintenance of your Site and for all materials that appear on your Site. We disclaim all liability for such materials. You shall indemnify and hold us harmless from all claims, damages and expenses (including, without limitation, attorney's fees) relating to the development, operation, maintenance and contents of your Site. You are also responsible for notifying us of any malfunctioning of the Required URLs or other problems with your participation in the Program in accordance with the terms of the Offer and this Agreement. BTI will respond in normal course to all concerns upon notification.


(i) Place our Links or any marketing materials provided by us to you including but not limited to our logos, marks, domain name, trade name or any of the aforegoing ("Our Marks") which is confusingly similar to or is comprised of Our Marks (collectively, "Our Materials") on any online site or other medium where the material on such site or medium is as determined by us, in the exercise of our absolute discretion, illegal or in any other way unsuitable.

If you've taken the time to build an email list, then you should use that opportunity to survey your subscribers. Consider asking them, specifically, what they're most interested. I recently did this and the answers actually surprised me. However, another thing the answers did was allow me to laser-focus my affiliate offers in the right direction. This is invaluable information and it's coming straight from your list.


However, this idea is not solely for niche site experts. In fact, if you’ve been on the fence about creating a niche website, now might be the perfect time to act! You have the opportunity to make better commissions from the get-go, not having to wait for your referral sales to increase gradually. Beyond that, you might even make more commissions now than were possible with the old Amazon Associates Operating Agreement!
Each affiliate is responsible for selecting the payment processor, through which to receive their commissions/referral fees, from the payment processors supported by the Program Operator. If you elect a payment processor through which to receive your commissions and you later terminate the account or the account becomes unavailable for any reason, the Program Operator is not responsible for your not receiving the money. Each affiliate is responsible for always maintaining the payment processor through which they receive their commissions/referral fees OR selecting an alternate method of payment supported by the Program Operator. This election is entirely made by the affiliate and the Program Operator assumes no responsibility for non-receipt of payments made according to the payment processor elected by the affiliate, or the affiliate’s lack of ability to then conform to the payment processors or processes supported by the the Program Operator. The Program Operator assumes no responsibility for an affiliate not electing a payment processor. If an affiliate fails to elect a payment processor, any sums due will be paid via check and any fees applicable to payments by check or bank draft will be deducted.
Do you have any opinions about sites that got hit with Google Fred for having too much affiliate content? I think one of your other sites got hit (not TYS) and I saw you add a lot of new content but it’s not going up much. The same thing happened to me; I had too much affiliate content and got penalized; added more content but it’s not helping. I am thinking of just starting a new site and redirecting links to the new site. I feel like this penalty is unrecoverable….
During each calendar month, you may earn advertising fees for Qualifying Purchases. Most advertising fees are calculated as a percentage of Qualifying Revenues based on the tables below and are subject to the limitations described in the “Limitations on Advertising Fee Rates for Certain Products” section below. We also may offer advertising fees in the form of bounties or other special offers as described in the “Special Offers and Promotions” section below. “Qualifying Revenues” mean amounts we receive from customers’ Qualifying Purchases, excluding shipping, handling, and gift-wrapping fees, taxes, and service charges, and less any rebates, credit card processing fees, returns, and bad debt.

In no case shall you have the right to go to court or have a jury trial. You will not have the right to engage in pre-trial discovery except as provided in the rules; you will not have the right to participate as a representative or member of any class of claimants pertaining to any claim subject to arbitration; the arbitrator’s decision will be final and binding with limited rights of appeal.
Not All Affiliate Programs You Sign Up With Will Approve You – Sadly, this is true because before they even approve you, they usually look at your website if it is already having a good traction. Not to worry though because, you have access to a vast resources of Affiliate Marketing Programs you won’t even care if one disapprove you. You can simply move on to the next and the next after…

Upon your request but subject to our approval, we may issue you additional “sub-tag” Associate IDs that permit you to monitor and optimize the performance of your Special Links by including different sub-tags in the URLs of different Special Links. Under no circumstances may you associate any sub-tag with a specific end user of your Site (e.g., you may not dynamically assign sub-tags to users as they arrive on your Site for purposes of monitoring such users’ behavior).
There is, of course, a pretty obvious conflict of interest in many implementations of this model. The affiliate only makes money if visitors click on the affiliate links and ultimately buy the products reviewed. But while there is an obvious incentive to write falsely positive reviews, that strategy generally has a pretty limited life expectancy. In order to be successful using this model over the long term, you’ll need the trust of an audience that can only be earned through integrity and transparency.

ps. collecting these Facebook polls is one of the main reasons I was able to get so many SiteGround sales. Yes, I’m suggesting SiteGround for your host, but this is also a strategy that can be used to collect unbiased reviews. Just go to Facebook and search “SiteGround poll” and you can dig up some great stuff – you can do this with lots of affiliate products/companies.


Hey Tom, thanks for this tutorial – it’s a good thing to get a tutorial like this from a trusted person like you and not from the thousands of (sometimes) confusing articles about passive income/affiliate marketing/clickfunnels and what not that I come across from time to time, I am making a living as a web designer and I have been thinking of pivoting from design and creative work to focus on passive income but didn’t know where to start. This is the perfect foundation article I have seen so far and I ‘d like to ask if you have any further reading/guides/videos on affiliate marketing that you’d recommend. I like to do my deep research before starting :) One more thing, there are some broken or missing images in this article, it could be my browser but check from your side too because there are quite a few images (e.g your Mercedes) that are missing. Thanks

Websites and services based on Web 2.0 concepts—blogging and interactive online communities, for example—have impacted the affiliate marketing world as well. These platforms allow improved communication between merchants and affiliates. Web 2.0 platforms have also opened affiliate marketing channels to personal bloggers, writers, and independent website owners. Contextual ads allow publishers with lower levels of web traffic to place affiliate ads on websites.[citation needed]
As far as Amazon goes, I really don’t think Walmart is going to be able to beat out Amazon. So much of Walmart’s specialty comes from the offline market, Amazon is 100% online and has amazing split-testing powers. We have seen sites switch over from Amazon Associates to Walmart and lose commissions dramatically, it wasn’t even worth sending people to their site. I believe more “niche” affiliate programs such as New Egg stands a much better chance at stealing affiliates away from Amazon’s associate program than another larger catch-all retail like Walmart. Valuations should remain consistent with our repricing using Haver’s tool, and as the months go on we will have even more accurate data (from Amazon’s dashboard itself) for what these sites will be earning underneath the new commission changes.

A great point you made there though. Too many people try to take on too much at once and end up spreading themselves too thin – trying to conquer all the niches at the same time. Marketers also do this with advertising. Instead of sticking with one platform until they are generating a consistent number of leads they will jump from platform to platform, in essence chucking a load of crap at a wall and seeing what sticks.


Amazon spends millions of dollars on improving the way they get people to convert. The fact that they provide a custom user experience for every person that goes to Amazon.com based on the buying behavior and viewing patterns tells me they know what it takes to close a sale. Some of the best closing advice I can give is to simply find ways to get your visitors onto the Amazon.com webpage and they’ll take care of the rest.

Some merchants run their own (in-house) affiliate programs using dedicated software, while others use third-party intermediaries to track traffic or sales that are referred from affiliates. There are two different types of affiliate management methods used by merchants: standalone software or hosted services, typically called affiliate networks. Payouts to affiliates or publishers can be made by the networks on behalf of the merchant, by the network, consolidated across all merchants where the publisher has a relationship with and earned commissions or directly by the merchant itself.


General Rights. Subject to the terms and conditions of this Agreement, Company hereby grants to MA the right to advertise, market and sell to corporate users, government agencies and educational facilities (“Clients”) for their own internal language learning, soft skills and communication purposes only, and not for remarketing or redistribution, and not for use in a data center environment for multiple users Clients, unless otherwise agreed to by Company prior in writing, the Technology listed in Schedule A of this Agreement, and to sell and/or bundle Technology Maintenance for the Technology and to provide first line technical support and implementation services for the Technology in the territories listed in Schedule A of this Agreement, providing MA meets the criteria required for delivering services according to Schedule A.

Great article! I need to go back to your post many more times for it to properly go in and for me to understand. Sorry if my question is a strange one. I am quite new to the whole concept of amazon affiliate marketing. When we are advertising their products, do we spend any money ourselves? Or we are just middle wares advertising their product? In what case, we have to have inventory? Can we sell products in Amazon? 

Once you’re financially stable, I hope you start giving back. It feels good and people like the idea of supporting a good cause (they will be more likely to click your affiliate link in your disclaimer). This also means you don’t have to use as many links in your content and risk getting a penalized. Last year I donated $3,000 to Red Cross At Hurricane Harvey.
You may log into your affiliate console to review your click through and potential Qualified Purchases statistics on a daily basis. The potential Qualified Purchases shown in this report have not been reviewed to confirm they meet all criteria for Qualified Purchases. As such, Commission Fees may not be issued for all Referred Customers that appear in the affiliate console.
Yes is the short answer. Any time you are planing on generating money, you should have a plan. No plan means no real focus. There may be some 1/1000 percent of a chance you will succeed, but I haven't met them yet. If you have already started and have generated an income, record how. Doing so will give you material for use in expanding your business faster.
Also probably worth noting that if you are thinking about signing up for the Amazon affiliate program and are located in Colorado or New York, sign up with an out of state business address. Amazon closed their programs to affiliates in these states because of tax laws that were passed. There are quite a few services that allow you to choose a business address in a different state and will automatically forward your mail to your current address.
Thanks for all the great info. I have had some moderate success with amazon before, but nothing of that magnitude. The best selling lists have works for me, as well as creating a ‘recommended’ list or ‘library’ full of interesting products, although I have always found its better to actually be interesting in the recommendations rather than just plugging anything.
This site holds no stock whatsoever. They are just promoting amazon products by ranking high for keyword terms around scooters “best pro scooter” “best scooters for kids”. People are searching for these terms in their thousands every month. They click on his amazon links, purchase products on amazon and then the owner of myproscooter.com will get commission on the whole basket. 

Now this one’s a perfect fit for the beginners. Starting right from understanding how Amazon Affiliation works to developing a complete website to even ranking your keywords on the first page of Google, this course will help you do it all. This training is not just for quick success, but will help you understand how to build long term income. It is well worth your investment specially when you are right about to start your internet marketing journey.
In April 2008 the State of New York inserted an item in the state budget asserting sales tax jurisdiction over Amazon.com sales to residents of New York, based on the existence of affiliate links from New York–based websites to Amazon.[41] The state asserts that even one such affiliate constitutes Amazon having a business presence in the state, and is sufficient to allow New York to tax all Amazon sales to state residents. Amazon challenged the amendment and lost at the trial level in January 2009. The case is currently making its way through the New York appeals courts.
Disputes: Affiliate has access to FatCow's real-time Affiliate Program statistics and agrees to file any disputes within forty-five (45) days after the end of the month in which the sale or event that is disputed occurred. Disputes filed after forty-five (45) days of the date on which the disputed sale or event occurred will not be accepted by FatCow and Affiliate forfeits forever any rights to a potential claim.
The Amazon affiliate program has a 24-hour cookie, which means that once users click on an affiliate link to Amazon, anything they buy in the next 24 hours is commissionable to the affiliate whose link they last clicked. So if you click on Gawker’s affiliate link to Amazon to look at cable ties and end up buying another, unrelated product, Gawker Media still receives a commission for that sale.
Absolutely. Affiliate marketing is a viable and legitimate way to monetize your blog or website. Tens of thousands of merchants run affiliate programs and will pay you a commission for sending them sales. However, there are some scams centered around affiliate marketing. You'll find information on how to spot affiliate scams – and avoid them – here.
Analytics are limited. Unlike with conversions made directly on your WordPress site, you’ll be limited in terms of what you can learn about the people making purchases through your affiliate links. While Amazon does provide you with details about clicks and sales, you won’t get deep insights into who the consumer was and what they did on your site before they got to that point that you would with Google Analytics.
Commission Payment. We, or a HubSpot Affiliate, will pay the Commission amount due to you within forty-five (45) days after the end of each fiscal quarter for any Commission amounts that you become eligible for according to the Eligibility section above. We will determine the currency in which we pay the Commission, as well as the applicable conversion rate. We will not pay more than one Commission payment or other similar referral fee on any given Customer Transaction (unless we choose to in our discretion).Taxes. You are responsible for payment of all taxes applicable to the Commission. All amounts payable by us to you are subject to offset by us against any amounts owed by you to us.Commission Amounts. We reserve the right to alter or change the Commission amount. We will post all information regarding the Commission amount on the Program Policies Page. 
(u) You will not directly or indirectly purchase any Product(s) or take a Bounty Event action through Special Links, whether for your use or for the use of any other person or entity, and you will not permit, request or encourage any of your friends, relatives, employees, contractors, or business relations to directly or indirectly purchase any Product(s) or take a Bounty Event action through Special Links, whether for their use, your use or the use of any other person or entity. Further, you will not purchase any Product(s) through Special Links or take a Bounty Event action for resale or commercial use (of any kind) or offer any Products on your Site for resale or commercial use of any kind.
In addition to all of this, you don’t really have a store to look after. You have zero products to ship or be held responsible for. You are literally just the marketing arm, unlike the ecommerce business model where you are sourcing the products that you are selling and dealing with the customer service portions of the business, along with logistics.
(b) Influencer Page. This Influencer Program may include an Amazon Site influencer page registered through Amazon and assigned to you (“Influencer Page”). With respect to Special Links that direct customers to your Influencer Page, the related Session will be measured as beginning when our customer clicks through to your Influencer Page. The Influencer Page is a “Service Offering” for all purposes under the Agreement. With respect to any text, pictures, compilations, lists, comments or other data or content you submit to Amazon in connection with the Influencer Program (“Influencer Content”), you will not submit such Influencer Content if it violates any standard included in Section 1 of the Participation Requirements.

I’m trying to create 4-5 awesome blog posts for my initial launch. Don’t worry about publishing these all at once. This just gives Google more time to crawl these pages and bookmark them for future Google Searches. After that, I’ll create a new post weekly or bi-weekly. Honestly whatever feels better with my time constraints. Either way, quality blog posts are better with Amazon Affiliate Websites.


There is a minimum commission amount of $25. This is the minimum amount that you must earn before you will be paid commissions. In any commission period, your commission must exceed this amount before you will receive any sums for that period. Commissions below this minimum amount will be held until such time as the commission equals or exceeds this amount.
On the technology-focused forum Hacker News, a user who goes by "graeme" pointed out, "This is likely to have a massive [e]ffect on the blog/article review ecosystem. Most of the review sites that exist today only do so because of [A]mazon's fairly generous programs. I expect in aggregate there will be a shift in what lines of business people decide to get into, based on this." A user called "sharkweek" said that "[a]s an Amazon affiliate who has done quite well with it, this is definitely a gutting." The mood is equally grim on a subreddit for people building affiliate websites.
This agreement governs participation in the Brian Tracy Affiliate Partnership Program only. Once you are accepted into the Program, you will be able to participate in the Program subject to the terms and conditions of this Agreement. You should also note that if you are accepted to participate in the Program and your Site is thereafter determined (in our sole discretion) to be unsuitable based on the criteria below for the Program, we may terminate this Agreement:
The next method would be paid traffic. This by far is the best method, but of course, requires money. The beauty of paid traffic is that you can reach a lot of people fast. The bigger the budget, the more people you can get to view your content. Mastering the skill of paid traffic can result in huge returns. Some individuals make up to $10k/day by using paid traffic. Obviously it would cost them a couple of thousand dollars in ad spend every day to generate $10k/day, but those are still massive profit gains. And if you have no idea how it’s done, you could easily spy on other affiliate marketers. All you have to do is find what the most profitable affiliate marketing offers are. Paid traffic also increases your organic traffic if your SEO is done right. You’re essentially killing two birds with one stone. But like I said earlier, it’s not as easy as it sounds. Affiliate marketing is difficult but hundreds of people are creating a passive income doing it, so it definitely works. All it requires is mastering the art of online marketing. My MarketerMilk blog goes into full detail of the art of creative marketing, so go check it out (shameless plug).
Amazon used to have a variable fee structure where you would earn more money if you referred more sales to Amazon. They would start at 4% and you could earn up to 8.5% of a sale if you referred enough items. Amazon did away with their variable fee structure in early 2017 and replaced that system with a fixed percentage payout based on the category of products. Some niches pay a lot less than others and it’s important to be aware of the payout before you pick a niche:

In reviewing your website, we noticed that the URL listed on your application is a social network website. However, your site is not an approved social network or established with enough unique content and followers yet. At this time, we are unable to approve your application and have closed the account under which you had been temporarily approved.
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