This article tells real example on how to make money with affiliate sites that you personally can build and sell for big profit and 7 main take ways from this useful example.
I’m talking about an affiliate site today. It earns commissions from promoting other people’s products by linking through a special link.
Ken Lin is the founder of Credit Karma. It is a website that has grown to have a lot of content and makes commissions from credit repair, loan, and other sites.
This site was just an ordinary affiliate site, but it changed significantly and has now become a reputable one.
It has been claimed that 1/3 of Americans have credit profiles and have used Credit Karma.
So that’s a lot of data they have collected on potential customers in the past years.
It has grown to be huge, But I don’t want to sugarcoat this either.
This an example here are really inspiring and there are lots of valuable lessons to be learned.
How to Make Money With Affiliate Sites?:7 Valuable Lessons From Selling Credit Karma For $7 Billion
7 Valuable Lessons
1- To build a big, successful business online, You don’t need to be a product owner
Did you know that over a decade ago, 8 of the top 10 ClickBank account owners were pure affiliates and didn’t even own their own products?
These were people who simply bought traffic to send it to their own website to earn money promoting other people’s product sales.
Credit Karma’s founder and his team have taken affiliate marketing to a whole new level.
2- Leads are worthy
As an affiliate, you can make a good chunk of cash without even having to collect subscribers’ data (Leads).
While it is true that the amount of money you can sell your site for is dependent on how much revenue you are making each day, this does not tell the whole story.… The more contact details and data you have on the leads, the better.
It is illegal to sell/share the data of leads separately, however if you sell your online business, then the purchaser is legally entitled to that information in the process.
Credit Karma collected information of millions of people so that it has huge data based of leads. This data based of leads is now worth billions (as part of selling process). The data based of leads included the names, email addresses, postal addresses, phone numbers and credit scores.
Affiliates at the beginning of having organic visitors should still follow the same principles. Collect email addresses, first names, and addresses. You can also have a newsletter follow-up sequence that builds relationships and promotes relevant products too.
This way, if you ever decide to sell your site, it is worth more money and you’ll make more from your site even if you never do sell it.
3- Track visitors on every page in your site using Facebook Pixels.
By looking at Credit Karma’s website, it can be seen that they have 2 Facebook pixels being dropped on every page.
That means they can now target Facebook and Instagram ads to people who have previously visited their website. That includes Facebook Pages, for example.
Engaging with people occurs at many points throughout the conversion funnel and retargeting is a valuable tactic to keep in mind.
Using SEO, people visit your pages as it is, and if they aren’t on your email mailing list, then another great way to get them to come back is through retargeting ads.
Those who have been to your business before are much more likely to re-engage with you in the future and could even go on to make a purchase.
The Credit Karma site actually started out as a very simple piece of software. While it may have been more complex to build what they have today,
People loved the idea and shared it with their friends. This resulted in a large number of organic visitors landing on their site. Combined with any deliberate attempts at driving traffic, this helped it to grow over time.
For it to be successful, it has to provide a genuine benefit that the other tools cannot offer. It also has to be significantly better than the other tools publicly available for free.
It can be challenging to come up with a superb idea for software that you’d like to make available for free. However, if you really do have the next big idea, it can prove to be more valuable than any other gift. Plus, people often don’t opt-in without giving anything in return.
5- A lot of money can be made in affiliate marketing.
Credit Karma may be an extreme case (potentially about to sell for $7 Billion), but new affiliates start out every year and can make good money.
This is not the case for everyone, It isn’t a push-button solution for everybody. Many people who are new to this coming in and succeeding really quickly, within just a few months.
You’ve surely noticed that there are many offers that have a high conversion rate available in many different niches (health, wealth, relationships, finance, education, and so on).
& this isn’t rocket science.
Here’s the equation for being a successful affiliate:
(Number of Leads x Conversion Rates x Avg$ Per Customer) – Ad Spend = Affiliate’s Profits
If it costs you $1000 to send 2000 clicks to an offer, and that offer converts at 2%, and you earn on average $40 per sale:
Leads = 2000 clicks, Conversion Rate = 2% (0.02) , Avg $ Per Customer = $40, Ad Spend = $1000
(2000 x 0.02 × 40) – $1000
= $1600 – $1000
= $600 (This is the profit for the Affiliate)
If you as an affiliate are not in profit, then the following s are some of reasons:
Either the traffic that you purchasing is wrong audience (and conversions will suffer),
The offer isn’t proven (conversions aren’t good),
Or the leads are very expensive,
Or low average commission $.
It’s true that affiliate marketing is about making money, but a lot of people get lost in figuring out how to do it. If you just stick to the basics and do things right, you’ll be able to make a lot of money without any extra effort.
Sometimes words in your ad or on your page can make all the difference. This can push your conversion rates from an average of 0.3% up to 2%. You can learn to be a professional writer, who creates profitable and powerful headlines for your ads.
On some occasions, you might need to test out different audiences to find the most effective options for your campaign.
And sometimes your job is simply to get leads, and then follow up with them via email using autoresponder series. It might not lead to immediate sales, but it can help you sell other products in the future.
6- How to make money with affiliate sites
Affiliate marketing is a popular business model for people who want to make money from the internet. It is also one of the most popular ways to start an online business.
You can make good money with affiliate sites. You can build affiliate site and start earning commissions and then selling it for huge profit, but you need to know what you are doing.
It is simple as 1,2,3,4,5,6
1) choose a niche
2) Build your website
3) Promoting your site
4) Making money
5) Sell your site
6) Making huge money
7- Dream big and take action
As difficult as it is to dream big, dreaming small also takes a lot of energy. You are not protecting yourself or others from taking chances.
Small dreams = Not exciting to carry on long term.
I don’t think people who know they’re going after the stars and reaching the top of a skyscraper are ever disappointed.
I also don’t see people reaching the sky, while they are aiming top of a skyscraper either.
It’s important to make sure that there are no ‘glass ceilings’ holding you back. Set a big, exciting goal that you can strive for in your life. Map a plan and work towards it every day.
Ken Lin has followed his passion and is now living an inspiring life. From a distance, it may have looked like nothing more than a dream, but he kept going nonetheless. And as time went by, his vision became clearer to him.
In my experience, the difference between those who get results in affiliate marketing and those who don’t is that the successful ones are always dreaming big and doing what it takes.
When mistakes are encountered, they see them as part of the process and know that they’ll learn from these encounters.
They are willing to take a lot of risks and mistakes will make them self-reflect, learn from the lesson, and eventually get that ball out of the park.
I hope you enjoyed this article, and that it helps inspire you to take action in your online marketing dreams.
In the coming weeks I’ll be sharing several more affiliate marketing tips with my newsletter subscribers.