139. How do you make passive income through affiliate links?
Wish you could make money while sleeping? 🛌 With the proper affiliate links strategy, there's nothing stopping you! In this educational episode, hosts Phil and Lauren discuss the how-to behind affiliate links as a passive income generator. This chat covers the A-Z of all things affiliate marketing, including tips for finding opportunities, promoting links, and tracking success. If you're looking to snowball your income, give this episode a listen!
Episode transcription
Phil
Well, hello there. Welcome to brand therapy. I'm Phil.
Lauren
And I'm Lauren.
Phil
And this is a podcast where we help you position build and promote your brand. We tackle a brand new topic every single week. Sometimes we have a guest and sometimes we don't. Sometimes we're our own guests. Aha. That's what's happening today with a topic that's near and dear to my heart because it involves money. And I love money. Welcome listener, you picked a good episode.
Lauren
Can I ask a question before we get into the topics? And don't say I don't know, can you? May I ask a question?
Phil
I have a feeling you'll be asking a lot of questions in this episode, because you're guiding the conversation. And I'm answering. But yeah, you can you can?
Lauren
Well, my first question is, when you do the intro to our podcast, and you go to the part where you're say ‘and this’ do you always shoot your arms up in a Y shape? Always?
Phil
Yes, I do. We happen to be recording with video. I don't even know why we normally don't. But yes, every time I say and this, my arms go up. It's just my voice. It's the necessary physical action to get that high pitch intro.
Lauren
Good to know. Good to know. Okay. So now for my next few questions. Phil today, we're talking all about affiliates. Can you just give us the 411 on what affiliates are and why they're helpful.
Phil
Affiliate Marketing is a way that brands, it could be platforms, tools, apps, products, services, empower users or customers that already use these platforms, services, products, tools, use them and love them and happen to have audiences of their own. And when sharing these with their own audience benefit, make a commission on a sale of a paying customer. Okay, that's my quick explanation of it. It's a bit like referral, but getting paid to tell your friends about something awesome. So it's great.
Lauren
So it's a special link, just for you linking to whatever service you use online. And if someone else purchases using that special link, then you get a little cut. Is that right?
Phil
That's correct. That's correct. The way that these brands often set up through affiliate networks, or essentially, you know, piece of software that they've signed up for or installed, where that software will track exactly, they'll track a purchase from that original hyperlink provided. And that's how the brand knows that. Okay, this new customer found us through Phil, we've agreed to pay Phil x percentage on their sales. That's how it works.
Lauren
Now, how much money are we talking?
Phil
So if I had to give you an average, I'd say on the low end 10 to 15%. On the high end, I see 30, sometimes more than 30% not usually. But I'd say a lot of them are in and around the 20 and 30% range.
Lauren
Really?
Phil
Yes.
Lauren
That's a lot.
Phil
It is a lot. But when you think about it, the brand really isn't having to spend much money to acquire that customer, particularly online. Right? It's expensive to acquire a new user. So this is why a lot of brands nowadays are on board with affiliate, because it actually takes little to no effort on the brand side, other than to have a program ready to actually acquire new customers. You know, we talk a lot about technology and how technology is constantly evolving. But the human portion of this isn't evolving and won't evolve because humans interact with humans. And that's just the way it is. And affiliate marketing is a really good example of that. It's the online version of a friend sharing enthusiastically about something they love and tried. And from a business standpoint, even small creators, like myself can benefit from having these types of deals. You want to know something, I didn't take this seriously until this year.
Lauren
And what are the results of taking it seriously, let's move into the examples phase of our episode.
Phil
Let me pull up my spreadsheet. So for the purpose of this conversation, I'm actually not going to hold back on numbers. I don't publish these numbers on YouTube or anywhere Instagram, etc. But I feel like our podcast listeners get a little special window into our world and I'm not afraid to tell them a cold hard truth. So I lump for the purpose it’s not great for the purpose of this podcast. But I lump speaking sponsorships and affiliate sales into one category. For me, they're all interconnected. And so in January of this year, my total sales and speaking sponsorships and affiliates was $275.
Lauren
You know, that's nothing to scoff at, though.
Phil
No, it's something. It's proof that it, it's something and it could grow.
Lauren
Proof of potential. That's what I always say.
Phil
Is that what you always say?
Lauren
It is the first time I've ever said that?
Phil
I'm pretty sure it is. However, now, at the time of recording this, it's at the end of August, I'm looking at our month, which is rounding up to be over $8,000 in speaking sponsorships, and affiliate sales. Keep in mind, some of that is sponsorships, content sponsorships, some of that is speaking engagements that are paid. But a nice healthy chunk of that is also affiliates. And you asked for examples. So I'm going to give you examples. Let me just tell you, a few $100 quickly adds up to a few $1,000.
I don't have any super significant affiliates, given that I've really only started taking this seriously more this year. But there are brands like ConvertKit that pay the cost of my subscription and more. So I actually get paid to use ConvertKit. If you think.
Lauren
Unreal, unreal.
Phil
I made almost $300 this month from ConvertKit. Just from sprinkling, philp.al/convertkit in a few spots on the internet. Okay, so that's, there's the proof in the pudding.
Lauren
Well, and and and and we send affiliate links to clients as well.
Phil
You better believe we do. And there's not that actually shouldn't be any shame around that.
Lauren
Because they're paying anyway, they're paying anyway. And they're finding out about these tools from us. So I sprinkle them in with client signups I sprinkle them in with my online courses, especially because people are discovering in my YouTube channel, are you kidding me? They're everywhere. And I disclose them? Because Yeah, you know, you want to follow the rules and laws. So you should always disclose an affiliate link. But yeah, why not? Welcome to 2021 and beyond where affiliates are the norm. And creators really appreciate when you use their links. And I do if I find out about an app or a tool, I do use a creator as an affiliate link, because as a way to say, Hey, thanks for helping me discover this.
Lauren
How do you know if a brand or tool offers an affiliate link?
Phil
Good question. I usually go to Google, I usually go to Google, I start by typing in the brand name and then I go affiliate program. Sometimes it's hidden in the footer of their website or in the support section of their website. Sometimes you'll land on support or community threads that say we don't have an affiliate program yet.
In that case, I email them and let them know that I am a creator. And I plan on incorporating their tool into my content, if they have an affiliate program just to put some pressure, some heat. Honestly, nowadays, if you're an app, a tool, a service a product without an affiliate program, then you kind of look amateur.
Lauren
Okay. Okay, so there's good old Google as a tool. Are there any other tools you recommend for someone to drum up the affiliates they want?
Phil
Absolutely. I have two tools in there. One is a little more basic, and one is very creative, but very powerful. Which one do you want? First? Basic.
Lauren
Let's start basic. Okay, do you want to know the app that I use probably the most to my computer before anything else, I use a Mac, my most popular app is text, edit it in plain text style. I need to have somewhere without formatting to just make a note. And I encourage people to do the same. Take out a notebook, a sticky note, post it note, Apple notes on your phone, if you have an iPhone or wherever, and start making a list of all the tools, software programs, brands, it could be clothing.
Amazon has an amazing affiliate program if you're more of a lifestyle, creator, food, etc. So you want to start making a list of all of the brands that you use the kinds of brands that you might share on your social media, anything that's remotely on your radar, you should write on the list, you can take them off later if it doesn't make sense. Most brands particularly related to technology or online software, etc. they've got affiliate programs and you just haven't thought about it. Let me tell you about my greatest regret of life. Not signing up until very recently for Squarespace’s affiliate program, which I have a whole other rant on it's absolute garbage, but we can talk about that another day. But I've quite literally referred over 100 people to Squarespace and I would have it decent salary monthly, just coming in from a commission on those referrals.
Lauren
We wouldn't even need to do Brand Therapy anymore. We need to be in Brand Therapy as a result of not hopping on that sooner because that haunts me. I think about am I don't let it go into my mind when I think about how much money I can be making from them.
Lauren
Can you talk about how it's garbage? Or do you want to stay professional?
Phil
No, I mean, I will probably in a YouTube video just purely out of revenge because I'm so angry with them. But they haven't come back to me with an answer. They're considering how to move forward with etc. I'm not even going to go into it.
Lauren
Okay. To be continued.
Phil
Yeah, To be continued. If I get really angry about this later, we can talk about it. I'll bring it up. You know, I will.
Lauren
So I bet you probably unfollowed Squarespace.
Phil
Not yet, they're out there on probation.
Lauren
Oh, my God.
Phil
So okay, we talked about the basic tool, which is literally making a list of every brand tool you use from the minute you fire up your computer, what do you open, what's around your desk? What are you putting on what's in your car, etc, make a list, a list of list of affiliate programs.
Let's move on to my favorite. And this is a lot. This is really unique. This is not something you'd find in other forms of content. This is really specific to branding. But to me, the most powerful tool that I have available for affiliates, is actually for myself to remember the affiliate link. So I use Bitly. The tool is Bitly. And I have hooked up a custom domain. We've talked about this on the podcast before custom domains. I own philp.al, which is actually an Algeria domain, because it's dot al, but it's basically a really short version of my name, philp.al. And what I do in Bitly, and if you don't have a shortened domain, that's okay, you can use Bitly. Still, it just means you're competing against every other person using Bitly for a unique after link. Okay, but when you have a custom link, then you're not competing against those people. Philp.al/convertkit will take you to the long referral link that you're never going to remember by heart. Do you want some more? Philp.al/otter-ai will take you to otter, my otter affiliate link, my favorite transcription tool. Do you want more feel philp.al/squarespace.
Lauren
Wow.
Phil
Let's not bring that one.
Lauren
No we don't promote them.
Phil
No, don't promote.
Lauren
No, don't go to that one. Not at all. Not until they've come back to you with a better answer.
Phil
Exactly. What I love about this shortening the link and customizing it to something that you'll remember by heart, it means that you don't need to be digging to find a link or to read it awkwardly in a video or a podcast interview like this.
Yes, my affiliate link is tap philea.squarespace.com slash RSB. t dash whatever. Like No, no, no, no, use Bitly or a link shortener pro tip bonus brownie points for people who actually hook it up with a custom shortened domain. We've got another search for we've got another podcast episode all about that topic. I love for example of Julie paleo.mg is her shortened link. And she uses it beautifully to shorten her recipes. Also for affiliates. It's just awesome. So those are my two tools, the list and the link shortener to shorten it so that you can remember what that link is off by heart.
Lauren
Okay, so for next steps, listeners, I think over the next week, make note of all apps that you use, I was also thinking it might make sense to look at that weekly summary of time spent on your phone.
Phil
Good idea.
Lauren
Then use that to remember which apps you use the most without even thinking about it. Then you're going to want to Google then you're going to want to contact companies directly. Then you're going to create a custom URL, hook it up to Bitly create all your affiliates and then figure out ways to promote it. Done.
Phil
Done. Do you know what I'm remembering right now that in a past episode as I frantically search for it, our past episode with Jacqueline Malone. She actually brought up affiliates the role that they play within her own business.
Lauren
It's gonna be coming out after this one next week.
Phil
Oh, in our conversation with Jacqueline she brings up affiliates and she says that actually ConvertKit for her an amazing one turned into five figure re-occurring income I'm from mentioning it on her podcast. So I've just wanted, you know, add that to your list of to do's is listen to next week's podcast. You know, we're not working on this episode short because affiliates it's like not the most exciting topic or discussion. However, when money starts rolling into your account, you better believe it's exciting. And I'll be honest with you, when I started this, I thought, I don't know how much I'm actually going to earn from this. But small steps. Each little affiliate link is like a little soldier out there, set it, forget it. And boom, you get emails, I got probably four or five emails today on individual sales for affiliates, and it adds up.
So take this seriously. Listen to our episode next week with Jacqueline Milan who talks a little bit more about this and how it became consistent, a consistent form of income. I love when she talks about that.
Lauren
Okay, I think that's the episode.
That's it. If you enjoyed this episode, you know what to do. I'm @philpallen
Lauren
I'm at @thelaurenmoore
Phil
#brandtherapy. Let's continue the conversation. And if you enjoyed this episode, leave us a review that helps other people discover this podcast that we work so hard to create with your five star five star. Until next week, we already told you what next week's episode is all about. It's with Jacqueline Mila. We're talking about podcasting. I'm talking about affiliates. You're gonna love that episode. Thanks for hanging out with us on brand therapy. We'll see you back next time.
Lauren
Bye
