Interesting anecdote: On one of our “authority sites”…right now, we’ve gone the way of NOT placing ads on the home page, actually. We have images/categories on the first page that people click through to get to the content. Because of this we have an EXTREMELY low bounce rate…everyone who comes to the site (via the primary or exact match KW) has to make another click to get to the area they really want, which will contain ads. I think eventually we’ll blend in just a FEW ad placements above the fold on the main page.
Sites that earn money primarily from these context ads do so by capitalizing on either high traffic in that particular market, or high revenues for clicks (of course the best situation would be to have a high traffic market with high paying ads; if you can find one of those markets, and rank well for it, even better!). Here are three ways your site could earn at least $40 a day through context ads:
While the traffic estimates are lower than some of the other sites on this list, people in the baby gear niche are an important customer base because they definitely purchase products.  This is a big industry and I would guess that the conversion rate for this site is slightly higher than OutDoorGearLab.com.  Typically when someone researches a baby product, they are typically looking to buy that baby product.  If someone is researching a tent, they may just be looking around at different options that they can compare for their next camping trip – not necessarily to buy that tent.  Most of their traffic is organic, and continuing the trend of well ranked long form content, their top post is 8,800 words long (which is a beast of an article).  If I had to take a guess at revenue, it would probably be north of 30k per month for this site based on traffic.
The other monetization method is through the sidebar (and also at the end of every article) is education lead generation.  They are probably an affiliate of a number of different schools or other educational lead companies.  However, not only are they probably making good money with the site, but they offer great content on the site.  They allow users to search by state to find local salaries and much more information.  Content is important!
Education occurs most often in "real life" by becoming involved and learning the details as time progresses. Although there are several books on the topic, some so-called "how-to" or "silver bullet" books instruct readers to manipulate holes in the Google algorithm, which can quickly become out of date,[37] or suggest strategies no longer endorsed or permitted by advertisers.[38]
As you can see the two types of programs are different. Even so, there are some similarities. The biggest one, as you can guess, is that incentives drive people to promote. Whether it be promoting a link in a piece of content, like in affiliate marketing. Or sharing a referral link with a friend, as with referral marketing. The incentive isn’t the only thing on the line, however…
This is one the cleanest designs I’ve seen of an Amazon Affiliate Website. It has a very professional look for a review website, but they don’t overcrowd you with product reviews right off. This site really sets itself apart with their actual videos and reviews inside of their test center. You know these testers are actually testing the product rather than copying a review from another site or making things up. It’s so legit that I will likely be back to this site for future reviews for my purchases. It really gains your trust with the photos and videos even though you know they are making money through the affiliate commissions. Plus they buy all the products themselves and never accept any products from the manufacturer to maintain objectivity, but when you bring in 3.1 million visitors per month, you can buy a few items to review.

It’s worth mentioning that Harsh started this blog in 2008, so he’s had roughly nine years to build it up to where it is now. So don’t expect to achieve results like this in a few months. That said, you can achieve a highly respectable income from affiliate marketing within a few short months if you approach it in the right way and have access to the right training.
Thank you so much! You've been an inspiration throughout. The way you wrote about TIWIB, and how they drive insane traffic from social media is mind blowing. I am amazed that even going viral on a social site like pinterest for one day can build our brand identity huge. Am I correct? Now I need to get going with my first affiliate site, come up with a unique idea and learn how to drive traffic from each source. I feel Adsense is not so rewarding.
Many thanks for your open words. Maybe online marketing / business really is not for all of us out there - at least not for exactly those hard working people mentioned by you, as these usually don´t have so much time beside their full time job and the family. So much about the countless promises from certain online marketers suggesting otherwise, saying everyone can do it - of course with some "help" - i.e. their very own products.
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.
For example, if I talk about how cool a product is, and then you find out that I’m an affiliate for them, wouldn’t you as a conscientious observer become skeptical as to whether my information is biased, if perhaps I’m only saying how cool something is because I can get paid for it? Wouldn’t that make you question my integrity with other things I say as well?

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TheAthleticBuild.com is a website that's covers a number of different fitness topics. It's probably safe to say that most of their content is geared towards men, and most of their revenue comes from either Amazon or their affiliate programs.  Based on the looks of the site, they have a few supplement reviews that are probably affiliate programs where they get paid a portion of each sale that a buyer makes.  Some of these affiliate programs have higher returns than other programs, but there are some right vs. wrong decisions you'll have to work through yourself if you are endorsing certain types of nutritional products, especially if you don't take them yourself.
On your path to become an affiliate marketer, it isn’t always going to be an easy job. A lot of time and hard work must be dedicated to promoting relevant offers and helping the targeted audience. Some of the pros, however, are never having to create products, just drive the traffic to someone else’s products and earn money while not worrying about any customer support.
Creating a unique tracking ID for an Amazon link is easy. Simply log in to your Amazon affiliate dashboard, click “Account Settings” at the very top on the right, then click “Manage Tracking IDs”. From there you can make a new tracking ID so you can track which web page/campaign sold what.  You can learn more about using Amazon’s Tracking IDs here.
And how much you make can fluctuate wildly. I still have months where I might only make a few dollars, if that. You also need to factor in that many brands only pay affiliates once you’ve earned a certain amount, say $25. On the plus side, it takes next to no effort to include affiliate links, and if you’re really strategic about it and have reasonable traffic, you could potentially make a decent amount, certainly more than me.
Hi Rae, I think the right niche is the most important step in affiliate marketing. If you choose the wrong niche, you can be doomed from the very beginning. Need a buying niche not just one where people are looking for information. Also you only mentioned it briefly at the end, I think promoting something you know about or is your passion makes the process a lot easier. Great post though, Tom.

If you have built up an email list, you could also promote your affiliate offers via email promotions. Just make sure you build up a relationship with your audience first instead of going for the hard sell straightaway. The emails you send out must contain your affiliate links to products so when your audience click through. the sale is attributed to you. 
Now Tom's Hardware publishes their own reviews, and on top of their display ad revenue, they are making a significant portion of money from Amazon Affiliate links.  The site is already well known for reliable content about Personal Computing, so it made sense to turn up the content generation to attract more organic search volume.  It would be tough to estimate monthly revenue for this site, but it's highly likely that it generates 7 figures per month. 
Anyway, my guess is that this site ranking at #8 in Google for this keyword and the high CPC, probably pulls in between $500 to $1000 per month.  In fact it could actually be much more that that just depending on how much traffic they really receive.  This is with the assumption that they receive traffic from more than just this keyword (which is the case with every single website I have ever owned).

How to Make Money Online Without Being an Internet Expert: A step-by-step guide to affiliate marketing, lets face it we are not all internet experts. Creating a successful internet business can be really hard if you haven’t been able to change your ringtone for three years. It’s okay, don’t over complicate things. Making passive money online shouldn’t be hard and this book will set you on the right track. Get started for $4.99.
Complete the affiliate application and submit. You may have to have an established website in the niche of the affiliate product to be accepted. Other programs don't require anything more than agreeing to their terms. You might have to be located in the United States to qualify. States that charge sales tax on Internet purchases may not be approved by some affiliate programs.
A relative newcomer that was only founded in 2014, ConvertKit has taken the world of email marketing by storm. According to the company, they now have nearly 20,000 active customers of their email services. Their affiliate program works by paying existing customers a lifetime 30 percent commission for referrals that subsequently become ConvertKit customers or who sign up for ConvertKit webinars and other digital products.
888.com is a premium gaming destination and a well established name in the casino and poker circuit. Its site offers numerous sub-brands including 888sport, 888ladies, 888bingo, 888casino and 888poker, as well as ReefClub Casino. The 888 family of companies attract millions of players, and the company provides affiliates with frequent promotions to keep players interested.
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