Passive Income via CPA Affiliate Marketing
- What is Affiliate marketing? (Day 0)
- Finding your niche (Day 1-5)
- Creating original content (Day 6-14)
- Setting up a website (Day 15-22)
- Getting your site indexed
- Get Social (Day 23-24)
- SEO (Amatuer)
When I get asked, “what is a passive income stream that requires minimal initial investment, I can set up without a lot of work, and can start making money relatively quickly.” The first thing that comes into my mind is CPA / Affiliate marketing. There are a number of times I can remember going from an idea to seeing the first few cents from a CPA ad in less than 2 weeks. Granted I have had experience building sites and writing content so I would reckon the process would take a bit longer for a person brand new to CPA / Affiliate marketing, but this method of passive income is definitely one that is quickest to set up and start running.
Affiliate marketing is a nice method of passive income because you are getting compensated for selling other people’s products or generating traffic. No need to buy and manage inventory, shipping, or customer service. You basically tell people why they need to buy a certain product and get a commision for it. Commision based income is directly related to the effort you put in, but couple commissions with the benefits of passive income and you can really make some lucrative earnings.
There is no doubt that we are living in the age of information. Just about anything you want to know or learn about is just a search away on the internet. Yet in spite of this, people are still as confused as ever. The web has a vast amount of information, but the authoritative and trustworthy information is quite difficult to come by because most of the information around the internet is junk. This is precisely the problem that affiliate marketing seeks to solve. Affiliate marketing is basically bringing information seekers and information providers together.
Let’s explore a hypothetical affiliate marketing scenario. Assuming my hobby was gardening (I know I use gardening a lot but I actually know nothing about it), how would I leverage my many years of experience and knowledge about gardening to generate a passive income stream? People from around the world would visit my website on gardening because of my authoritative content on gardening like guides and reviews, and visitors would buy or visit websites based on my reviews and recommendations. Passive income could come from marketing gardening guides, gardening tools, or even sending traffic to other gardening related websites. Maybe I would recommend my visitors to buy a particular set of gardening tools because they are the most durable or to visit a website because they provide a service that I am not able to provide a guide on. I would make a small percentage from every sale or make a small fee for every visitor generated from my website, and ideally I would be generating income 24/7 because a website never closes (given the hosting company is reliable).
Generating income through affiliate market may seem easy on the surface especially seeing people claiming to be able to make $1,000 a month from their affiliate site. You might be thinking, “$1000 a month?! Great, I’ll just pop out 10 of those and I can live my dream lifestyle! Right?” No. Let’s fact check these revenue claims to get a better idea of what hitting these numbers actually takes. On average, the CTR or click through ratio of any advertisement is between ~0 - 3%. This means that somewhere between 1-3 persons out of 100 will click on any advertisement you display on your website. Now we can estimate how much traffic is required to make $1000 per month if your advertisement CPA was an average of $0.50 per click.
|Desired revenue||CPA (action)||CTR||Required traffic|
In order to make $1000 in one month solely relying on CPA ads paying 50 cents per click, you would need to have a website that generates over 66,000 visitors per month assuming ~2% of the visitors click the ad. This is roughly 2,200 visitors a day! This is not an easy feat to accomplish.