Is Affiliate Marketing Legit? What Beginners Should Know First

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Disclosure: Some links in this post are my referral links. If you join through them, I may earn a commission at no extra cost to you.

Yes, affiliate marketing is legit. It's a real way of selling where a company pays you a commission when someone buys through your link, and well-known companies like Amazon run affiliate programs. But being legit doesn't mean it's easy. Plenty of offers around it are shady, and many people who try it earn nothing. Here's how it works, and how to tell the real thing from the junk.

What affiliate marketing actually is

You recommend a product. You share a special link that tracks who you sent. If someone buys through that link, the company pays you a commission.

That's the whole idea. The company gets a customer it didn't have to find on its own. You get paid for the referral, and the customer pays the same price either way in most programs.

Think of a friend who tells you about a good mechanic, except the mechanic thanks your friend for sending you.

Why it feels like a scam to so many people

I've been in affiliate marketing since 2012, and I understand why people are suspicious. If you're over 50 like me, you've probably seen plenty of these ads:

• "Make money while you sleep"
• A guy standing next to a rented sports car
• "Just copy and paste this link"
• A countdown clock pushing you to buy before you've had time to think

The business model isn't the problem. The problem is the people selling dreams on top of it. Those ads make it sound like quick money, and it isn't. When someone tries it, earns nothing and loses money on training, of course it feels like a scam.

How to spot a real program

Before you join anything, look for these:

• A real product. Would someone buy it if there were no way to make money from it? That's the best question you can ask.
• Clear prices. You should be able to see what it costs and what you get before you pay.
• Honest wording. Real programs tell you results vary. They don't promise a number.
• Terms you can read. Look for a refund policy, a terms page and a real way to contact someone.

Red flags that should stop you

• It promises a certain income or says you can't fail.
• It pays you mainly for signing up other people, not for selling something real.
• You can't tell what the product is until you've paid.
• It pushes you to buy right now, or to borrow money or use a credit card to get started.
• It tells you to hide that your links earn you money.

If you're asking whether affiliate marketing is a pyramid scheme, this is the line to look at. Regular affiliate marketing pays you for selling a real product to real customers. A pyramid scheme pays mostly for recruiting, and the money comes from new people joining rather than from actual customers. If you can't find the real customers, walk away.

What it really takes

Here's the part the ads leave out. You need people to see your link, and that takes steady work over time. You'll usually need:

• A product you'd honestly recommend
• A place to send people, like a simple page
• A way to get seen, like a blog, videos or social media
• A way to stay in touch, because most people don't buy the first time

There's no promise of when, or whether, you'll earn anything. Many people earn nothing. You also have to tell people your links can pay you. The Federal Trade Commission requires that, and it's why you see the disclosure at the top of this post.

If you get to the point where people are visiting but nothing is happening, I wrote about what to do when you get traffic but no leads.

Where GoBeaug fits

I built GoBeaug because beginners kept running into the same wall. They needed a page, a way to collect leads and a way to follow up, and it usually meant several monthly bills.

GoBeaug is a real digital product: your own link page, website, blog, and on the higher packages, capture pages and follow-up emails. You can start free with GoBeaug Social, and the paid packages are billed once a year with no automatic renewal. There is also a referral plan. Results vary, and many people earn nothing.

Run it through the same checks I just gave you. Look at the packages, read the terms and see if it fits you. It's fine if it doesn't. Prices are listed on that page, so please check the current details there.

Frequently asked questions

Is affiliate marketing a real way to make money?

It's a real business model that companies use every day, but there's no guarantee you'll earn anything. Many people earn nothing. What you get out of it depends on your effort, your skills, your audience and what you promote.

Is affiliate marketing a pyramid scheme?

No, not when you're paid for selling a real product to real customers. If a program pays mainly for recruiting people and has no real customers, that's a serious warning sign.

Do I have to pay to start affiliate marketing?

Many companies let you join their affiliate programs for free. Your costs usually come from the tools you use, like a website, an email service or ads. Be careful with anything that asks for a lot of money up front.

Is affiliate marketing legal?

Yes. It's legal in the United States, as long as you tell the truth and clearly disclose that you can earn from your links. For your own situation, check with a professional.

Do I have to tell people I'm an affiliate?

Yes. The Federal Trade Commission expects you to clearly tell people when you can earn from a recommendation. Put it where they'll see it, before they click.

Take your time

Don't let anyone rush you. A real opportunity will still be there after you've read the terms and slept on it.

What's the one thing that makes you wonder whether an online offer is real? Tell me in the comments.

Results vary. Your results depend on your own effort, skills and situation, and many people earn nothing.