What is affiliate Marketing?

The term Affiliate Marketing is in the buzz these days for having its own advantages. Its demand is soaring, for it is a win-win strategy for both, companies and affiliates. Businesses have realized that affiliate marketing can help in brand awareness and is a cost-effective way of sales in which the businesses share a part of their profits with the affiliates, as commission.

Affiliate marketing is essentially an advertising model where a product or service is advertised to generate sales in return of a small commission by the company. The affiliates advertise, refer or market products on their website, applications, blogs to generate sales, for which they are paid commission by the company whose products are being affiliated. It can be simplified by understanding it like an incentive received by a salesperson upon selling.

Affiliate Marketing is one of the powerful ways to make money online. The greatest part is that it does not require to invest time in creating the products or services that you plan to serve your target group.

There are several participants in affiliate marketing:

  1. Merchant – The seller, retailer, brand, or vendor who creates the actual product. These merchants can be anyone. It may also be noted that, the merchants sometimes are not actively involved in the affiliate marketing program.
  2. The Affiliate Marketers – Affiliates can range from single individuals to entire organization. An affiliate basically advertises products and services to attract potential customers to purchase the product/service.
  3. The Consumer – Ultimately it is the purchase by the consumer that runs the entire affiliate marketing network. The affiliates try to place the products in the right sight of target consumers so that they may end up buying the products thereby fulfilling the aim of the marketing strategy.
  4. Affiliate Networks – Affiliate networks are typically the website and platforms that help in bridging the gap between the merchant and affiliates. The merchants can list their products and services in these networks, and affiliates may choose any product or service that they are interested in promoting. The affiliate network possesses the database of numerous products. This database makes it easier for the affiliates to choose the right product they want to promote.

Understanding the working of Affiliate Marketing

First of all, Affiliates need to find an affiliate network/program that they are interested in. Based on their interests, affiliates can check the details, the types of products and services involved, the commission offered payment terms and conditions, etc.

If the program details appear to be appealing, then affiliates can sign up and wait for confirmation from the affiliate network. After acceptance, the affiliates can start content creation and may add the custom links the program provides. When any user clicks on these links and makes a purchase, the affiliate earns a commission.

Affiliate marketing is a commission-based marketing strategy that involves promotion of products or services of any company by an affiliate. It is a very effective method that helps in promotion of products or services along with sales through affiliates which may have a well flourished consumer base.