Are you a beginner in the field of affiliate marketing? Looking for a blog article to explain what affiliate marketing actually is? You are at the right place! Affiliate marketing is a great way for increasing your earnings in a few simple steps. At the same time, companies also get a lot of benefits from affiliate marketing by increasing their revenues with less management and marketing efforts.
Since the start of affiliate marketing way back in the year 1998, affiliate marketing has grown so each year. Sales of for many well known brands have grown due to affiliate marketing in the billions and will keep growing in the coming years.
What is affiliate marketing?
Affiliate marketing is basically a relationship between 3 parties, the merchant, affiliate and consumer. It is a performance based method of marketing a company’s product through affiliates who are paid only if the desired outcome of the merchant like sale, lead, or any other action agreed upon is reached by the affiliate marketer. The merchant is a creator, seller, brand or a vendor which is the actual party which creates the products. The merchant is ready to compensate the sellers (affiliates) who are selling and promoting his/her products.
The affiliate marketer is the person who is ready to promote the product or service of the merchant in exchange of getting a commission for the services. The customer is the person who ultimately views the Advertisement, clicks on it and purchases the product or service of the merchant.
How does it work?
The affiliate marketer needs to sign-up for the advertiser’s affiliate program and select the product or service he/she wants to market. A unique affiliate link is provided to the affiliate by the merchant which is used by the affiliate for referring customers to the merchant’ site. The affiliate link has tracking code so that the merchant knows that it is you who sent the customer to him and pays based on the rules already discussed. The link can be placed on the affiliate website, social media pages, online advertisement, emails he sends out and any marketing channels which the merchant accepts as away of selling the product or service.