What is Affiliate Marketing and How does it work – Full Info


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What is Affiliate Marketing and How does it work

What is Affiliate Marketing and How does it work?

If you have a website or a blog then affiliate marketing is the best way to make money online. You can make money online by helping a business by promoting their product, service or site.

Affiliate marketing is the term used to describe an income sharing system where webmasters can place an advertiser’s banner ads, text links or buttons on their own site and will receive referral fee or commission for every sale conversion.

Affiliate marketing is perhaps one of the fastest, simplest and cheapest ways to start making money online as you don’t have to create any products to sell. You just need to link up a buyer and a seller, and you take a commission on the sale that has been referred by you.

What is Affiliate Marketing?

Affiliate marketing is the process of earning a commission by promoting other individual’s or company’s products or services.

If you are participating in any affiliate program then you are rewarded with commission every time a visitor, customer or sale for business is generated through an advertisement on your web site.

Three Steps of Affiliate Marketing

  1. You recommend a product or service to web visitors or traffic.
  2. Some of those individual purchase the product or service based on your recommendation.
  3. You get paid commission for those purchases.

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts. The industry has four core players: the merchant (also known as ‘retailer’ or ‘brand’), the network (that contains offers for the affiliate to choose from and also takes care of the payments), the publisher (also known as ‘the affiliate’), and the customer. Source

Who is Publisher?

A publisher is an individual or company that promotes an advertiser’s products or services in exchange for earning a commission.

For example: If you have a blog and you want to promote advertiser’s product then you are Publisher.

If an advertiser agrees to work with a publisher, then they provide the publisher with unique links, banner or text ads that the publisher needs to incorporate into their website to get started.

Whenever a qualified sale is generated through the unique link, the advertiser pays the publisher a commission.

Who is Advertiser?

In the world of affiliate marketing, an advertiser can be a company selling a product or services. Advertisers associate with publishers so that they can generate maximum sales and leads.

Advertiser can be an individual or company who are ready to pay other people for helping them to sell and promote their business.

What is an Affiliate Network?

Affiliate network acts as a middle man connecting the Advertisers and the Publishers.

An affiliate network acts as an intermediary between publishers (affiliates) and merchant affiliate programs. It allows website publishers to more easily find and participate in affiliate programs which are suitable for their website (and thus generate income from those programs), and allows websites offering affiliate programs (typically online merchants) to reach a larger audience by promoting their affiliate programs to all of the publishers participating in the affiliate network. Source

How Does Affiliate Marketing Works?

Affiliate Marketing works in below five steps:

  1. You (Affiliate) sign up for an advertiser’s affiliate program
  2. Select which product(s) you want to promote.
  3. Grab your individual affiliate link which is provided in your personal dashboard, after you sign up.
  4. Place the link on your website or mail it to your subscribers. You can use any of the promotional tools like banners ads, text link, etc. on your website.
  5. Anytime someone clicks on your link and they make a purchase of the products or the services, you get a commission.

The sellers can track your performance through your affiliate ID (affiliate account) and the affiliate software’s that they use. You also have complete, real time access to all sales and commissions stats from your personal dashboard which will be provided to you after you sign up.

Commissions are paid out usually on a monthly basis for all the sales referred by you.

Best Affiliate Network For Your Site

When it comes to affiliate marketing there are many affiliate networks available and most of them are easy to join. Different affiliate networks provide different products, so you need to find your products or services which are best suited for your blog niche.

Top 4 affiliate networks for you:

  1. Shareasales
  2. Amazon Associates
  3. Commission Junction
  4. Click Bank

All these affiliate programs are normally free to join and you just require your own blog or website to get registered. If you don’t know how to start your own site you can go through the below article:

How to Start a Blog – Beginners Guide (Blog Starter)