What is Affiliate Marketing?
To get started, let’s first get to know what is Affiliate Marketing. It is a form of online advertising which is, in my opinion, sometimes being overlooked by many Internet marketers.
An affiliate marketer generates income through commission basis. The affiliate marketer, though, is not responsible for shipping or delivery of the products. The products or services are promoted through the affiliate’s website, or a blog, which includes a unique affiliate link to the product’s sales page. Then affiliate marketer is given credit for the sale and paid by product or services owner.
To give you a clear idea about Affiliate Marketing, I created a simple diagram of how it simply works:
So basically, Affiliate Marketing is promoting other people’s or Company’s product and earning a commission if a sale is made. More and more companies are starting to use this form of marketing to reward affiliates for generating leads and eventually sales to their business. In most affiliate programs, affiliates are only paid when sales are completed so it’s an extremely cost-effective tool.
What will you do as an Affiliate?
You promote other people or company’s product/s using a special unique link (with a special tracking that tracks the leads that you refer) code which you exclusively used. If someone buys that product (or in some cases completes a task like completing a survey or signing) using your unique link, it gets tracked by the company that owns the product and you will be then rewarded a commission (which is a percentage of the sale price or can also be a fixed amount set by the company per each lead/sale).
In this way both the affiliate marketer and company get benefits in every sale made. The more the affiliate marketers promote the company’s product, the more sales generated. Additionally, a company pays only when a sale is made so there is no risk of not getting the Return of Investment (ROI) like other Internet marketing strategies such as PPC campaigns.
Setting up a successful affiliate marketing business needs a lot of effort and time, but at the same time it can also be very rewarding. With the right work attitude, good affiliate program, and a strong motivation towards success… then you are good to go!