Affiliate marketing is a part of online marketing wherein you refer your audience to visit another website and make a purchase. It is one of the oldest forms of marketing in which you refer any online product to someone and if that person makes a purchase based on your recommendation, you receive a commission. Sounds interesting, doesn’t it? Affiliate marketing is looked upon as an easy way to make money from home.
Here’s what Affiliate Marketing includes –
Affiliate marketing is a commission based marketing method where an affiliate or third party conveys leads/sales to a company’s website for a purchase. The affiliate receives a commission for promoting the company’s products and the company receives leads/sales.
Here’s an easy way to understand it better-
- An affiliate comes across a product you want to promote
- The affiliate promotes it to his audience by providing links to the company’s website
- When a visitor clicks the link and makes a purchase, the affiliate earns a commission from the product owner
Affiliate Marketing Vs. Referral Marketing
Affiliate marketing is often confused with referral marketing, as both of them use third parties to drive sales. But if you look closely, the two are quite distinct from one another. The main difference between the two is that affiliate marketing depends on completely on financial motivations to drive sales while referral marketing relies on personal relationships to drive sales.
Anatomy of Affiliate Marketing
Affiliate marketing entails 4 elements, and they are-
The one, who owns the product which is put on sale, is the company. The product can include anything, from website development services to products like clothes, shoes, etc. To increase the sales online, a company can get affiliates on its website.
Affiliate is receives the product links from the company, puts it on his website and promotes it to his own audience. He can use different digital marketing tactics to sell more the product and earn commission.
Network is a platform where both company and affiliates exist together. A company signs up to list its products in the affiliate program, and affiliates sign up to search for products they would like to promote.
One who clicks the link on the affiliate’s website and visits the company website to make a purchase, is a customer.
How Does Affiliate Marketing Work?
Affiliate marketing often uses regular advertising methods, such as SEO or Search Engine Optimization, PPC – Pay Per Click, E-mail marketing, content marketing, etc. Besides these, affiliates also use promotional methods such as publishing reviews of products or services offered by the company.
If your readers buy anything that you are promoting on your website, you will get a commission! Sounds a great way to make some good money.