What is Affiliate Marketing Complete Detail

This is one of the most frequently asked questions in the age of internet marketing and here we will find the answer in the easiest way possible. Let’s start with the meaning of the word affiliate. A person or organization that is formally associated with a larger group of companies is known as an “Affiliate”. Therefore, affiliate marketing is an online marketing method. Here, the person or organization who owns a website promotes another company’s products or services online and receives a commission in return. Therefore, these two entities are related to each other and both earn profits through revenue sharing.

How does it work?

It works through mutual understanding and cooperation. The publisher, i.e. the owner of the site, places advertisements for the merchant’s products or services on his site, and if the sale is made through these advertisements, the publisher earns a commission.

For example: if you become an affiliate of a company that sells books, you will need to put the links that support their books on their website, and if the company gets potential buyers or sales are made through your link, they get a commission, which can be a percentage of profit or a fixed amount per sale. This is called affiliate marketing. When you become an affiliate, the company provides you with a unique code that helps you track conversions.

Role of Affiliate Networks

Affiliate networks are the platforms where publishers (affiliates) and merchants (businesses) meet. These platforms help affiliates find the right programs for them and give them the ability to find the right websites to endorse their products. e-bay, click-bank, Amazon and Commission Junction are some of the most popular affiliate networks or companies.

You can join these affiliate networks for free and you can sell products without investment just by posting a link on your website.

For example: if you join ClickBank, you become a ClickBank Affiliate and then you can sell a specific ClickBank product through your website or blog and earn a regular commission on each sale.

Affiliate Marketing- Types

Pay-Per-Click or Pay-Per-Click Marketing: In this type of marketing, traffic is directed to the company’s website through a link or advertisement on the affiliate’s website. Every time a customer clicks on your placed ad and is directed to the company’s website, you will get paid.
Therefore, PPC or CPC is an advertising buying system where the affiliate partner gets paid for each click on their link.

Pay Per Sale – In this type of marketing, the affiliate earns money on every sale made through their link or advertisement, which is placed on their website or blog.
Affiliate Marketing Benefits

Affiliate marketing is beneficial for both affiliates and merchants. For affiliates, it’s a way to earn extra income. If the product suits their niche, they can earn a good commission just by placing ads on their sites. No promotion or sale is required of you. Therefore, there are no investments, only profits. For merchants, affiliate marketing is also very beneficial as their sales increase through affiliate advertisements. This way they can attract more and more customers and they only have to pay when they make a sale. This way, your services or products get more visibility in the market.

Affiliate Marketing Disadvantages

Affiliate marketing can also have some disadvantages. If a partner starts promoting the wrong product without enough research, it could damage the reputation of your blog or site. Additionally, in some cases, the business you support may not pay you the fixed commission as well. That is why the affiliate must carefully inform himself about the product and the company before starting the advertisement.

Affiliate marketing can also have negative effects on the merchant’s business. If the site contains objectionable material, it may damage the merchant’s credibility. Moreover, the profits have to be shared with a third party, which is also somewhat frustrating.

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