Affiliate Marketing: What It Is And How It Works

Affiliate Marketing What It Is And How It Works

Affiliate marketing is a form of digital marketing, and it is based on obtaining results. Meaning, the advertiser does not pay for clicks or impressions but for the results obtained through marketing the products on various places, like blogpost or social media. You have to sell/market the advertisers products, sell it and than you will make a profit.

Right now, the internet is constantly evolving, and new affiliate marketing formats emerge with the goal of expanding and diversifying the forms and channels that allow them to capture the consumer's attention. It is there where Affiliate Marketing as a branch of online marketing, and emerges as a very attractive alternative for those who want to work as an online sales person.

Affiliate marketing can be a great tool for producers of goods or services who want to increase their brand promotion online.

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So if you are interested in learning a little more about affiliate marketing, affiliate programs, and other marketing strategies, keep an eye on this article and take a look at our recommended online business course.

In this case, the websites and social media called affiliates are in charge of promoting advertisers by publishing their promotions or advertisements. Affiliates obtain a commission at the moment in which the user enters their website and performs the previously determined action. In general, these actions have the main objective of generating a click on the affiliate links, filling in a registration form or buying.

In short, affiliate marketing is a practice in which a merchant pays a third party or affiliate a commission to promote their products.

Affiliates do not always have to be a person, they can also be a company or a group of people in charge of designing marketing strategies to promote affiliate links through social networks and websites.

As a general rule, there are three parties involved within the affiliate marketing system or program, such as:

The Merchant: Known as a creator, producer or brand. Whatever the case, this will be the owner of the good or service offered.

The Affiliate: Also known as the publisher. He is the person in charge of influencing people to acquire said good or service, thanks to the creation of quality content that attracts quality traffic. This term includes influencers, bloggers, or affiliate marketing companies.

The Client: They are the people who buy the products or services promoted by the affiliate.

Now that you know what affiliate programs are about, it's time to talk about how they work.

How Does Affiliate Marketing Work?

An affiliate marketing program works as follows: The affiliate is in charge of promoting a product or service of an entrepreneur or company in exchange for a commission for each sale or action made.

That is the basic idea, the affiliate program create links that the affiliate than shares on either social networks or web pages, and the steps work as follow:
  1. The producer launches a good or a service
  2. The affiliate spreads the product on their channels (Blogs, websites, YouTube channel, social networks and others).
  3. The customer clicks on the ad and makes the purchase.
  4. The sale link is tracked (the affiliate gets a special unique link).
  5. The creator of the product gets the money from the sale.
  6. The affiliate charges a commission for the sale made. (Mostly automatically done by the Affiliate network)
An affiliate program is a type of business relationship in which everyone wins:

This way the affiliate manage to make a profitable website, social networks or blogs. And he is able to monetizes them through the sale of third-party products or services, without the need to be directly the producers. This is a great way to make a living online, learn new skills and promote the products that you love.

Producers acquire a large number of distribution channels and thus manage to impact even more customers and, consequently, secure more sales.

And even customers are able to have a greater number of channels to purchase their products or services and thus be able to make a more assertive purchase decision.

This is why it is important to know the type of promotion and affiliate link marketing program that best suits your needs, whether you are a producer or an affiliate.

Types of promotion for Affiliate Marketing

Next, we show you the different affiliate marketing programs that exist in the market, so that you can decide which is the most suitable for your objectives:

Cost per Click (CPC)

In this type of affiliate program, the affiliate receives remuneration per click, that is, he earns money every time someone clicks on the banner, pop-up or any type of advertisement.

Cost per Action (CPA)

In this case, the affiliate receives remuneration at the moment in which a client performs some type of action, be it a registration, the completion of a form, a purchase, among others.

Cost per Thousand Impressions (CPM)

In this promotional format, the affiliate is paid a fixed value when the banner, pop-up or any type of advertising reaches a thousand views.

Cost per Sale (CPV)

In this format, the affiliate only receives the commission when the link generates a sale.

Due to the many options that are presented in the market, it is important that you decide which program suits your site, product or service and which one offers you the most benefits. The most famous platform for this type of product is Hotmart, but there are others like Clickbank, or even Amazon offers a well known and respected affiliate program, most people that promote products use amazon. 

So lets say, you have a blog on which you review and talk about a certain kind of product, you can than put links in your review to amazon, and earn a commission every time this person buys something from Amazon.

How to make money as an affiliate marketer?

If you want to be an affiliate, it is very important to find a brand or company with which you can affiliate and that is willing to sell its products or services through your strategies. Although it can be any company, you must make sure that it is an interesting and fair program for you.

Take a look at these programs. They have their own advantages and can be a great place to start making money from your blog, website, social media, or YouTube channel.
  • Amazon Associates
  • Hostinger affiliates
  • Commission Junction

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About the author:

Hello, my name is Ron Hoekstra and I am the founder of The Liberty OnDemand. I hope you like my content, and if you want to know more about me, please read more here or subscribe to my newsletter where I will keep you up to date with new posts and other useful content.

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