What is Affiliate Marketing

affiliate_marketingAffiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products.

You find a product you like, promote it to others, and earn a piece of the profit for each sale that you make.

  • You’re happy because you earned a commission…
  • The company is happy because they have a new sale from a customer that they might not have normally been able to reach…
  • And the customer is happy because they learned about a product from you that will hopefully fulfill a need or desire.

The beauty of affiliate marketing is that you don’t have to invest the time and effort to create a product to sell. You can begin selling something as an affiliate as soon as you have a platform to sell it on.

Affiliate marketing at its very core is about relationships, a relationship between three parties:

affiliate-advertiser affiliate-publisher affiliate-consumer
In the world of affiliate marketing, an advertiser can be a company selling a product like electronics, airline tickets, clothing or car parts, or an advertiser could also be an insurance company selling policies. The most important thing to remember is that you are an advertiser if you are ready to pay other people to help you sell and promote your business. A publisher is an individual or company that promotes an advertiser’s product or service in exchange for earning a commission. Advertisers contractually agree to work with a publisher, then provide the publisher with creative – in the form of links, banner or text ads or even unique phone numbers – that the publisher incorporates into their website. The final component that completes the affiliate relationship triangle is the consumer. The consumer is the one who actually sees the ad and then makes an action (either by clicking a link or by submitting their information via a form) that takes them from the publisher’s website to the advertiser’s to complete the action, which we call a conversion.

Learn more about Affiliate marketing [wikipedia]

 

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