What is Affiliate Marketing? How Affiliate marketing works?
What is Affiliate Marketing?
Affiliate Marketing is a type of performance based marketing in which a business rewards one or more affiliates for each visitor or customer brought by affiliate’s own marketing efforts. In other words, affiliate marketing is a way for a company to market its products or services through individuals or companies who promote company’s products in return for a commission on each sale they make. This commission is typically a percentage of the sale price of the product or service being sold.
How Affiliate Marketing works?
Affiliate Marketing works by having affiliates promoting a product or service’s of a company in return of some commission on each sale they make through affiliate marketing.
The affiliates will typically use a unique referral link generated by the promoting company to track sales they generate, and the company will pay the affiliate commission based on the results.
5 step on how Affiliate marketing works:
1. A company sells a product or services and wants to use affiliate marketing to increase its sales.
2. The company signs with a affiliate marketing network or platform, which connects it with affiliates who are interested in promoting the products.
3. The affiliates promote the companies product using their unique referral links or codes which is tracked by the networks or platform
4. When a customer clinks on an affiliate’s referral link and makes a purchase,the sales is traced and affiliate earns a commission on the sales.
5. The company pays the affiliates the agreed amount of commission either through affiliate marketing network or directly.
In this way, affiliate marketing allows companies to reach a wider audience and increases their sales, while also providing affiliates with an opportunity to earn money by promoting products or services.
Various tools of affiliate marketing
1. Link Tracking and Management Tool:
It helps affiliates to keep tack of the links they use to promote a company’s products and monitor the effectiveness of those links.
Here are some top 3 Link Tracking tools
2. Affiliate Marketing Networks:
Affiliate marketing networks is a platform that connects affiliates with merchant and helps manage the relationship between them.
Here are some top 3 Affiliate Marketing Networks:
a. Amazon Associate
c. Ebay Partner Network (EPN)