How is Affiliate Marketing Done?

How is Affiliate Marketing Done? + 4 Huge Benefits

Affiliate marketing is arguably one the most lucrative, flexible, and low-risk ways of making extra bucks; think passive income rolling in 24/7 – 365! 

Though not entirely a new concept, affiliate marketing has generated so much buzz and peaked so much interest because of its financial gains and juicy rewards. 

So, how is affiliate marketing done?

Affiliate Marketing is done by doing the following things…

    1. Find a great offer, service, or product you would like to help promote. Preferably, something relevant to your audience or niche.
    2. Contact or join the affiliate program of your selected product or service. You will then receive your unique tracking link.
    3. Promote your unique tracking link through social media, email, or paid ads.
    4. Get paid a percentage of the sales you generate.


Sounds easy, right?

If only simple was the same as easy! There is quite a bit more to affiliate marketing than the above overview.

We’ll get into it, but before that, let’s take a quick detour and explore the basics.


What is Affiliate Marketing?

In simple terms, affiliate marketing is a process in which an individual (the affiliate) promotes a business’s products or services and receives a commission for every successful sale.

Nearly 90% of advertisers claim affiliate marketing as an important part of their overall marketing strategy.

Affiliate marketing can offer excellent benefits to both the brand and the affiliate marketer if the product or service resonates well with the targeted consumers. 

Your online marketing skills play a massive role in the success of every affiliate campaign. You can think of affiliate marketing as a performance-based advertising strategy.

The more awareness and engagement you can create for your products, the more sales you will make, which means a ton of money for both the businesses and the affiliate marketer.

Affiliate marketing is an awesome marketing tool for companies and businesses seeking alternative and profitable means of advertising their brands. Unlike traditional ads, affiliate marketing doesn’t cost that much to execute. 

As a business owner, all you have to do is get the right individuals and offer them the right incentives to promote your brand. 


Tip! – Check out How to Promote Affiliate Marketing Links – Top 7+ Techniques


How is Affiliate Marketing Done?

Understanding affiliate marketing will help you understand how it’s done. Hopefully, we didn’t lose you with that analogy.

You need to understand the connection between the parties involved in affiliate marketing.

Here are the three parties involved in affiliate marketing. 

  • Sellers and product creators
  • The affiliate 
  • The consumer


More detail below…


1. Sellers And Product Creators

At the heart of an affiliate marketing campaign is the product, and someone is responsible for creating it. That “someone” is known as the product creator, and it can be an entrepreneur or business enterprise. 

The product can be physical or digital. The product creator, also known as the brand or seller, may not be involved in the marketing process. However, they can decide to be the advertiser and partake in profit sharing. 

Here is an example – a seller or brand can start a drop-shipping business and use affiliates to promote their products.


2. The Affiliate

The affiliate, as we hinted earlier, can also be an individual entrepreneur or a company. The affiliate is responsible for making the products appealing to customers – promoting the products and getting the target audience to purchase them.

Affiliates only get paid when the consumer completes a desired action like purchasing the product. 

Remember, affiliates get paid a commission (a percentage of the revenue made from successful sales).


3. The Consumer 

From the seller or brand to the affiliate, the product trickles down to the consumer. 

The affiliate shares the products with the consumer on social media, blogs, and websites. When the consumer buys the product, the seller and affiliate share the profit, and the cycle is repeated all over again.

Sometimes, the affiliate may choose to be upfront and disclose that he/she is receiving a commission from the sales or decide not to reveal. 

Either way, the consumer is not affected by the affiliate marketing system because the affiliate’s share of the profit is included in the retail price.

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What Are The Top Benefits Of Affiliate Marketing?

As we have mentioned earlier, affiliate marketing is a low-risk and beneficial marketing model.

Here are some benefits of affiliate marketing.


1. Affiliate Marketing Is Performance-Based 

The fact that affiliate marketing is performance-based is what makes it more profitable. 

Affiliates only get paid when the desired action is completed. As such, affiliates will be motivated to take massive action and ramp up sales. 

While they are at it, they will only drive relevant traffic of value to your offer. This can have a big impact on your ROI.


2. Affiliate Marketing Expands Your Reach

Regardless of your product category or industry, you can always leverage affiliate marketing in your marketing campaigns.

 Getting affiliates to buy into your plan allows you to expand your reach and get a huge audience

Often, affiliates already have an established customer base, which you can use to enter new markets. 

Affiliate marketing also helps you to build a robust online presence. Thus, making you a beacon of authority in your niche.


3. Affiliates Can Boost Your Reputation 

We mentioned how affiliate marketing could help you build a robust online presence. Well, that’s not all. 

Having the right team of affiliates on your side is a great way to win the trust and gain credibility from your target audience.

If you have famous and influential bloggers championing your products on their websites, it will strengthen the confidence people have in your products and services (social proof).

It’s no news that customers often trust a third party’s opinion about a product compared to that of the brand owners. Customers feel more confident buying products from websites they trust and are familiar with. 

I know I do.


4. Affiliate Marketing Is Cost-Effective 

Considering all we have mentioned so far, you should agree that affiliate marketing is cost-effective.

Instead of blindly throwing money at ads and doubting whether your ads give results or not, why not invest in affiliate marketing where you only pay for when you see – results

Think about it.

Affiliate marketing is the easiest and arguably the most cost-effective way to branch out into new markets. With affiliate marketing, you don’t have to build a marketing team from scratch while launching a new product. 

Affiliate marketing also saves you sinking money into unproven marketing models.


5. Scale-Up Traffic And Sales!

In the e-commerce industry, traffic matters.

Affiliate marketing is an excellent way of attracting traffic because more people will visit your pages through affiliate links. As you already know, more traffic equals more sales, and that’s the ultimate goal.

In addition to ramping up sales, affiliate marketing also drives organic traffic to your website. 

Having highlighted the benefits of affiliate marketing and its impact on profit margin, let’s proceed to the million-dollar question.


Tip! – Check out Several Ways To Immediately Increase Your Website Traffic to up your traffic.




How Do Affiliate Marketers Get Paid?

Affiliates usually get paid based on the programs or agreements they entered into with the brand. The consumer may not have to buy the product for the affiliate to get paid.

Here are the various ways affiliates get paid.


1. Pay Per Sale 

Virtually everybody is familiar with this affiliate marketing structure. The seller only pays the affiliate after a customer buys a product through the affiliate’s link.


2. Pay Per Lead

Under this program, the affiliate only has to convince the customer to visit the brand’s website and complete an action. The desired action can be filling out a form, signing up for product trials, subscribing to newsletters, or downloading an app or file.


3. Pay Per Click

If you opt for the pay per click program, you will be required to send traffic from an affiliate website to the sellers’. 

In simple words, the affiliate gets paid based on the amount of traffic the seller receives from the affiliate’s site.


Wrapping Up

Affiliate marketing offers endless possibilities and benefits to both individuals and businesses. 

All you need to do is take your time to understand how it works. If you followed from the start of this article, then there is no stopping you from making the most with affiliate marketing. 

Pick a product you are confident about and get started

Hope you found this post helpful. Thanks for reading.

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