Affiliate marketing is a performance-based advertising method where affiliates earn a commission for promoting another company’s products or services. Here’s a simplified breakdown:

  • The Parties Involved: There are two main players:
    • Merchants (or advertisers): Companies that create and sell products or services. They want to reach more potential customers.
    • Affiliates (or publishers): Individuals or businesses that promote the merchant’s products. They have an audience interested in the merchant’s offerings.
  • The Process:
    1. Affiliate Joins Program: The affiliate signs up for the merchant’s affiliate program, which is often free. This gives them access to marketing materials and unique tracking links.
    2. Affiliate Promotes Products: The affiliate promotes the merchant’s products to their audience through various channels like blogs, social media, videos, etc., using the special tracking links.
    3. Customer Clicks and Buys: A potential customer clicks on the affiliate link and visits the merchant’s website. If the customer makes a purchase, the sale is tracked back to the affiliate.
    4. Affiliate Earns Commission: The merchant rewards the affiliate with a commission, typically a percentage of the sale price.
  • Benefits:
    • Merchants: Gain access to a wider audience, increased brand awareness, and potentially more sales without directly managing the marketing efforts.
    • Affiliates: Earn money by promoting products they believe in, and build their audience and credibility.

So, it’s a collaboration where the affiliate acts as a salesperson for the merchant, getting paid for successful referrals.