Affiliate marketing is a process where an affiliate earns a commission for promoting a company’s products. The affiliate finds a product they enjoy and promotes it, earning a percentage of each sale they drive. Sales are tracked via affiliate links from one website to another.
How Affiliate Marketing Works
The merchant gives each affiliate a unique link to track who drove a purchase. When someone clicks that link, a small tracking cookie gets stored on their device which does two things:
- Attributes the sale back to the correct affiliate
- Holds an expiration date so the affiliate gets paid even if the customer delays their purchase
For example, a reader visits your post about the best winter jackets and clicks one of your affiliate links to a product on Amazon. But they leave to pick up their daughter from school before completing the purchase. Later, they return to Amazon, find the product again and decide to buy it along with some ski gear.
Because they originally clicked your affiliate link, you get credit for both purchases thanks to Amazon’s 24-hour cookie duration – even though you only promoted the jacket.
Benefits of Affiliate Marketing
Affiliate marketing offers several advantages including its simplicity – you handle marketing and driving sales without worrying about development, support, or order fulfillment. It’s low risk since there’s no cost to join programs, allowing you to start earning without upfront investment.
It can also generate relatively passive income through ongoing commissions – the ideal money-making scenario. While initial time is needed to build traffic sources, your affiliate links can deliver steady earnings over time.
Successful affiliate marketers can scale their income without extra help by promoting new products to existing audiences and building campaigns for additional offers while current ones continue generating revenue.
However, great affiliate marketing is built on trust so it’s best to only promote products you personally use and recommend. Even if a product is interesting, becoming a good marketer for it takes significant effort.
Getting Paid as an Affiliate
Affiliates can get paid in different ways, depending on the program:
Pay Per Sale: The most common structure where the merchant pays a percentage of the sale price after the customer purchases due to the affiliate’s marketing. Payment is only made after a successful sale.
Pay Per Lead: More complex, this pays based on conversions of leads. The affiliate must get the customer to the merchant’s site and complete a specified action like filling out a contact form.
Pay Per Click: Focuses on getting the affiliate to drive traffic from their site to the merchant’s. Affiliate is paid to increase web traffic.
Benefits of Passive Income
While regular jobs require you to be actively working to earn money, affiliate marketing offers the ability to generate revenue while you sleep. By investing initial time into a campaign, you can see ongoing returns as customers purchase over days and weeks. You get paid for work long after completing it.
No Customer Support Needed
Sellers and companies handle customer support and satisfaction. The affiliate’s sole job is connecting vendor and customer. You simply earn your commission and let the merchant deal with any customer complaints.
Work From Home
Launch campaigns and earn commissions without leaving home. Affiliate marketing allows you to work in your pajamas if desired.
Most businesses require startup fees and inventory financing. However, affiliate marketing can be done at a low cost so you can begin quickly without much hassle. There are no program fees and no need to create a product. Starting is relatively easy.
I hope this beginner’s guide provides a helpful introduction to affiliate marketing. To learn more about making money online, be sure to visit our website GamerGems.com. Please contact us if you find any errors in this article or have additional details to share.