What’s affiliate marketing and how it works?

Have you been asking yourself what’s affiliate marketing and how it works? If the answer is YES then, don’t worry, you are not alone and you are at the right place now. Just spare some of your valuable time on this post and I am sure if you continue reading it to the end you will grasp some important information regarding affiliate marketing and the way it operates. To start with let’s see what does affiliate marketing mean.

What is Affiliate Marketing?


Affiliate Marketing can simply be defined as a performance based type of online marketing by which the Affiliate recommends or promotes other people’s products or services on the internet to potential buyers through his/her website, blogs, or any platform and get paid with the specified commission for every sales that is made from the customer the affiliate referred to the product owner’s website.

The affiliate marketing is considered to be one of the world’s fastest growing and best internet marketing techniques to make money online. Though one of the reasons affiliate marketing is so popular is because it looks like is the easiest way to earn income but the truth is, it is not one of the get-rich-quick scheme out there and most successful affiliate marketers have spent years building their business before realizing their dreams. So determination, passion, patience and perseverance are the keys if you real want to succeed online regardless the type of online business you choose.

Is Affiliate Marketing for YOU?


The answer is literally YES, because affiliate Marketing is for anyone interested in making money online regardless of your gender, race, age or where you come from. All you need is being ready to follow a good step by step affiliate marketing training to acquire the necessary skills and take the required actions that will help you in different stages when building your online business empire and even how to create a website free. I recommend Wealthy Affiliate platform for various online training.

Basically, Affiliate Marketing is a business model that provides you with endless opportunities and no special qualifications required to become an affiliate marketer, you just have to be willing and ready to learn how it works and you will see yourself building a very successful business in the future.

Requirements Needed to get started as Affiliate Marketer.


You really do not need many requirements to get started as an affiliate marketer. If you have a laptop or desktop, smartphone and internet connection then, you are ready to go. While there are people asking “do you need website to do affiliate marketing”? You can hear people out there saying YES; you need a website before you can get started as an affiliate marketer; in my opinion that is not true at all!

Basically you can still make money online as an Affiliate Marketer without owning a website or blog. The thing you need to do is to Link Directly to the offer. This means that; you simply link directly to the vendor’s offer through any means of advertisements. Practically it is a very straightforward process, but the downside of it is that; it requires much spending on advertising and understanding the ads platform you decide to use and enable you to make more profit. Now let’s see how affiliate marketing works.

Main Parties Involved in Affiliate Marketing.


In order to know how affiliate marketing works first; you need to understand these three main parts in Affiliate Marketing:

• The Advertiser – Merchant.

• The Affiliate – Publisher.

• The Customer – Consumer.

1. The Advertiser – Merchant.


The merchant is also known as advertiser, retailer or brand can be a person or companies selling products or services like tickets, clothes, car parts, mobiles, footwear, grocery, electronics, airline’s insurance service companies etc. Advertisers are the one who is ready to pay people or affiliates who promote their products or services to the prospect customers.

2. The Affiliate – Publisher.


An affiliate or a publisher is a company or person who promotes the advertiser’s products or services and gets paid with a specified commission for every sale that is made from the customer referred to the product owner’s website. The publisher can be a company or blogger who agrees contractually to work with the advertiser, publish the content with advertiser’s links, banners or text ads or even unique phone numbers that a publisher incorporates into their websites.

3. The Customer – Consumer.


After the merchant and affiliate, customer or consumer is the final component that completes the affiliate relationship triangle. The consumer is the one who sees the links or ads; makes action by clicking it and completes the purchase action, which is referred to as conversion. It can be in any form like purchasing a product directly or submitting the details for further action.

Therefore, before jumping into starting an affiliate marketing business, one need to understand the concept fully and steps required to become a successful affiliate marketer. More importantly, if you have decided to become an affiliate marketer or add any company for the same, understand the business and company policies and make a daily, weekly, monthly even yearly plans that will help you to make money with online affiliate marketing.

How Affiliate Marketing Works?


Now that we know what is affiliate marketing, requirements and the main parts involved, let’s now see how it works;

The whole process of Affiliate Marketing starts with an advertiser/merchant who is looking to promote his/ her brand or products online and reach to the end customer all over the globe. The merchant/advertiser here can be a brand or a merchant who must be selling any products like footwear, grocery mobiles, clothing, etc.

In order to promote his/her products to a big number of prospect customers around the world; the merchants/advertiser connects with a publisher/affiliate who will reach out to the users or prospect customers through his/her website or blog.

The advertiser will have to provide banners, links or mailers etc to the publisher which will be placed on publisher’s blog or website. At this point, the advertisement will be served to the buyer or consumer. The buyer is the one who will be doing any activity of buying or clicking the ads and links and this is known as the conversion. The publisher will charge some commission to the advertiser for promoting his/her products and the cost will depend on the pricing model agreed before by advertiser and the publisher.

How the affiliate is being paid?


We know that Affiliate marketing works by the merchant paying a commission to the publisher for referring prospect customers to his/her products. Now let’s see how the payment is done; first you should be aware that not all leads are converted into sales.

Therefore, most merchants will only pay for the actual leads and not just visits. This makes it more of an advantage to the merchant compared to Pay Per Click where a ton of money are spent without producing any actual leads. The affiliate need to send best leads that could generate sales and get the right commission or payment. Commissions or revenue are usually remunerated and paid on a monthly basis depending on the advertiser’s payment policy.

Therefore, what counts as a successful affiliate varies depending on the payment model is being used by the merchant. For example, some pay per click, others pay for sign ups, and others pay for ‘qualifying’ sign ups. The affiliate needs to read the terms and conditions of each affiliate program for details and see how she/he can maximize the profit.

Some Affiliate payment models you need to know.

PPS or Pay Per Sale –This is a program where advertisers pay the publisher a percentage of all sales that are made. These could be a percentage which was agreed by the advertiser and publisher.

PPC or Pay Per Click– This is a program where an affiliate gets paid for all the valid clicks generated regardless if it made sales or leads.

PPL or Pay Per Lead– This is a program where advertisers pay a fixed commission to the affiliate for every qualified action that it generated. This action could be Online Form Submission, Free Trial, Short Survey, Installation, etc.

Here below are the more simplified steps you need to consider before starting affiliate marketing business online;

Choose a niche to build your business on.


The truth is; although you can build your business on any niche of your choice, you will surely achieve more success in a niche that you have passion of and you know much about! In that way, you will be able to help in recommending the right solutions to your audience for any problems they present to you.

Find an Affiliate vendor or program for your niche.


This does involve you doing some research on places like Google to find the affiliate program to promote. To learn more on how to find legit affiliate network, please click this link how to start an affiliate marketing online.

Build a platform for your contents.


You have two options here; you can either build your own website or use Social media like Facebook or Blogger and many more. Your platform is definitely the key to your success; especially if you surely intend to make use of free traffics from search engines.

Publish your contents and start promoting it.


Now is your time to show your platform visitors what you have for them. Your content and product reviews should aim at solving your visitors concerns so that they always visit your platform and eventually become customers. And when that happens, you get paid your commission and this is the most interesting part of the game!

Some Benefits of Affiliate Marketing.


Now comes the answer to the question, what is the benefits of affiliate marketing? There is quite many benefits as far as affiliate marketing is concern, here are some of them;

1. The affiliate does not need much capital to get started. You can even start with as low as $100 which includes owning your own blog.

2. Affiliate marketing has a higher return on investment (ROI) if compared to other businesses. The affiliate can earn up to 80% commission on some products.

3. With Affiliate marketing, you have the opportunity to be flexible and choose when you want to work, where and how you work.

4. You do not need a product of your own to get started! Meaning; no headache of product creation, inventory etc.

5. You do not need any prior knowledge before you can start learning Affiliate marketing. You only need to be ready to learn and be the student of the internet.

6. Affiliate marketing can sometimes be a very easy way of making money online as compared to other ways used to make money online.

7. The affiliate income opportunities in Affiliate marketing has no limits, except the limits you put on yourself.

  Some disadvantages of Affiliate Marketing.


1. The affiliate Marketing is very competitive, and can sometimes be quite challenging.

2. The affiliate marketing can be quite expensive if you want immediate results.

3. Getting results in affiliate marketing can sometimes take months so you need to exercise patience.

4. As an Affiliate marketer, you don’t have any control over the products or program.

Bottom Line!


Affiliate marketing is one of the easiest and most efficient ways of making money in today’s internet connected world. It is obvious to say that affiliate marketing is the most profitable business model, people can make a living with it and it is far easier than what a beginner may think. It is simply a partnership, where you and the business you are promoting mutually benefit one another. In fact, you can earn extra cash and even a full-time income from home just like that; no magic at all.

If you wish to become a successful affiliate marketer that creates a passive income, you would like to follow a good affiliate marketing training and you will be able to understand all what it takes to become a successful affiliate marketer. You just need to be patient, motivated and work hard for your dreams!

In the online affiliate marketing course, you will be taught everything you need to know in internet marketing for affiliate marketing to run a successful business online, even you will learn to build free websites for affiliate marketing, how to create affiliate campaigns from scratch even if you currently do not have an audience or emails list and the best part of it is, you do not even need your own products to make money with affiliate marketing.

Do you have any Question or Comment?


Thanks for your time it is my pleasure. Do not hesitate to ask any question that you may still have regarding our topic today and your comments will be very much appreciated.

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