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What is Affiliate Marketing?

In the world of digital marketing, one term you’ll frequently encounter is ‘affiliate marketing.’ But what does it mean, and how does it work?

So what is Affiliate Marketing?

Affiliate marketing is an online sales strategy that lets a brand increase sales by allowing others to earn a commission for recommending its products.

In simpler terms, if you’ve ever recommended a book, a service, or a product to a friend or family member, you’ve engaged in the basic principle of affiliate marketing. 

How does it work? 

There are three key players in this process:

1. The Brand: Also known as the seller, the retailer, or the vendor. This could be a large company, like Apple, or a small business owner who has created a unique product.

2. The Affiliate/Influencer: Also known as the publisher. This could range from a large company to an individual. Affiliates promote the merchant’s product in a way that’s appealing to potential consumers.

3. The Consumer: The most critical part of the puzzle. Without sales, there aren’t any commissions to hand out, and no revenue to share.

Try out affiliate marketing

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The process

The affiliate marketing process is straightforward:

1. The brand Provides an Affiliate Link: The brand gives the affiliate a unique link that tracks any sales resulting from the affiliate’s promotional efforts.

2. Affiliate Promotes the Product: The affiliate shares this link via blog posts, social media, websites, or email newsletters, directing potential customers to the product or service.

3. Consumer Makes a Purchase: A consumer clicks on the affiliate’s link and makes a purchase.

4. Affiliate Receives a Commission: The brand pays the affiliate a portion of the sales price for each purchase made via the affiliate’s unique link.

The process illustrated

Step 1:

The brand creates an affiliate marketing campaign without any upfront payment. This campaign provides a unique link to creators and affiliates.

Step 2:

It’s now the creator’s responsibility to share the link, with their SoMe audience, promoting the brand. 

Step 3:

The link is now being promoted by the creator. The audience now have a chance to click or buy via. the creator. This is a strong way to promote as the creator knows their audience.

Step 4:

Everytime their is sale through the creator’s personal link the brand rewards them, as the sale wouldn’t have happened without them. 

Affiliate marketing is a revenue-sharing venture between a product creator (the merchant) and a marketer (the affiliate). This win-win situation allows the merchant to increase their sales, while the affiliate earns money from each sale they refer.

In a world that’s increasingly online, affiliate marketing offers an opportunity for passive income and is an effective marketing strategy for businesses. For anyone looking to monetize their content or boost their sales, understanding affiliate marketing is a step in the right direction.

Try out affiliate marketing

Sell other people’s digital products.