New to Affiliate marketing?

If you ask someone what is affiliate marketing, there are several answers. The simple one would be that affiliate marketing is a form of digital marketing. In addition to that, we can say that it represents one of the most popular ways people make money online.

Affiliate marketing is an online marketing technique. Through it, merchants pay the fee to publishers (affiliates), who efficiently promote their products or services. Affiliate marketing is, therefore, one of the most popular ways of making money online for only one reason because it works.

It’s a win-win situation for all of them. The affiliate gets a reward. The merchant gets more new customers or sales. The customer buys or completes an action that benefits them.

 

How Does Affiliate Marketing Work?

 

In the last decades, new technology has greatly improved the affiliate marketing industry. With the new self-publishing tools (like blogs…) and social media marketing, the global population of affiliates has grown enormously.

Affiliate marketing works in the way where the affiliate (publisher) search for a product they want. After that, affiliate (publisher) promotes that product and earns as a rewarding piece of the profit from each sale they make.

As a result of the promotion of the product or service, we can also find in a completed lead form, a new free trial user, or even a new newsletter subscriber.

It’s best to understand the path of affiliate marketing in through a real-life example.

Practical Example

 

Consider an e-commerce shop, with name AAA LTD, that sells computer equipment in Serbia. That company has a website and their own or ordinary way of selling its products. Yet, this e-commerce thinks that the current customer base is not strong enough for its business targets.

Now, to get to new markets and to ad new customers, AAA LTD starts a partnership with publishers (affiliates). In the role of a publisher, we can find bloggers and other digital marketing professionals. In that partnership, AAA LTD must pay a commission for a certain sales target achieved by independent publishers who join the program. These publishers build websites and marketing campaigns that sell the products of AAA LTD to their customers.

To make all this work, three different subjects must be included:

  1. Merchant and product creators –  He is also known as a seller, is an individual or a business that sells a product or provides a service.
  2. The affiliate or publisher – He is the middleman, a person connecting the customer to the product or service. Affiliate create the marketing funnel that includes the ads, landing pages, and whatever additional means necessary to persuade the customer into making a purchase.
  3. The consumer – In affiliate marketing, a consumer is a person who uses products or services to satisfy his or her needs.

 

“Opportunity is missed by most people because it is dressed in overalls and looks like hard work. – Thomas Edison

 

4 Comments
  • Kiera
    Posted at 10:16h, 06 February Reply

    As a beginner of affiliate marketing this was a very short straight to the point way of explaining it. Great post

    • Milan Matejic
      Posted at 11:02h, 06 February Reply

      Thank you, Kiera. I tried to be short in this article, as much as possible and to explain it well.

  • Ruchik
    Posted at 11:00h, 06 February Reply

    This is a handy post.I wish when I started into affiliate marketing, I read this kind of post. You explain it straightforwardly and effectively.I like your writing style. Great job.Thank you for sharing.

    • Milan Matejic
      Posted at 11:05h, 06 February Reply

      That was my intention from the start. Short, informative and useful. Thanks for reading Ruchik..

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