What Is Affiliate Marketing

As I already talk so much about Affiliate marketing. Affiliate marketing is the most common method to make money online.

Affiliate marketing is my largest income stream. Affiliate marketing allows me the most flexibility. So today you are going to read the ultimate guide on affiliate marketing which will help you earn money from a blog or website.

What is Affiliate Marketing?

Affiliate marketing also called Associate Program or Affiliate Program is the process of earning a commission by promoting or selling others company’s products. The commission depending on what product you are promoting. It may vary from $1 to $1000 and you can work from home anytime and anywhere.

Today Affiliate marketing is the best platform to earn money online from blogging or online marking. Affiliate marketing is totally performance-based you can earn money anywhere at any time depending on what products and services you are promoting. This is the best way to earn money online at home.

How does Affiliate Marketing work?

Actually, when online shopper decided to buy an item, shopper clicks on the ads on your site and he lands on affiliate site and there he is now redirected to the merchant’s site and when shopper finally makes the purchase, you get the commission. But it’s not as simple as it looks before starting any Affiliate programs one should have proper knowledge of Affiliate marketing and how its work.

There are 4 different parties that are involved in affiliate marketing.

1-The Merchant- The Merchant is commonly known as the creator, the seller, or the vendor. The Merchant parties are those who create the products, it can be in any form either company or individual.

2- The Network- Here we are talking about affiliate network which acts as an intermediary between publishers and merchant affiliate programs. It allows website publishers to participate in the affiliate programs.

3- The Publisher- This party is sometimes also known as the affiliate. Publishing is the activity of making information available to the general public. Publishers use affiliate program links to promote and make sales. The publisher can be a single individual or a company.

4- The Customer- The customer is sometimes known as a client, buyer or purchaser. The customer is those who buy the product which is obtained from the seller, vendor or any supplies in exchange for money.

affiliate marketing


Let check out some of the common terms associated with affiliate marketing:

  • Affiliate network- An affiliate network acts as an intermediary between affiliates and advertiser. The affiliate network is used to ensure that sales are properly tracked and the commission is paid to the affiliates. This network helps in collecting reports from merchants and individuals affiliate.


  • Offer- Used for the promotion of products and services.


  • Affiliate Software- Affiliate software is software which is used by the companies to create an affiliate program for their product.


  • Affiliate link or Tracking link- It’s a tracking link which is given by your affiliate program to track the progress. By this link, the merchant can get to know which affiliate marketer sales are made. The linked track the traffic provided by your website to the other website. When you join any affiliate programs, you will always get a unique tracking link that is only for you.


  • Affiliate id- Many other affiliate programs offer a unique ID it is similar to the affiliate link.


  • Banner ad- The ads which affiliate put on their website to advertise a merchant.


  • Click-through rate (CTR) — CTR show the percentage of your affiliate link has been clicked by the visitors to visit merchant’s website.


  • Cloaking- Hiding content on a webpage.


  • Commission- Fee merchant pays to their affiliates when the sale is made.


  • CPA- Cost per Action refers to the amount of money paid to the desired sale.


  • CPC- Cost per Click refers to the amount of money paid to generate clicks.


  • CPM- Cost per thousand refers to the amount of money it costs to display an advertisement per 1000 impressions.


  • Payment Methods- Different companies use different payment methods like Check, Wire transfer, PayPal (most common payment method) and many others.


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Related Articles-

Benefits Of Affiliate Marketing

10 Affiliate Marketing Mistakes That Beginners Must Avoid

7 Points To Keep In Mind Before Choosing Affiliate Program For Your Blog


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