What is affiliate marketing? Affiliate marketing is an online form of commission-based promotion in which a company compensates one or more affiliate marketers for each visitor or client brought about by the affiliates marketing efforts. In simpler terms, what an affiliate does is to market and sell another companies product or service. The affiliate is rewarded each time a visitor or client purchases a product or service that is advertised by the affiliate.
The process works like this: The merchant, who is the seller, uses an affiliate to promote his product. Every time the affiliate promotes the product, the merchant pays the affiliate a commission. So if the affiliate can increase sales, the merchant will pay him or her a commission, too.
One of the advantages of an affiliate marketing programme, is that there is no cost associated with joining. In other words, you don’t pay anything until you make a sale. In addition, many affiliates offer a free initial product so that when the customer makes a purchase, they receive a percentage of the sale. The cost per sale or cost per click is the amount paid to the affiliate for every sale made by the customer, or click, resulting from their advertisement. Therefore, affiliates who run successful campaigns may earn hundreds, or even thousands of dollars per month.
Affiliates use a variety of marketing tools to get the ball rolling. Some use pay per click campaigns through their websites, where they can specify how often a visitor should be targeted, and the keywords that need to be used in order to attract visitors. Other affiliates use a variety of social media tools, such as social media profiles, social media links, and video sharing sites such as YouTube, Vimeo, and MetaCafe. This type of marketing allows the merchant to reach out to a target audience in a way that traditional forms of advertising and marketing usually cannot. The popularity of these sites, and the ease with which one can use them, have created a niche market for those who offer affiliate marketing solutions.
A good example of how an affiliate marketer can find relevant influencers is Facebook, which is an amazing tool for finding friends and acquaintances. The friends of each other can provide valuable information to anyone looking to improve their business, and, as a result, those people can become powerful influencers. When an affiliate uses Facebook to promote their merchant’s products and/or services, they can find others who are interested in what they have to sell. These individuals can become friends, and through the power of friendship, can promote the merchants and their products to their networks, and in turn, the merchants can find relevant influencers, and in turn, they can find customers.
One of the best advantages of what is affiliate marketing, is that it is completely scalable. Simply put, the merchant doesn’t need any upfront cash investments in order to start an affiliate marketing program. Instead, the merchant only pays when people purchase through their affiliate pages or websites. It is a win-win situation for both parties: the merchant gets increased website traffic, and the affiliates get a commission for bringing the traffic.