Do you want people to promote your business as enthusiastically as you do? Hey everyone, this is Digital Abhi, your digital marketing friend, and today I am going to share what is Affiliate Marketing, how does it work, and how you can leverage it.

Also, if you are a video person, you can click here to watch the video. Or you can skip directly to the end of this post where I have embedded a video on the same content. Or if you are quite busy, you can just listen to this content in a podcast form. 

What is Affiliate Marketing?

To understand affiliate marketing we first need to know who is an Affiliate.

Who is an Affiliate?

An affiliate is a person who promotes the products or services for businesses through their audience network. The affiliate can promote through a website, YouTube channel, podcast, email marketing, by running ads. Or through any other method. And in return, that company or business offers him or her a commission for that sale.

Now, what is…

Affiliate Marketing

It is a performance-based marketing method where a person drives sales for a business. And in return, the business offers a commission to the person. 

Also Read: What exactly is Digital Marketing?

Now, there are two approaches to it. One from the business point of view and another from an affiliate’s point of view. Let’s see each of them one by one.

affiliate network

From Business Point of View

If you are a business, you would obviously want to increase sales. So, just start your affiliate partner program. All the big companies like Amazon, Flipkart have their affiliate program. Get people to sign up on your program. And then you can ask them to promote your products for any X amount of commission.

This commission can be a percentage amount of the revenue they generate for you. For example, if the price of a product is $300 and you save $200 on it. Then, you can make the commission like $80 or $100. Or you can also keep it as a fixed value. For example, Bluehost pays its affiliates $65 each time they drive a sale. 

Make sure that the commission you’re giving out is good. Because believe it or not, money is a great motivator. It is because of money they signed up for your affiliate program in the first place. If the commission amount is too low, no one would like to put in their efforts to promote your business.

You can check out ClickBank to get affiliates for your business. If you have a WordPress website, there are a lot of plugins and tools which you can use to manage your affiliate network. 

how does affiliate marketing work
Image Source: chatbotsmagazine.com

From Affiliate’s Point of View

Now, from an affiliate’s point of view, how do things work? Let’s take the example of Amazon to understand this. You sign for its affiliate program which is Amazon Associates. Now you can generate links, banners, and different types of ads to use to promote the products.

You put the link in your blog. And now whenever someone buys from your link, you get the commission. And how much? It can be 2%, 4%, or even 12%. The percentage depends from product to product. And after you hit a threshold, the money is credited into your account. So, in a way, you can say that you are making money while you are sleeping.

This is the process for almost all the affiliate programs out there. Elegant Themes gives a 50% commission of the total value to their affiliates. But keep one thing in mind. Before signing up for an affiliate program for a business or company, do read their terms and conditions. 

To make you understand better, here is the video on what we discussed above.

What is Affiliate Marketing? How does it Work?

Conclusion on Affiliate Marketing

If you are a business and want to boost the revenue, you should start an affiliate program as soon as possible. This way you will get more and more people to promote your business.

Other way round, if you are someone who doesn’t have their own business but still want to make money, then Affiliate Marketing is for you. You will commission on the basis of your performance.

General FAQ

Here I have complied a few FAQ for you. Hope you like it.

Who is an Affiliate?

An affiliate is a person who promotes the products or services for businesses through their audience network. It can be done through a website, YouTube channel, podcast, email marketing, etc. And in return, that business offers him/her a commission for that sale.

What is Affiliate Marketing?

It is a performance-based marketing method where a person drives sales for a business. And in return, the business offers a commission to the person. 

So, this was a short post on what is Affiliate Marketing and how does it work. Thanks a lot for taking out time to read this post. If you got to know something new, or if you have any doubt, do let me know in the comments section.

You can also connect with me on social media. You can share your doubts directly there. I will be happy to help you. Also, stay tuned. Why? Because I am consistently putting valuable content for you.

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