Affiliate Marketing

Affiliate marketing is a form of online marketing where businesses (merchants) promote their products or services through partners (affiliates). Affiliates earn a commission when a specific action (like a purchase, signup, or click) is completed as a result of their promotion. It’s a performance-based model that benefits both merchants and affiliates.

How does affiliate marketing work?

1. Merchant (Advertiser): The company offering products or services and seeking promotion through affiliate partnerships.
2. Affiliate (Publisher): The individual or organization promoting the merchant's products, often via websites, blogs, social media, or email campaigns.
3. Affiliate Network (optional): A platform that connects affiliates and merchants, provides tracking tools, and manages commission payouts (e.g., Awin, CJ Affiliate).
4. Customers: End users who are directed to the merchant's website and perform the desired action.

Process:

1. The merchant provides affiliates with special links (affiliate links) or promotional materials (banners, text ads).
2. Affiliates place these links on their platforms.
3. Customers click on the affiliate links, leading them to the merchant’s website.
4. Tracking technologies (cookies, tracking IDs) monitor whether the desired action is completed.
5. Affiliates earn a commission based on the agreed payment model.

Commission Models:

• Pay-per-Click (PPC): Commission for each click on the affiliate link.
• Pay-per-Sale (PPS): Commission for each successful sale.
• Pay-per-Lead (PPL): Commission for generating leads (e.g., signups or registrations).

Benefits:

• For merchants: Low risk, as payment is based on results.
• For affiliates: Opportunity to earn passive income.
• Scalable and accessible globally.