Ever wonder what is Affiliate Marketing and how does it work?

It is actually a type of performance-based marketing in which a business rewards their affiliates for each customers that their affiliates had brought in whom had made a successful submission or procurement.

It often overlaps with other internet marketing methods to some degree, because most of the time, affiliates use regular advertising methods. These methods includes organic search engine optimization (SEO), paid search engine marketing (PPC – Pay Per Click), e-mail marketing, content marketing and display advertising.

You may refer to below image for a brief explanation of how Affiliate Marketing works.

With the brief explanation on how affiliate marketing works as above, you might already have the idea of how people out there are generating income from the internet don’t you.

In Affiliate Marketing there are a few parties, each playing important role that we should understand as below:

Publisher (Affiliate Marketer)

The Publisher or so called Affiliate Marketer is an entity/individual who advertise the products and services of a business in exchange for a commission on all successful sales. The publisher will then find ways or methods to promote the products and services in either their own website / blog. Those advertisement can be in a form of banner, text link, or search box. Whenever a lead / sales is generated thru the click of the banner / text link, publisher will be paid for the commission either in the percentage of the sale amount or it can be in a fixed amount per lead.

Advertiser (Merchant)

The advertiser so called Merchant is an entity that sell the products or offer services. They will corporate with publishers to generate more sales. Why do they prefer affiliates to help them to market their products as they might not have expertise in affiliate marketing and this will lead to unnecessary costs. Going thru affiliate marketers, Merchant only have to pay only for those successful leads. There are a few terms I had listed below for your reference:

Pay Per Click (PPC) – where In Pay Per Click, you get paid for all valid clicks that you generate regardless of leads/sales.
Pay Per Lead (PPL) – In Pay Per Lead, the merchant pays you a commission (a fixed amount) for a qualified action which can be a short survey, free trial, install, sign up, online form submission etc.
Pay Per Sale (PPS) – In Pay Per Sale, the advertiser pays you a percentage of all qualified sales.

Affiliate Network

An Affiliate Network is so called an Agency which connects the Advertisers and Publishers. They will have tracking technology, reporting tools and manages the commission payment to Publishers. Some merchants would prefer to use Affiliate Network to manage their affiliate program instead of liasing with the publishers on an one to one basis to reduce their workload. Samples of Affiliate Network out there are as follows:

2)Google Affiliate Network
4)Commission Junction

Sounds interesting right?

In my page of Building Website, I had mentioned that in current days, creating website is as easy as eating a pie. Furthermore, with guidance like Wealth Affiliate, it is already like feeding you the pie directly into your mouth. The only hard task for you left is to munch it and swallow it.

You may read for my review here on Wealthy Affiliate or if you have any doubt, always feel free to drop a comment below.

  1. I am a WA premium member for a month plus. I can say that WA has provided me the best opportunity to learn the ropes fast with the crisp delivery of content. During this month, I had received a message that states my successful referral of a member to the WA. He has yet to sign up for the premium membership but at least this has given me some form of reassurance in working towards my goal. Anyway, thanks for sharing.

  2. Hello, your post is well detailed and filled with a lot of good information. I am sure that your readers will love your post. affiliate marketing is so great and so many people are enjoying the business of having their own success business. Thanks again for sharing.

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