What’s Affiliate Marketing?

Sep 12, 2018 by


Despite the availability of a great number of articles explaining the concept of affiliate marketing, many still try to understand what exactly affiliate marketing is. Most people know that there is a way to earn money with the help of this marketing tool, but few really succeed. Meanwhile, this is an untapped source of generating passive income. In this article, we will try to explain in details the benefits of this marketing tool and why it’s advantageous for both advertisers and affiliates.

Affiliate Marketing: the Notion 

Let’s start with the notion. What is affiliate marketing? It is a kind of advertising practices with the help of which companies recommend their products and services to customers. In this way, the companies generate sales and, as a result, income. As a rule, four parties participate in the process: advertiser, buyer, affiliate website, and network.

The Description of Parties

    Affiliate. This is a person or a company that owns the website with the help of which they can advertise the products or services of an advertiser. Affiliate website contains the details of the products or services offered by the advertiser. In fact, affiliate site pros help advertisers acquire more new customers. The product page of the advertiser is linked to the website of the affiliate. This link is called an affiliate link. 

  • Advertiser. An advertiser is any business to be further advertised with the help of affiliates. Nike, Apple, local real estate company or a handmade candy shop match this description.
  • Affiliate network. The main function of the affiliate network is to place a tracking cookie to the browser of potential buyers. When buyers click the link on the website, they are re-directed to the website of an advertiser.
  • Buyers. Buyers are the simplest notion in this list – they’re those who can potentially purchase products or services.

Affiliate Marketing in Action

If you’re still not sure whether you understood or not the main concept of affiliate marketing, below you can find an example of this tool in action. For example, Nancy owns a website offering handmade candies online. Ron owns a website and a blog for those who like cooking where he shares videos with Nancy’s master-classes, pictures of wedding cakes and reviews related to the ingredients, calories, etc. In these reviews, he places the links to the website of the advertiser, Nancy, where these candies can be purchased. The link looks like this:

  • nancyscandiesshop.com/amasing-wedding-cake.

In fact, this affiliate link looks like this:

  • nancyscandiesshop.com/amasing-wedding-cake/affiliateID1234.

So, if a buyer, let’s call her Mary, makes a decision to purchase a wedding cake after reading multiple reviews, including those posted by Ron, right on Nancy’s website, the affiliate, Ron, will receive a commission for referring Mary, the buyer, to the advertiser’s, Nancy’s, website. More Niche or other networks act as a glue between buyers and advertisers.  Best affiliate programs, freelance logo design or the importance of education can be advertised in the same way. By placing a link edit my resume on educational websites you can redirect potential customers to the company offering editing services. And you can generate lifetime passive income this way. Not bad, right?

Even if a customer decides to postpone purchasing decision till they receive a salary, for example, and get back to Nancy’s website in two weeks or six months, Ron will be awarded commission for attracting this customer because of cookies. Affiliate network places cookies in the buyer’s browser. As a result, the advertiser always knows where they acquired a customer and who is to be awarded a commission.

Benefits for Affiliates

It’s obvious that this model offers several benefits for affiliates. Here they are:

·        The opportunity to sell stock without incurring production or warehouse costs;

·        Cooperation with high-paying affiliate networks;

·        The opportunity to generate passive income;

·        The opportunity to outsource routine tasks to freelancers.

Benefits for Advertisers

Unfortunately, many advertisers don’t realize that this business model offers enormous potential for growth. If large businesses have some understanding of this marketing tool, small firms have no idea about it. However, the affiliate marketing business model offers several benefits for advertisers:

·        Marketing product to target audience without paying an upfront fee;

·        Making payment after the result of advertising was achieved;

·        No marketing budget involved;

·        Risk-free advertising;

·        Massive promotion of products or services.

Affiliate Marketing as a Source of Passive Income

We have already mentioned here that this business model helps generate passive income. Passive income is your earnings you can obtain with minimum participation. Income generated with the help of this marketing tool depends on the following factors:

·        The reliability and efficiency of the affiliate network you’re going to cooperate with;

·        Conversion rates and commission offered by advertisers you’re working with;

·        Your personal level of commitment;

·        Your ability and willingness to learn more about this business model and your specific niche.

The reliability and efficiency of the affiliate network vary to a great extent. It may take one year or even more make your first sale. However, there are free training courses online aiming to teach you to use this source of passive income. The prospects of generating income with the help of this business model are awesome: you can earn from $5 to $100 per sale! Imagine that your sales make up to $300-$400 a day! You will be able to leave your full-time job and enjoy life at full! The earnings of some affiliates make up more than $8000 per week! The most important that this job is legal and flexible: you can do it from any place in the world.

Is It That Easy?

The bad news is that making this scheme work for you is not an easy task at all. It can be very difficult to start and understand the main principles of this endeavor in a short time frame. So, you should be very persistent and goal-centered to build an adequate cooperation with reliable advertisers and affiliate networks. This marketing tool can help build a big business, but, definitely, this is not a scheme to get rich quickly. Besides, you have to set a learning mindset and memorize a lot of important things. For some people, it may take years to achieve the desired results. Therefore, you don’t have to leave your full-time job immediately, start off building this business for you as a sideline, and be prepared to work hard before you earn the first $1. We wish you good luck in your endeavor!

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