Affiliate marketing is responsible for over 16% of ecommerce sales globally. That is why many people try to understand this technique to make sales and generate money. If you also want to make money this way, you are in the right place.
Here is your guide to understanding how does affiliate marketing work.
Affiliate marketing is a technique where an individual can earn a commission by promoting goods or services made by another advertiser or retailer. It is a way where you become an affiliate partner and make money by bringing a specific result (sale) to the retailer. However, some affiliate programs might also offer you payout for bringing in leads, website clicks, and more.
Remember that most affiliate programs are free to join. Because of this, you don’t have to worry about any initial costs. That is why many people are using this online business model to generate sales and revenue.
So, how does affiliate marketing work? It works in a way that it refers a product or service by sharing it on a website, podcast, blog, or social media platform. As an affiliate, you will share the product or service here and get the reward anytime someone makes a purchase through the link you post.
Here is a small overview of how it works:
· You show a link or ad for an X store on your social media, blog, or website
· The customer clicks the link or ad
· The customer is directed to the X store through your tracking link
· He or she makes a purchase on X store
· The affiliate network records the purchase and transaction details
· The customer is directed to the store through the tracking link
· The transaction is credited
· You receive the commission in no time
Of course, the commission rate will depend on the company and its offer. Many affiliate programs can easily offer between 5 and 50% as commission. On the other hand, some programs also offer a flat rate per sale.
Before you become an affiliate marketer, you must understand the various ways in which you can get paid. These include:
· Pay per sale: This is the most common one, and you earn a commission for each sale
· Pay per install: You receive payment for every install generated from your website traffic
· Pay per action: You earn a commission for a specific action
· Pay per lead: You get paid every time someone signs up for something
· Pay per click: You earn money when someone clicks on the affiliate link
These are the top five payment methods for affiliate programs. It depends on the affiliate program what they want to offer to you.
Final Words
That was a small guide to understand how does affiliate marketing work. Now that you know what it is and how it works, you can decide whether you want to go down this route or not. Once you do, you can begin making money in no time. Want to get started for free, go to this page.
More Resources:
Definition of Affiliate Marketing