How Affiliate Marketing work? April 6, 2020 by Brayden Hall

I’m pretty sure you’ve heard of affiliate marketing (or affiliate marketing) but haven’t fully understood how it works, how people manage to make money, and more generally what affiliate marketing is.

To put it simply, affiliate marketing is a business marketing model in which your customers and / or readers become your sellers.

How is it possible? Today, we will answer all your questions about affiliate marketing, including the following:

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What is Affiliate Marketing?

How are Affiliate Marketing Relationships Defined?

What are Affiliate Networks?

How can I become an Affiliate?

How can I become a seller?

Ready? Let’s begin!

What is Affiliate Marketing?

Affiliate marketing is a form of pay-for-performance marketing in which an affiliate sells items on behalf of a seller at an agreed rate or percentage of the sale.

It’s a great form of advertising for ecommerce stores as funds are exchanged only after the sale has been completed, but it works for every business model on the market.

As long as you have a product to sell , or find a product to promote, you can participate in affiliate marketing.

What sets this form of marketing apart is the fact that it benefits all parties involved. It benefits customers who can find products they might not have found for themselves and who rely on the approval of someone they (presumably) trust.

While on the marketing side, the seller and the network (which we will see later), everyone benefits from a part of the sale .

L ‘ 81% of the brand has an affiliate program.

And this system does not seem destined to deflate very soon. Affiliate marketing revenue increased nearly 23% year on year from the second quarter of 2017.

Affiliate channel revenue (YoY)

Affiliate channel revenue (YoY)

Sometimes also called “partner programs”, affiliate marketing programs are available in all sizes and shapes to adapt to the many companies to which they are linked. For example, you can take a look at the Mailchimp program below:

Mailchimp partner program

Mailchimp partner program

Another affiliate program is that of Vitamin Shoppe:

The affiliate program of Vitamin Shoppe

The affiliate program of Vitamin Shoppe

Affiliate programs can work for you even if you don’t have a big name. Entrepreneurs around the web use affiliate marketing programs to sell their products.

And in some cases, their sales are enough to create million-dollar markets, as Poster Gully does .

Gully poster

Gully poster

So what is affiliate marketing?

A system that works best for everyone involved and moves multiple products to multiple customers. Affordable and broad, affiliate marketing is an excellent choice for anyone who wants to grow their profits. Whether you are a seller or an affiliate.

None of this however tells you exactly how affiliate marketing works. To understand this, you need to fully understand the relationships involved in affiliate marketing .

How are Affiliate Marketing Relationships Defined?

Affiliate marketing is all about relationships created between people . The relationship between the customer and the affiliate is based on the same values ​​as the relationship between the affiliate and the seller: solid trust, fair conditions and transparency.

Transparency is not just a suggestion, by the way. It is a legal requirement in the United States.

In the simplest version of affiliate marketing, there are three parts involved:

The customer (public)

The affiliate (promoter)

The seller (owner)