★What is affiliate marketing?


Affiliate marketing is a process where publishers earn a commission by promoting a product or service made by another retailer or advertiser using an affiliate link. The affiliate partner is rewarded a payout for providing a specific result to the retailer or advertiser. Typically, the result is a sale. But some affiliate marketing programs can reward you for leads, free-trial users, clicks to a website, or getting downloads for an app.

Most affiliate programmes are usually free to join, so you don’t have to worry about high startup costs. Done right, an effective affiliate marketing strategy can go from side hustle to profitable online business idea by netting you a healthy income.

★How affiliate marketing works

Affiliate marketing involves referring a product or service by sharing it on a blog, social media platform, podcast, or website. The affiliate earns a commission each time someone makes a purchase through the unique affiliate link associated with their recommendation. 

 

circular diagram of how affiliate programs work
Diagram on how affiliate programs work

 

To review:

  1. You show an ad or a link for Store Z on your website, blog, or social network.
  2. A customer clicks your unique affiliate link.
  3. The customer makes a purchase in Store Z. 
  4. The affiliate network records the transaction.
  5. The purchase is confirmed by Store Z. 
  6. You get paid a monetary commission.

Commission rates for affiliate sales vary depending on the company and the offer. On the low end, you’ll earn about 5% of the sale, but with some arrangements, you can earn as much as 50%, usually when promoting a class or event. There are also affiliate marketing programs that provide a flat rate per sale instead of a percentage.

★Types of affiliate marketing

Affiliates always carry a bit of mystery—you never know if the person has ever really used the product or if they are just promoting it for the money. Both cases still exist today. 

It wasn’t until 2009 when renowned affiliate marketer Pat Flynn broke down the different types of affiliate marketers into three groups.

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