Affiliate marketing is a type of performance-based marketing in which a business rewards affiliates for sending traffic, leads or customers.
In other words, it’s a system which involves paying a finder’s fee to the person who refers someone.
Why Use Affiliate Marketing?
The Internet enables businesses to increase their revenue by market their products and services to a global audience. There are many ways they can choose to do this, including blogging and paying for advertising, but affiliate marketing is one of the most effective methods to quickly reach a wider audience.
How Does Affiliate Marketing Work?
The Company, also known as a ‘Merchant’, offers a product or service.
Affiliates then sign up to help in promoting the company’s product or service. The task of an affiliate is to send a stream of visitors to the company’s web site. They do this using a customized link that enables the company to identify which affiliate referred the visitor.
Whenever a visitor sent by an affiliate buys the company’s product, the affiliate earns a commission.
A commission is not always for a sale. Some affiliate programs pay a commission when an affiliate refers a qualified lead, or sometimes even for every visitor who comes through an affiliate’s ad.
A ‘cookie’ is typically stored on the visitor’s computer or device. The cookie is a small file used to track which affiliate referred the visitor. Cookies are usually programmed to remain on the visitor’s device for several months or until the visitor clears the cookies (for example, using their Internet browser’s advanced options).