What is Affiliate Marketing & How Does it Work

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What is Affiliate Marketing & How Does it Work

In Affiliate Marketing, you promote other companies’ products, so when someone buys through your affiliate link, you get a commission. Simple!

You act as a salesperson for the company, when you work as an affiliate. The company rewards you, when you help them make a sale.

Why Affiliate Marketing is the new trend?

Why affiliate marketing is one of the hottest profession because you can do it at scale. A typical salesperson can only sell products of one company while as an affiliate marketer, you can promote products from many different companies and earn commissions from all of them.

Why small businesses prefer affiliate marketing?

This is the age of influences and social media. Businesses know that people spend a lot of time surfing social media. So why not their product be advertised by someone their customers know and trust. This could be their favorite blogger, social media friend and so on.

How Does it Work Affiliate Link

The merchant of a business gives each affiliate marketer a unique link so they can track who was responsible for a sale. When someone clicks that link, a small file called a cookie gets stored on their device.

An affiliate cookie does two things:

It helps the merchant attribute the sale back to the right person. Here’s an example of how this works.

Imagine that a reader of your blog visits your post about the best canvas shoes. They click on one of your affiliate links, leading them to a product on Amazon.

Suppose the customer had his dinner, and then finally go back to Amazon where they find the product again.

Since he is already shopping on Amazon, they decide to purchase some ski gear too.

Here’s the good news. Earlier, he clicked on your affiliate link and a cookie was stored on their device. Because Amazon has a 24-hour cookie duration, you get compensated for both the canvas shoes and ski gear—even though you didn’t promote the latter.

How much money can one make as an affiliate marketer?

The simple answer is that there is no limit. It depends on your niche and the amount of work you put in.

Final thoughts

Just don’t expect life-changing income or the freedom to quit your 9–5 overnight. Affiliate marketing takes time.

More and more Small businesses are liking the idea, so this is a big career opportunity.

Focus first on making your first affiliate sale. As your site grows, set new goals, and continue experimenting.

This is how to build up a site that eventually generates a decent income.

If you have any questions on Affiliate Marketing, let us know in the comments section below.

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