How Does Affiliate Marketing Work?

By tariehk
How Does Affiliate Marketing Work?

Waking up and heading to your office job with tons of potholes to battle with doesn’t sound pleasant. What about the traffic, the constant strive to meet up to your boss’s expectation? But with affiliate marketing, you’re able to sleep while your platform makes money. Although it is not as easy as it sounds now, it is possible with the right guide.

If you’ve been dreaming of creating a passive source of income, something that spills in money without having to hustle from 9 to 5, then affiliate marketing is something you should consider. You might be asking, what is the concept behind affiliate marketing?

In a simple term, affiliate marketing is a popular marketing strategy that businesses or individuals use to generate income online. It is a mutually beneficial agreement between a merchant and an affiliate marketer. People trust recommendations from people they know, it has made affiliate marketing a viable marketing strategy that produces results.

In the US, 81% of brands and 84% of publishers utilize the power of affiliate marketing to boost sales and revenue. You see, this is a route you will never regret as it comes with so many potentials. In this article, you’re going to learn virtually everything about affiliate marketing and how you can harness this business strategy in making money.

What Is Affiliate Marketing?

Affiliate marketing is a marketing strategy, a relationship between a merchant and an affiliate who earns a specific commission for promoting a product or service. An affiliate member can make money, depending on how many sales made using the affiliate link. The seller can track purchases using affiliate links from one website to another.

How Does Affiliate Marketing Work?

For affiliate marketing to work, three elements have to work together. Since affiliate marketing works by thinning out the promotion responsibility of a product and services to parties, it makes sense to send a commission for their hard work. The three elements needed to make affiliate marketing work includes:

           1. The seller and product creator

           2. The affiliate

           3. The consumer

If any of these three elements are missing, affiliate marketing won’t make any headway. In other words, it becomes a colossal failure. In the following section, you’ll learn how these various elements work together for successful affiliate marketing.

1. Seller And Product Creators

The seller could be anyone, an entrepreneur, a company, and vendor, merchant, or perhaps a retailer with a product they wish to market. It could also be a service that is marketable like makeup tutorials and so many others. The business or seller doesn’t necessarily need to be involved in the marketing process since they already have a marketing company handling the procedure. For instance, a dropshipping business can decide to pay a marketing company to help market their products and services.

2. The Affiliate

An affiliate, known as a publisher, can be either an individual or a company that helps the merchant or seller to market the products or services. The job of persuading customers to buy a product lies in the affiliate, and they make some commission or percentage based on how many sales they make. When a seller makes a purchase using the affiliate’s link, they receive some portion of the revenue made. An affiliate member is often in a niche with a targeted audience who will he can quickly market to without hassles.

3. The Consumer

The consumer is the final element; the main reason the seller or merchant exists. Although most consumers don’t know this, they are the drivers of affiliate marketing. Through social media or blogs, an affiliate influences consumers to buy a product or services. In most cases, members can be upfront, by indicating that they make some income when their users buy through their link. Whether the customer is a way of the structure behind their purchase, they do not pay more for the product. In most cases, they might even pay lesser if the seller is offering some discounts through a specific affiliate.

How Affiliate Marketers Get Paid

If you’re considering becoming an affiliate, one of the questions you might ask is how affiliate get paid. However, the answer isn’t straightforward, as it all depends mainly on the seller. But here are the various ways an affiliate marketer can get paid for promoting a product.

1. Pay Per Sale

This model is usually a standard marketing structure, where affiliates receive a commission each time they make a sale through their link. It doesn’t matter how much traffic the affiliate member drives to the seller’s website. If their leads didn’t make any purchase, they wouldn’t make a dime. They only get compensated when there is a successful sale.

2. Pay Per Lead

Here is another complicated program, where affiliates make money through pay per lead affiliate systems. In other words, members get compensated based on the conversion of leads and not based on sales. The affiliate’s job is to convince the customer to visit the seller or merchants’ website and complete some actions. It could be signing up as a member, filling a survey, or opting for a product trial. When consumers complete these actions, they earn a commission for a job well done.

3. Pay Per Click

Although this is less common, it is one of the ways affiliates can get paid. This program focuses on compensating the affiliate member when they can direct the customer to their website. It means the branch must convince the consumer to move from his platform to the merchant’s website. In other words, the affiliate is paid based on the amount of traffic he can generate.


Affiliate marketing is a lucrative goldmine, both for the seller and affiliate. There is no loss since it is a mutually beneficial program where both parties benefit from the association at the end of the day. Through affiliate marketing, businesses can boost sales, traffic, and orders, while the affiliate makes money in the form of commission.

By tariehk

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