Lesson 1. What is Affiliate Marketing? How does it work?

Affiliate Marketing: A Simple Explanation

What is Affiliate Marketing?

Affiliate marketing is a performance-based marketing strategy where a business rewards affiliates for1 each visitor or customer brought2 about by the affiliate's marketing efforts.3

How does Affiliate work?

1. The Merchant: A company that sells products or services online.4
2. The Affiliate: A third-party individual or business that promotes the merchant's products or services.5
3. The Customer: The potential buyer who is targeted by the affiliate's marketing efforts.6

The Process off affiliate marketing:

1. The merchant creates an affiliate program: This involves setting up terms and conditions, commission rates, and providing tracking tools.
2. The affiliate joins the program: They sign up and receive a unique affiliate link.8
3. The affiliate promotes the merchant's products or services: This can be done through various channels like blogs, social media, email marketing, or search engine optimization.
4. The customer clicks on the affiliate link: This link tracks the customer's origin, allowing the merchant to attribute the sale to the specific affiliate.
5. The customer makes a purchase: The merchant pays the affiliate a commission based on the agreed-upon terms.