What is Affiliate Marketing?

What is Affiliate Marketing?

Affiliate Marketing is a big industry of online advertising. It generates about 14% of all online Sales!

Affiliate Marketing consist in intentional publicity of a company’s products. The aim of the business owner (the advertiser) is to increase sales by allowing the users (the affiliates) to promote and recommend products to potential customers.

In exchange for the sale, the affiliates receive a percentage commission from the advertiser (for example, 10% on each sale).

The use of an easy affiliate software, like AffiliationSoftware, allows you to simplify and automate all these complex processes.

Affiliate marketing involves 3 parts:

1. Affiliates
The affiliate is a website owner who tries to encourage the visitors of his/her website to purchase certain of your products. The affiliate website generally features the product’s details on reviews, links and banners. A special affiliate link is also placed on his website to guide the readers through the advertiser’s website.

2. Advertiser
The advertiser is the company trying to sell its products or service. It could be an online store, an insurance company, a Pi computer seller, or a pet dealer etc. He is also the administrator of the affiliate program.

3. Affiliate Software
The Affiliate software tracks visitors on the advertiser’s website, automatically recognizing when someone buys. This information helps the advertiser to keep track of the number of customers reaching and buying through an affiliate’s website.

Performance marketing

Affiliate Marketing is based on Performance Marketing and it is the most cost effective method of growing sales. Basically, it permits you to establish a virtual sales team that works to attract new online customers in exchange for a commission on the sales that they generate for you.

It is risk-free because the advertiser will pay for the effective sales only. If an affiliate fails to generate sales, the advertiser will not have to pay anything.

Benefits of Affiliate Marketing

The affiliate does not have to invest in manufacturing of the products. Still, he/she can earn a certain amount by promoting and reselling your products.

On the other hand, the advertisers benefit from affiliate marketing by increasing their products sales.

It is a win-win situation for both, the affiliate as well as the advertiser.