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What is affiliate marketing and How to Get Started?


    What is affiliate marketing?

    Affiliate marketing is one of the most popular methods available as of now to make money online. If you are interested in earning money as an affiliate marketer, you need to be aware of the basics. Continue to read and we will share all the basics that you need to be aware of affiliate marketing.

    Affiliate marketing is where you promote a product or a service offered by another entity to a new audience with the objective of securing a commission or a reward. The best thing about affiliate marketing is that you don’t need to own a product or a service. You just need to promote something, and you can get guaranteed returns based on sales or leads you generate.

    What are the key components of affiliate marketing?

    Now you have a basic idea of what affiliate marketing is all about. While keeping that in mind, let’s take a look at the key components of affiliate marketing.

    • Merchant

    Merchants are the product creators. They include brands, sellers, creators, vendors, and even retailers. Big companies such as Amazon and Dyson are perfect examples for merchants. Among merchants, you can find solo entrepreneurs as well as Fortune 500 companies.

    • Consumer

    Consumers are the people who purchase products. Affiliate marketers make products visible to consumers and promote them in an appealing way. For example, affiliate marketers find a pain point of consumers and create a useful article providing solutions for it. Affiliate product URLs will be included in the article. Consumers who get tempted based on the reviews will go ahead and click on those affiliate URLs to purchase products. This would complete a sale and generation of affiliate commission to an affiliate marketer.

    • Affiliate marketers

    Affiliate marketers are the middlemen between merchants and consumers. They promote products or services obtained from merchants to consumers. For all the hard work they spend, commissions will be offered in return. These commissions can either be flat-rate commissions or percentage commissions. It varies depending on the affiliate network that they use.

    • Affiliate network

    An affiliate network is a platform that encompasses all entities mentioned above. Merchants will make their products available on the platform, where affiliate marketers can generate and access their unique affiliate URLs. Then the affiliate commissions and all other trackings related to the affiliate URL will be stored within the affiliate URL. Commission calculation will happen within the affiliate network as well. At the end of the month, affiliate marketers will be able to access their accounts in the affiliate network and proceed with withdrawing their earnings. digitalocean, bluehost, GetResponse, Vultr, and ActiveCampaign are some of the perfect examples of affiliate networks available out there to consider.

    How does affiliate marketing work?

    Let’s take a look at how affiliate marketing works based on an example. You can sign up with Amazon as an affiliate marketer. Then you can select products on Amazon as an affiliate marketer. Amazon will generate and provide a unique URL for each affiliate product you promote. This URL will be used to track your affiliate commissions as well. You can create a blog sharing reviews of products that you promote as an affiliate marketer. Then you can generate traffic to the blog.

    People who go through your blog will read the content you share and click on affiliate URLs of products that they are interested in purchasing. If someone commits to buying any of those products, you can secure a commission. Likewise, you can continue to make money even when you are sleeping.

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