What is affiliate marketing?

Affiliate marketing has been popping up all over the internet, so we decided to clarify what exactly affiliate marketing is and how it can benefit you as a business or marketer.

What is affiliate marketing?

Affiliate marketing is the process of gaining website traffic through third parties in exchange for a commission. The commission structures seem to vary among businesses who participate in affiliate marketing, but these commissions depend heavily on conversions. Businesses who participate in affiliate marketing generate a unique affiliate link for the marketers to use on their social media accounts or blogs. Affiliate marketing is similar to referral marketing as these individuals would refer products to their audience however, affiliate marketing offers a set commission structure where referral marketers would just get a fee for advertising a product. In this way affiliate marketing serves businesses better due to the commission based on conversions. Referral marketers can often under deliver in conversions due to the lack in analytics and audience the third-party might have. With that being said, it's important to select a third-party that caters for your niche. Affiliate marketers are excellent for creating impressions as they are absolutely free! Imagine thousands of articles about your product being published on the web by affiliate marketers who believe in the quality and service delivery of your business. The only time you would need to pay them is after a transaction has been made.

What is a conversion?

A conversion is essentially a sale. It's a term used in E-commerce for converting a prospective customer to a paying one. When a customer clicks a link for a product online and thereafter makes a purchase it counts as a conversion.

Who are these third parties?

The third-parties in question are bloggers, influencers and celebrities. To get in touch with the aforementioned you would need to either offer an affiliate program or contact them directly via their social media accounts, email addresses or PR managing agencies.

How much do affiliate programs pay?

Some affiliate programs pay around 5-10% commission but it can go as high as 25%.