A revenue sharing venture between an afflitiate member (usually a website owner) & an online merchant
The affiliate places advertisements on their website (or social media platforms) to either help sell the merchant’s products or to send potential customers to the merchant’s website in exchange for a share of the profits.
There are three main ways an affiliate can earn money:
Pay Per Click (PPC)
Every time a potential customer leaves the affiliate website by “clicking” on the link leading to the merchant’s website, a certain amount of money is deposited in the affiliate’s account.
Pay Per Sale
Every time a sale is made as a result of advertising on the affiliate’s website, a percentage, or commission, is deposited into the affiliate’s account.
Pay Per Lead
Every time a potential client registers at the merchant’s website as a result of the advertisement on the affiliate’s account, a previously determined amount is deposited into the affiliate’s account
Why use Affiliate marketing?
- You get mass coverage at no additional cost. Attempting to get a similar level of coverage through another method can be more expensive.
- By placing affiliate marketing advertising on websites all over the Internet, you potentially have free advertising
- The more individuals or businesses you are affiliated with, the more exposure your product/service will get.
- You only incur a cost if and when the agreed action occurs – No action = No cost
In general, think of it as a win win situation for both you and your affiliate. Your product or service gets advertised on their website or social media platform. If one of their audience purchases something of yours then practically the affiliate deserves some kind of commission depending how you’ve set the terms.