Affiliate marketing is an online strategy where an individual or company earns commission for promoting another’s products or services. The affiliate simply searches for a product they enjoy / is more profitable / is popular), promotes it and earns a piece of the profit.
Key Terms Related to Affiliate Marketing
- Affiliate: Promotes goods/services for commission.
- Merchant: Creates the promoted products/services.
- Commission: Money earned by affiliates per sale/lead/click-through.
- Conversion Rate: Percentage of visitors completing purchases after clicking affiliate link.
- Affiliate Network: Also known as CPA network, it is a platform that connects merchants with potential affiliates and provides tracking technology and reporting tools to monitor sales and commissions.
Benefits
- Cost-Effective: Pay only when results occur (clicks, sales).
- Broad Market Reach: Diverse audiences increase brand exposure.
- Mobility: Affiliates are not limited by work location.
- No Earning Cap: Affiliate earnings can vary from a humble side income to sky-high scales.
Drawbacks
- Dependence on Efforts: Success relies heavily on affiliates’ efforts and strategies.
- Compelling Market: It can be quite difficult to start from scratch without good guidance. Many affiliates tend to buy coaching lessons or courses (for example, Commission Hero) where professional coaches guide them step by step into earning.
