Affiliate marketing is a form of online marketing that allows businesses to pay affiliates (individuals or companies) for promoting their products or services. The affiliates receive a commission for every sale or conversion made through their unique referral link or code.
Here’s how it works:
- Merchant or advertiser: This is the company or individual offering the product or service. They create an affiliate program and choose affiliates to promote their products or services.
- Affiliate: An individual or company that promotes the advertiser’s products or services and earns a commission for each sale or conversion made through their referral link or code.
- Customer: The end-user who makes a purchase through the affiliate’s referral link or code.
- Tracking: The advertiser uses a unique tracking code or links to track the sales and conversions made by each affiliate. This allows the advertiser to accurately pay commissions to the affiliates for their efforts.
- Commission: The amount of money earned by the affiliate for each sale or conversion made through their referral link or code. This amount is agreed upon between the advertiser and affiliate and can range from a few percent to 50% or more of the sale price.
In summary, affiliate marketing is a mutually beneficial arrangement between merchants, affiliates, and customers. Merchants benefit from increased exposure and sales, affiliates earn a commission for their efforts, and customers benefit from being introduced to products or services they may not have otherwise found.
It’s important to note that affiliate marketing requires time and effort to be successful. Affiliates need to choose products or services they believe in and effectively promote them to their audience. However, for those willing to put in the work, affiliate marketing can be a lucrative source of passive income.



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