What is Affiliate Marketing and How Do Affiliate Programs Work?
Also known as associate, referral and bounty programs, an affiliate program is a partnership with an online merchant in which the affiliate earns a commission for referring sales and/or leads to the merchant’s online store. Simply put, affiliate marketing is commission selling on the Internet. Commissions may be based on the purchase amount (Pay per Sale), a set value for each visit (Pay-per-click), or action such as registration or download (Pay per Lead).
Tens of thousands of merchants from sole proprietors and Mum and Pop operations to major corporations such as Sony and Dell have their own affiliate programs. From a merchant’s perspective, partnering with affiliates is an inexpensive marketing strategy to increase sales, drive traffic, generate qualified leads and extend brand reach. From an affiliate’s perspective, few other businesses online or off are as relatively inexpensive and simple to start and maintain.
- You join an affiliate program and you are given a unique affiliate identification and access to your special links and marketing materials.
- You place your affiliate links on your web site, or in your newsletter.
- A visitor on your site clicks that link and buys a product, service or fills out a form at the merchant’s site.
- You earn a commission for sales and/or leads generated through your links.
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