How Does Affiliate Marketing Work.Learn Affiliate Marketing
Is it your first time to learn of affiliate marketing? If so, you are not late to understand what it means. In order to give you a clearer meaning of what it means, I will give you two perspectives of its meaning; my perspective and then later, the definition given by Wikipedia.
I can define affiliate marketing as a limitless potential to financial success and freedom through online marketing with an aim of making money. Affiliate marketing is open to everybody willing to learn and dedicate his/her time to success.
As an affiliate marketer, you will benefit from commissions earned for every successful leads to merchant sites. Besides this, commissions can be earned through clicks, sales and lead acquisition.
According to Wikipedia, affiliate marketing is an internet oriented marketing practice involving a business that rewards an affiliate or affiliates per every customer or visitor brought on board through personal marketing efforts.
It can also be referred to as a crowdsourcing application. Reward sites; reward its users with either cash or gifts for every successful offer. Affiliate marketing comprises four major components:
i. A network
The complexity with which affiliate marketing has grown has led to warranting secondary player or tiers including:
i. Third party vendors with expertise
iii. Management agencies’.
Importance of affiliate Marketing:
i. Gives you business autonomy where you will not require having a business office, hiring staffs or selling product. Besides this, you will not require the old business tactics. This means that, you will be your own boss, making all major decision by your own.
ii. Ready avenues for earnings: Majority of the companies with brand names are embracing affiliate marketing.
They have opened their products to individuals and online companies to promote their products. As an affiliate marketer, you will require to only prepare ad campaigns necessary for driving traffic to their sites.
When all this is done, you will start earning commissions per every sale, referral or lead without handling neither customer orders nor products.
iii. Affiliate marketing can be done from anywhere in the world. What you only require is an internet connected computer to start your business.
Understanding how affiliate marketing works
As highlighted earlier, the affiliate gets a commission of every sale referred to the merchant site while all the processing and tracking are handled on the affiliate network and the back end of the merchant site.
An affiliate network is responsible for allowing several affiliates to promote their offers through its numerous affiliate programs.
Furthermore, the affiliate network is responsible for sending monthly checks of commissions earned at specific times.
Step by step guide on how affiliate marketing operates with tracking:
i. Customer comes to your affiliate link or website.
ii. Customer clicks on your affiliate link and lands in either a web site or particular affiliate sales page.
iii. Incase of sale or lead, a commission is awarded to the affiliate.
Affiliate programs or network are responsible for all backend tracking. You require your own account and its corresponding id in order to track affiliate links with a purpose of creating personal affiliate links.
Lastly, setting up a network will enable you track everything pertaining to your affiliate stats.