Affiliate Marketing – What is it and what are the benefits?
What is affiliate marketing? Affiliate marketing is a method of facilitating the sale of goods, services or electronic products, in which the affiliate partner receives a certain provision for facilitating the sale or provision from the realized sale or other activity.
We have several terms under which people know affiliate marketing. Affiliate marketing is also known as a partner program or provisions program or partner system.
It’s a simple system, which if properly set is beneficial for both parties - the salesman (operator) and the broker. It works on a similar principle like drop shipping, or even better, a real estate agency and its brokers. A broker is usually paid based on his performance, so based on realized sales. That’s exactly how it works with affiliate marketing, the only difference being that the affiliate marketing works through the Internet.
For affiliate marketing you don’t have to have your own e-shop (although you can), a webpage or a blog is sufficient, through which you can promote products or companies. You can also effectively use social networks or email marketing for affiliate cooperation.
If by some chance you haven’t heard about affiliate marketing yet, then maybe you are asking how does it work. Affiliate marketing on the Internet is based on cookies, which is data, which can record clicks on a link or an ad banner and record performed purchase, based on which you then get a provision from the sale.
If you engage in Affiliate program, you will get your unique link (URL), or you can select a banner with your unique link. An if you send buyers to the web of the customer through this link, who then buys something or performs some other action (it depends on the affiliate program), you will then get a certain provision for it. Usually it’s provision in the amount of 5 to 20%, but there are programs which offer as much as 50% of the sale price. Of course this doesn’t cost the customer anything, because the partner seller pays the provision from his profit.
Advantages of affiliate marketing
- Thanks to affiliate marketing you can earn money on the Internet in a relatively simple way. A number of people currently earn money through facilitating sale through affiliate marketing.
- The first and foremost advantage of affiliate marketing is that you don’t have to have your own goods or product so you could earn money.
- You don’t need any storage spaces or stock. The products you promote are stored and delivered by the seller, so you are taking care of marketing and advertisement.
- You don’t have to care about shipping the goods to the customers or claims. In case of a claim only the provision is deducted from your account, but you don’t have to take care of the whole claim process.
- You don’t even have to deal with the customer support, because you only facilitate the sale, but you are not the seller of the products or services.
- Essentially you don’t need any money to start earning money with the affiliate marketing, which is a relatively undemanding way of earning money on the Internet.
- Affiliate marketing can be a great way for sellers and companies how to traffic and improve sales.
- Affiliate marketing is a proven new marketing model (especially abroad), but at the same time it is one of reliable ways how you can earn money on the Internet.
- Through affiliate marketing different products are being sold, from the physical ones to the digital ones, but also services, vacation, plane tickets, trainings, etc. Essentially it has limitless possibilities of use.
About the Author
I have working experience ranging from start ups to corporate fortune 500 companies (CBRE) I combine an analytical mindset with a creative, out-of-the box way of thinking. I have worked for Lion&Lion (major digital agency in southeast Asia) where I was part of the Marketing and Facebook Advertisment teams. Helped a lot of start ups for fun mainly with business and marketing plans, market research and branding.