What is Affiliate Marketing? How it works - Fully Explained

person By : Admin | In : Affiliate Marketing | Last Updated : May 6, 2021 | Total Views: 15838

What is Affiliate Marketing? How it works - Fully Explained

What is Affiliate Marketing? How it works

Are you looking to make money online? Do you want to live a life on your terms? Put your dreams into reality by becoming an Affiliate Marketer.

Based on the content you create, be it making videos or writing blogs, you can generate a substantial income. The search interest in "affiliate marketing” has increased by more than 200% since 2015, making it a trending career option. All you require to do is find your niche and create content so that you can earn through it.

As an affiliate marketer, you can make up to 10% or sometimes more of the product's revenue. Here is all you need to know more about affiliate marketing. Read on.


What is Affiliate marketing?

Affiliate marketing is a strategy to earn money by selling products for a business. In this case, the other party is required to promote the product on their social media platforms, blogs, or any other platform where they have a wide audience or reach.

Over 80% of brands utilize affiliate marketing today. The company gives a unique link to the affiliate. Based on the sales made by the person, their compensation is decided.

Hence it is a great way to make money online with minimum investment. All you need is a laptop, high-speed internet, and some amazing content to market the products.

You may also like Read : 7 Best sources of Traffic for Affiliate marketing

Advantages of Affiliate Marketing

Affiliate marketing offers a plethora of benefits both for the business and the affiliate marketer. Some of them are listed below for your understanding.

  1. Earn extra money - It is apparent that our 9 to 5 jobs don’t pay enough to support our needs. Additionally, we also know that life is uncertain. Anything could happen at any time, so we must keep some money in advance to avoid financial difficulties. Hence affiliate marketing can help you earn a side income without putting in any additional effort.
  2. Working hours as per your wish - As stated earlier, you can become your boss without having to sit for 9 hours at an office.
  3. No concern about customer queries - One of the best things about working in this area is that you don’t need to solve customer complaints. The complaint section is handled directly by the seller.


How does Affiliate Marketing work?

There are three main categories involved in making Affiliate marketing work. These three come together and form a team to make the campaign complete.

  • Sellers
  • Consumers
  • Affiliates

The companies which sell the products are termed as sellers. A seller could be the owner of a small business owner or a multinational firm.

An affiliate is a person who helps the seller increase their profits and takes a commission for the same. An affiliate is also called a publisher, as his job involves attracting more customers and convincing them to buy products.

A consumer helps to complete the cycle of affiliate marketing. He buys the product by clicking the link, and in return, the affiliate is rewarded.

Also Read : How to Make money as Flipkart Seller and Affiliate ?

How to generate revenue as an Affiliate Marketer?

Working as an affiliate marketer, you can earn money in many ways. While pay per sale is the most popular one, there are other ways to earn money too. Here are a few methods.

  • Pay Per Click - Another alternative way of making money is by the PPC method. In this, the affiliate can earn money even if the product is not sold. The payment by this type is for every click on the link.
  • Pay per lead - While this way of earning money is not much popular, there are still many companies that pay for bringing leads. It can include bringing contact information by making potential customers fill survey forms or go for a free trial.
  • Pay Per sale - One of the most typical ways to generate money is by persuading the customers to buy the product. The product is purchased by tapping on the unique link by the affiliate marketer. A part of the profit made by selling this product goes to the affiliate marketer as a commission.

Also Read : How to Make money as Flipkart Seller and Affiliate ?

How to become an affiliate marketer?

Here is a step by step guide to help you start your career as an affiliate marketer.

  1. Choosing a platform - There are a plethora of platforms such as Instagram to start your career as an affiliate marketer. You might have seen many bloggers promoting various brands or businesses.
  2. Find where you belong - These platforms are filled with millions of users, so finding your niche is essential. It may be beauty blogging, travel, etc.
  3. Build a strong audience - Building an audience or a fan base helps you to generate more sales. A loyal audience supports your content and follows what you preach religiously.
  4. Connect with brands/services - Once you have ample followers/subscribers, you can reach out to brands for any opportunities. Amazon Affiliates is one of the most effective affiliate programs in the world.
  5. Make affiliate content - Making content relevant to the product you are marketing can help you fit the affiliate link naturally. It should be of your preferred niche. For example, if you love to do makeup, you can make a step-by-step makeup tutorial and embed the unique link.
  6. Persuade customers to tap on the link - Convincing your customers to buy the product is also an important task. Your content must be relevant to the product that you are selling.


Additionally, SEO is a powerful tool to produce organic traffic. Making your website user-friendly is also an important part of increasing traffic on your website. The content on your website must be better than your competitors. Good keyword research and additional reference links in your content are required to increase your ranking.

Tips to Excel in Affiliate Marketing

Affiliate marketing is the new age trend started by the big eCommerce stores to market their products. It also allows the users to generate a good amount of money through affiliate marketing techniques. Hence, affiliate marketing is good, but it can only show promising results when you are skilled with all the right tips. Here we have covered some of the tips that will guide you in the proper manner for excelling in affiliate marketing.

Produce Solid Content

If you want to make some passive income from the affiliate marketing method, you need to create high-quality content. Content is important as it is in every piece of communication used by marketers. In this case, you need to know the call to action for both transactional and informational method. Also, the marketer should possess the right abilities to write content in a readable way.

Another main thing is that your content should always be reader-centric. You should answer all the common question and provide them with detailed manners. Ensure that all the content is written in a thorough, accessible and engaging manner.

The best way to write such content is to know your audience and look at the factors that have brought them to your website. You can place a search box on the page to provide ease to visitors for finding and learning the thing they have been looking for on your website. You need to commit to creating useful content regularly.

Track Affiliate Marketing Sucess

The ongoing success of any business requires insights into what you have worked for in the past years. You should never forget the success goals after setting them. Every marketer should know how visitors have engaged with their website as it helps to determine success. Without stating, the search ranking of the website will also have some effect along with its social sharing factor.

You need to use visitor analytics for learning about the visitors. Also, what is the percentage of new visitors against returning visitors? What pages of the website get the major traffic? What links on different bars or places get clicked by the user? Answer such questions regularly, and you will see that your working method is improved, and it will help you add required actions.

There are some more questions such as where is your website traffic coming from? Which pages of the website are most visited before any conversion? Also, you should use analytics to get the answers to all your questions. Using data will help you to improve your marketing strategy and generate a better revenue rate.

Know About Your Products

Having knowledge about your products or services can help you to make yourself different from all your competitors. Affiliate marketers are responsible for recommending products to their followers, subscribers or visitors. So, if you want your approach to stand out, then you need to review products as an expert. This is only possible if you have detailed information about the products you are going to promote.

Affiliate marketers commit this mistake of approaching the vendors to promote products they think their visitor would find interesting, and they do not possess knowledge about it. In that case, they might lose potential visitors and lose the deal from the vendors. Therefore, it is important to offer something that benefits the user and provides information unknown to the user.

Never sign up or collaborate with the vendors because they are offering a product in your niche. You should conduct your research and look for the reviews of other affiliates to start and stand out from the crowd.

Also Read :   6 Best ways to make money on Twitter

Wrapping up

In this era, where online jobs have increased tremendously, affiliate marketing has proved to be a saviour. If you want to earn a few bucks sitting at home instead of dealing with office politics and rat race, then affiliate marketing is the right choice for you. The business houses looking to boost their sales and meet their targets can also choose this technique.

  • Faiza Yousaf 2 years ago

    Interest in affiliate marketing has increased.