What Is Affiliate Marketing? A Guide For Beginners


What Is Affiliate Marketing? A Guide For Beginners

Are you looking for a passive and effortless way to sell your product? Try affiliate marketing. This article discusses what is affiliate marketing. There is also a discussion on its application in the business world.

What Is It Exactly?

What Is Affiliate Marketing? A Guide For Beginners
What Is Affiliate Marketing? A Guide For Beginners

Assuming that there is only a final budget for marketing your product, you might want to try affiliate marketing instead of other types of digital marketing. The founding principle of this is revenue sharing. You hire a promoter to sell your product and he gets a cut for every sale he closes. The financial incentive will drive sales. Read on below to know the four parties involved in this process.

Merchant

The merchant is responsible for creating the product. The merchant can either be a small startup business or a major company with numerous branches. Anyone can be a merchant as long as you have a product to sell. They even to be actively involved in selling the product at that is the job of the affiliate. 

Affiliate Or Published

Likewise known as the publisher, the affiliate can be a single individual or a massive corporation that profits off of endorsing other products that they love. The profit can range anywhere from a few hundred dollars to literal millions in a month where the actual marketing happens. The affiliate (person or company) attracts and convinces audience members to buy the product. They actively endorse the value of the products. There are many ways to do this, from running review blogs that are often biased towards the products or by reaching out to the people to sway them into the product.

The Consumer

What Is Affiliate Marketing? A Guide For Beginners
What Is Affiliate Marketing? A Guide For Beginners

This party is also known as the customer. They are deemed to be the most important party in the marketing world because they are the ones who make the money go around. The industry is reliant on its participation through purchases. They are the source of the commissions and revenue sharing.

You have the option to inform them of whether or not they are part of the affiliate marketing system. The current trend encourages affiliates to always be honest and transparent with the customers to foster a good relationship.

The Network

This is the fourth and optional party in the affiliate marketing system. This functions as an intermediary between the supplier and the seller or the affiliate. This may include your career service or bank of choice for financial transactions. The service may also serve as a large database of collection of products. The affiliate can choose which products he would like to sell. The famous example is Amazon. They have an affiliate program that lets you promote any item on their database. You get a cut for every sale.

Subscribe to our monthly Newsletter
Subscribe to our monthly Newsletter