What Exactly Is Affiliate Marketing & How Does It Work?

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. In other words, it's a way for businesses to partner with other individuals or organizations to promote their products or services and earn a commission in return.

Here's how affiliate marketing works:

1. A business looking to grow its customer base through affiliate marketing will first create an affiliate program. This program will outline the terms and conditions of the partnership, including the commission rate that affiliates will earn for each sale or conversion they generate.

2. The business will then promote its affiliate program to potential affiliates, either through its own website or through affiliate marketing networks. These networks act as middlemen, connecting businesses with affiliates and facilitating the partnership.

3. Once an affiliate has joined the program, they will receive a unique affiliate link that they can use to promote the business's products or services. This link will track any sales or conversions generated by the affiliate's marketing efforts, so that the business can accurately pay the affiliate their commission.

4. When a customer clicks on the affiliate's link and makes a purchase or takes a desired action, the sale or conversion is recorded and the affiliate earns a commission based on the agreed-upon rate.

Overall, affiliate marketing is a win-win situation for both businesses and affiliates. Businesses get more customers and sales, while affiliates get paid for their marketing efforts. It's a simple but effective way to grow a business and earn income.