April 29, 2016

What Is Affiliate Marketing?

What Is Affiliate Marketing?

Affiliate Marketing was truly the first form of marketing that generated me a monthly income online and that’s why I believe in it till today. Did you know that there are a lot of people that make thousands of dollars with just promoting ONE affiliate product? Have you watched the movie ‘Runner, Runner’ (starred by Ben Affleck and Justin Timberlake), where Ben was the owner of an online gaming website and he actually held a party for his ‘super affiliates’. Ok, let’s put aside all the dodgy stuff in the movie about swindling money and all that, I’m just trying to tell you that Affiliate Marketing can actually bring you such a huge income. And NO, it doesn’t have to be anything related to gambling either!


Affiliate Marketing has many descriptions but yet they all have the same meaning. It is a cooperative effort between merchants and an affiliate.

Merchant : The person/company that owns a product/offer.

Affiliate : The person that’s promoting that product/offer.


For many years now, people get interested in Affiliate Marketing and want to make money from it. But in many cases, if you do not fully understand the affiliate world, it can be costly. One of the common mistake people tend to make is thinking that Affiliate Marketing is just about ‘selling’ or just  ‘advertising’ the product/offer they are promoting. While both ‘selling’ and ‘advertising’ is important in marketing, the fact is, it’s merely a part of the many functions of marketing. Therefore, it normally takes more that that to be successful in Affiliate Marketing.

Affiliate Marketing can generate a full-time income, but this is not an easy task to accomplish.




So How Do You Make Money In Affiliate Marketing?

There are a couple of ways to promote an affiliate product/offer. One of the great ways to do so is through a blog (yup, just like this one) and promote affiliate offers on it. As an affiliate, you can run multiple affiliate programs (meaning you can promote multiple products) from different merchants. But to ensure great success in Affiliate Marketing, you’d have to send the right offers to your selected/targeted customers (Example: If this was a Dating blog, I would not be talking about Affiliate Marketing right now!).

The affiliate also needs to have a better understanding with the merchant – what the commission will be, expected payment method and time involved in the contract. In Affiliate Marketing, an affiliate is compensated for every visitor, subscriber and/or customer provided through his efforts. The said compensation may be made based on a certain value for each visit.

Simply put is that, the affiliate gets rewarded/paid a commission by the merchant for each visitor, subscriber and/or customer that he sends to the merchant.


How Does The Merchant Benefit From This?

The merchant actually maintains and operates his own affiliate program. The merchant will, at his own disclosure, approve or disapprove the affiliate that wants to promote his product/offer based on the criteria that he has set. In most cases, the merchant just want to ensure that the affiliate is a good fit for that particular product and would promote the product in a good manner (like not spamming customers), which could hurt the merchants’ image. Finding a good fit also means better profits for the merchant because he now will have access to targeted markets and customers without him spending valuable time searching out. To help the affiliates with promoting the merchants’ program, the merchant will normally provide certain tools like banners or discount codes. It is also the merchant who decides how much he is willing to pay for each sale that comes from the visitor that the affiliate sent.

The most attractive aspect of affiliate marketing from the merchant’s point of view is that no payment is actually liable to any affiliates until he/she brings in the agreed results. *For example, if the the affiliate sends some visitors to the merchants offer but no one purchases the offer, then no payment/commission needs to be paid to the affiliate. The affiliate will only receive commissions on confirmed purchases.


What Are Affiliate Networks?

Affiliate Marketing is typically being run by affiliate networks and this affiliate networks are composed of two functional bodies, the group affiliates and the group merchants. Each has their special function and role when it comes to Affiliate Marketing. The affiliate network acts as a third party between the merchant and the associated affiliates. The network provides the technology to deliver the merchant’s campaigns and offers. The affiliate network also collects commission fees from the merchant and then pays the affiliates which are part of the program.

If you’re interested to promote a certain product or a certain merchant, try and find out from them whether they have an affiliate program (sometimes there’s even a link on their website to apply for it!). And there are also many popular affiliate networks out there, here are a few that you can check out:

By all means, Affiliate Marketing is a great situation for both the marketer and the affiliate. If they would work together, they can be an advantage to both. Plus the fact that it seems to make sense, it is easy and inexpensive way to start, and you can be up and running within a few days.


Hope you find this topic useful, stay tune for for tips and updates from me. And don’t forget to Grab My FREE Blogging Crash Course to learn what makes a profitable blog

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  1. Sharon

    Good basic information confirming my knowledge. Thanks Lina

    • I’m really glad you find this post useful Sharon. :)

  2. Hey good post Lina.

    You’re blog’s looking good :)

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