So, What Exactly Affiliate Marketing Is?
Affiliate marketing involves referring other people to purchase the product of a specific company. Whenever any person purchases your referral, the company will give you a commission. Now, this seems to be a simple process or technique of earning money conveniently.
Let’s just take an example. Suppose you promote a smartphone brand such as Samsung, you can easily provide a link to the product through your social media handles. When any of your followers click on that referral, and if any of them buys the smartphone, you will be paid a commission by Samsung for every sale.
How Affiliate Marketing Works?
Note that affiliate marketing is a part of digital marketing. When you do affiliate marketing, you play the role of a marketer.
When it comes to affiliate marketing, you act as an online salesperson who
sells the products of a certain company. Of course, you are not going to be an employee of that company. The person who owns the product is called a trader or merchant; on the other hand, the person who promotes it is called the affiliate marketer.
You might be wondering how you can connect with the trader; then, you need to understand that affiliate networks help you achieve that.
Also, whenever anyone purchases the product via your referral, it is a win-win situation for you(the marketer), the merchant and the affiliate network.
The reason why affiliate marketing in India is trending nowadays is that many people or businesses have profited a lot from this whole ecosystem. It is worth mentioning here that even an ordinary person can become a millionaire with the help of affiliate marketing.
Let’s discuss further in detail about four major players involved in this ecosystem of affiliate marketing. This is highly important if you want to be a successful affiliate marketer.
1. Owner of the product-Merchant or Trader
As said earlier, the owner of the product is called a merchant. When we talk about e-commerce giants such as Amazon, Flipkart, etc, these also come in the category of merchants.
Brands like Samsung,Apple,Intex,Dell,etc are also merchants.
2. The Affiliate
Next comes the affiliate marketers who can also be called as the publisher. The affiliate is the one who receives a commission for every sale via his or her referral. It would help if you understood that you don’t require any significant investment to get a website created. That is why we said earlier that if you are looking for a passive income, nothing can be easier and cheaper than affiliate marketing.
Through videos, blogs, and social media posts, you can easily promote the product.
One of the most critical pieces of advice for you is that you should promote products that are in accordance with the kinds of blogs you post, the videos you post, etc. If you post educational content on your blogs, it would be inappropriate to promote fashion stuff.
3. Affiliate Network
the publisher or the affiliate can connect with the merchant or trader with the help of an affiliate network.
An affiliate network can be better understood as the link between the affiliate and the merchant.
It’s crucial to understand that the affiliate network provides payment processing tools to the publisher.
On the other hand, the affiliate network provides ad tracking tools to the merchants.
If you are curious to know how affiliate networks will help you in earning money, then you need to understand that there is something called CPC.
Besides, CPC(Cost Per Click), there are other ways like CPI(Cost Per Install) and CPS(Cost Per Sale).
4. Customers or Consumers
The last player of the whole ecosystem is the customers. Whether the above three players will be profited only if the consumers buy products, anyone can be a customer. It is the responsibility of the affiliate to influence the customers to buy a particular product. As said earlier, for this content marketing can be used by the affiliate, even YouTube videos can be used to influence the customers. The tracking mechanism works as soon as the customer follows the affiliate link to make a purchase.