What is Affiliate Marketing?


We’ve all encountered affiliate marketing at some point, usually as marketers. When you pay for car maintenance services, for example, you get a bonus discount on a car wash.

In a nutshell, affiliate marketing is selling through partners, and it can be done by anyone – from another business to a billionaire blogger to a regular social media user. This type of promotion can replace a company’s sales staff, but it can also become a stable source of income for a partner. You can see for yourself that affiliate marketing really works, but first you need to understand what it is and how to use it.

Understand the concept of affiliate marketing

Affiliate marketing is a sales and marketing concept in which the selling company pays third-party companies to attract new customers. In most cases, a special program for partners, or affiliates, is set up, and the partner receives a commission for each purchase of goods made by the customer he has referred. The cost of the product is generally the same for seller and partner, and the effectiveness of each partner is measured by links with tags that track the number of potential customers who transition and the number of critical actions completed. Therefore, this promotion strategy is mainly focused on online sales.

Affiliate marketing is a concept that allows a company to reduce its marketing costs while expanding its field of activity. Many major companies now offer partnership options. Many companies use affiliate marketing. Amazon, which has its own affiliate marketing program, is one of the most telling examples. Websites and bloggers earn a commission on purchases made after linking to an Amazon product page.

How and where is affiliate marketing used?

Affiliate marketing is used by large and medium-sized businesses, as well as startups. This promotional approach is beneficial to the growth of a new product since it allows the brand to reach an audience that has never heard of it before, through the affiliate network. Affiliate marketing is also used to scale a business and generate sales:

  • YouTube bloggers who create unboxing videos with full product descriptions and a link to the online retailer;
  • Advertisement on electronic bulletin boards. If a potential partner has already established themselves as someone who is listened to and trusted, their quick description of the product can help the company attract new customers, and the partner can profit from each transaction;
  • In banner ads. Banners are displayed on sites or blogs with content thematically related to the product, or sites visited by the product’s target audience, and each visitor who makes a purchase receives a commission;
  • Social media bloggers who post links to advertised products in open and native ad formats;
  • During physical and online promotions with gifts and discount coupons, the buyer automatically receives a discount on the partner’s product when buying anything from a supplier.

Some Benefits of Affiliate Marketing

Manual selection of partners is possible. Potential affiliates apply to join the affiliate program, and the salesperson selects from the applicants those who pique his interest: those who he thinks will provide access to the most loyal audience to the product and represent the brand better than others.

A “warm” audience is available. Working with partners has the advantage of already having an audience that trusts them. Because the partner will present the company and its product in a positive light, it will be easier for the brand owner to build relationships with these people.

Low danger. Paying by result rather than by click ensures that this marketing strategy does not drain the advertising budget, but only pays for customers who have already made a purchase, with whom they can create long-term relationships and sell items on the market. ‘coming.


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