Chapter I: What is Affiliate Marketing?

Affiliate Marketing consists of a performance-based method of marketing in which businesses and affiliates work together to create profit.

In this marketing method, a business rewards affiliates for every customer or visitor brought in by the affiliate’s marketing efforts.  In other words, when an affiliate partners with a business, that affiliate can earn money every time their marketing also brings visitors to the parent business.

For Businesses

: Affiliate Marketing is an excellent way to generate sales and increase your revenue. It is performance based, which means that

 affiliates promote your product, and then you reward your affiliates for each click, lead, or sale.

Affiliate Marketing is the single fastest growing industry on internet.  Commission Junction, Amazon and ClickBank are just a few of the businesses running top affiliate networks, and they are making a huge amount of money from affiliate programs.

For Affiliates: Affiliate marketing allows you to earn money with your website by joining one of many affiliate programs. These businesses offers affiliate programs to generate traffic to their websites. Businesses offer high commissions based on the traffic and sa


les that are generated by your website.

Affiliate marketing is a very powerful and cost effective channel; you only have to pay when a successful transaction will happen. Your business will get benefits by acquiring potential customers.

Affiliate marketing works using four roles:

  • First comes the merchant, who is also known as the retailer or major brand.
  • The network consists of the offers from which the affiliate chooses, and this is also where payments are made.
  • The affiliate, who is also known as the publisher, is the one who does the marketing work.
  • Finally, the customer purchases the product or service, and that profit is shared by the merchant and the affiliate.

Affiliates use advertising methods to bring customers to the merchant, and they are rewarded for their efforts. These advertising methods can include:

  • Search engine optimization
  • Paid search engine marketing
  • Email marketing
  • Content marketing
  • Reviews
  • Display advertisements, etc.

The website above is an example of an affiliate website. directs visitors to the sites of major retailers so that they can purchase gifts, such as toys, jewelry, food, and other items.

When the customer clicks on the items and is directed to the merchant, this affiliate is paid.  It is good for the merchant because they get more visitors to their site and more customers buying their products. And it is good for the affiliate because they are rewarded for their advertising efforts.