How Affiliate Marketing Works – Our Simple Guide

There are so many people talking about affiliate marketing. But is it legit? Can you really make a decent income with it? Here is an explanation of how affiliate marketing works.

What is Affiliate Marketing?

This is one of the ways to make money as an affiliate or simply promoting someone else’s product. This you have to do via an affiliate network, such as JVzoo, or an independent affiliate program.

Otherwise, how will your sales be tracked? You will be paid a commission for all your hard work and this arrangement is done purely online.

You will not walk door to door trying to convince buyers to purchase the product.

Instead of doing all that, the online infrastructure helps you, that is, things such as email marketing, your website content, your reviews, referrals, webinars, and so on.

Affiliate marketing is like a two-edged sword. It applies both ways. That is, if you have a product, you can establish an affiliate program then offer promoters a financial incentive.

On the flip side, you can promote someone’s product or service and get paid for that. It is all about revenue sharing.

It means you have two options, make your own product or service, and share revenue with your affiliates. Or look around for a product you think can sell or which you are passionate about then promote for a commission.

Key Players In How Affiliate Marketing Works

A typical affiliate marketing arrangement is made up of a number of key players.

First off, is the merchant or the creator. He or she can also be referred to as the brand or seller, vendor, or retailer.

This is the person creating what you intend to sell. It can be an individual making software in their basement or a huge company with a big factory.

All it takes for such a party to be the merchant is simply the fact that they have a product or service to sell.

Secondly, is the affiliate or the promoter of the product. This is also referred to as the publisher.

It can be an individual or a big company that promotes other people’s product. They will earn commissions based on how many product they have successfully referred.

Earnings for the affiliate can range from a few hundreds to tens of millions.

Finally, is where the rubber hits the road, your consumer, or buyer.

Without him or her, you have no business. If he/she doesn’t exist, then there will be no answer to the question; how affiliate marketing works.

He or she is simply the pivot in the entire structure. As an affiliate or marketer, this is your target market.

The affiliate will find ways to reach out to the customer using various channels, including social networks, email marketing, webinars, digital billboards, SEO, and many others.

The affiliate is required to disclose to the customer the entire arrangement, otherwise, the system becomes unlawful in some states.

Remember, the buyer is never charged extra fees for being referred or by following a referral link.

This is an arrangement between a referral and a merchant. They will handle their part of the deal separately and automatically.

So you have been wondering how affiliate marketing works. And you might have guessed it, affiliate marketing does works. There is a lot for you to learn, but it is certainly is possible for you succeed with it.

It is legit, and anyone can join it.

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