What is Affiliate Marketing?
Affiliate marketing is simply promoting a product, business or service and receiving a commission for referring a sale or lead. Affiliate marketing at its core is about relationships. And it is the relationship between advertiser, publisher and the consumer. Let’s look at the three in detail. You will be referred to a publisher as we create your new automated e-commerce business.
In the affiliate marketing world, an advertiser can be a company selling a product like sporting goods, concert tickets, clothing or automobile parts, or an advertiser could also be an insurance company selling policies. The most important thing to remember is that you are an advertiser if you are ready to pay other people to help you sell and promote your business.
A publisher is an individual or company that promotes an advertiser’s product or service in exchange for earning a commission. Advertisers contractually agree to work with a publisher, and then provide the publisher with creative – in the form of links, banner or text ads or even unique phone numbers – that the publisher incorporates into their website. There is no charge to become and affiliate publisher.
The final component that completes the affiliate relationship triangle is the consumer. The consumer is the one who actually sees the ad and then makes an action (either by clicking a link or by submitting their information via a form) that takes them from the publisher’s website to the advertiser’s to complete the action, which we call a conversion. Once the conversion happens you get paid.
There are hundreds if not thousands of different affiliate networks you can sign up for to start promoting products. Some of our favorites are listed below.
Commission Junction (CJ)
Learn more about affiliate marketing and creating an autopilot business by signing up for my Free 7 day mini course.