Affiliate marketing dates back to the dawn of internet marketing in 1988. More than three decades later, affiliate marketing is one of the most versatile ways to promote products and services.
Both brands and affiliates find this marketing process rewarding, as affiliate marketing has seen massive revenue growth from $15 billion to an estimated $20 billion in just two years.
It’s easy to say that online buying contributed to the growth of the industry. And as eCommerce continues to grow, so does affiliate marketing.
If you are interested in becoming an affiliate marketer, this blog is for you.
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What is Affiliate Marketing
Affiliate marketing is an effective sales channel in which a business or brand utilizes affiliate marketers to promote database products or services in exchange for a commission. Commissions are based on sales generated through affiliate efforts.
You might be thinking: That’s what salespeople do.
While direct selling and affiliate marketing are both successful strategies, there are a few differences:
Affiliate marketers operate online. They earn through commissions but they are usually not required to reach quotas. Also, most affiliate marketers are experts or have influence in a certain niche and they have a very specific target audience.
On the other hand, direct sellers are required to conduct demonstrations of products and services to sell effectively. This requires face-to-face interaction or the customer has to go to a physical store.
To fully understand affiliate marketing, let’s dig a little deeper into how it works.
How does affiliate marketing work
Affiliate marketing involves three parties:
Product or service seller — can be an entrepreneur, retailer, or company that sells products or services.
Affiliate marketer — promote and market products or services in creative ways. While affiliate marketers don’t require any previous experience or extra skills, affiliate marketers can be more effective if they have a specific audience, so they can promote products in creative and relatable ways.
Consumers — are the people who Buy Email List bring in the sales. For example, they could be social media users, YouTube channel subscribers or members of online communities.
So how does affiliate marketing work.