• a marketing arrangement by which an online retailer pays
commission to an external website for traffic or sales generated from its referrals.
Affiliate marketing
• is an online sales tactic that lets a product owner increase sales by
allowing others targeting the same audience – “affiliates” – to earn a commission by recommending the product to others. At the same time, it makes it possible for affiliates to earn money on product sales without creating products of their own. How to Become an Affiliate
• Marketers become affiliates in a number of ways that include:
• Registering to become affiliate on retail or ecommerce sites. Shopify, for example, has an affiliate program that lets marketers earn commissions on new Shopify customers. • Surveying existing customers to learn their favorite products or services and then contacting those companies to inquire about an affiliate program. For example, a small business marketing consultant might become an affiliate of an email list management and distribution service. • Searching online for products that are relevant to the marketer’s site and will appeal to the target audience. Most companies that offer affiliate programs indicate that with an “Affiliates” or “Partners” link at the bottom of their site home page. • Looking for potential affiliate products at affiliate program managers that include Commission Junction, Clickbank, and ShareASale. How It Works
• After being accepted into an affiliate program, marketers receive a
unique URL that includes their affiliate ID. • They share that unique URL with their subscribers, site visitors, and social networks via text links or ads. • When someone clicks on that link, affiliate software records that click and any resulting product sales in the affiliate’s account. • When commissions reach a pre-determined threshold, the affiliate is paid.