What is Affiliate Marketing [Understand Everything About it]

After many days of my online money-making journey, I had heard the term “affiliate marketing”. Just after hearing the term, my first quest was “what is affiliate marketing”.

 

By the way, I’m an established affiliate marketer now and have already passed a long time in the field. Though the whole thing is quite simple to understand, it was like an alien to me when I first wanted to learn about it.

 

I think that many of you’re new here in affiliate marketing and for this reason, I’m gonna elaborate everything about it in this post.

 

So, you can learn about affiliate marketing with easy-to-understand examples and explanations throughout this blog post.

 

That means reading the post mustn’t be a matter of waste of your valuable time.

 

What is Affiliate Marketing?

Affiliate marketing is a type of marketing where affiliate marketers promote their merchants’ products in order to have certain commissions when they can sell the products.

 

A merchant is a person who sells a product and an affiliate marketer is someone who promotes the product to sell it.

 

Many businesses make millions of dollars of profit just by leveraging affiliate marketing.

 

In affiliate marketing, both parties (the merchants and the affiliate marketers) become interested to work together. This is because merchants can sell their products through the effort of their affiliate marketers.

 

At the same time, when products are sold, affiliate marketers get commissions.

 

So, affiliate marketing is mutually beneficial.

 

Suppose that you’ve launched a business for selling ebooks. You can sell 1000 pieces of ebooks per month. Your profitĀ from the sales is $1000 (let’s say $1 per ebook).

 

Now, you’re thinking of selling more ebooks in the next month. So, you’ve announced that those who will promote your ebooks will get 30% commission on the list price once they can sell the ebooks.

 

You can still make $0.5 if you cut the commission.

 

If 100 affiliate marketers join your affiliate program and sell 1000 ebooks in the next month, then you’re making $500 extra profit ($0.5 x 1000 = $500).

 

So, you’ve sold 2000 pieces of ebooks and your total profit is $1000 + $500 = $1500.

 

Here, you were able to make $500 more by the effort of your affiliate marketers.

 

What did the affiliate marketers get?

 

Well, they also received 30% commissions of 1000 ebooks.

 

Here, you can see that affiliate marketing is beneficial both for affiliate marketers and merchants.

 

Not only is that affiliate marketing is also beneficial to end consumers because they can learn about a product through the effort of affiliate marketers.

 

Why is that?

 

Well, if you just depend on the information of a product’s manufacturer, then you can be fooled by it because the manufacturer will always try to hide its product’s negative sides.

 

On the other hand, good affiliate marketers don’t wanna let their audience down, so they’ll always try to bring all the pros and cons of a product which are very crucial to know when it comes to buying it.

 

So, from the above discussion, I think that you’re now clear about the affiliate marketing business model!

 

Read more affiliate marketing related blog posts now –

7 Affiliate marketing success stories that must make you stay motivated!

Where to start affiliate marketing?

Can you make a living from affiliate marketing?

What is the best niche for affiliate marketing?

How much money can you make as an affiliate?

7 Affiliate marketing mistakes that made me cry when I was a newbie!

How to create a website for affiliate marketing?

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