What Is Affiliate Marketing and How Does It Work? Part 1

A lot of people avoid affiliate marketing because they don’t have a clue as to what it is or how it works. They sure are missing out on a lot here because affiliate marketing is the best way to make money online, even for lazy people! When it is conducted properly, one can make money even when one is sleeping!

So what is affiliate marketing? Basically it is a method of online marketing. Let us take for instance that you are the affiliate so that it is easier to understand. So your job as a middleman between the buyer and the company is to connect them and get a commission in return for the referral. The job of an affiliate marketer is similar to that of a real estate agent, to connect the buyer with the seller. Since you’re responsible for the sale so you get your remuneration in terms of commission, which can be quite lucrative at times too! The commission and referral is directly proportional here, the more referrals you make, the more you earn. Sounds great, doesn’t it?

Although this might sound like a great way which hardly requires any effort, but it does! It is certainly not one of those get rich schemes. It takes some effort and time as well. The biggest plus point here is that it takes very little funds to start.

Let us now move on to how this type of marketing works. Affiliate marketing can be better explained in a situation where two websites undergo an agreement to share their revenue for selling a product or a service. A lot of affiliates get about 25% to 50% of the sales commissions that are generated through the websites.

When a user clicks on the advertisement on a website, a cookie(tracks customers) is saved in that user’s computer. This cookie is then tracked and in the event of the user making a purchase a notification would be sent and you will receive your commission. When asked how affiliate marketing works, it can be summed up as a way of online marketing where payment is made on the basis of the number of click, leads or sales. It plays a huge role when it comes to promoting any products or services and they generate a lot of traffic as well. Search engines usually hate these affiliate websites because some people put up dishonest reviews. However there’s no stopping for affiliate marketing, it has been rising on the popularity chart and will continue to do so!