Today most of the people are damn crazy about getting knowledge about Affiliate Marketing and it benefits with tricks to earn huge money quickly. But if I talk here about the truth behind this industry then lots of people exactly don’t know What Is Affiliate Marketing And How Does It Work. So I am trying to explain here about the title of this article. So now moving ahead to the topic quickly-
What Is Affiliate Marketing?
According to Pat Flynn (American entrepreneur, blogger and podcaster known for his website Smart Passive Income):– It is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make. It is considered as one of the ideal approaches to appreciate automated revenues i.e. passive income, which is further based on revenue sharing between advertisers, affiliate networks and publishers.
I hope this short explanation is helpful to understand the topic. And Now we are moving ahead to the further discussion here-
How Does Affiliate Marketing Work:
Now that we know ‘What is Affiliate Marketing’ and now let’s discuss how does affiliate marketing work?
Affiliate marketing can be viewed as a system that spreads product creation and marketing crosswise different parties where each party shares the revenue as per their contribution, and that is why an Affiliate system has two sides:
- The product creator and seller (Affiliate Marketing Merchant)
- The affiliate marketer
However, According to the most of the top guides of this system contains mainly three parts of to channelize the marketing framework and those three parts are-
Now I am going to explain short information about advertiser, publisher and consumer in affiliate system.
An advertiser is an independent person or organization who only works to spread the things/products on profit sharing basis for every successful sale. Advertiser works independently so there is no any kind of boundaries to work with the single affiliate network or single publisher. The advertiser is the key to unlock the business path for the publisher. Most of the digital marketers, bloggers are working as the publisher of the affiliate network. The Advertiser has lots of tools, blogging portals, network, strategies to drive huge volume of traffic, lead conversion strategies so they are much comfortable only in the marketing of the stuff/product of the publisher.
A publisher is a person or company who works in a different kind of product development or service provider and they work with the different affiliate network. They are not involving in how an advertiser will perform to increase sales of there product/service. They work only in profit-sharing basis with the affiliate network and with advertisers. A publisher must have white label product or service before registering in the affiliate network as a publisher.
And Now I don’t think that I have to write too much stuff here to explain who is the end consumer. Because I think everyone knows the meaning of this word very well.
My final words to this article are not too heavy. I know lots of beginners are struggling to start affiliate business but exactly they don’t know how to start and perform well in it. So just remember one thing that if you are publisher then search best affiliate network which will help you to connect with advertisers and if you are advertiser then you have to contact with the affiliate network too because only an affiliate network can work between advertiser and publisher. And ofcourse affiliate network have its own charges for both advertisers and publisher.
I hope you can understand this business through this article. If you have any feedback / suggestion / doubt regarding this article then do comment below.
Siddharth Pal is a full-time digital marketer who loves to explore deep insights of digital marketing. He has a passion for helping newcomers make their skills noticeable and money making. Contact now to Get his free guide to start from scratch.