Affiliate Marketing – That’s How It Works!

Affiliate Marketing – That’s How It Works!

Affiliate marketing is one of the most common ways for bloggers to start making money on their blog and has been around ever since the 90s. But the concept confuses many. And how do you get started? Today we work out affiliate marketing!

Affiliate marketing is more or less like selling products or services on commission, the most common is that the publisher (eg the blogger, the one who publishes the marketing on his channel) gets a percentage of sales when something is sold through its site. But we take it from the beginning.

What is Affiliate Marketing?

Affiliate marketing is simply explained as a form of digital marketing that is performance-based. Advertisers thus reward publishers who perform in the form of sending visitors to their website and in many cases also shop there. For this performance, the publicist receives a commission, ie compensation.

Let’s take an example. For example, I (chandigarhkesari) have my blog linked to the affiliate network Adtraction (more about affiliate networks below). On my blog I write a post about a product from eg. Ellos and uses a tracking link from Adtraction. When a visitor clicks on that link on my blog and then buys something from Ellos in connection with it, I get 8% of that sale in commission. How much it is depends entirely on how much the visitor was shopping for. Are you in? 🙂

What different payment models are available?

There are a number of different models for how you as a publicist get paid. These are most common:

  • CPA (Cost Per Action) or CPS (Cost Per Sale) – You get paid per event / purchase, usually as a percentage but can also be a fixed cost. This is by far the most common.
  • Cost Per Click (CPC) – You get paid per click from your site.
  • CPL (Cost Per Lead) – You get paid per lead, ie when the visitor does something special on the advertiser’s site. It can be e.g. subscribe to a newsletter or become a member.
  • CPI (Cost Per Impression) – You get paid per impression of the ad. Often combined with the phrase CMP (Cost Per Mille) which means what you get paid for an ad to appear 1000 times.

Affiliate Networks

An affiliate network is a company that acts as an intermediary between advertisers and publishers. Special tracking links and banner ads for the advertisers are downloaded from the affiliate network site and then they track how many clicks and sales that have come from the publisher so that they can get paid.

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