How Does Affiliate Marketing Works

Affiliate Marketing – Short Definition

Affiliate marketing is one of the oldest forms of marketing wherein you refer someone to any online products, and when any person buys the product based on your recommendation, you receive a commission. This commission varies from $1 to $10,000 depending on what product you are promoting.

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How does It Works?

The foremost thing you need to do is sign up to all those legitimate Affiliate Sites with free of cost. After you have signed up, you will be provided with a unique link in the form of banner or text or in any forms. Copy the links and paste them to your blog/website. When any visitor click the links and buy something or does a valid actions through your unique links, you earn a commission.

Let's discuss in more detail. When someone, who’s keen to make money on Infolinks, clicks that banner, they are taken to the merchant’s website.
The merchant is the person or company that creates and owns the product. Now it’s up to the merchant to work their magic and get that person to buy. If the person does decide to purchase, then the affiliate that sent them to the site earns a commission, which is a percentage of the product’s sale price. Easy, right?

There are a lot of ways to place these commission-earning links on your website, so you don't even have to know how to make banners. One of the most popular ways to add links is to simply include them in your content.

In 1996, Jeff Bezos, CEO and founder of Amazon.com, popularized this idea as an Internet marketing strategy. Amazon attracts affiliates to post links to individual books for sale on Amazon.com, or for Amazon.com in general, by promising them a percentage of the profits if someone clicks on the link and then purchases books or other items. The affiliate helps make the sale, but Amazon.com does everything else: They take the order, collect the money and ship the book to the customer. With over 500,000 affiliate Web sites now participating, Amazon.com's program is a resounding success.
Learn How to Make Money With Amazon Affiliate Program

Over the past few years, affiliate programs have grown enormously in popularity, taking many interesting forms. For many Websites that don't deal much in e-commerce (selling products or services online) themselves, functioning as an affiliate is a good way to participate in e-commerce.

There are three basic types of affiliate program payment arrangements:


Pay-Per-Sale (also called Cost-Per-Sale)

Amazon.com's affiliate program is an example of a pay-per-sale arrangement. In this arrangement, the merchant site pays an affiliate when the affiliate sends them a customer who purchases something. Some merchant Web sites, like Amazon.com, pay the affiliate a percentage of the sale and others pay a fixed amount per sale.
A good example for Pay Per Sale are —


Pay-Per-Click (Cost-Per-Click)

In these programs, the merchant site pays the affiliate based on the number of visitors who click on the link to come to the merchant's site. They don't have to buy anything, and it doesn't matter to the affiliate what a visitor does once he gets to the merchant's site.

Some of the good example for Pay Per Click (PPC) are –
  • Clicksense
  • Chitika
  • Google Adsense. However, getting Adsense approval is limited for some new blogs. So, before getting Adsense approval consentrating on PPC, ppl and CPM are much recommended for all newbie bloggers. Their approvals are also easy.

Pay-Per-Leads (Cost-Per-Leads)

Companies with these programs pay their affiliates based on the number of visitors they refer who sign up as leads. This simply means the visitor fills out some requested information like email IDs, etc. at the merchant site, which the merchant site may use as a sales lead or sell to another company as a sales lead.
A good example of CPL would be Revenuehits.

Cost Per Mile (CPM)

It is also known as CPI (Cost Per Impression). In CPM, every publisher earns per 1000 impressions. This means, when you add banners or links or native ads of advertisers, you received impressions from every visitors which thus, converts into earnings after you get 1000 impressions.

Cost Per Mile (CPM) could be the best form of blog monetization for newbie bloggers.

The two CPM networks that are really good for newbie bloggers for monetizing their blogs are ChitikaPeerflyRevenuehits and PopAds.



Some of the best Affiliate networks are – ChitikaInfolinksCommission Junction(CJ), Clixsense, and fiverr.

So, the biggest goal of affiliate marketing is to get as many visitors as possible and clicking on your links and visiting merchant pages. The more people that click on your affiliate links, the more chances you have of a sale occurring and earning a commission.

What this means is that affiliates talk a lot about getting “traffic” which generally means visitors to a blog. Visitors are so important when it comes to affiliate marketing because, the more you have visitors, the more you have a chance of clicking your affiliate links. In regard to CPM, just a visit to a blog leads to earning.

Hence, affiliate marketing should be kept in the first priority by every newbie bloggers.


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