As you go through your social feed or watch your favorite YouTube videos, you may have heard influencers or celebrities asking you to use their link when deciding to purchase a product they just mentioned. Most of the time, you would hear them saying that the link is an affiliate link, and buying the product through the link would not charge you with additional fees!

That is what affiliate marketing is about. In a gist, it is passively earning an income without doing any special thing in return besides asking people to use your link. This article would help you understand this marketing medium, whether you want to become an affiliate or are a brand interested in trying the affiliate marketing program.

Defining Affiliate Marketing

Affiliate marketing is the act of promoting other people’s business on the marketer’s platforms. In this relationship, the marketers get commissions, should the people end up buying thanks to their effective marketing!

For brands, the process is like revenue sharing. If you want to boost people’s awareness of your product, you look for people who can market it for you. It is up to you what kind of financial incentive you would give your promoter. 

Who Makes Up the Affiliate Marketing

There are several entities involved in affiliate marketing:

  • The product creator: The source of the product or service, and the financier for the affiliate program.
  • The affiliate marketer: The person who promotes the product and gets the incentive.
  • The consumer: They are the people that the affiliate marketer should convince. They are the end-users of the product.
  • The network: This is the industry where affiliate marketing takes place. This option, however, is not a must—you can still proceed with affiliate marketing with just the three of the mentioned parties above. 

Can You Be an Affiliate?

Anyone that the brand trusts can become an affiliate. However, it is most prevalent for people who have a broad reach, such as content creators and bloggers. Brands look forward to working with these people since they can creatively promote their business to a bigger audience. Usually, the promotions come in the form of a blog post, a social post, a video, or other forms of media. 

The amount of commission an affiliate receives from every transaction would depend on their agreed affiliate program terms. 

Who Can Be a Merchant?

If you have a product or a service and have the budget to work with other people, you can be an affiliate merchant. It can be an individual, a company, or an advertiser. As long as you are willing to work with other people to promote your company, brand, or products, you can become an affiliate merchant!

How Affiliate Marketing Works

The affiliate marketing program works in two ways. A merchant may reach out to a blogger or content creator and ask them to promote their product or service via an affiliate program. Or the affiliate marketer could reach out to brands they are confident to promote and ask if they are willing to engage with an affiliate program with them. 

An affiliate marketer would earn their commission if and when their consumers proceed to take action on the link they provide. Usually, the commission comes from making a purchase, but some programs offer commissions even after the consumer clicks the link, submits a form, or makes other vital actions.

Conclusion

For marketers, affiliate marketing is a simple and stress-free way of earning passive income without doing much in return. All you need is to effectively convince people to check or buy the products you presented. 

For the affiliate merchants, it is a good alternative to advertise your products, making sure you only release money if you get the action you desire. If you are interested in acquiring this service, make sure to work with an affiliate marketing agency to ensure the quality of transactions you get. 

Krafted Digital is a full-service digital marketing firm based out of Miami, Florida. At Krafted Digital, we specialize in developing custom-tailored, innovative, data-driven online marketing solutions for small businesses to Fortune 500 brands. Click here to contact us today.