What is Affiliate Marketing Online?
What is Affiliate Marketing Online?
It took me a while to get my head round what exactly affiliate marketing was.
I wondered how it worked and it appeared so complicated.
A Regular Business
This is a simplified picture of a regular business.
A company has a number of products it sells.
It markets (promotes / advertises) its products.
Customers buy the products sending money to the company.
This is, of course, a simplified version of things, ignoring how the company acquires its products etc. This is the only bit we affiliates are interested in.
Affiliate Marketer Win / Win Arrangement
Here the Affiliate marketer promotes the company’s products.
A customer buys from the Affiliates web-site or advertisement.
Money goes to the company for their sold product.
Commission goes to the Happy Affiliate.
Why Affiliate marketing?
The company benefits from extra sales.
The company saves on the marketing of its products.
A large company does not have to promote a large number of different products.
Affiliate marketer specialises in own Niche.
Affiliate marketer makes a profit.
The large companies cannot be specialists in all areas, in all niches.
There is plenty of business within each niche for specialists to promote and make money.
What is Affiliate Marketing Good for?
It is good for everybody. Everyone can benefit, the company, the customer and the affiliate marketer.
Win / Win situation for everyone.
Recent Comments
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You, essentially have it!
the large business does its own promotions, as well, so they get money that way they do not have to split with an affiliate.
It is interesting to note that there MANY brick and mortar stores that have taken advantage of this affiliate model and have expanded their market exponentially.
That is where we can also come in and make even more money from names that everyone (following and buying from this niche) knows.
Thanks Mickey
We can be more focussed and shine a spotlight on products / services in a specific niche.
The large stores can take advantage of the expertise on offer.
Exatctly, they can not give it their ALL, in each case, like we can; That's why they love us!
Actually you said it all, Peony! It's a win/win situation for everybody.
Thanks for this in detail post!
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Good Morning Peony,
Thank you for the graphics which makes it easy to understand.
I also like the concept of Affiliate Marketing, you are not loaded with product yourself but get a commission for promoting it.
Have a good Sunday, Taetske
Thanks Taetske.
You got it in 1.