A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
Affiliate marketing is the process by which an affiliate(Officially attached to an organization) gets a commission for promoting/ marketing another company’s products or services. An affiliate can simply choose a product or service they enjoy and promote that to earn profit for each sale that product makes. The sales are tracked using the affiliate links from one website to another.
How the affiliate program works?
You show a link or an AD for any XYZ store on your website or social media.
Visitors click that link or the AD.
Using the tracking link, the customer is sent to the XYZ store.
Customers make a purchase from the XYZ store.
Affiliate network records the purchase and other details of the transaction.
The purchase is confirmed by the XYZ store as a valid transaction.
The transaction is credited and you get paid your commission for displaying the AD on your platform.
The importance of affiliate marketing
High ROI: Affiliate marketing reduces the risk of bad ROI because it is a performance-based strategy that reduces the money you spend on advertisement allocation.
Easy tracking: One of the biggest advantages of Affiliate marketing is that it can be tracked easily. It uses different marketing tools and you can view the click-through rate and site views at any time.
Increase SEO: Affiliate marketing can take your SEO game up by a notch with the help of backlinks via your affiliate websites and social media. You can rank better in the search engines if you are working with higher-ranked partners.
Grow brand awareness: When you work with a group of affiliates, you expand your scope of reaching out to a new audience. This helps to build brand awareness and acquire new customers.
Access foreign markets: You can link up with global affiliate networks to tap into the global marketplace and market the products to the foreign audience.