Basic Knowledge

What is affiliate marketing?

Affiliate marketing is where you recruit the affiliate who will promote your company’s product or service.

When someone purchases through the link of the affiliate, you pay a commission for the affiliate. These commissions are usually a percentage of the sale price or a fixed amount.

What are the advantages of affiliate marketing?

The reason why you should consider doing affiliate marketing is Low-cost and low-risk.

  • Affiliates do the marketing for you with low cost

This form of performance-based marketing allows organizations to generate revenue from their marketing efforts by partnering with online retailers and marketing their products on the organization’s website at a much lower cost when compared to other advertising techniques.

  • Affiliates increases traffic

Your ecommerce platform will also experience a surge in the number of visits to your website. More website visits mean an increased chance for more successful sales, so it’s a huge benefit to look forward to within your ecommerce space.

  • Boost your brand Reputation

Provided that you only cooperate with trustworthy and valuable affiliates, your brand will quickly start to be recognized as a reputable company that people want to do business with. This type of marketing also helps companies build brand recognition through word-of-mouth advertising and obtain customer feedback on new products quickly.

How does affiliate marketing work?

  • When a person joins an affiliate program, the affiliate gets a unique link that contains a tracking ID that plays a role to track which affiliate has referred customers.

Anatomy of an Affiliate link: -> /?ta_aff=WZFFGZQYA6 is tracking id

  • People who click on the affiliate link get a tiny file called a cookie stored on their device. This holds an expiry date as the condition to approve the order that the affiliate had referred in case there is delay in buying for a while.

Here’s an example of how affiliate marketing works:

Someone joins the affiliate campaign

They get their affiliate link to promote your product/service

Customers click the affiliate link when visiting the post of this affiliate

They close their browser to pick their kid up from school. They go back to your website the next day to check out the product again. They buy the recommended product, along with some ski gear.

Thanks to the affiliate cookie stored on this person’s device, you know this recommended product is referred by which affiliate and you pay the commission accordingly to this affiliate in agreement

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