Affiliate marketing is the process by which a partner receives a commission for marketing products of another person or company. The partner simply searches for a product that he likes, then promotes the product and gets a portion of the profits from each sale. Sales are tracked by partner links from one site to another.

Affiliate marketing is a popular tactic to increase sales and generate significant revenue online. In fact:

  • 81% of brands and 84% of publishers use affiliate marketing opportunities, and this statistic will continue to grow as the value of affiliate marketing increases annually in the United States.
  • In 2018, content marketing costs accounted for 62% of traditional marketing schemes, with the attraction of potential customers three times compared to traditional methods. In fact, 16% of all orders made on the Internet can be attributed to the influence of affiliate marketing.
  • Annual spending on partner marketing in the United States is increasing by 10.1%, which means that by 2020 this figure will reach $6.8 billion.
    Jason Stone’s affiliate marketing, also known as Millionaire Mentor, led to $7 million in retail sales in June and July 2017 alone.
  • In March 2017, Amazon’s affiliate structure changed, offering authors rates of 1 to 10% of product revenue, allowing affiliates to dramatically increase their passive income depending on the vertical they sell.

How Does Affiliate Marketing Work?

Because the affiliate works by spreading its marketing, product marketing and creation responsibilities between the parties, it succeeds in benefiting from the capabilities of various individuals for a more effective marketing strategy while ingesting a share of the profits for contributors. There are three different parties must be involved.

Seller & Product Creators

A seller is a seller, merchant, product creator or retailer with a product to market, whether it is a stand-alone entrepreneur or a large business. The product can be a physical object, such as household items, or a service such as makeup trainings. Vendor/Brand doesn’t need to be actively involved in marketing, but it can also be an advertiser, and the affiliate can also profit from revenue sharing associated with marketing.

For example, the seller might be an e-commerce trader who starts a stockless sales business and wants to reach a new audience by paying affiliate websites to promote their products. Or the vendor could be a SaaS company that leverages affiliates to help them sell marketing software.

The Affiliate or Publisher

A subsidiary also known as a publisher may be an individual or a company that attractively markets the seller’s product to potential consumers. In other words, the subsidiary promotes the product to convince consumers that it is valuable or beneficial to them and convince them to buy the product. If the consumer eventually buys the product, the subsidiary receives part of the proceeds.

Affiliates often have very specific audiences who are marketed, usually in keeping with the interests of the public. This creates a specific niche or personal brand that helps the subsidiary attract consumers who are most likely to take action in the action.


Although the consumer knows it or not, they (and those they buy) are the driving force behind affiliate marketing. Affiliate marketers shares these products with social media sites and with them. When consumers buy the product, the seller and the subsidiary share the profits. Sometimes the subsidiary decides to stand up to the consumer and tell them that they will receive a commission for the sale. At other times, the consumers did not know that the affiliates will get commission on that sale.

Either way, they rarely pay more for a product purchased through affiliate marketing; Subsidiary’s profit is included in the retail price. The consumer completes the purchase process and receives the product as usual, not affected by the affiliate marketing system in which they are a significant part.

You can read more about ways to monetize your blog


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