How Affiliate Marketing Work?

Affiliate marketer makes money through commission they earn referring sales to the merchant’s online store. Simply put, affiliate marketing is a process of earning commission selling other products on the internet. There are three type of commission in the world of affiliate marketing:

• a. Pay per sale- commission based on sales amount
• b. Pay per click - commission based on number of visits
• c. Pay per lead - base on registration through downloads.

Both the merchant and affiliate marketer benefited from such process. There is nothing to lose on merchant side as they enjoy free advertising from affiliate marketers; all they have to do is to share their profit with affiliate marketer. In fact, most of the merchants give high commission to the affiliate marketers to motivate them to drive more traffic to their sites.

There is nothing to lose on affiliate marketers, they don’t have to worry about customer service, delivery, maintenance, product enquiries, or management as they are all being handled by the merchant. In short, they sole effort is to drive more traffic to the merchant website, and if someone buy the product, they get the commission. Sometimes, the sales commission they earned is higher than the profit that the merchant get.

It is a win -win business strategy that benefited both merchant and affiliate marketers.

For more understanding, download the following links for the flow chart showing how affiliate marketing works:

www.greatselflearner.com/How affiliate Marketing works Chart.gif

Articles by Luis Tee