Affiliate marketing is a performance-based marketing strategy where individuals or businesses (affiliates) promote another company’s products or services and earn a commission for each sale, lead, or action generated through their efforts.
Here’s a clear breakdown:
🔑 How Affiliate Marketing Works
1. Join an Affiliate Program – An affiliate signs up with a company (merchant) or through a network (like Amazon Associates, CJ, ClickBank, or ShareASale).
2. Get a Unique Affiliate Link – The merchant provides a trackable link to the affiliate.
3. Promote Products/Services – The affiliate uses blogs, YouTube, TikTok, social media, email, or ads to drive traffic through that link.
4. Track Conversions – When someone clicks the link and makes a purchase (or completes another action, like signing up), the sale is tracked.
5. Earn Commissions – The affiliate receives a percentage of the sale or a flat fee.
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💡 Common Commission Models
Pay Per Sale (PPS): Commission for each sale made.
Pay Per Click (PPC): Commission for clicks generated.
Pay Per Lead (PPL): Commission for signups, form fills, or leads.
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🚀 Pros of Affiliate Marketing
Low startup cost (no product creation needed).
Passive income potential.
Wide choice of niches and products.
Scalable (content continues to earn long-term).
⚠️ Challenges
High competition in popular niches.
Requires consistent traffic (SEO, ads, or social media).
Commission rates vary (some are very low).
Dependence on merchant policies and payout terms.
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👉 Example: If you join Amazon Associates and promote a $100 product with a 5% commission, you earn $5 per sale. If 200 people buy through your link, you make $1,000.