What is Affiliate Marketing?

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. The industry has typically four core players: the merchant (also known as 'retailer' or 'brand'), the network (that contains offers for the affiliate to choose from and also takes care of the payments), the publisher (also known as 'the affiliate'), and the customer. Some merchants may have their own network that contain only their products. The market has grown in complexity, resulting in the emergence of a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors.

How does it work?

So far, you know what affiliate marketing is, but do you really understand how it works? Thanks to the technology called "cookies", it is possible to track which publisher provided what number of clicks on the specified ad. Cookies are there to record specific information: login, registration, user’s preferences etc. For example, did you ever notice how after searching for "cheap flights" you started seeing airline companies’ ads on other sites you visit? This is due to these cookies, as they will remember specific info about you. Don’t worry though, they’re harmless.

In the world of affiliate marketing, cookies are used to remember the links and ads the visitor clicks on. It records the timestamp, the kind of content you like and many other specifics. Pretty handy, isn’t it? Once the user clicks on the ad, the browser receives information from the cookie regarding the ad itself, the publisher and the agreed commission. All of this is stored into "parameters" which are then used to process information accordingly.

So, in a nutshell, affiliate marketing is a great way for the publisher to earn money online by promoting someone’s business or product. If you’re a blogger, a vlogger, or you have your own successful website you might want to look into this specific term. If there’s a way for you to earn money simply by helping someone else, why not do it? If you experience high traffic, have an established trust with your readers and are advertising a great product you will most definitely achieve success. Of course, it depends on many other factors as well, but these are usually the ones you should be interested in. In fact, the reason you’re here right now is probably because you want to take advantage of the system. And why shouldn’t you?

What's Next?
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