WHAT IS AFFILATE MARKETING
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Affiliate marketing is a performance-based marketing strategy where businesses reward affiliates (partners) for driving traffic or sales to their products or services. Here’s a basic rundown of how it works:
1.**Affiliate** : This is a person or company that promotes a business’s products or services. They do this through various channels, such as a blog, social media, or email marketing.
2. **Merchant (or Advertiser)**: This is the business or company that wants to sell products or services and is looking to leverage affiliates to reach a wider audience.
3. **Affiliate Link**: The affiliate is given a unique link that tracks their promotional efforts. This link is embedded with tracking codes that identify which affiliate generated the sale or lead.
4. **Commission**: The affiliate earns a commission when a customer makes a purchase or performs a desired action (like signing up for a newsletter) through their affiliate link. The commission structure can vary – it might be a percentage of the sale, a fixed amount per sale, or a payment per lead.
5. **Tracking and Reporting**: Tools and software are used to track clicks, sales, and conversions from the affiliate’s link. This helps in calculating commissions and understanding the performance of the affiliate’s efforts.
Affiliate marketing benefits all parties involved: businesses gain access to a wider audience and only pay for actual results, while affiliates earn money for promoting products or services they believe in.
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