What is Affiliate Marketing?
Affiliate marketing is a concept which has evolved very drastically in the recent past, but still many of us do not exactly know what affiliate marketing is all about. Affiliate marketing is a medium through which one can earn money if you promote third-party products or services. It is one of the easiest self-employment techniques which has less overhead to start with. You will get paid if the sales are generated through your promotion or else you have to work hard to generate sales and subsequently earn money out of it.
This blog will help you understand how effective affiliate marketing will help improve your business online. To initiate effective affiliate marketing one needs to involve three parties in it.
- Product manufacturer and seller
- Affiliate marketer or advertiser
- Consumer or buyer
Let us explore the relationship among the aforesaid three parties to make the affiliate marketing effective and work well for better results.
Product Manufacturer And Seller
The manufacturer or seller is an entity that creates or launches the product into the market. Maybe a solo entrepreneur or a large enterprise, he will be the person who will be responsible for the launch of the product in the market. The product can be physical as well as services like online tutorials for a specific subject or fashion tips and tutorials, etc. The seller may need not actively participate in the marketing of the product but they can be an advertiser and can benefit from the affiliate marketing by putting some part of accumulated profit revenue.
Affiliate Marketer OR Advertiser
The affiliate or advertiser can be an individual or an agency that helps the product manufacturer and seller sell their product to the targeted customer in a more appealing manner. It means that the affiliate marketer promotes the product in such a way that he convinces the customer to buy the product. Once the product is sold successfully, the affiliate marketer is entitled to the specific part of profit revenue generated through the sale.
Consumer or Buyer
Consumer or Buyer
Knowingly or unknowingly consumers or buyers are the catalyst of affiliate marketing. Affiliates share the products on social media platforms and blogs for the purpose of promotion and attracting the targeted audience for sale.
When the consumer buys the product, the seller and advertiser share the profit revenue. Sometimes consumers are aware of this arrangement as affiliate marketers themselves share this information to the customer. But many times, they are not aware of the same to avoid any sort of hassle in selling the product. Either way consumers are least affected as the affiliate commission is already included in the retail price which is tagged on the product.