Affiliate Marketing for Beginners: A Step-by-Step Guide

Marketing is essential for profitability and growth of the business, but there is a lot of uncertainty involved as not every marketing activity proves to be fruitful at the end. In this age of technology, this problem is now solved by ‘Affiliate marketing’. No need to burn cash on activities that don’t bring in results!!

Affiliate marketing is a result-oriented marketing tactic in which ‘businesses’ pay ‘marketers’, a commission on each conversion. It’s great for businesses because they only pay commissions for sales after they occur. So, this is like any proper sales job in the real world where you get paid for the products you sell.

In the world of Affiliate Marketing, ‘businesses’ are called ‘advertisers’ and Marketers are termed as ‘Affiliates’ or ‘Publishers’. Since its all done online, there are a lot of skills and tactics involved that go into turning a ‘blogger’ into a successful ‘affiliate marketer’.

Affiliate marketing is definitely on the rise with more companies choosing to sell and market their products online. As per a report, the U.S. affiliate marketing spending is expected to top $6.8 billion by 2020.

How affiliate marketing works : the concept

Affiliate marketing is usually handled via professional Affiliate Networks. These networks bring advertisers and publishers on the same platform and provide unique links of Products to Publishers which publishers can put on their website in the form of a banner or text ad. When the action of clicking on an advertisement takes place, the cookie in the link gets activated to track the process.
The sales for advertisers can be achieved through web content or social media. The affiliate gets a unique link from which clicks can be tracked using cookies.

Commission Payouts in Affiliate Marketing

Commission are paid by the advertisers every month, but this varies depending on the affiliate program terms. As an affiliate, your commissions are paid whenever your visitor creates a transaction. The transaction could be in the from of a click, lead form submission, or a sale. Here are some standard affiliate marketing models:

  • Pay-Per-Click (PPC): Payment will be made for all the clicks, regardless of whether a lead or sale happened.
  • Pay-Per-Lead (PPL): Payment will be made for every lead an affiliate generates.  
  • Pay-Per-Sale (PPS): Payment will be made for every sale an affiliate generates.

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