What Is Affiliate Marketing?
Updated: Nov 5, 2020
Affiliate marketing is a partnership between two parties where one party promotes the other on a commission basis.
For example: Person A sells an e-book on the internet for 27 euros. Person B promotes the e-book of person A on the internet via his own website. Whenever person B realizes a sale via his website, he receives 17 euros of the 27 euros proceeds. Person A retains the remaining 10 euros.
This is a common form of marketing on the internet because the sales of affiliates (in this case person B) are automatically tracked via affiliate marketing systems and the proceeds are automatically distributed.
Person A has the advantage of more sales by Person B and Person B has the advantage that he does not have to have a product, business, customer service and the like to make money.
Let others do the work for you
As you can see in the example, person A does the marketing work by person B. He does not have to do anything himself, only in the case of a sale he leaves a percentage of the turnover to person B. Person A can have hundreds of affiliates at work next to person B for him who he only pays for results.
Pay only with results
The big advantage to affiliate marketing is that you only have to pay for actual results. We call this "No cure - no pay". Normally you pay with ads for the number of clicks or the number of pageviews, but with affiliates you only pay when the affiliate has actually made a sale.
Even if an affiliate provides thousands of visitors and there is no sale, you do not have to invest a cent. You can only win with affiliate marketing as you decide which margins you want to give away.
Suppose that in the case of the example person B set up a marketing campaign where he spends 10,000 euros and 300 visitors who buy your product then you have to pay person B
only 5,100 euros.