The internet is a very useful place that people can post anything they want. That leads to people having access to all kinds of information right at their fingertips. This is why the internet is a great way for marketing activities to show off products and services.
There are many marketing types out there and affiliate marketing is one of an easy and smart way for companies to promote their products. Different from other marketing types using their staffs for marketing, in this case, the companies will use other people as an outsource to promote their products and then pay them a commission for their help. The person they pay is known as the affiliate marketer and all the marketing activities that the affiliate marketer do to promote companies’ products are affiliate marketing.
Affiliate marketing activities are mainly on the internet. Companies can use the internet to their advantage by recruiting good affiliate marketers and give them affiliate links to control their sales.
The affiliate marketers will try to get people to visit a website through his or her affiliate links to buy the companies’ products by their some techniques. After a person visits the website or/and buys a product, the affiliate marketer will be paid. This means both the affiliate marketer and the company benefit, win-win cooperation.
The company chooses many ways to pay the marketer. There are three basic ways they can choose from. • The first way is Pay per Purchase (PPP). This means every time someone purchases a product from the affiliate link, the affiliate marketer will receive a commission. • The next way is Pay per Click (PPC). So every time there is a click on an affiliate link, the affiliate marketer will receive a commission. • The final way is Pay per Lead (PPL). This is the affiliate marketer getting paid for how often people click the affiliate link then buy something. It combines both of the previous two ways.
Either way, the companies use affiliate marketing will only pay commissions when their products have been sold. Therefore, affiliate marketing is one of the smartest ways to promote products at the lowest cost. Because they don’t have to pay monthly salaries for marketing staffs, as well as other costs such as insurances, subsidies, training…
Affiliate marketing is applicable to both digital products and physical products. However, the percentage of commissions for physical products will normally be lower, as the company must pay for shipping costs and product depreciation. For digital products, customers only need to pay and download.
The companies that use affiliate marketing use other people to their advantage. They have a smart way of doing this by paying their affiliate marketers.
To recap affiliate marketing is when a company pays someone to advertise their products. This is mostly done on social media because it is an easy way for the marketer to target many people at once. You can see that many affiliate marketing programs are available all across the web.