Beginner’s Guide to Affiliate Marketing in 2023

Affiliate marketing is a strategy based on performance, wherein a business or individual, referred to as an affiliate, receives a commission by marketing the goods or services of another business. The affiliate usually obtains a percentage of the profit for every sale they generate, which is tracked through affiliate links between websites. At present, influencer marketing is the most renowned type of affiliate marketing, where individuals with a substantial social media following are compensated by brands to endorse their products.

Individuals who have a substantial online community, whether measured by their number of followers or their high level of engagement, are ideal candidates for forming partnerships in affiliate marketing. In addition, possessing a well-established website or blog provides a solid starting point, considering that social media can be an unpredictable platform. It is worth noting that not only businesses but also affiliates themselves find several reasons that strongly encourage their involvement in the flourishing field of affiliate marketing.

1. Low cost and low risk: Besides time, there is zero start-up cost or investment to become an affiliate marketer. You work as a salesperson, promoting and sharing the product or service for a brand, while the company manages the business responsibility, customer service needs, and risk. 
2. Easy to scale: Once you start an affiliate partnership, scaling your influence and audience can be easy. For example, if a kitchen company has you promote their cookware, then you can easily guide customers to purchase their cooking utensils, linens, and more. 
3. Passive income: Once you’ve done the initial work of setting up affiliate links or advertisements on your website, blog, newsletter, or social media, you can enjoy the benefits of passive income. Every time a follower from your platform uses that link or ad to visit or purchase from your partner company, you make money. 
4. Convenient and flexible: A major benefit of affiliate marketing is that you aren’t tied to a desk or office. You have the freedom to work remotely and not have to request time off from your work for vacation or sick leave. 

The process of affiliate marketing can be broken down into several steps. First, an affiliate selects a preferred platform and shares an ad or link on it. When a customer clicks on this ad or link, a conversion is triggered. This conversion is then monitored, and the affiliate receives a commission as a result. The specific commission percentages and payment arrangements differ based on the brand and industry.

Affiliate programs and networks

Within an affiliate program, the management of affiliates takes place. This particular affiliate program operates on a platform where a business displays its offers and affiliates enroll to endorse these offers and attract fresh customers for the business. In exchange, affiliates are rewarded with compensation, typically either a percentage of each sale or a set amount for acquiring new customers. As an illustration, Supermetrics provides 20% recurring commissions for every subscription purchase made by individuals referred by you.

Affiliate network is another significant term in the field of affiliate marketing. In essence, it comprises both the affiliate programs and the affiliates themselves. The key distinction between the two is that within affiliate programs, businesses only have affiliates that promote their own products. In contrast, in the network, affiliates have the liberty to join and advertise multiple products and services in diverse categories. The network takes care of all transactions internally and receives a portion of these transactions. Consequently, when a company joins a network, it is required to remunerate both the network itself and the affiliates.

Who are the affiliates?

An affiliate is defined as any person or organization that aids in the promotion of a product or service on behalf of a business. This promotion can be achieved through various methods, including paid advertising, direct referrals, or by creating content like blog posts, videos, and newsletters. Additionally, affiliates may also compile an email list or employ SEO techniques to capture search traffic on their website.

When considering this, it is important to note that there is no universal description that perfectly defines an affiliate marketer. However, a key aspect of their role is earning a commission when their website visitors engage in certain activities. Typically, this refers to making a purchase, although it can also include actions such as subscribing to a newsletter or clicking on a link.

Who are the merchants?

Typically, the merchant is both the producer of the product or service and a business entity. To advertise their products, these merchants follow a revenue sharing approach by providing commissions to individuals and businesses. This group of merchants encompasses various entities, ranging from large companies to individual entrepreneurs or individuals who are willing to pay for affiliate transactions.