Affiliate Marketing

Affiliate marketing is the process of promoting products that are owned by other people or belong to another company and then earn a commission from that process. In short, you find a product that you like, promote it to other people and get paid a piece of the profit for each sale that you make. Affiliate marketing involves coming up with an agreement between the business that wants to sell a product and the individual who helps to help people get to buy that product.

The concept of affiliate marketing is based on revenue sharing. If a company has a product and it wants to sell more, it can offer financial rewards to promoters by using an affiliate marketing program. For an individual with no products to sell, he can choose to promote a company’s products and get paid as an affiliate marketer.

With the growth of the population that is online as well as the continuous development of technology, the affiliate can bring benefits to a business. Some of the ways that a business may benefit from affiliate marketing include:

  • Affiliate marketing helps to improve the brand reputation of a business.
    • It helps to increase traffic to a company’s website even if no sale is realized through an affiliate.
    • It allows a better return on investment.
    • It is performance-based.

Basics of Affiliate Marketing.

Before venturing into becoming an affiliate, it is important to note that there are some steps to undertake. It is also important to understand the fundamentals of the affiliate marketing business. The ability to navigate various websites, blogs, social media tools, and even understanding search engine optimization techniques are some of the key skills that can help an affiliate succeed in this business. Contrary to some affiliate marketing myths, affiliate marketing is not an easy way to get rich. To realize success, hard work is needed and then it can lead to a steady source of income that flows consistently. Affiliate marketing involves the following steps:

  • You join an affiliate program
    • You pick a product to promote
    • You share the link via your website, blog, social media, YouTube or any other platform.
    • When someone makes a purchase by using any link you have shared, you get paid a commission.

Features of Affiliate Marketing.

Two ways operate in an affiliate marketing ecosystem. In the first one, an individual can choose to become a merchant and have others promote their products and pay them a commission from the sales they make. The second way is to become an affiliate marketer for one or several products. By promoting these products, the affiliate marketer can make money by earning commissions from the sales they make. The following are the key stakeholders involved in affiliate marketing:

  • The Merchant: This is the party that creates the product. It can be an individual or even a large            company. The merchant is also known as the brand, the seller, the creator, the retailer or the vendor.
    • The Affiliate: This is the entity that promotes the product made by the merchant. An affiliate business can be made up of individual or even large companies. Here is where the marketing happens. An affiliate marketing business can earn a few hundred dollars to even millions of            dollars.
    • The consumer: The customer or consumer makes the affiliate system go round. The consumer is also part of the affiliate system whether they know it or not. The consumer does not pay any amount to the affiliate marketer.
    • The Merchant – This is the creator, the brand, the seller, the retailer or the vendor. The merchant creates the product before it is dispatched into the retail market

Pros and Cons of Affiliate Marketing

Over 80% of marketing companies in the world use different affiliate marketing strategies in promoting their product brands. Some different pros and cons are obtained from the affiliate marketing program and they include;


  • Maximum revenue streams – One can register to become an affiliate marketer in many websites at the same time. This will increase the chances of revenue maximization for an affiliate marketer.
  • Minimal entry barriers – Affiliate marketing does not need complicated skills to be managed. Anyone can become an affiliate marketer just by registering on a company’s website as an affiliate marketer. There are also no fees payable before affiliate marketing registration.
  • Available audience – Affiliate marketing reduced the costs incurred in generating audience traffic on the company’s websites. Strong advertisers such as Amazon, CJ Affiliate and ShareASale can increase the sales audience for companies under affiliate marketing programs.
  • Flexibility – Affiliate marketing programs have a huge diversity for their clients in terms of revenue rewards which include pay per sale, pay per click and pay per lead via company websites. These are types of rewards for every affiliate marketer.
  • Billion-Dollar Business – Affiliate marketing is a billion-dollar marketing opportunity where one can earn a lot of money through the use of effective marketing strategies.
  • Extensive productAn advantage of becoming an affiliate marketer is the exposure that one can get in affiliate marketing. One can learn on a wide range of products and services that are traded in the market place.


  • Irregular Commissions –Affiliate programs usually pay through a sales commission model. This model often pays affiliate marketers only when a purchase takes place. This is different from the marketing companies which pay per click ad as commission to their marketers.
  • Uncertainty –Sales opportunities in affiliate marketing often have high or low potential risk in both revenue gain or loss. A person’s affiliate income can ride and fall irregularly and therefore the income levels are uncertain due to high or low chances of risk interference.
  • Third-Party Partnership –Becoming an affiliate marketer means that you do not have a direct link with the customers. The commission obtained is often paid by the merchant which means that you are only helping the merchants who are building their buyer lists
  • Competitions –Promotion of products through affiliate marketing programs has received a large number of competitors in the market place. Advertising a product on a company website will still receive a lot of online competition from other affiliate marketers therefore one should be ready to face stiff competition.
  • Choosing the right product –In affiliate marketing, many products are advertised daily. This often makes it hard to choose which product to work with and educate extensively through affiliate programs. It is usually a difficult task so it’s advisable to obtain advice from other successful affiliate marketers.
  • Patience and Hard work – To become successful in affiliate marketing, one needs to understand that there is no such thing as instant success in affiliate marketing. One has to work hard, adopt successful marketing strategies and also be patient after joining to be recognized as an established affiliate marketer.

Tips for Affiliate Marketing

  • Ensure that the products being advertised match the needs and wants of customers
  • Give recommendations to other people who are interested in joining affiliate programs
  • Always be transparent about affiliate relationships
  • Ensure that you select affiliate products by considering the target audience, product quality, and product features
  • Try to join more than one affiliate program to increase your earnings
  • Keep up to date with the latest updates and offerings for different affiliate programs.

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