What is affiliate marketing?
Affiliate marketing is a type of internet marketing. It is essentially a marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.Affiliate marketing stands for an enormous number of sites that play the role of your sales managers whereas you only pay for the results.
From the eyes of a website owner, affiliate marketing works in a way that if you refer someone to an online product and when that person buys the product, you receive a commission. This commission could vary from 0.5 – 500 eur depending on what product you are promoting.
Affiliate marketing is essentially about relationships between three parties:
- Advertiser – a company selling a product like electronics, tickets, clothing or car parts. An advertiser could also be a finance company offering microloans. The most important thing to remember is that you are an advertiser if you are ready to pay other people to help you sell and promote your business. AFI affiliate marketing agency has been established to mainly help advertisers to get started or improve their affiliate marketing activities.
- Publisher – an individual or company that promotes an advertiser’s product or service in exchange for earning a commission. Advertisers contractually agree to work with a publisher, then provide the publisher with creative (link, banner, email template, text ads or even unique phone number) who then incorporates this into their website, blog, social media page or whatever channel they are using for sending traffic.
- Consumer – the consumer is the one who actually sees the ad on publisher website and then makes an action (either by clicking a link or by submitting their information via a form) that takes them from the publisher’s website to the advertiser’s to complete the action, which is called a conversion.
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