What is affiliate marketing?
The other name of affiliate marketing is performance-based marketing; however, it’s better to understand this concept through an example:
- You have a product or service, such as online insurance.
- Someone has an audience that is potentially interested in your services. For example, a blogger who makes lifestyle content.
- You ask that blogger to advertise your services and promise to pay them $5 for each sale.
- To track sales, all traffic from said blogger is marked in your database (for example with a unique ID).
As a result, the blogger is interested in driving quality traffic to your service, since the reward is only paid out for actual sales. You do not spend your budget on advertising that fails to generate sales. Instead, you only pay for customers that were actually attracted.
Affiliate marketing works with different services and goods, and works for attracting customers from different sources.
A huge advantage of this approach is that you can not only better and more transparently predict costs and revenues when driving traffic from contextual networks, but you can also attract traffic from sources from which you could not previously. For example, in the case of YouTube channels with disabled monetisation, some vloggers only do promotions in exchange for commissions.
To get the most out of affiliate marketing, follow these tips:
Extend the list of available affiliate tools
There are many different affiliate tools…