An Overview Of Affiliate Marketing
What is Affiliate Marketing?
Affiliate Marketing is a process in which one company, or website, promotes and sells the products of another company with a commission paid out for every sale that is made.
Commissions are commonly a percentage of the sale price of the product and can range from anywhere between 1% and 100% depending on the type of product (digital products usually range between 50-75%). Merchants prefer this type of marketing because they only pay on a performance basis. That is, no expenses are paid unless a sale is made.
To do this, website X signs up to website Y's affiliate program in order to sell Y's products. Website X receives a unique affiliate id that is used to identify any visitors sent to website Y from website X. If a visitor purchases a product on website Y via website X's affiliate link, website X gets a commission. It's that simple.