Affiliate Marketing – Guide

    Affiliate Marketing Guide

    All You Need to Know About Affiliate Marketing and the Related Concepts

    The idea behind Affiliate marketing is to promote and sell products manufactured by other people. It involves use of affiliate network, and the promoter earns a commission as an affiliate marketer if the prospective customers buy the particular product through the given link. The concept involves revenue sharing. Know about the related concepts here before you get into the marketing procedure.

    Affiliate Marketing Network

    The concept of affiliate marketing network involves third parties who bridge the gap between a company and a publisher, so that the latter gets the ability of joining affiliate programs. Businesses linked with an affiliate network get the benefit of sales leads and access to wide range of marketing mediums. The companies pay a certain amount to the marketers in order to gain new customers.


    An affiliate refers to an inter-company relationship where one of the companies is the owner of small portion of the other company’s stock. In simple words, Affiliation allows two different companies to become the subsidiaries of a parent (larger) company. The degree of ownership an affiliate holds in a parent company defines his rate of commission on sales.

    Ad Networks

    Ad networks allow the advertisers in buying digital ads across the publisher apps and websites. They collect unsold ads from the publishers and make money by selling them to advertisers. Plus, they take a cut of ad earning. The sites of ad networks are classified according to the type of content covered, namely automotive, beauty, travel, fitness sites, etc.

    Ad Exchange

    It’s a digital marketplace where real-time auctions conducted for the publishers and advertisers to sell and buy advertising space. Ad Exchange is for selling mobile ad, display, and video inventory.

    Monetizing Traffic – Performance-based Models

    Performance-based budgeting model explains the know-hows of necessary preconditions that the low-income countries should recognize before initiating the financial planning of a site. Here is the list of some technical terms that you should know for monetizing traffic through Performance-based Models-

    CPA (cost-per-action)

    Cost per acquisition popular as Cost per action is a metric used for measuring the cost occurred by a business for attaining a conversion. Quality Score of ads, landing pages and keywords determines the value of PA.

    CPI (cost-per-install)

    CPI campaigns involves placement of digital ads by the publishers across different media platforms in order to boost installation of the advertised app on the mobile devices.

    CPM (cost-per-mile)

    This marketing term denotes the cost of 1,000 advertisement impressions featured on a webpage. For example- an advertiser needs to pay $3.00 for 1,000 impressions of his advertisement if that is the price charged by the website publisher.

    CPC (cost-per-click)

    Cost per click, also known as Pay-per-click is a web-advertising model used for directing traffic to the sites of the advertiser or the site for which he pays to a publisher.

    • With Affiliate marketing, merchants can sell their services/products on a wider scale.
    • It facilitates the merchants to reach increased number of prospective customers easily.
    • The program serves as an additional source of income for website owners. They can generate instant commission by selling merchants products.
    • It doesn’t require huge amount of investment.
    • Affiliates need not to take the pain of maintaining customer support and bookkeeping. The merchant handles all the issues related to e-commerce.
    • Affiliate marketers are their own boss. They can work as and when they want. The best part is that they can work from any part of the world.
    • Affiliate marketing gives returns in both part time and full time. Most of the marketers use this program for generating supplementing income.
    • It just requires an internet connection and a laptop to get going with affiliate marketing.
    • Clients need not to buy the product before selling them to ultimate consumers. This saves time and cost, which is otherwise, required for driving all the way to the retailer’s store.
    • At times merchants have to meet high cost of commission, maintenance and set up due to affiliate brokers.
    • In order to attain high sales commissions few affiliates engage in misleading/false advertising. They may make wrong claims and fake promises regarding the service/product. In such cases, the merchant has to deal with customer grievances.
    • Dishonest and unscrupulous merchants may close down programs arbitrarily without paying commissions or informing the affiliates.
    • Hijacking of affiliate links by Link hijackers is yet another demerit of affiliate marketing as they get the commissions falsely instead of the affiliates.
    • False advertising, illegal use of brands, logos, and trade names is also prevalent n the market.

    No matter Affiliate marketing comes with certain disadvantages, but the fact can’t be ignored that it is one of the most popular ways of making money online. It just requires in-depth understanding of the concept, extensive research and some homework. Plus, marketers need to implement simple security measures in order to negate the disadvantages and reap increased benefits of the program’s advantages.


    Still, wondering whether affiliate marketing is really worth your time and money. Yes, it is totally worth considering without any doubt. The best part is that affiliates need not to deal with the stock, produce, delivery, and shipment of the inventory. Nevertheless, like any other work from home venture, you may not get success instantaneously. However, it does not require much investment but demands hard work and dedication to earn a decent income. Make sure you are informative about the products you choose for marketing.




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