What is affiliate marketing?

Affiliate marketing is referring people to products or services of companies with affiliate marketing programs and receiving a commission of the sale. It is a great way to earn some passive income. In this kind of marketing, you do not need to have your own products or services. As such, it is basically a process of earning a commission by promoting someone else’s products or services. To do this, however, you need to have an affiliate link which is provided by the advertiser. This means that you have to first inquire if they have an affiliate program and join it. Afterward, is the mandate of the affiliate marketer to promote these links as much as they can in order to drive as many buyers as possible to make purchases. You earn a commission from the advertiser as soon as your referral makes a purchase.

The concept of revenue sharing between the advertiser and the affiliate marketer is what drives the affiliate marketing program. Most companies that wish to increase their sales usually have this program. The links they provide to their affiliate marketers are unique and have codes that can easily be traced back to them. This makes it easier to identify the buyers referred by a specific affiliate marketer.

As an affiliate marketer, you do not have to limit yourself to one company or product. This program flexible enough and allows you to find as many products and services as you like from different companies to promote. At the moment, the digital platform is quite robust, giving you a variety of platforms through which you can easily promote the links. Remember, the more customers you refer, the higher your commission earnings. Affiliate marketing is a win-win program for the company and the marketer alike. The company significantly drives up its sales while the marketer, on the other hand, earns substantial commission without necessarily breaking a sweat.

To better understand affiliate marketing, it is broken down into the four parties involved. They are the affiliate website, the affiliate network, the advertiser and the buyer. Let us dig a little deeper into these parties for clarification.

The Affiliate Website

This is the platform in which the affiliate marketer promotes the product links. It usually contains catchy product reviews in order to entice potential customers to click on them. When they finally do, they are redirected to the advertiser’s website where they can then make a purchase.

The Affiliate Network

It is the technical party in this partnership. The affiliate network is responsible for supplying the affiliate links and tracing them back to the affiliate marketer. This arrangement ensures that the commission is paid to the right marketer.

The Buyer

This is the referral from the affiliate’s website that is eventually redirected and makes a purchase on the advertiser’s website.


This is the endpoint of affiliate marketing. The marketer receives percentage or commission for all the sales made through the links promoted. The commission rate varies from company to company and it could be low single digits or even over 50%.

A Practical Example of Affiliate Marketing

John wants to be an affiliate marketer for CoolShoes, a web store selling custom-made shoes. He contacts them to inquire if they have an affiliate program, which they do and it pays a commission of 20% for every sale referred. John joins the program and CoolShoes provides him with a unique affiliate link that can easily be traced back to him. He is now in a position to promote the link and redirect costumers to CoolShoes. John has a lot of options to achieve this. He can by utilize the various online platforms such as Facebook, a webpage, and blogs among others to reach as many people as possible.

He eventually redirects one customer to CoolShoes who purchases shoes worth $100. CoolShoes successfully traces the sale back to him meaning that he will earn $20 from the web store.

Quite simple, isn’t it? Well, that is basically what affiliate marketing is. To learn more about affiliate marketing, Box Dreaming shall keep on giving you regular updates.