Affiliate marketing is a performance based marketing channel that rewards affiliates usually in the form of commission. It's performance based because the affiliate is essentially doing the advertising to their audience. In affiliate marketing there are three components plus the network. Let’s start with briefly explaining the components that are in affiliate marketing. "Merchant" It starts with a company looking to sell its product or service online. The company is referred to as the merchant. The merchant seeks out websites that attracts audience in their target market. "Network" The next component in affiliate marketing is the network. The network hosts all the offers of the merchant. It also facilitates the tracking and payment. There are many affiliate networks to choose from. Each network offers different pricing. The major networks that Versa utilizes are CJ, Avantlink, Linkshare, and Share-a-Sale. "Affiliate" The next component is Affiliates, also called publishers. The company recruits affiliates to join its network and begin hosting content. The affiliate places tracking links in the form of banners, text links, and reviews. The affiliate is then commissioned based on the agreement of the company. "Customer" The last part of the affiliate equation is the customer. The customer is the readers of affiliate’s website. The customer clicks a link from the publisher’s website and decides to buy what is being advertised. This initiates an action within the network that then sends a commission to the affiliate. "Recap" The merchant selects an affiliate network. Then the merchant recruits affiliates to join the network. The affiliate places offers on their website. Readers of the website click the links and buy product. The company pays the affiliate an agreed upon commission. This is how affiliate marketing works from the basic level. Affiliate management can be very time intensive and is usually cost-efficient to hire a premier affiliate marketing management company. Versa Marketing has many years experience in the affiliate channel and is dedicated to increasing online presence for its clients.
What is Affiliate Marketing?