is a marketing model where the advertiser pays commissions to the publisher or affiliates who advertise their products by blogging or other means and gets new customers for the advertiser.
For e.g. the advertiser is in the business of selling shoes. The Publisher joins the advertiser’s affiliate program and posts banners on her website promoting the advertisers product. When a customer is looking out for shoes and comes across the banner posted by the publisher, it clicks on the link which is an affiliate link. This affiliate link drops a cookie on the advertiser’s browser. When the customer buys the product from the advertiser’s site, a tracking pixel on the advertiser’s site matches the affiliate cookie on the customer’s browser. This tracking pixel shows that the publisher has sent this customer to the advertiser’s store and it turn earns sales commission. The affiliate network sends reports to both the advertiser and the publisher. At the end of the month, the affiliate network pays publisher’s to the publisher via the advertiser.
BENEFITS OF AFFILIATE MARKETING
Collaboration & Partnership
The relationship between the advertiser and the publisher is a mutually beneficial relationship, which brings profits and benefits both. Basically, they create a partnership and help each other earn money. The advertiser gives the publisher an opportunity to market their products and if the publisher gets him traffic and sales, they earn a commission. This also brings sales and visitors to the advertiser. Therefore, both work in a collaborating manner and help each other to earn profit and sales.