Have you heard about passive income? Do not believe that you can make money while you are not actually working? Yes, there are ways and affiliate marketing is one of them. It is a proven way of making money, especially online. Let us understand what this affiliate marketing is and how it works.
Obviously it is a type of marketing a product. When one business wants to expand its customer base, it uses different methods and avenues to reach potential customers. Business can think of appointing agents who will market and sell their products. In return, based on the sale done, they receive commission. Here, the commission is directly proportional to amount of sales done.
Affiliate marketing is process of earning commission by promoting someone else’s product/service.
Affiliate marketing ecosystem
In the affiliate marketing ecosystem, there are multiple parties, we will see their roles one by one.
As the name implies, merchant or creator is a party which creates a product or a service. When the merchant wants to increase its sale, it can launch and run its affiliate program. The merchant can be a big company or a small startup or even an individual. It is some entity who has a product or service for sale.
Consumer is the party who is the buyer of the product or service. Ultimately, the merchant would get money for its product or service from the consumer. So, consumer is the most important party which makes the whole cycle works and everyone earns its part of the profit.
Affiliate is the party which has key responsibility of marketing or promoting the product. This role of affiliate can be played by an individual or an organization. Every affiliate tries to attract customers through his marketing channels, promote the
product/service and try to make the sale happen.
When the actual sale is done due to affiliate’s effort, he/she gets commission. This commission can range from few hundred to a few thousand dollars (or rupees).
Affiliates use various avenues like their own blog, their website. Some create blogs which are targeted towards writing product reviews. These websites/blogs have their own audience. With these avenues and more, affiliates try to attract user traffic and pitch them various products. When the product gets sold, then only affiliate earns commission.
Sometimes products or services are available only on the affiliate network. This network acts as an intermediary between affiliate and the merchant.
How to use affiliate marketing to make money
Now we are acquainted with both the sides i.e. merchant and affiliate. You can choose affiliate marketing to promote your business or you can become an affiliate to someone. In either of the case, you would be able to make more money.
Webhosting is one of the high paying affiliate programs popular today. If you are web developer/blog writer you can become affiliate to Magicworkshost, promote its products and services and earn handsome commission. For details visit following link https://magicworkshost.com/become-our-affiliate/