What Is Affiliate Marketing & How Does It Works For Beginners

what is affiliate marketing
(Last Updated On: October 17, 2019)

Affiliate marketing is a fantastic way for you to earn some side income. Affiliate marketing is the process of earning a commission by promoting other people’s (company’s) Product. when that person buys the product based on your recommendation, you receive a commission.

This commission depending on what product you are promoting. Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer.

Many online companies who sell products such as E-commerce, web-hosting, or some other service, usually offer an affiliate program. There are two ways to approach affiliate marketing: You can offer an affiliate program to others or you can sign up to be another business’s affiliate.

In this, we cover some point about affiliate marketing

  • What is Affiliate Marketing?
  • How Does Affiliate Marketing Work?
  • Affiliate Marketing related definitions.

What is Affiliate Marketing?

Affiliate marketing is one of the oldest forms of digital marketing, where you get paid a commission for promoting products/services for other companies and you receive a commission.

This product commission varies from $1 to $10,000 depending on what product you are promoting.

According to Pat Flynn (American entrepreneur, blogger, and podcaster known for his website Smart Passive Income):–

Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make.

Here is how affiliate marketing works in 4 simple steps:

  1. You join an affiliate program.
  2. You pick a product to promote (You will get a unique affiliate link)
  3. You share the link via Social media, blogs, YouTube videos, Facebook ads or any other platform.
  4. When someone makes a purchase, you earn a good affiliate commission.

How Does Affiliate Marketing Work?

Right now we know ‘What is Affiliate Marketing’, let’s understand how does affiliate marketing work?

How Does Affiliate Marketing Work

Affiliate marketing is one of the best ways of making money online, wherein you can refer someone to any online product and when that person buys the product based on your recommendation, you receive a fix commission according to your affiliate partner. This commission varies from $1 to $10,000 depending on what product you are promoting.

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Affiliate Marketing related definitions.

Here are some of the common terms associated with affiliate marketing:

  • Affiliates: Affiliates are called those people who join an Affiliate program, promote their products on their sources such as a blog or website.
  • Affiliate Marketplace: There are a lot of companies that offer affiliate programs on different topics.
  • Affiliate ID: Each Affiliate is given a unique ID by every Affiliate Programs, which helps Sales in collecting information.
  • Affiliate link: Every Affiliate is provided some links for the promotion of different products, which click on the Visitors to another website, where they can buy a product. These links only track sales of affiliate programs.
  • Commission: Amount, which is provided to Affiliate according to each sale. It can be a few percent of the sale or an amount already fixed.
  • Payment Mode: This means that the medium through which you will be given your commission. Individual Affiliates offer different modes. Such as cheque, wire transfer, PayPal, direct bank transfer, etc.
  • Payment Threshold: The minimum playing amount that you will earn when you earn. The payment threshold depends on the affiliate company amount of different programs is different.
  • Custom coupons: Many programs allow affiliates to create custom coupons which are also used to track sales. Custom discount coupons help you to increase affiliate sales as well.


You’re the middleman in affiliate marketing. You’re the person connecting the customer to the product or service.

You’re creating the marketing funnel that includes the ads, landing pages, and whatever additional means necessary to persuade the customer into making a purchase or signing up.

Your job is to:

  1. Find products to promote (Offers)
  2. Find potential customers (Traffic Sources)
  3. Create marketing material (Ads, Landing Pages, etc.)
  4. Optimize (Test different parts of the campaign) until it becomes profitable

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