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How Affiliate Marketing Works

how AffiliateMarketingWorks

In order to be successful with both online and offline sales, it is necessary to know and understand how affiliate marketing works. It is one of the established and irreplaceable channels through which companies increase their sales without having to spend any manpower on it. Allow us to explain how it works, and how it can help you grow your sales instantly and exponentially without any additional effort.

What is Affiliate Marketing?

Before setting up an affiliate program, you need to know the general idea behind how affiliate marketing works. There are four key parts of this machine – the merchant, an affiliate network, the affiliate (publisher), and the end user or customer.

The merchant establishes an affiliate program, wherein each affiliate who brings in new sales is rewarded with a commission per sale. The affiliate program is a facilitator and marketplace that connects affiliates to merchants. Affiliates can sign up with more than one merchant’s affiliate program, and they can start promoting the products/services of these merchants through various channels.

The affiliate network provides the promotional material (logos, text and images, links, etc.) and tracks the performance of each affiliate through unique links. The merchant only pays a percentage commission on sales that result from visitors sent by an affiliate. In this way, a merchant can easily put to work hundreds of people and get web traffic from all their websites and blogs and promotional efforts.

How to Set Up An Affiliate Program

You can set up an affiliate program yourself using free or paid affiliate management software. It will generate unique IDs and tracking links, text and image ads, etc. for each new affiliate who signs up. You can also link a payment processor to the program, so that affiliates can automatically receive payments after they rack up sales.affmarkket

But it’s far easier, and more effective, to sign up with an affiliate network. They have a ready pool of affiliates waiting to sign up with new merchant programs, so you don’t have to do any marketing to sell your new affiliate program. Secondly, the networks are able to run the program far more effectively, weeding out unwanted affiliates and making sure the whole system is secure and reliable.

You pay a small commission to the network and the affiliates, and in turn you get an instant army of internet marketers selling your products and services to millions of people all over the world.

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