Affiliate marketing: The scheme of operation


In practice, affiliate marketing works on a simple principle. The partner places a link on his website, which a potential customer clicks on, and redirects the link to the seller’s website. When a customer makes a purchase, reservation, or order, there is a conversion, and therefore the goal of the site is met. At this point, the advertiser (merchant) pays a commission to his business partner. If the customer does not convert on the seller’s website, then the seller does not pay for such a visit.

Will affiliate marketing benefit your project?

Affiliate marketing does not have to be used only to generate sales. Its system can be used to fulfill various goals that the customer has to achieve on the website or e-shop. The only condition is that this activity must be measured. Typically, affiliate marketing can be used to get conversions like:

  • Customer registration
  • Filling in the inquiry form
  • Creating a reservation
  • Getting in touch
  • Newsletter subscription
  • Purchase in the e-shop
  • How to start with affiliate marketing

There are two ways to get started in affiliate marketing. You will either join a well-established affiliate network or purchase special software with which you will manage your own affiliate campaign. As usual, each of the options has its advantages and disadvantages.

Affiliate network

The affiliate network is mostly run by a company that has developed its own unique affiliate platform. It then acquires partners in this network, such as website operators, group owners on social networks or influencers. The task of the partners is to promote the products and services of advertisers for a commission on their projects.

The affiliate network operator keeps part of the commission for its operation, and pays part of it to partners who have secured sales to advertisers. This commission is usually in the range of 6% to 25% of the total value of the order. Now that from Sean Abbott you can have the best understanding of the Evergreen Wealth Formula.

For the advertiser, the advantage of the affiliate network lies mainly in convenience. The affiliate network operator takes care of obtaining other suitable partners who will promote advertisers, and also takes care of the proper operation of the affiliate platform itself.

The disadvantage may be the need to set a higher brokerage commission, which the advertiser will cut from his own margin, because this commission must be divided between the affiliate network and its partners. Improperly set and small commissions may not be attractive to partners and will not want to promote the advertiser.

How to choose an affiliate network

Affiliate networks and hubs have been growing a lot lately. It is important for you as a marketer that the network has capable partners who can meaningfully promote your product. Be sure not to succumb to the high number of partners involved, because most of the affiliate network’s profits end up being a small group of successful and quality partners. It’s a good idea to communicate with them about improving your campaign.