Affiliate marketing is the process of earning money (commissions) every time you promote a company’s products or services and drive a sale. You only get paid every time you drive a sale, just like a commission-only sales representative.
How Affiliate Marketing Works
Affiliate marketing involves referring a product or service by sharing it on a blog, social media platform, podcast, or website. The affiliate earns a commission each time someone makes a purchase through the unique link associated with their recommendation.
- You show an ad or a link for Store Z on your website, blog, or social network.
- A customer clicks your unique link.
- The customer makes a purchase in Store Z.
- The affiliate network records the transaction.
- The purchase is confirmed by Store Z.
- You get paid a commission.
Commission rates vary depending on the company and the offer. On the low end, you’ll earn about 5% of the sale but, with some arrangements, you can earn as much as 50%, usually when promoting a class or event. There are also affiliate marketing programs that provide a flat rate per sale instead of a percentage.