What Is Affiliate Marketing And How Does It Work? From An Expert's Point Of View
So lets look at the big picture here. It helps most people to visualize the big picture before they drill into the details and the details, so let's try one now. Affiliate marketing has three major entities, each with an independent party of all:
1. A vendor retailer, wholesaler or services that will generate more customers and sales via their website.
2. An affiliate network that contracts with these companies to bring them customers.
3. Affiliate marketing and implement their Internet marketing to offer these customers through the affiliate network for the seller.
Now, the retailer knows that he can spend a fortune to make their own online marketing, but this expense is the overhead of maintaining many websites and having to monitor their results. They approach an affiliate network, offering compensation based on their ability to deliver its customers. The affiliate network is exactly what the name implies, the construction of a network of affiliate marketers who are each construction sites and blogs to market products and services vendors have placed with the network.
We know what the retailer has to win and they get their income from the transaction customer. But how the rest of the work process, and how networks and their affiliates are compensated? The beauty of affiliate marketing is that everyone wins when the consumer internet do what we want.
1. Consumer locates a tempting offer or a link to a site affiliate marketing.
2. They click on it, ending up on the site of the retailer, but with a tracking code that shows where they came from.
3. This code indicates the affiliate marketing and network.
4. The retailer has contracted to pay the network a fixed amount or percentage for each conversion.
5. The affiliate network takes a small commission on top of paying the agreed amount (or "payment") to the affiliate marketer.
This is a truly democratic system, as there is no conflict of interest. Everyone involved wins, even the consumer, because they end with the product, service or free trial they want. They affiliate marketer (you) is not the bottom of the chain, they are the beginning. Without your efforts put into the construction of excellent websites and blogs, search engine strategies to get consumers to them, and the right content for that click, no one wins. If we succeed, our affiliate networks well paid, so they want to help us in any way possible to successfully develop our sites, blogs, and place marketing. They compete among themselves for the business of suppliers and retailers, as well as higher payouts of them based on their performance, but their performance depends on our own that affiliates.
