How Does Affiliate Marketing Work?

In this video lesson you are going to learn how affiliate marketing works. Let’s start with a basic definition of affiliate marketing, it is:

“An Internet-based system where you (as an affiliate) get paid for referring sales or customers to another business.”

The merchant is the person or company that creates and owns the product. Now it’s up to the merchant to work their magic and get that person to buy. If the person does decide to purchase, then the affiliate that sent them to the site earns a commission, which is a percentage of the product’s sale price. Easy, right?

With affiliate marketing you typically have a website. Now you don’t actually need a website – there are loads of different ways to do affiliate marketing and some of them don’t even involve owning a website. Growing in popularity video marketing to promote your affiliate offers. So the big goal of affiliate marketing is to get as many people as possible clicking on your links and visiting merchant pages, the more people that click on your affiliate links, the more chances you have of a sale occurring and earning a commission.