Some do not understand affiliate marketing 100%, so here is the affiliate marketing definition…
… Affiliate marketing is a marketing practice that is carried out on the internet and has proven to be quite profitable for many.
What it involves is recruiting people called affiliates. These affiliates will take an ad with a special link in it that has been created by the merchant and the affiliate will place this ad on their website or other webpage.
They are marketing the product or service of the merchant the moment they do this.
The affiliate marketing definition doesn’t stop with how an individual markets. It also includes how the affiliate gets paid.
There are several ways in which individuals are paid. The first way they are paid, according to the affiliate marketing definition, is on a per sale basis.
This means that the affiliate is only paid when a sale is made. That sale has to originate from the link that is on the affiliate’s page.
There used to be the method called “Cost per click,” which has been diminishing over the years. This is because there is this problem called “click fraud.”
An affiliate would simply be paid because a visitor would click on their link. However, many individuals were either clicking themselves or having others click on the links without the intention of ever buying anything from the merchant.
The last way to get paid according to the affiliate marketing definition is “cost per action.” This is when an affiliate is paid for any action by a potential customer.
This can be a purchase, signing up for a newsletter, or being added to a mailing list. Only about 19% of affiliate marketing compensation plans consist of this method. 80% pay their affiliates for sales only.
Variations of affiliate marketing
The affiliate marketing definition also points out that there are different variations of affiliate marketing.
There are what’s called two-tier affiliate marketing and multi-tier affiliate marketing. Both of these consist of recruiting other affiliates and gaining a commission off of their sales as well.
This has been proven to be quite profitable for many individuals. When you’re on that first tier, you reap excellent benefits and the effects trickle down to others as they recruit affiliates to be a part of the tier.
So if you’re looking for a way to make money on the internet, affiliate marketing is a great way to do that.
Just be mindful of the company you’re dealing with and the product or service you are marketing for them.