• Affiliate marketing is a form of online marketing, and a cost-effective method of consumer delivery, where you use a website to drive the traffic to your site for promoting your businesses.

  • Online merchants promote businesses through the affiliates. The affiliates post the links/products/services of the merchant’s Web store in their website. When the visitor clicks the links/products/services on the affiliate website, the visitor will be navigated to the merchant’s website. This increases the traffic on the merchant’s site. The merchant, in turn, pays a commission to the affiliate websites for diverting the traffic to their site.

  • There are at least three parties in an affiliate program transaction:
    • The customer
    • The affiliate website
    • The merchant website
  • The affiliate receives either a flat fee for the referral or a percentage of the sale that results from their referral.
  • Most of the affiliates work around the following two models:
    • CPA or 'Cost Per Action' model: The affiliate is only paid for referrals that result in actual sales.
    • CPC or 'Cost Per Click' model: The affiliate is paid per click on the merchant's link/product/service regardless of whether there is a sale or not.

  • Basically, if a link on an affiliate site brings the merchant site traffic or money, the merchant site pays the affiliate site according to their agreement.

  • The affiliate program is used for a retailer in many ways. Some of the uses of an affiliate program are listed below:
    • It helps the merchants to direct the traffic towards their websites.
    • Affiliate programs are the excellent way to sell products online
    • It is a cheap and effective marketing strategy.
    • It is a good way to get the word out about your site.
    • You can have a banner advertisement on affiliate site.
    • Product affiliates offer to showcase your products on their website.
    • Content affiliates support your site with product videos. The 360-degree product videos are hosted on the affiliate server. When the customer clicks on the video URL in your website, he gets redirected to the video on the affiliate server.

Let's learn how to configure the different affiliate programs at your store:

Do It Yourself: