What is Affiliate Marketing and how it works?

Today I want to start answering questions from affiliate marketing beginners. If you have been dealing with this topic for a very long time, then a lot is clear.

But whoever comes across “Affiliate Marketing” for the first time is often overwhelmed by the many English terms and wants to get to know the basics instead of professional tips. Therefore, I will dedicate myself to these affiliate basics in bulk. You can also get the best affiliate programs by following the link.

Affiliate marketing comes from the USA and is often referred to as a partner program in this country. 

Simply put, it’s an internet-based commission system. Companies that sell products online in a shop, for example, pay commissions to website operators who “send” visitors to their shop, who then also buy something. For example, Amazon offers its own and very lucrative partner program.

In contrast to normal banner advertising, for example, the remuneration for affiliate marketing is performance-based. As a website operator (also called an affiliate or partner) you only get a commission if the brokered Internet user does something specific on the company website. So, for example, shopping.

For example, I can get 1,000 visitors to my website to click on an affiliate link (which can of course also be an advertising banner with a corresponding affiliate link). If you don’t buy anything in the shop you came to with the click, I will earn 0.

But if I manage to get 10 people to click on an affiliate link and 5 of them then buy something in the shop, I get a commission 5 times. Affiliate marketing is not just about quantity, it is also about quality. But more on that in another article.

Background Information

The term affiliate comes from English and means something like “affiliate”. Amazon is said to have been one of the pioneers in this business area. As early as 1997, Jeff Bezos recognized that many sales were made because the interested parties followed links on other sites. At the request of many website operators to be involved in the success, Amazon has strongly promoted this area.

But how does affiliate marketing work?

Based on your individual partner link, it can be determined that the purchase was made through your link. I explain the exact technical functionality below.

For a sales mediation, you will be paid with a commission, the so-called pay per sale.

There are other commission models in affiliate marketing:

  • Pay per click
  • Pay per lead
  • Pay per sale
  • Pay per click out
  • Pay per link
  • Pay per print out
  • Pay per view
  • Pay by SignUp
  • Pay per install

Pay per sale is the most common remuneration model. For many affiliate partners, it is also the most sensible and lucrative remuneration method.

Example: Sequence of an affiliate process

A user enters the search term “cheap reflex camera” on Google. Among other things, your website appears in the search results. The user goes to your page and gets information about the cameras displayed. The cameras have been awarded affiliate links. The user clicks on a camera and is forwarded to a shop where he buys the camera. The purchase triggers the commission of x% of the value of the goods for you.