Affiliate marketing is a rather new marketing concept but getting popularity due to its effectiveness. It is extremely beneficial both for the brands and for the marketers. Just a few years ago, brands used to spend a lot of money to promote their brands on TV, radio and print ads. But now it has become super easy to stand out and make money even while you sleep.
What Is Affiliate Marketing?
Affiliate marketing is online advertising where you refer consumers to buy any online product and when that person buys something, you get a commission on every purchase. The commission depends on the product you are promoting. An affiliate marketer can search for products they would like to promote and create affiliate links on their websites or blogs. People can click on the affiliate links and they will be redirected on the brand’s page to make a purchase.
Why It Is Different From Other Marketing Types
Few things make affiliate marketing a different and a better choice as compared to other marketing types. Such as, in affiliate marketing, you can choose whom you want to work with. Affiliate marketers will come to you to become your affiliate marketers and you can assess their suitability and pick the ones whom you think will be able to promote your brands effectively.
The second most difference is that affiliate marketing is cost-effective as you only have to pay a commission when a sale is being made. With traditional pay per click advertising where you pay per click, affiliate marketing is way better and risk-free.
Ready about other marketing types and how they are beneficial.
How Does Affiliate Marketing Work?
As we have said earlier, affiliate marketing is a performance-based marketing tool and it involves three different parties to work:
- Seller or brand owners who want their product to be advertised. They reach out to affiliate marketers to promote/sell their products.
- The publisher/ affiliate marketer- it can either be an individual or an affiliate company that promotes the products on social media, blogs or websites to receive a commission.
- The consumer- who buys the products and both the seller and the affiliate marketers shares the profits.
Affiliate Marketing and E-Commerce
Affiliate marketing and e-commerce are two different ways to promote and sell your products online. In affiliate marketing, you choose an affiliate marketer to promote your brand by redirecting people to their website. Whereas, in e-commerce, you sell your products and services directly from your website and keep all the profits you have earned. So if you run an e-commerce business, you can recruit affiliate marketers to promote your brand. Or you can create your own eCommerce website and add affiliate link on your website. You can easily create an eCommerce Website using existing eCommerce tools available in the market.
Examples of Affiliate Marketing
So for this post, we are going to look at 2 examples of affiliate marketing examples and we hope that by looking at them, you will get an inspiration.
Nordstrom is a big name when it comes to the fashion industry and apparel business. It has an exciting yet rewarding affiliate program. Nordstrom offers commission with the rate of 2 to 20% per sale depending upon the item being purchased.
This is yet another success story where you can find fancy apparel and jewellery. It has a very generous affiliate program. Zaful offers a commission rate of 15 to 20% and it was the highest-rated an online clothing and accessories business were paying to its affiliates in the year 2017.
These examples of affiliate marketing for e-commerce stores are very inspiring and anyone can start his own online business. Affiliate marketing is a very effective affiliate program to add a new revenue stream without taking too much risk. All it costs you is your time and in return, it will reward you ten folds. Amazon’s affiliate marketing programs are also very rewarding. You can check out the details before you start.