Affiliate marketing is basically a type of performance marketing strategy that is based on sales and leads. You have affiliates who link to your page. If a visitor buys your product through that particular link, you give the affiliate a certain percentage of that sale.
The biggest advantage of affiliate marketing is that it has minimal risk as you only pay for performance. You can also gauge which links work and which don’t which can help you determine your future strategy with respect to your affiliate marketers.
In simple words, the concept of affiliate marketing is to promote other people’s products through an affiliate network and earn commission if people actually buy the product. The entire concept is based on revenue sharing - if you have something of value to offer, get somebody to talk about it. If they help land a customer, they share the revenue with you.
Here are a few tips on how to start with affiliate marketing:
- Be observant and know what your competitor is doing
- Identify and understand the metrics they use
- Gain insight on your competitor’s affiliate marketing activities - what works, what doesn’t, which channels are the best and so on
- Clearly establish what you want out of your affiliate program