As an affiliate, you can either decide to participate in an affiliate program of a company directly or subscribe to an affiliate network. However, whichever way you want to go through, you WILL be given an affiliate ID. This ID must then be embedded in all the links to a merchant website or product page. Thanks to these unique URLs (called affiliate links) that contain your unique identifier, all the traffic you send to the merchant is tracked, and all the sales that are generated can be referred directly to you. That’s how you get a commission!
Most sites have a dashboard of your account; you can quickly check your commissions as they pour in. How much money you get primarily depends on your ability and effort and may vary according to the type of affiliate program that you choose.
Nevertheless, knowing how to make money through an affiliate program is not enough to turn it into a significant source of your income. If you are a beginner, you need to take a few steps back to understand a couple of things about it.
The Players Of Affiliate marketing
In affiliate marketing, there are four different players involved:
Merchant
A merchant (also known as retailer or vendor) seeks to maximize sales or leads by allowing affiliates to promote their products or services via affiliate campaigns.
Affiliate
An affiliate (also known as the publisher) uses different methods to drive traffic to a merchant’s offer and get a commission for each sale or lead he/she generates.
User
A user is a potential customer. They are individuals who purchase goods and services – a decision that’s typically based on personal needs, wants, or interests. Affiliates mostly work on business-to-consumer (B2C) markets rather than the business-to-business (B2B) types, but both options are possible.
Affiliate Network (Optional)
An affiliate network mediates between affiliates and merchants. They usually facilitate the connections between the two by providing a virtual place for them to meet and interact. They also act as a technical platform to manage all the practical aspects of their relations. E.g., tracking technology, reporting tools, and payment processing.
The affiliate network is an optional player in the system. Many companies prefer to set up their in-house affiliate program and work directly with affiliates without being part of an affiliate network.
Types Of Affiliate Programs
There are two main types of affiliate programs:
Pay-Per-Sale (PPS)
In PPS, affiliate programs receive compensation for each purchase on the merchant website, generated by their traffic. It can be a percentage of the total amount of sale or a fixed fee for each transaction, depending on the agreement with the merchant/affiliate network.
Pay-Per-Lead (PPL)
Pay-Per-Lead programs slightly vary with Pay-Per-Sale. Insurance and finance companies commonly use this type of affiliate marketing. It allows an affiliate to earn money each time he/she directs a potential customer to the merchant’s website and registers for their service.
Final Thoughts
You may not see the full effect of being able to earn money by talking about a particular company on your channel if you have not done it before. However, once you remember the ideas above and get the hang of marketing through affiliation, everything will turn out amazing.
Good luck!