What is Online Affiliate Marketing and How Does It Work?

Online affiliate marketing is a performance-based marketing strategy where individuals or businesses (called affiliates) earn a commission by promoting other companies’ products or services through unique affiliate links. When someone clicks on the affiliate's link and makes a purchase or completes a specific action (like signing up or filling a form), the affiliate earns a pre-agreed commission.

How It Works:

• Join an Affiliate Program: Affiliates sign up with an affiliate network or directly with a company’s affiliate program.

• Get Unique Affiliate Links: After approval, affiliates receive tracking links tied to their account.

• Promote Products/Services: Affiliates promote these links through blogs, websites, social media, email marketing, YouTube, or PPC ads.

• Track Performance: Cookies and analytics tools track every click, lead, or sale.

• Earn Commissions: Based on the defined payout structure (CPS, CPL, CPA, CPC), affiliates receive payments, often monthly or bi-weekly.

Why It’s Popular:

• Low start-up costs

• No need to create or manage products

• Passive income potential

• Scalable with digital platforms