What is Affiliate Marketing and How Does it Work?

Affiliate marketing is one of the oldest and most efficient tools for digital marketing. Its origin dates back to around the same period as that of blogging. They both completely revolutionized the way companies marketed their products and provided a new source of earning for many individuals. In this article, we answer the questions, “what is affiliate marketing” and “how does affiliate marketing work.” Let’s get into it.

What is Affiliate Marketing?

Affiliate marketing is the process whereby an individual, also known as an affiliate, markets a product or service offered by another company or an individual. It is as simple as one person searching for a product or service they like and enjoy using and marketing or promoting it to their audience. If their audience likes it and decides to purchase it, the marketer gets a share of the profits.

Affiliate marketing is an incredible tool that has evolved into the most effective and powerful digital marketing tool. It has created a vast community of affiliate marketers who leverage their reach to promote products by giving reviews, creating tutorials, and writing blogs.

The marketer then adds a link to the product in the content they put out. Each customer that clinks on the link and makes a purchase becomes a source of income for the affiliate as they get a commission for each customer they redirect.

Many companies even offer affiliate marketers promo codes offering discounts to their audience as an incentive to purchase the product. Often, a discount becomes the main reason why a customer purchases a product. It works wonders for not only the affiliate marketer but also the customer and the business.

How does Affiliate Marketing Work?

Affiliate marketing is simple enough to understand as a concept but is quite difficult to carry out as a strategy. To understand how affiliate marketing works, let us first identify and understand the parties involved.


The seller can be an individual, a small start-up, or a large scale business. They are essentially looking for a way to reach their target audience efficiently and cost-effectively and to increase sales. Many of these vendors are e-commerce entrepreneurs, and for them, affiliate marketing can be their main central digital marketing tool crucial to the success of their business.


Affiliate marketers are also e-commerce entrepreneurs. They can best be described as middlemen. They have an established audience network that they leverage to market products and services from different companies and earn a commission on each sale they generate.


The consumer is the central component of affiliate marketing. It is what connects the business and the marketer. The goal of all affiliate marketing strategies is to reach the target audience and turn them into customers.

Payment Options

The way an affiliate marketer gets paid depends on the terms and conditions set between the seller and the marketer. A marketer can get paid per click, per sale or per lead. Often the payment terms and conditions vary by the type of service offered by the marketer.

A company can hire an affiliate to generate more sales or simply to increase traffic to their website. Some even hire marketers to get people to sign up for the trial of a product or a service. As long as the marketer can fulfill the terms and conditions, they can earn money from the comfort of their own home.

Be Your Own Boss!

Affiliate marketing is a very attractive option for those looking for something different. If the corporate rat race isn’t for you, take charge of your life and source of earning by becoming an affiliate. Many even turn to affiliate marketing to earn some extra cash on the side while also managing a full-time job. It is a very flexible and lucrative option.

Here we have tried to provide answers to what is affiliate marketing and how does affiliate marketing work. We hope this article helps you establish a better understanding of this tool. You can also visit Savage Global for more information on digital marketing.

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