Affiliate Marketing - 101
Knowing what it is will give you a better understanding of why it exists.
Affiliate Marketing is a form of advertising.
But why does it exist? Simply put: MONEY. Businesses exist to make money. But If nobody knows about their products and services, they won’t make much. It's very likely that you are familiar with the companies represented at the top of the blackboard; it's just as likely that you aren't familiar with the ones at the bottom of it. Yet, all of them offer affiliate programs, because even nationally or globally known businesses have new products and services to offer and they want to reach more consumers. And little-known businesses want to become known to help them stay in business! Therefore, they all rely on some form of advertising. Collectively, businesses worldwide spend BILLIONS OF DOLLARS every year on advertising! At one time, television, radio, newspapers and magazines were the “go to” resources to promote a business. However, with technological advances that allow commercial-free media consumption, consumers can watch TV, listen to music, and read online editions of newspapers and magazines without seeing or hearing a single ad! So the traditional means of advertising are no longer as effective. Bad news for business …
… GREAT NEWS for consumers! Companies still have huge advertising budgets, and they needed more effective ways to let people know what they have to offer. And that’s where affiliate marketing comes in. By allowing customers to become affiliates and help them promote their products and services through personal websites, email campaigns, blogs, social media and ad placement, businesses get new customers and they and their customer partners make money!
In summary, affiliate marketing is a consumer-driven form of advertising, whereby affiliates are compensated when their efforts generate new customers and revenue for a business.
Next, you'll learn terms you need to know.