The Adtraction Blog

What is affiliate marketing?

Ever wondered what affiliate marketing is? We’ve got you covered with this short, yet concise post.

What is affiliate marketing?

Easily explained, affiliate marketing is a strategy that enables individuals to make money by referring consumers to an online store. Affiliates receive a commission when their marketing efforts result in a transaction. Advertisers on the other hand, receive high quality traffic and pay only for results. Affiliate networks offer a platform to connect advertisers and affiliates, and handle support, tracking and payments.

  1. Affiliate types

    Affiliate links to one of our advertisers.

  2. Arrow next

    Visitor clicks
    on the link.

  3. Advertiser shopping cart

    Visitor purchases
    from the advertiser.

  4. Arrow next

    Purchase is tracked
    by Adtraction.

  5. Recieves money

    Affiliate receives commission.

Affiliate marketing is often referred to as performance based marketing, with CPO (cost per order) being the payment model. This means that when an affiliate contributes with a transaction on the advertisers website, the affiliate gets paid a commission. As of this, it becomes a cost per order for the advertiser.

What is an affiliate?

An affiliate is an individual or a company which sends readers, followers and visitors to an online advertiser. In practice, any individual with an online channel and audience can be an affiliate. Typical affiliate channels are websites, blogs, social media channels, price comparison sites, shopping sites, cashback and loyalty concepts, email marketers, voucher sites and content sites.

What is an advertiser?

From an affiliate perspective, an advertiser is a business connected to an affiliate network. In principal, any business with a website at which users can make a transaction can be an advertiser. However, with affiliate marketing being performance based, affiliates tend to choose to promote well known brands that are likely to convert, rather than smaller brands. Put differently, being an established and well renowned business can positively affect the success of an affiliate program.

What is an affiliate program?

The advertiser has an affiliate program which allows affiliates to retrieve tracking links. The affiliate program is administered by an affiliate network, and enables the affiliate network to track clicks and transactions that originate from the website or channel of an affiliate.

What is an affiliate network?

An affiliate network commonly serves as the link between advertisers and affiliates. The network offers a solution for tracking conversions, while handling support and payments. Affiliate networks are specialized in the field of affiliate marketing, and help advertisers to set up successful affiliate programs that are attractive for affiliates to promote.

Conclusion

Affiliate marketing is a digital marketing strategy that facilitates the connection of advertisers and relevant affiliates. The payment model is often referred to as CPO, meaning the affiliate gets paid when he or she contributes with a sale to the advertiser. The advertiser, on the other hand, pays only when a transaction or an agreed upon event has occurred.

The above post provided you with basic knowledge of what affiliate marketing is. Interested in learning more? Check out our whitepaper on how affiliate marketing works.

Related content

Get started with affiliate marketing in five minutes
Affiliate marketing guide for Instagram
Earn money on Youtube with affiliate marketing

  • Get the latest from our blog

    By sending the form I accept the Privacy policy

  • Three steps for affiliates to start preparations for Black Friday

    Black Friday will be on Friday 29th November 2019 and Adtraction is confident that it will be the sales boom of the year. Are you ready to increase your earnings on this year’s Black Friday?

    Read more
  • Adtraction joins Google Tag Manager’s Community Template Gallery

    Adtraction’s tracking tags are now live in Google Tag Manager’s Community Template Gallery, bringing a fast, simple, plug-and-play integration for any of our advertisers using GTM.

    Read more
  • What is a cleanlink and how is it used?

    Want to save time using cleanlinks? We’ll teach you how to do it in our guide.

    Read more
  • The wrap up – Adtraction at PI Live

    Adtraction sponsors PI Live’s biggest ever conference.

    Read more
  • Traffic error, what does it mean?

    Ever noticed a red warning sign in your account and wondered what it means? We’ve got you covered with this article explaining what traffic error means and how to handle it if it occurs.

    Read more
  • What is a deep link and how to create one?

    The title speaks for itself: this post explains what deep links are and how they can be created and used.

    Read more
  • Advertiser rules and policies

    This guide provides you with an overview of the different advertiser policies affiliate programs at Adtraction can have.

    Read more
  • What to expect from PI Live 2019

    PI Live takes place in London next week, on 22 - 23 October.

    Read more
See more blog posts