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What is affiliate marketing?
The idea behind it is that you promote other people’s products, often through an affiliate network, earning a commission if people actually end up buying thanks to your marketing.

It’s based on revenue sharing. If you have a product and want to sell more, you can offer promoters a financial incentive through
an affiliate program. If you have no product and want to make money, then you can promote a product that you feel has value and earn an income from it as an affiliate marketer.

Now let’s look at all of the parts of a successful affiliate marketing system.

The Merchant: Sometimes also known as the creator, the seller, the brand, the retailer, or the vendor.

This is the party that creates the product. It can be a big company Or, it can be a single individual

The Affiliate: This party is sometimes also known as the publisher. Affiliates can also range from single individuals to entire companies.

An affiliate marketing business can produce a few hundred dollars in commissions each month or tens of millions of dollars.

It’s where the marketing happens. An affiliate promotes one or multiple affiliate products and tries to attract and convince potential customers of the value of the merchant’s product so that they actually end up buying it.

The Consumer: The customer or consumer makes the affiliate system go ’round. Without sales, there aren’t any commissions to hand out and no revenue to be shared.

The affiliate will try to market to the consumer on whatever channel they see fit, whether that’s a social network,
digital billboards or through a search engine using content marketing on a blog.

The consumer will not typically pay a higher price to the affiliate marketer, as the cost of the affiliate network is already included in the retail price.

The Network: in many cases, a network works as an intermediary between the affiliate and the merchant.

While you could technically promote an online course someone has created and just arrange a direct revenue share with them,
letting a network such as ClickBank or Commission Junction handle the payment and product delivery puts a more serious note on your affiliate marketing.

Sometimes, affiliates have to go through an affiliate network to even be able to promote the product.

For example, this happens if the merchant only manages their affiliate program on that network.

The affiliate network then also serves as a database of lots of products,
out of which the affiliate marketer can choose which to promote.

Clickbnak is an example of a network
In the case of promoting consumer products, like tools, books, toys and household items, the biggest affiliate network, by far, is Amazon.
Their Amazon Associates affiliate program lets you promote any item that is sold on their platform.

Anyone can sign up and then generate a custom affiliate link to Amazon products.
If someone purchases through your link, you earn a small commission.