What Is Affiliate Marketing - And Why Should It Be Part of Your Digital Marketing Strategy?

Paying per click can get expensive quick, especially if you're still learning what keywords to use and how to write the best ads. But what if you didn't pay for clicks, and instead only paid when a sale is made?

That's the beauty of affiliate marketing.

There is an entire realm of website owners (affiliates) who want to promote your product (you are the merchant). And they work on commission.

Here's a quick summary of how affiliate marketing works:

  • As a merchant, you control the ads. You can upload visual ads or links that affiliates then choose to use on their website to promote you.

  • As the merchant, you choose how much commission to give per sale. For example: 7% of the sale price. Thus, if the sale if for $100, you would pay $7 in commission to the affiliate - but you only pay when an affiliate makes a sale.

  • You can also choose to give commission per click-thru - but that's outside of the strategy we're looking at here.

  • The Affiliate Network then takes a small fee, usually 20% of the commission paid to affiliate. In this example, it would be $1.40...which means you pay $8.40 to make the $100 sale.

When choosing an Affiliate Network, look at:

  • Setup fees for you

  • Fees for each sale paid to Affiliate Network

  • How many affiliates use that Network

  • Setup fees for an affiliate (less fees means more affiliates will sign up with that network)

How does this fit into your digital marketing strategy? It generates traffic. Digital marketing boils down to traffic and sales. Everything you do in your digital marketing strategy - branding, social media, newsletters, blogging, seo, and more - leads to traffic and sales.

See you in the social sphere!

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