Affiliate marketing is a form of marketing on the Internet that involves 3 parties:
1. A Merchant / product seller
2. An affiliate of the merchant
3. The Customer
The role of the affiliate marketer (which is the affiliate of the merchant) is to act as a bridge between the merchant / product seller and the customer, where he / she will attempt to "presell" the potential customer by sharing with them the main benefits of the products, as well as how will it help solve the customers' problems, before directing them to the merchant's website.
Affiliate marketing can be viewed as a form of advertising and traffic generation (for the merchant).
There are many advantages for the affiliates where affiliate marketing is concerned, and I'm going to list down some of them here.
Firstly, as an affiliate marketer, you do not have to bother about product delivery, as well as handling of transactions. Everything will be handled by the merchant. All you need to do as an affiliate is to send potential customers to the merchant's sales page, and when they buy, you'll receive responsibilities.
Secondly, the amount of commissions you receive is quite lucrative. For digital products (which are e-books, MP3 course, video training), your commission level ranges between 50% and 75%, while for physical products (such as computers, home appliances, furniture, etc.), your commission level ranges between 1% and 10%.
After discussing some advantages for the affiliates, now I am going to touch on some of the benefits for the merchants.
Firstly, as a merchant, you can save up the money that you will need to spend on marketing efforts, as the affiliates are already doing all these for you.
Secondly, you will be able to get even more sales for your products and services than you try and promote your own products and services yourself – meaning you will be able to get more profits.
To sum up, what I want to say is that, affiliate marketing is very lucrative for both the affiliate, as well as the merchant. Both parties are definitely in a win-win situation here.
I hope this article has given you a good insight on what affiliate marketing is about, as well as its advantages.