What is affiliate marketing ? 

This is a type of marketing in which the advertiser pays only if when obtaining results (clicks, leads, conversions, among others). Products are promoted on third-party or affiliate sites in exchange for a commission. Affiliate marketing emerged in 1996. It was created by the founder of Amazon as a way to link to other sellers’ sites in exchange for a commission. It benefits everyone involved in this process: 

Advertisers get more customers more easily and only pay for the results they get. This simplifies the way you manage your budget, ensuring a return on investment at all times. 

Affiliates obtain an economic benefit since they receive a commission for each result. This means that affiliate marketing is an alternative to monetize websites and blogs. 

The consumer also benefits from personalized recommendations. For example, you can learn how to use a certain product or service through a blogger’s explanation.

What is the role of cookies in affiliate marketing ?   

 Cookies are small files that are sent to the user’s hard drive by web pages and contain information about the user’s preferences and browsing patterns. In affiliate marketing, cookies are used to remember the behavior of Internet users;  for instance, the links they click on. In other words, they allow verifying how the user buys from the advertiser. When the user clicks on an affiliate’s link, which leads to the advertiser’s page, they get information about the affiliate, the ad they have visited, and the value of the commission. 

The process of affiliate marketing goes like this: 

• The affiliate enters into an agreement with the advertiser, in which they promote the products or services in exchange for a commission. 
• Every time the affiliate mentions the advertiser’s products or services on their website, it will incorporate an affiliate link. 
• The user visits the affiliate’s website and clicks on one of the links. At that time, a cookie is stored on your computer. 
• The user makes their purchase on the advertiser’s website. Upon completion of the process, the advertiser checks their computer for affiliate cookies . 
• When the affiliate cookie is found, the advertiser pays the corresponding commissions. 

If you want to learn more about affiliate marketing or related topics, the International Iberoamerican Universiy (UNIB Puerto Rico) offers the Master in Strategic Management with a specialty in Management. 

Photo: All rights reserved.

Source: What is affiliate marketing?