How Does Affiliate Marketing Work?

The Process Explained​

  1. Affiliate Enrollment: Businesses create an affiliate program and provide affiliates with unique tracking links.
  2. Promotion: Affiliates promote the merchant's products through various channels, including blogs, social media, and email marketing.
  3. Tracking Sales: When a consumer clicks on an affiliate link, a cookie is placed in their browser, allowing the merchant to track the sale or lead.
  4. Commission Payment: Once the sale is confirmed, the merchant pays the affiliate their commission, typically based on a percentage of the sale or a flat fee.

Affiliate Marketing Models​

There are several models in
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, including:

  • Pay-per-sale (PPS): Affiliates earn a commission for each sale made through their link.
  • Pay-per-click (PPC): Affiliates earn money for every click on their affiliate links, regardless of whether a sale is made.
  • Pay-per-lead (PPL): Affiliates earn a commission for generating leads, such as sign-ups or inquiries.
 

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