What you need to know about affiliate marketing
What is an Affiliate?
The Word affiliate as it relates to a person would mean someone who is officially connected to an organization.
In Legal terms, An Affiliate means a corporation that is related to another corporation by one owning shares of the other, by common ownership, or by other means of control.
What is Affiliate Marketing?
Affiliate marketing is a type of performance-based marketing in which a company rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts. Usually, the affiliate marketer has a unique link which contains a customized ID which referrals click to make a purchase on whatever the company is selling.
The Affiliate Marketer is then paid commission by the company based on the number of referrals he/she is able to bring in through his link during a stipulated payment window.
Duration at which an affiliate marketer receives commission also vary based on product and service sold by the company. While some companies would pay lifetime commission on referrals some would pay for a fixed period.
For fixed period commission payment, Affiliate marketer ceases to receive anything of the referral once the fixed period lapses. E.g. For an affiliate system which has a 1 year payment of 30 percent on customers referred, the affiliate marketer would receive 30% of profit made on the number of customers he/she brings in for the first year with the company, afterward he ceases to receive anything on those customers, hence he has to bring in new customers.
Also, commission payment can be monthly, quarterly or even yearly. The affiliate marketer can only ask for commission payment based on the stipulated payment period agreement.
For many affiliate programs, resources to be used in promoting the company would usually be provided by the company. For example; if a marketer is interested in promoting Surebet247 ( a Nigerian Sports Betting Company), he would be assigned to an Affiliate manager who would supply him with promotional banners and tips on how to run a profitable affiliate marketing system.