Affiliate marketing is a performance-based form of business where an individual or company promotes the product of a company for commission, based on sales or leads generated through their marketing efforts. In general, it has three important parties: the merchant or advertiser, the affiliate or publisher, and the customer.
How it works:
1. **Merchant**: The merchant is the company or person creating and distributing the product or service. In this part, unique tracking links along with marketing materials are provided to affiliates. 2. **The Affiliate**: This is the promoter who uses various strategies during the promotion rounds, such as blogging, using social media, email marketing, or even paid advertising to drive traffic to the merchant's website. Affiliates get paid a commission whenever a customer actually makes a purchase or completes an intended action with their referral link. 3. **The Customer**: This is the end-user who interacts with the affiliate promotional content and, preferably, performs the purchase or intended action on the merchant's website. Affiliate marketing is fruitful for all parties concerned. For merchants, they can reach wider circles and increase their sales with no initial advertising expenses. Affiliates are enabled to give passive income a try by using their platforms. Customers come across products or services which they otherwise may not have found. In all, it is a popular and flexible way to generate money online. It helps an individual create income from their content or marketing skill and helps the businesses to increase their customer base.
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