How Affiliate Marketing Works – Visualization

Hello Friends, Today I was looking around learning about How Affiliate Marketing works technically. Well in very simple terms, if we really look into “What is Affiliate Marketing”, we get simple answer – Its a referral commission, that you get when you refer a person from your Blog/Website to a merchant website and that person makes a purchase on that website.

Affiliate marketing Here is a Definition from Wikipedia –

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’sown marketing efforts.

How Affiliate Marketing Works in Technical Terms

Here is Step by Step Simplified Procedure:

First of all, lets view a very interesting Visualisation that I happen to see, while searching an answer to this Question –

How Affiliate Marketing Works

[Image provided courtesy of the Sugarrae affiliate marketing blog.]

So, basically most medium to big size merchants selling products and services over internal, setup Affiliate Programs.

Step 1:   Sign up for the affiliate program with the Merchant

Affiliate (one who wants to Refer and Earn; ie you) would sign up for the affiliate program with the Merchant. Once signed up, Merchant provides an affiliate link (Lets call it “The Link”)  to the Affiliate. “The Link” can be in the form of a Direct Link (URL), or a banner of different sizes.

Step 2: Place “The Link” on website or Blog

Now the affiliate can place “The Link” on his website or Blog, where he wants to mention the Merchant.

Step 3: The Customer Clicks on “The Link”

Now Jack (The Customer) comes to your website/Blog and Clicks on “The Link”, he is referred to the website of the customer and a cookie is placed on his computer.

Step 4: The Customer makes a purchase on the Merchant Website

Now if Jack (The Customer) makes a purchase on the Merchant Website, The Merchant is able to track the referring affiliate using cookie on Jack’s computer.

Step 5: Merchant Collect all the Referrals from all the Affiliates

Thus, The Merchant will collect all the referrals from all the Affiliates and push out their referral earnings at specific intervals, usually a month.

What is a Cookie: An HTTP cookie (also called web cookie, Internetcookie, browser cookie or simply cookie) is a small piece of data sent from a website and stored in the user’s web browser while the user is browsing.

I Hope, this article helped you to understand the technicalities behind affiliate Marketing.

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