marketing agency winchester

Understanding the power of affiliate marketing

20 January 2020

Adam Richards

Managing Director
marketing agency winchester

If you are looking for a way to build a successful online business or monetise your blog and web traffic, then Affiliate Marketing could be an effective strategy to drive more sales and generate an online revenue stream.

To help you understand what affiliate marketing means, how it works and the benefits of becoming an affiliate, we’ve put together a handy guide.

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What is Affiliate Marketing?

Affiliate marketing is a performance-based marketing strategy that allows you (the affiliate) to promote products from another company to your audience and create an additional source of income without having to create your own products and services. The concept of affiliate marketing is based on revenue sharing.

For example, you have an online content business but don’t sell any of your own products and are looking at ways to monetize your blog. Affiliate marketing offers you the opportunity to promote a product (that you feel will add value to your audience) on behalf of a merchant, like Amazon, and in turn you get to earn an income as an affiliate marketer.

How does Affiliate Marketing work?

Affiliate marketing works in 4 simple steps:

  1. You sign up on a merchants’ affiliate program

  2. A tracked link is used wherever you (the affiliate) promote the merchant’s product on your website

  3. A customer clicks on the product and the link takes the customer back to the merchants’ website

  4. A cookie is stored on the customers’ computer and when the merchant finds a cookie with an affiliate ID, you are paid a commission for the sale.

How Do Affiliate Marketers Get Paid?

As an affiliate marketer, there are various options you could get paid:

  • Pay per sale – The merchant pays you ( the affiliate) a percentage of the sale price of the product after the consumer purchases the product as a result of the affiliate’s marketing strategies. In other words, you will need to encourage the investor to invest in the product before you will be compensated.

  • Pay per lead – You will get paid based on the conversion of leads. You will need to persuade the consumer to visit the merchant’s website and complete the desired action such as filling out a contact form or subscribing to a newsletter.

  • Pay per click – This is to incentivise you to redirect customers to the merchant’s website and get paid based on the increase of web traffic.

The benefits of being an Affiliate Marketer

  • Passive income – Affiliate marketing requires an initial set up but offers you the ability to earn extra income where you could see continuous returns as consumers visit your blog and purchase the product over a period of time.

  • Cost-effective – Getting started as an affiliate marketer is relatively hassle-free. It requires no start-up costs, program fees or any need to create an elaborate marketing campaign. All you need is to sign up and start promoting products.

  • Performance based rewards – As an affiliate you will only get paid a commission once a sale has been made, which means the more you drive conversion the more you’ll earn. The best way to drive conversion is with engaging marketing campaigns.

  • Broadens your audience – Merchants with affiliate programs already have an established visitor base which will allow you to tap into new markets and expand your online presence.

  • Scales website traffic and sales – The more programs you join, the more opportunities there are to convert users into customers. In turn, more traffic to the products you offer on your website will boost your rankings and drive more direct and organic traffic to your brand.

Affiliate marketing can be a powerful tool to help expand your marketing efforts and take your brand to the next level.

If you are looking for a Hampshire based outsourced marketing agency to represent your company or need help in developing and delivering your marketing strategy, please get in touch at or call 01962 862760.

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