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What is affiliate marketing and how does it work?

Affiliate marketing is becoming increasingly popular, and not just with the world’s most famous social media influencers.

Read our in-depth guide to find out more about affiliate marketing for beginners, the best affiliate marketing examples, and the advertising rules you need to follow.

How does affiliate marketing work?

Affiliate marketing helps companies promote their products and services to a wider audience through partners with influence and a large online audience.

There are three main parties involved in affiliate marketing:

  • the seller or creator of the product/service (sometimes known as the merchant)

  • the publisher who promotes the product/service (the affiliate)

  • the consumer who engages with the seller following their interaction with an affiliate

If you promote products through affiliate marketing, there are three ways you can earn revenue:

  • pay per sale – getting paid every time a consumer buys a product or service after clicking your linking or using your code

  • pay per lead – earning revenue by creating leads for the seller, such as consumers signing up for newsletters or downloading free guides

  • pay per click – getting paid for diverting traffic to the seller’s website

As an affiliate, you’ll usually get paid once you generate a certain number of sales, leads, or clicks.

How to start affiliate marketing

Affiliate marketing is a popular way of earning passive income and it often starts as a side hustle. However, that’s not to say being an affiliate marketer can’t be a full-time job.

Firstly, you’ll need to decide how you’re going to promote products and services. You could do it via your YouTube channel, social media platforms, blogs, email newsletters, or a combination of them all.

Next, you’ll need to find the products to promote to your audience. You could target individual companies or join an…

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