Affiliate marketing is an online sales tactics which ensures the high sales. This type of marketing requires “affiliates” to function.
Affiliates is the target audience of a product owner which need to be shared with others in affiliate marketing. This practice helps the owner to earn commission by recommending the product to others. Affiliate Marketing also allows affiliates to earn profit without creating any product of their own.
More simply, “Affiliate marketing is one of the oldest forms of marketing wherein you refer someone to any online product and when that person buys the product based on your recommendation, you receive a commission”.
The cost to the customer purchasing the product or service through an affiliate is the same as buying directly from the product owner.
In affiliate marketing, the owners may be getting less profit per sale as they have to pay some percentage to the affiliate, but at the same time, these owners are able to reach much wider audience which they won’t be able to reach otherwise.
On the other hand, affiliates can earn one time commissions, as well as recurring income through affiliate marketing.