How Does Affiliate Marketing Work?

Affiliate marketing works by tracking the referral activities of affiliates through unique identifiers, typically embedded in links or cookies. Here’s how the process generally unfolds:

1. Affiliate Joins the Program: An individual or entity signs up for a company’s affiliate program and receives a unique referral link.
2. Promotion: The affiliate promotes the company’s products or services using the referral link on their website, blog, social media, email campaigns, or other marketing channels.
3. Customer Action: A customer clicks on the referral link and is directed to the company’s website. If the customer completes a purchase or performs a specified action (like signing up for a newsletter), the action is tracked.
4. Commission Earned: The affiliate program records the transaction, and the affiliate earns a commission based on the agreed-upon terms.
5. Payment: The affiliate receives payment according to the program’s payment schedule and method.

This system allows companies to expand their reach and affiliates to monetize their audience or traffic.