How Affiliate Marketing Works for E-Commerce

Online entrepreneurs know how important marketing and promotion is when they intend to sell their products over the internet. That being said, one promotional model that they can use is affiliate marketing.

Simply put, this advertising model is where merchants will find independent internet marketers that will help do the promotion of their products and services for them. And, in so doing, these marketers will be given a percentage cut of the things that they help sell in the form of commissions.

Although it used to follow a pay-per-click scheme, commissions in affiliate marketing are given for every sale using an affiliate link. Therefore, it is now employing a performance-based model where the publisher will only gain money if they actually help sell the product to their audience.

How Affiliates Are Paid

Although there are still some people that use other payment schemes, the pay-per-sale model is actually one of the most commonly used models out there.

As mentioned above, pay-per-sale is where the affiliate marketer will only gain commissions if their audience clicks on the affiliate link and buys the product where the URL leads them.

Amazon, for example, uses an affiliate program where the marketer will gain some commissions based on a qualified sale. This is actually a pretty interesting concept and one that doesn’t have a clear definition.

What I mean is that it will entirely depend on the online merchant as they will be the ones to set the rules of what they can define as a qualified sale.

It is also important that online entrepreneurs tell their affiliates how they’re getting paid so that they won’t run into problems, especially if their affiliates want to dispute their non-payment.

So, what are the typical rules for it to deemed as a qualified sale? Well, here are some rules:

  • The marketer’s audience would click on an affiliate link given to them by the online merchant.
  • The person will then be directed to a specific product page and the potential customer must either pay out or add the item to the cart following the aforementioned click.
  • The customer should then head to the checkout (assuming that they have finished shopping).
  • It then only qualifies as a qualified sale if the product is purchased and never returned.

Affiliate Ads

Once the affiliate marketer knows the terms and conditions of the affiliate program, they are then tasked to promote the merchant’s products. They can actually do a lot of things in this regard, such as:

  • Creating Video Content and uploading it on Facebook, Youtube, or other social media and video platforms.
  • Posting banner ads directly on their website.
  • Posting on social media, especially with the intent of promoting the affiliate products.
  • Pay-per-click ads that are paid for by the merchant.

Managing Affiliates

When you are trying your hand as an affiliate marketer, it is important that you use various tools to help you with your job. Affiliate marketing software has plenty of different tools that can help ease your life as a publisher and some of the more robust ones require you to pay a little bit of money.

You might have to spend some of your personal money in acquiring these things, but I assure you that your journey as a marketer will be smooth-sailing right off the bat if you are using such programs.